Exhibit 99.2 |
EARNINGS RELEASE FINANCIAL SUPPLEMENT
SECOND QUARTER 2022
TABLE OF CONTENTS
BALANCE SHEET DATA | S-2 |
AVERAGE BALANCE SHEET DATA | S-3 |
INCOME STATEMENT DATA | S-4 |
SELECTED DATA AND RATIOS | S-5 |
LOAN COMPOSITION | S-6 |
ALLOWANCE FOR CREDIT LOSSES ON LOANS | S-6 |
CREDIT QUALITY DATA AND RATIOS | S-7 |
SEGMENT DATA | S-8 |
FOOTNOTES | S-11 |
S-1
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
Balance Sheet Data | ||||||||||||||||||||
As of | ||||||||||||||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 795,143 | $ | 1,077,158 | $ | 756,971 | $ | 1,011,247 | $ | 747,007 | ||||||||||
Investment securities, net of allowance for credit losses | 655,296 | 614,836 | 542,045 | 543,449 | 573,027 | |||||||||||||||
Loans held for sale | 39,727 | 28,037 | 52,077 | 40,546 | 56,833 | |||||||||||||||
Loans | 4,362,233 | 4,390,243 | 4,496,562 | 4,343,806 | 4,554,221 | |||||||||||||||
Allowance for credit losses | (64,449 | ) | (71,656 | ) | (64,577 | ) | (63,024 | ) | (60,291 | ) | ||||||||||
Loans, net | 4,297,784 | 4,318,587 | 4,431,985 | 4,280,782 | 4,493,930 | |||||||||||||||
Federal Home Loan Bank stock, at cost | 10,311 | 10,311 | 10,311 | 10,311 | 11,670 | |||||||||||||||
Premises and equipment, net | 33,886 | 34,358 | 36,073 | 37,499 | 38,682 | |||||||||||||||
Right-of-use assets | 41,364 | 42,402 | 38,825 | 39,257 | 40,698 | |||||||||||||||
Goodwill | 16,300 | 16,300 | 16,300 | 16,300 | 16,300 | |||||||||||||||
Other real estate owned ("OREO") | 1,687 | 1,740 | 1,792 | 1,845 | 1,898 | |||||||||||||||
Bank owned life insurance ("BOLI") | 100,396 | 99,773 | 99,161 | 99,634 | 99,008 | |||||||||||||||
Other assets and accrued interest receivable | 120,582 | 106,367 | 108,092 | 106,764 | 104,257 | |||||||||||||||
Total assets | $ | 6,112,476 | $ | 6,349,869 | $ | 6,093,632 | $ | 6,187,634 | $ | 6,183,310 | ||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 2,094,436 | $ | 2,226,714 | $ | 1,990,781 | $ | 2,086,548 | $ | 2,062,433 | ||||||||||
Interest-bearing | 2,733,093 | 2,860,392 | 2,849,637 | 2,861,399 | 2,955,145 | |||||||||||||||
Total deposits | 4,827,529 | 5,087,106 | 4,840,418 | 4,947,947 | 5,017,578 | |||||||||||||||
Securities sold under agreements to | ||||||||||||||||||||
repurchase ("SSUAR") and other short-term borrowings | 303,315 | 287,818 | 290,967 | 260,583 | 142,895 | |||||||||||||||
Operating lease liabilities | 42,163 | 43,204 | 39,672 | 40,151 | 41,621 | |||||||||||||||
Federal Home Loan Bank advances | 20,000 | 20,000 | 25,000 | 25,000 | 25,000 | |||||||||||||||
Subordinated note | — | — | — | — | 41,240 | |||||||||||||||
Other liabilities and accrued interest payable | 77,295 | 71,412 | 63,343 | 75,296 | 69,886 | |||||||||||||||
Total liabilities | 5,270,302 | 5,509,540 | 5,259,400 | 5,348,977 | 5,338,220 | |||||||||||||||
Stockholders' equity | 842,174 | 840,329 | 834,232 | 838,657 | 845,090 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 6,112,476 | $ | 6,349,869 | $ | 6,093,632 | $ | 6,187,634 | $ | 6,183,310 |
S-2
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
Average Balance Sheet Data | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||
Federal funds sold and other interest-earning deposits | $ | 813,956 | $ | 861,822 | $ | 848,215 | $ | 924,859 | $ | 938,728 | $ | 837,757 | $ | 725,764 | ||||||||||||||
Investment securities, including FHLB stock | 691,427 | 606,182 | 540,227 | 555,934 | 562,509 | 649,040 | 563,243 | |||||||||||||||||||||
Loans, including loans held for sale | 4,339,432 | 4,355,255 | 4,385,547 | 4,404,270 | 4,546,747 | 4,347,299 | 4,645,662 | |||||||||||||||||||||
Total interest-earning assets | 5,844,815 | 5,823,259 | 5,773,989 | 5,885,063 | 6,047,984 | 5,834,096 | 5,934,669 | |||||||||||||||||||||
Allowance for credit losses | (72,037 | ) | (69,287 | ) | (63,711 | ) | (61,562 | ) | (74,258 | ) | (70,670 | ) | (70,390 | ) | ||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||
Noninterest-earning cash and cash equivalents | 172,382 | 354,165 | 137,556 | 140,037 | 144,327 | 262,772 | 196,793 | |||||||||||||||||||||
Premises and equipment, net | 34,322 | 35,460 | 37,055 | 38,377 | 39,119 | 34,888 | 39,152 | |||||||||||||||||||||
Bank owned life insurance | 100,152 | 99,532 | 99,978 | 99,386 | 97,257 | 99,844 | 82,837 | |||||||||||||||||||||
Other assets | 164,090 | 180,779 | 192,755 | 187,286 | 186,133 | 172,389 | 188,785 | |||||||||||||||||||||
Total assets | $ | 6,243,724 | $ | 6,423,908 | $ | 6,177,622 | $ | 6,288,587 | $ | 6,440,562 | $ | 6,333,319 | $ | 6,371,846 | ||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 2,779,941 | $ | 2,827,496 | $ | 2,857,403 | $ | 2,908,135 | $ | 3,020,168 | $ | 2,803,587 | $ | 2,964,900 | ||||||||||||||
SSUARs and other short-term borrowings | 294,388 | 300,169 | 318,785 | 242,867 | 169,888 | 297,263 | 181,216 | |||||||||||||||||||||
Federal Home Loan Bank advances | 20,000 | 23,333 | 25,000 | 25,000 | 25,000 | 21,657 | 34,033 | |||||||||||||||||||||
Subordinated note | — | — | — | 40,791 | 41,240 | — | 41,240 | |||||||||||||||||||||
Total interest-bearing liabilities | 3,094,329 | 3,150,998 | 3,201,188 | 3,216,793 | 3,256,296 | 3,122,507 | 3,221,389 | |||||||||||||||||||||
Noninterest-bearing liabilities and Stockholders’ equity: | ||||||||||||||||||||||||||||
Noninterest-bearing deposits | 2,197,300 | 2,313,549 | 2,028,910 | 2,118,200 | 2,226,070 | 2,255,104 | 2,186,274 | |||||||||||||||||||||
Other liabilities | 100,937 | 112,331 | 102,694 | 104,659 | 108,891 | 106,603 | 121,357 | |||||||||||||||||||||
Stockholders' equity | 851,158 | 847,030 | 844,830 | 848,935 | 849,305 | 849,105 | 842,826 | |||||||||||||||||||||
Total liabilities and stock-holders’ equity | $ | 6,243,724 | $ | 6,423,908 | $ | 6,177,622 | $ | 6,288,587 | $ | 6,440,562 | $ | 6,333,319 | $ | 6,371,846 |
S-3
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
Income Statement Data | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||||||||||||||||||||||
Total interest income (1) | $ | 52,320 | $ | 63,555 | $ | 51,379 | $ | 54,469 | $ | 51,815 | $ | 115,875 | $ | 121,458 | ||||||||||||||
Total interest expense | 1,088 | 943 | 1,038 | 1,340 | 1,511 | 2,031 | 3,288 | |||||||||||||||||||||
Net interest income | 51,232 | 62,612 | 50,341 | 53,129 | 50,304 | 113,844 | 118,170 | |||||||||||||||||||||
Provision for expected credit loss expense (2) | 3,705 | 9,226 | 2,577 | 1,292 | (4,323 | ) | 12,931 | 10,939 | ||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 3,363 | 3,226 | 3,332 | 3,277 | 3,071 | 6,589 | 5,944 | |||||||||||||||||||||
Net refund transfer fees | 3,950 | 12,051 | 326 | 1,280 | 5,923 | 16,001 | 18,644 | |||||||||||||||||||||
Mortgage banking income (3) | 1,763 | 2,657 | 3,339 | 5,280 | 4,182 | 4,420 | 11,375 | |||||||||||||||||||||
Interchange fee income | 3,461 | 3,070 | 3,291 | 3,263 | 3,481 | 6,531 | 6,508 | |||||||||||||||||||||
Program fees (3) | 3,885 | 3,854 | 4,668 | 4,018 | 3,342 | 7,739 | 5,551 | |||||||||||||||||||||
Increase in cash surrender value of BOLI | 623 | 612 | 626 | 626 | 600 | 1,235 | 990 | |||||||||||||||||||||
Net losses on OREO | (52 | ) | (53 | ) | (53 | ) | (52 | ) | (44 | ) | (105 | ) | (55 | ) | ||||||||||||||
Contract termination fee | — | 5,000 | — | — | — | 5,000 | — | |||||||||||||||||||||
Legal settlement | 13,000 | — | — | — | — | 13,000 | — | |||||||||||||||||||||
Other | 573 | 584 | 1,552 | 1,133 | 1,093 | 1,157 | 1,712 | |||||||||||||||||||||
Total noninterest income | 30,566 | 31,001 | 17,081 | 18,825 | 21,648 | 61,567 | 50,669 | |||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 28,896 | 29,312 | 26,350 | 26,991 | 27,410 | 58,208 | 56,747 | |||||||||||||||||||||
Technology, equipment, and communication | 7,229 | 7,214 | 7,342 | 7,498 | 7,444 | 14,443 | 14,511 | |||||||||||||||||||||
Occupancy | 3,224 | 3,440 | 3,188 | 3,195 | 3,251 | 6,664 | 6,810 | |||||||||||||||||||||
Marketing and development | 1,720 | 1,348 | 1,291 | 1,233 | 1,094 | 3,068 | 1,866 | |||||||||||||||||||||
FDIC insurance expense | 399 | 419 | 402 | 325 | 418 | 818 | 864 | |||||||||||||||||||||
Interchange related expense | 1,264 | 1,117 | 1,253 | 1,275 | 1,288 | 2,381 | 2,432 | |||||||||||||||||||||
Legal and professional fees | 804 | 1,365 | 1,360 | 884 | 1,466 | 2,169 | 2,680 | |||||||||||||||||||||
Other (2) | 4,117 | 4,358 | 3,850 | 3,034 | 3,343 | 8,475 | 7,685 | |||||||||||||||||||||
Total noninterest expense | 47,653 | 48,573 | 45,036 | 44,435 | 45,714 | 96,226 | 93,595 | |||||||||||||||||||||
Income before income tax expense | 30,440 | 35,814 | 19,809 | 26,227 | 30,561 | 66,254 | 64,305 | |||||||||||||||||||||
Income tax expense | 6,539 | 7,888 | 3,004 | 6,218 | 6,639 | 14,427 | 14,330 | |||||||||||||||||||||
Net income | $ | 23,901 | $ | 27,926 | $ | 16,805 | $ | 20,009 | $ | 23,922 | $ | 51,827 | $ | 49,975 |
S-4
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
Selected Data and Ratios | ||||||||||||||||||||||||||||
As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||||||||||||||||||||||
Per Share Data: | ||||||||||||||||||||||||||||
Basic weighted average shares outstanding | 20,107 | 20,145 | 20,270 | 20,508 | 20,894 | 20,131 | 20,951 | |||||||||||||||||||||
Diluted weighted average shares outstanding | 20,169 | 20,225 | 20,379 | 20,591 | 20,949 | 20,202 | 21,016 | |||||||||||||||||||||
Period-end shares outstanding: | ||||||||||||||||||||||||||||
Class A Common Stock | 17,629 | 17,834 | 17,816 | 18,040 | 18,421 | 17,629 | 18,421 | |||||||||||||||||||||
Class B Common Stock | 2,161 | 2,165 | 2,165 | 2,165 | 2,166 | 2,161 | 2,166 | |||||||||||||||||||||
Book value per share (4) | $ | 42.56 | $ | 42.02 | $ | 41.75 | $ | 41.51 | $ | 41.05 | $ | 42.56 | $ | 41.05 | ||||||||||||||
Tangible book value per share (4) | 41.26 | 40.73 | 40.48 | 40.26 | 39.85 | 41.26 | 39.85 | |||||||||||||||||||||
Earnings per share ("EPS"): | ||||||||||||||||||||||||||||
Basic EPS - Class A Common Stock | $ | 1.20 | $ | 1.40 | $ | 0.84 | $ | 0.99 | $ | 1.16 | $ | 2.60 | $ | 2.42 | ||||||||||||||
Basic EPS - Class B Common Stock | 1.09 | 1.27 | 0.77 | 0.90 | 1.05 | 2.37 | 2.20 | |||||||||||||||||||||
Diluted EPS - Class A Common Stock | 1.20 | 1.40 | 0.84 | 0.99 | 1.16 | 2.59 | 2.41 | |||||||||||||||||||||
Diluted EPS - Class B Common Stock | 1.09 | 1.27 | 0.76 | 0.90 | 1.05 | 2.36 | 2.19 | |||||||||||||||||||||
Cash dividends declared per Common share: | ||||||||||||||||||||||||||||
Class A Common Stock | $ | 0.341 | $ | 0.341 | $ | 0.308 | $ | 0.308 | $ | 0.308 | $ | 0.682 | $ | 0.616 | ||||||||||||||
Class B Common Stock | 0.310 | 0.310 | 0.280 | 0.280 | 0.280 | 0.620 | 0.560 | |||||||||||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||||
Return on average assets | 1.53 | % | 1.74 | % | 1.09 | % | 1.27 | % | 1.49 | % | 1.64 | % | 1.57 | % | ||||||||||||||
Return on average equity | 11.23 | 13.19 | 7.96 | 9.43 | 11.27 | 12.21 | 11.86 | |||||||||||||||||||||
Efficiency ratio (5) | 68 | 55 | 66 | 61 | 62 | 61 | 55 | |||||||||||||||||||||
Yield on average interest-earning assets (1) | 3.58 | 4.37 | 3.56 | 3.65 | 3.41 | 3.97 | 4.09 | |||||||||||||||||||||
Cost of average interest-bearing liabilities | 0.14 | 0.12 | 0.13 | 0.17 | 0.19 | 0.13 | 0.20 | |||||||||||||||||||||
Cost of average deposits (6) | 0.08 | 0.07 | 0.08 | 0.09 | 0.10 | 0.07 | 0.11 | |||||||||||||||||||||
Net interest spread (1) | 3.44 | 4.25 | 3.43 | 3.48 | 3.22 | 3.84 | 3.89 | |||||||||||||||||||||
Net interest margin - Total Company (1) | 3.51 | 4.30 | 3.49 | 3.56 | 3.33 | 3.90 | 3.98 | |||||||||||||||||||||
Net interest margin - Core Bank | 3.02 | 2.92 | 3.08 | 3.25 | 3.03 | 2.97 | 3.24 | |||||||||||||||||||||
Other Information: | ||||||||||||||||||||||||||||
End of period FTEs (7) - Total Company | 1,020 | 1,040 | 1,045 | 1,052 | 1,072 | 1,020 | 1,072 | |||||||||||||||||||||
End of period FTEs - Core Bank | 929 | 955 | 958 | 966 | 981 | 929 | 981 | |||||||||||||||||||||
Number of full-service banking centers | 42 | 42 | 42 | 42 | 42 | 42 | 42 |
S-5
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
Loan Composition and Allowance for Credit Losses on Loans | ||||||||||||||||||||
As of | ||||||||||||||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | ||||||||||||||||
Loan Composition | ||||||||||||||||||||
Traditional Banking: | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||
Owner occupied | $ | 832,137 | $ | 808,658 | $ | 820,731 | $ | 827,898 | $ | 852,947 | ||||||||||
Nonowner occupied | 313,534 | 314,933 | 306,323 | 294,818 | 289,290 | |||||||||||||||
Commercial real estate | 1,569,119 | 1,556,575 | 1,456,009 | 1,393,241 | 1,389,003 | |||||||||||||||
Construction & land development | 137,452 | 129,970 | 129,337 | 105,968 | 95,180 | |||||||||||||||
Commercial & industrial | 394,175 | 342,175 | 340,363 | 333,795 | 330,302 | |||||||||||||||
Paycheck Protection Program | 14,657 | 18,276 | 56,014 | 126,271 | 250,933 | |||||||||||||||
Lease financing receivables | 11,345 | 10,396 | 8,637 | 9,427 | 9,249 | |||||||||||||||
Aircraft | 159,958 | 151,284 | 142,894 | 130,398 | 121,112 | |||||||||||||||
Home equity | 214,069 | 210,364 | 210,578 | 215,282 | 217,621 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Credit cards | 15,419 | 14,654 | 14,510 | 14,781 | 14,754 | |||||||||||||||
Overdrafts | 901 | 716 | 683 | 753 | 717 | |||||||||||||||
Automobile loans | 9,579 | 11,846 | 14,448 | 17,533 | 21,190 | |||||||||||||||
Other consumer | 1,245 | 939 | 1,432 | 6,223 | 6,796 | |||||||||||||||
Total Traditional Banking | 3,673,590 | 3,570,786 | 3,501,959 | 3,476,388 | 3,599,094 | |||||||||||||||
Warehouse lines of credit | 596,678 | 690,200 | 850,550 | 750,682 | 840,155 | |||||||||||||||
Total Core Banking | 4,270,268 | 4,260,986 | 4,352,509 | 4,227,070 | 4,439,249 | |||||||||||||||
Republic Processing Group: | ||||||||||||||||||||
Tax Refund Solutions: | ||||||||||||||||||||
Easy Advances | — | 16,475 | — | — | — | |||||||||||||||
Other TRS loans | 149 | 25,132 | 50,987 | 25 | 23 | |||||||||||||||
Republic Credit Solutions | 91,816 | 87,650 | 93,066 | 116,711 | 114,949 | |||||||||||||||
Total Republic Processing Group | 91,965 | 129,257 | 144,053 | 116,736 | 114,972 | |||||||||||||||
Total loans - Total Company | $ | 4,362,233 | $ | 4,390,243 | $ | 4,496,562 | $ | 4,343,806 | $ | 4,554,221 |
Allowance for Credit Losses on Loans ("Allowance") | ||||||||||||||||||||
Traditional Banking | $ | 49,727 | $ | 49,616 | $ | 49,407 | $ | 49,487 | $ | 49,362 | ||||||||||
Warehouse Lending | 1,491 | 1,725 | 2,126 | 1,877 | 2,100 | |||||||||||||||
Total Core Banking | 51,218 | 51,341 | 51,533 | 51,364 | 51,462 | |||||||||||||||
Tax Refund Solutions | — | 8,370 | 96 | — | — | |||||||||||||||
Republic Credit Solutions | 13,231 | 11,945 | 12,948 | 11,660 | 8,829 | |||||||||||||||
Total Republic Processing Group | 13,231 | 20,315 | 13,044 | 11,660 | 8,829 | |||||||||||||||
Total Allowance - Total Company | $ | 64,449 | $ | 71,656 | $ | 64,577 | $ | 63,024 | $ | 60,291 |
Allowance to Total Loans | ||||||||||||||||||||
Traditional Banking | 1.35 | % | 1.39 | % | 1.41 | % | 1.42 | % | 1.37 | % | ||||||||||
Warehouse Lending | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | |||||||||||||||
Total Core Banking | 1.20 | 1.20 | 1.18 | 1.22 | 1.16 | |||||||||||||||
Tax Refund Solutions | — | 20.12 | 0.19 | — | — | |||||||||||||||
Republic Credit Solutions | 14.41 | 13.63 | 13.91 | 9.99 | 7.68 | |||||||||||||||
Total Republic Processing Group | 14.39 | 15.72 | 9.06 | 9.99 | 7.68 | |||||||||||||||
Total Company | 1.48 | 1.63 | 1.44 | 1.45 | 1.32 |
S-6
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
Credit Quality Data and Ratios | ||||||||||||||||||||||||||||
As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||||||||||||||||||||||
Credit Quality Asset Balances and Net Charge-off ("NCO") Data: | ||||||||||||||||||||||||||||
Nonperforming Assets - Total Company: | ||||||||||||||||||||||||||||
Loans on nonaccrual status | $ | 16,168 | $ | 16,935 | $ | 20,504 | $ | 20,252 | $ | 21,621 | $ | 16,168 | $ | 21,621 | ||||||||||||||
Loans past due 90-days-or-more and still on accrual | 42 | 31 | 48 | 691 | 723 | 42 | 723 | |||||||||||||||||||||
Total nonperforming loans | 16,210 | 16,966 | 20,552 | 20,943 | 22,344 | 16,210 | 22,344 | |||||||||||||||||||||
OREO | 1,687 | 1,740 | 1,792 | 1,845 | 1,898 | 1,687 | 1,898 | |||||||||||||||||||||
Total nonperforming assets | $ | 17,897 | $ | 18,706 | $ | 22,344 | $ | 22,788 | $ | 24,242 | $ | 17,897 | $ | 24,242 | ||||||||||||||
Nonperforming Assets - Core Bank: | �� | |||||||||||||||||||||||||||
Loans on nonaccrual status | $ | 16,168 | $ | 16,935 | $ | 20,504 | $ | 20,252 | $ | 21,621 | $ | 16,168 | $ | 21,621 | ||||||||||||||
Loans past due 90-days-or-more and still on accrual | — | — | 1 | — | — | — | — | |||||||||||||||||||||
Total nonperforming loans | 16,168 | 16,935 | 20,505 | 20,252 | 21,621 | 16,168 | 21,621 | |||||||||||||||||||||
OREO | 1,687 | 1,740 | 1,792 | 1,845 | 1,898 | 1,687 | 1,898 | |||||||||||||||||||||
Total nonperforming assets | $ | 17,855 | $ | 18,675 | $ | 22,297 | $ | 22,097 | $ | 23,519 | $ | 17,855 | $ | 23,519 | ||||||||||||||
Delinquent Loans: | ||||||||||||||||||||||||||||
Delinquent loans - Core Bank | $ | 5,352 | $ | 5,863 | $ | 7,430 | $ | 7,692 | $ | 9,909 | $ | 5,352 | $ | 9,909 | ||||||||||||||
RPG | 6,099 | 10,352 | 6,035 | 9,701 | 8,809 | 6,099 | 8,809 | |||||||||||||||||||||
Total delinquent loans - Total Company | $ | 11,451 | $ | 16,215 | $ | 13,465 | $ | 17,393 | $ | 18,718 | $ | 11,451 | $ | 18,718 | ||||||||||||||
NCOs (Recoveries) by Segment: | ||||||||||||||||||||||||||||
Traditional Bank | $ | (5 | ) | $ | 118 | $ | 175 | $ | (167 | ) | $ | (5 | ) | $ | 113 | $ | 377 | |||||||||||
Warehouse Lending loans | — | — | — | — | — | — | — | |||||||||||||||||||||
Core Bank loans | (5 | ) | 118 | 175 | (167 | ) | (5 | ) | 113 | 377 | ||||||||||||||||||
Tax Refund Solutions | 8,728 | (362 | ) | (1,263 | ) | (2,261 | ) | 10,256 | 8,366 | 10,269 | ||||||||||||||||||
Republic Credit Solutions | 2,149 | 2,398 | 2,119 | 989 | 518 | 4,547 | 1,191 | |||||||||||||||||||||
RPG | 10,877 | 2,036 | 856 | (1,272 | ) | 10,774 | 12,913 | 11,460 | ||||||||||||||||||||
Total NCOs (recoveries) - Total Company | $ | 10,872 | $ | 2,154 | $ | 1,031 | $ | (1,439 | ) | $ | 10,769 | $ | 13,026 | $ | 11,837 | |||||||||||||
Credit Quality Ratios - Total Company: | ||||||||||||||||||||||||||||
Nonperforming loans to total loans | 0.37 | % | 0.39 | % | 0.46 | % | 0.48 | % | 0.49 | % | 0.37 | % | 0.49 | % | ||||||||||||||
Nonperforming assets to total loans (including OREO) | 0.41 | 0.43 | 0.50 | 0.52 | 0.53 | 0.41 | 0.53 | |||||||||||||||||||||
Nonperforming assets to total assets | 0.29 | 0.29 | 0.37 | 0.37 | 0.39 | 0.29 | 0.39 | |||||||||||||||||||||
Allowance for credit losses to total loans | 1.48 | 1.63 | 1.44 | 1.45 | 1.32 | 1.48 | 1.32 | |||||||||||||||||||||
Allowance for credit losses to nonperforming loans | 398 | 422 | 314 | 301 | 270 | 398 | 270 | |||||||||||||||||||||
Delinquent loans to total loans (8) | 0.26 | 0.37 | 0.30 | 0.40 | 0.41 | 0.26 | 0.41 | |||||||||||||||||||||
NCOs (recoveries) to average loans (annualized) | 1.00 | 0.20 | 0.09 | (0.13 | ) | 0.95 | 0.60 | 0.51 | ||||||||||||||||||||
Credit Quality Ratios - Core Bank: | ||||||||||||||||||||||||||||
Nonperforming loans to total loans | 0.38 | % | 0.40 | % | 0.47 | % | 0.48 | % | 0.49 | % | 0.38 | % | 0.49 | % | ||||||||||||||
Nonperforming assets to total loans (including OREO) | 0.42 | 0.44 | 0.51 | 0.52 | 0.53 | 0.42 | 0.53 | |||||||||||||||||||||
Nonperforming assets to total assets | 0.32 | 0.33 | 0.40 | 0.39 | 0.42 | 0.32 | 0.42 | |||||||||||||||||||||
Allowance for credit losses to total loans | 1.20 | 1.20 | 1.18 | 1.22 | 1.16 | 1.20 | 1.16 | |||||||||||||||||||||
Allowance for credit losses to nonperforming loans | 317 | 303 | 251 | 254 | 238 | 317 | 238 | |||||||||||||||||||||
Delinquent loans to total loans | 0.13 | 0.14 | 0.17 | 0.18 | 0.22 | 0.13 | 0.22 | |||||||||||||||||||||
NCOs (recoveries) to average loans (annualized) | — | 0.01 | 0.02 | (0.02 | ) | — | 0.01 | 0.02 | ||||||||||||||||||||
TRS Easy Advances ("EAs") | ||||||||||||||||||||||||||||
EAs originated | $ | — | $ | 311,207 | $ | — | $ | — | $ | — | $ | 311,207 | $ | 250,045 | ||||||||||||||
Net (credit) charge to the Provision for EAs | 564 | 8,315 | (1,261 | ) | (2,242 | ) | (5,793 | ) | 8,879 | 10,226 | ||||||||||||||||||
Net Provision to YTD EAs originated | 0.18 | % | 2.67 | % | (0.50 | )% | (0.90 | )% | (2.32 | )% | 2.85 | % | 4.09 | % | ||||||||||||||
EAs NCOs (recoveries) | $ | 8,879 | $ | — | $ | (1,261 | ) | $ | (2,242 | ) | $ | 10,226 | $ | 8,879 | $ | 10,226 | ||||||||||||
EA NCOs (recoveries) to YTD EAs originated | 2.85 | % | — | % | (0.50 | )% | (0.90 | )% | 4.09 | % | 2.85 | % | 4.09 | % |
S-7
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022 (continued)
Segment Data:
Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar.
As of June 30, 2022, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking, Tax Refund Solutions (“TRS”), and Republic Credit Solutions (“RCS”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute Republic Processing Group (“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. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint. | Loans, refund transfers, and prepaid cards. | ||
Republic Credit Solutions | Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers. | Unsecured, consumer loans |
The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies in the Company’s 2021 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value.
S-8
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022 (continued)
Segment information for the quarters and six months ended June 30, 2022 and 2021 follows:
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Core Banking | Republic Processing Group | |||||||||||||||||||||||||||||||
Total | Tax | Republic | ||||||||||||||||||||||||||||||
Traditional | Warehouse | Mortgage | Core | Refund | Credit | Total | Total | |||||||||||||||||||||||||
(dollars in thousands) | Banking | Lending | Banking | Banking | Solutions | Solutions | RPG | Company | ||||||||||||||||||||||||
Net interest income | $ | 39,158 | $ | 3,886 | $ | 153 | $ | 43,197 | $ | 1,638 | $ | 6,397 | $ | 8,035 | $ | 51,232 | ||||||||||||||||
Provision for expected credit loss expense | 146 | (234 | ) | — | (88 | ) | 360 | 3,433 | 3,793 | 3,705 | ||||||||||||||||||||||
Net refund transfer fees | — | — | — | — | 3,950 | — | 3,950 | 3,950 | ||||||||||||||||||||||||
Mortgage banking income | — | — | 1,763 | 1,763 | — | — | — | 1,763 | ||||||||||||||||||||||||
Program fees | — | — | — | — | 736 | 3,149 | 3,885 | 3,885 | ||||||||||||||||||||||||
Legal settlement | — | — | — | — | 13,000 | — | 13,000 | 13,000 | ||||||||||||||||||||||||
Other noninterest income | 7,731 | 12 | 46 | 7,789 | 179 | — | 179 | 7,968 | ||||||||||||||||||||||||
Total noninterest income | 7,731 | 12 | 1,809 | 9,552 | 17,865 | 3,149 | 21,014 | 30,566 | ||||||||||||||||||||||||
Total noninterest expense | 38,314 | 1,035 | 2,832 | 42,181 | 3,533 | 1,939 | 5,472 | 47,653 | ||||||||||||||||||||||||
Income (loss) before income tax expense | 8,429 | 3,097 | (870 | ) | 10,656 | 15,610 | 4,174 | 19,784 | 30,440 | |||||||||||||||||||||||
Income tax expense (benefit) | 1,647 | 692 | (191 | ) | 2,148 | 3,465 | 926 | 4,391 | 6,539 | |||||||||||||||||||||||
Net income (loss) | $ | 6,782 | $ | 2,405 | $ | (679 | ) | $ | 8,508 | $ | 12,145 | $ | 3,248 | $ | 15,393 | $ | 23,901 | |||||||||||||||
Period-end assets | $ | 4,997,734 | $ | 596,031 | $ | 22,342 | $ | 5,616,107 | $ | 382,156 | $ | 114,213 | $ | 496,369 | $ | 6,112,476 | ||||||||||||||||
Net interest margin | 3.06 | % | 2.69 | % | NM | 3.02 | % | NM | NM | NM | 3.51 | % | ||||||||||||||||||||
Net-revenue concentration* | 57 | % | 5 | % | 2 | % | 64 | % | 24 | % | 12 | % | 36 | % | 100 | % |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Core Banking | Republic Processing Group | |||||||||||||||||||||||||||||||
Total | Tax | Republic | ||||||||||||||||||||||||||||||
Traditional | Warehouse | Mortgage | Core | Refund | Credit | Total | Total | |||||||||||||||||||||||||
(dollars in thousands) | Banking | Lending | Banking | Banking | Solutions | Solutions | RPG | Company | ||||||||||||||||||||||||
Net interest income | $ | 38,278 | $ | 6,324 | $ | 140 | $ | 44,742 | $ | 623 | $ | 4,939 | $ | 5,562 | $ | 50,304 | ||||||||||||||||
Provision for expected credit loss expense | (77 | ) | (65 | ) | — | (142 | ) | (5,773 | ) | 1,592 | (4,181 | ) | (4,323 | ) | ||||||||||||||||||
Net refund transfer fees | 2 | — | — | 2 | 5,921 | — | 5,921 | 5,923 | ||||||||||||||||||||||||
Mortgage banking income | — | — | 4,182 | 4,182 | — | — | — | 4,182 | ||||||||||||||||||||||||
Program fees | — | — | — | — | 715 | 2,627 | 3,342 | 3,342 | ||||||||||||||||||||||||
Other noninterest income | 7,970 | 14 | 50 | 8,034 | 167 | — | 167 | 8,201 | ||||||||||||||||||||||||
Total noninterest income | 7,972 | 14 | 4,232 | 12,218 | 6,803 | 2,627 | 9,430 | 21,648 | ||||||||||||||||||||||||
Total noninterest expense | 36,939 | 1,066 | 3,006 | 41,011 | 3,697 | 1,006 | 4,703 | 45,714 | ||||||||||||||||||||||||
Income before income tax expense | 9,388 | 5,337 | 1,366 | 16,091 | 9,502 | 4,968 | 14,470 | 30,561 | ||||||||||||||||||||||||
Income tax expense | 1,555 | 1,227 | 301 | 3,083 | 2,326 | 1,230 | 3,556 | 6,639 | ||||||||||||||||||||||||
Net income | $ | 7,833 | $ | 4,110 | $ | 1,065 | $ | 13,008 | $ | 7,176 | $ | 3,738 | $ | 10,914 | $ | 23,922 | ||||||||||||||||
Period-end assets | $ | 4,774,765 | $ | 840,083 | $ | 46,816 | $ | 5,661,664 | $ | 389,999 | $ | 131,647 | $ | 521,646 | $ | 6,183,310 | ||||||||||||||||
Net interest margin | 2.97 | % | 3.48 | % | NM | 3.03 | % | NM | NM | NM | 3.33 | % | ||||||||||||||||||||
Net-revenue concentration* | 64 | % | 9 | % | 6 | % | 79 | % | 10 | % | 11 | % | 21 | % | 100 | % |
_______________________
*Net revenues represent total net interest income plus noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue.
S-9
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Core Banking | Republic Processing Group | |||||||||||||||||||||||||||||||
Total | Tax | Republic | ||||||||||||||||||||||||||||||
Traditional | Warehouse | Mortgage | Core | Refund | Credit | Total | Total | |||||||||||||||||||||||||
(dollars in thousands) | Banking | Lending | Banking | Banking | Solutions | Solutions | RPG | Company | ||||||||||||||||||||||||
Net interest income | $ | 75,306 | $ | 8,401 | $ | 357 | $ | 84,064 | $ | 17,042 | $ | 12,738 | $ | 29,780 | $ | 113,844 | ||||||||||||||||
Provision for expected credit loss expense | 466 | (635 | ) | — | (169 | ) | 8,272 | 4,828 | 13,100 | 12,931 | ||||||||||||||||||||||
Net refund transfer fees | — | — | — | — | 16,001 | — | 16,001 | 16,001 | ||||||||||||||||||||||||
Mortgage banking income | — | — | 4,420 | 4,420 | — | — | — | 4,420 | ||||||||||||||||||||||||
Program fees | — | — | — | — | 1,463 | 6,276 | 7,739 | 7,739 | ||||||||||||||||||||||||
Contract termination fee | — | — | — | — | 5,000 | — | 5,000 | 5,000 | ||||||||||||||||||||||||
Legal settlement | — | — | — | — | 13,000 | — | 13,000 | 13,000 | ||||||||||||||||||||||||
Other noninterest income | 14,965 | 25 | 80 | 15,070 | 337 | — | 337 | 15,407 | ||||||||||||||||||||||||
Total noninterest income | 14,965 | 25 | 4,500 | 19,490 | 35,801 | 6,276 | 42,077 | 61,567 | ||||||||||||||||||||||||
Total noninterest expense | 76,533 | 1,987 | 5,522 | 84,042 | 8,678 | 3,506 | 12,184 | 96,226 | ||||||||||||||||||||||||
Income (loss) before income tax expense | 13,272 | 7,074 | (665 | ) | 19,681 | 35,893 | 10,680 | 46,573 | 66,254 | |||||||||||||||||||||||
Income tax expense (benefit) | 2,119 | 1,596 | (146 | ) | 3,569 | 8,371 | 2,487 | 10,858 | 14,427 | |||||||||||||||||||||||
Net income (loss) | $ | 11,153 | $ | 5,478 | $ | (519 | ) | $ | 16,112 | $ | 27,522 | $ | 8,193 | $ | 35,715 | $ | 51,827 | |||||||||||||||
Period-end assets | $ | 4,997,734 | $ | 596,031 | $ | 22,342 | $ | 5,616,107 | $ | 382,156 | $ | 114,213 | $ | 496,369 | $ | 6,112,476 | ||||||||||||||||
Net interest margin | 2.98 | % | 2.89 | % | NM | 2.97 | % | NM | NM | NM | 3.90 | % | ||||||||||||||||||||
Net-revenue concentration* | 51 | % | 5 | % | 3 | % | 59 | % | 30 | % | 11 | % | 41 | % | 100 | % |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Core Banking | Republic Processing Group | |||||||||||||||||||||||||||||||
Total | Tax | Republic | ||||||||||||||||||||||||||||||
Traditional | Warehouse | Mortgage | Core | Refund | Credit | Total | Total | |||||||||||||||||||||||||
(dollars in thousands) | Banking | Lending | Banking | Banking | Solutions | Solutions | RPG | Company | ||||||||||||||||||||||||
Net interest income | $ | 79,380 | $ | 13,096 | $ | 549 | $ | 93,025 | $ | 15,299 | $ | 9,846 | $ | 25,145 | $ | 118,170 | ||||||||||||||||
Provision for expected credit loss expense | (82 | ) | (307 | ) | — | (389 | ) | 10,111 | 1,217 | 11,328 | 10,939 | |||||||||||||||||||||
Net refund transfer fees | 2 | — | — | 2 | 18,642 | — | 18,642 | 18,644 | ||||||||||||||||||||||||
Mortgage banking income | — | — | 11,375 | 11,375 | — | — | — | 11,375 | ||||||||||||||||||||||||
Program fees | — | — | — | — | 1,611 | 3,940 | 5,551 | 5,551 | ||||||||||||||||||||||||
Other noninterest income | 14,754 | 28 | 78 | 14,860 | 239 | — | 239 | 15,099 | ||||||||||||||||||||||||
Total noninterest income | 14,756 | 28 | 11,453 | 26,237 | 20,492 | 3,940 | 24,432 | 50,669 | ||||||||||||||||||||||||
Total noninterest expense | 74,267 | 2,094 | 6,127 | 82,488 | 8,999 | 2,108 | 11,107 | 93,595 | ||||||||||||||||||||||||
Income before income tax expense | 19,951 | 11,337 | 5,875 | 37,163 | 16,681 | 10,461 | 27,142 | 64,305 | ||||||||||||||||||||||||
Income tax expense | 3,680 | 2,661 | 1,293 | 7,634 | 4,096 | 2,600 | 6,696 | 14,330 | ||||||||||||||||||||||||
Net income | $ | 16,271 | $ | 8,676 | $ | 4,582 | $ | 29,529 | $ | 12,585 | $ | 7,861 | $ | 20,446 | $ | 49,975 | ||||||||||||||||
Period-end assets | $ | 4,774,765 | $ | 840,083 | $ | 46,816 | $ | 5,661,664 | $ | 389,999 | $ | 131,647 | $ | 521,646 | $ | 6,183,310 | ||||||||||||||||
Net interest margin | 3.21 | % | 3.45 | % | NM | 3.24 | % | NM | NM | NM | 3.98 | % | ||||||||||||||||||||
Net-revenue concentration* | 56 | % | 8 | % | 7 | % | 71 | % | 21 | % | 8 | % | 29 | % | 100 | % |
___________________
*Net revenues represent total net interest income plus noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue.
S-10
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second Quarter 2022 (continued)
Footnotes:
(1) | The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The following table presents the Company’s loan fees by segment: |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
(dollars in thousands) | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||||||||||||||||||||
Traditional Bank excluding PPP fees | $ | 1,545 | $ | 1,451 | $ | 1,126 | $ | 1,152 | $ | 963 | $ | 2,996 | $ | 1,858 | ||||||||||||||
Traditional Bank - PPP fees | 124 | 879 | 2,850 | 5,182 | 3,676 | 1,003 | 9,433 | |||||||||||||||||||||
Warehouse Lending | 500 | 574 | 662 | 779 | 789 | 1,074 | 1,660 | |||||||||||||||||||||
Total Core Bank | 2,169 | 2,904 | 4,638 | 7,113 | 5,428 | 5,073 | 12,951 | |||||||||||||||||||||
TRS - Easy Advances | 81 | 13,444 | 43 | 76 | 294 | 13,525 | 13,083 | |||||||||||||||||||||
TRS - Other Loan Fees | 2 | 662 | — | — | 4 | 664 | 1,656 | |||||||||||||||||||||
RCS | 5,782 | 5,702 | 5,695 | 4,862 | 3,832 | 11,484 | 7,688 | |||||||||||||||||||||
Total RPG | 5,865 | 19,808 | 5,738 | 4,938 | 4,130 | 25,673 | 22,427 | |||||||||||||||||||||
Total loan fees - Total Company | $ | 8,034 | $ | 22,712 | $ | 10,376 | $ | 12,051 | $ | 9,558 | $ | 30,746 | $ | 35,378 |
(2) | Provision for expected credit loss expense includes provisions for losses on on-balance sheet loans and investment securities. Provision expense for off-balance sheet credit exposures is a component of “Other” noninterest expense. |
(3) | 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. Gains on sale of mortgage loans are recorded as a component of Mortgage Banking income. Gains on sale of consumer loans are recorded as a component of Program Fees. |
As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
(dollars in thousands) | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||||||||||||||||||||
Mortgage Loans Held for Sale | ||||||||||||||||||||||||||||
Balance, beginning of period | $ | 13,302 | $ | 29,393 | $ | 25,791 | $ | 32,401 | $ | 63,636 | $ | 29,393 | $ | 46,867 | ||||||||||||||
Originations | 61,489 | 100,661 | 155,468 | 170,482 | 141,177 | 162,150 | 354,764 | |||||||||||||||||||||
Proceeds from sales | (67,759 | ) | (119,212 | ) | (155,186 | ) | (182,422 | ) | (176,424 | ) | (186,971 | ) | (380,239 | ) | ||||||||||||||
Net gain on sale | 1,459 | 2,460 | 3,320 | 5,330 | 4,012 | 3,919 | 11,009 | |||||||||||||||||||||
Balance, end of period | $ | 8,491 | $ | 13,302 | $ | 29,393 | $ | 25,791 | $ | 32,401 | $ | 8,491 | $ | 32,401 | ||||||||||||||
RCS Consumer Loans Held for Sale | ||||||||||||||||||||||||||||
Balance, beginning of period | $ | 14,735 | $ | 22,684 | $ | 14,755 | $ | 24,432 | $ | 15,671 | $ | 22,684 | $ | 4,776 | ||||||||||||||
Originations | 282,782 | 245,214 | 321,118 | 257,018 | 186,771 | 527,996 | 304,045 | |||||||||||||||||||||
Proceeds from sales | (269,429 | ) | (256,280 | ) | (316,597 | ) | (270,463 | ) | (180,826 | ) | (525,709 | ) | (288,510 | ) | ||||||||||||||
Net gain on sale | 3,148 | 3,117 | 3,408 | 3,768 | 2,816 | 6,265 | 4,121 | |||||||||||||||||||||
Balance, end of period | $ | 31,236 | $ | 14,735 | $ | 22,684 | $ | 14,755 | $ | 24,432 | $ | 31,236 | $ | 24,432 | ||||||||||||||
S-11
(4) | The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity in accordance with applicable regulatory requirements, a non-GAAP disclosure. The Company provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy. |
As of | ||||||||||||||||||||
(dollars in thousands, except per share data) | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | |||||||||||||||
Total stockholders' equity - GAAP (a) | $ | 842,174 | $ | 840,329 | $ | 834,232 | $ | 838,657 | $ | 845,090 | ||||||||||
Less: Goodwill | 16,300 | 16,300 | 16,300 | 16,300 | 16,300 | |||||||||||||||
Less: Mortgage servicing rights | 9,407 | 9,502 | 9,196 | 8,867 | 8,335 | |||||||||||||||
Tangible stockholders' equity - Non-GAAP (c) | $ | 816,467 | $ | 814,527 | $ | 808,736 | $ | 813,490 | $ | 820,455 | ||||||||||
Total assets - GAAP (b) | $ | 6,112,476 | $ | 6,349,869 | $ | 6,093,632 | $ | 6,187,634 | $ | 6,183,310 | ||||||||||
Less: Goodwill | 16,300 | 16,300 | 16,300 | 16,300 | 16,300 | |||||||||||||||
Less: Mortgage servicing rights | 9,407 | 9,502 | 9,196 | 8,867 | 8,335 | |||||||||||||||
Tangible assets - Non-GAAP (d) | $ | 6,086,769 | $ | 6,324,067 | $ | 6,068,136 | $ | 6,162,467 | $ | 6,158,675 | ||||||||||
Total stockholders' equity to total assets - GAAP (a/b) | 13.78 | % | 13.23 | % | 13.69 | % | 13.55 | % | 13.67 | % | ||||||||||
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d) | 13.41 | % | 12.88 | % | 13.33 | % | 13.20 | % | 13.32 | % | ||||||||||
Number of shares outstanding (e) | 19,790 | 19,999 | 19,981 | 20,205 | 20,587 | |||||||||||||||
Book value per share - GAAP (a/e) | $ | 42.56 | $ | 42.02 | $ | 41.75 | $ | 41.51 | $ | 41.05 | ||||||||||
Tangible book value per share - Non-GAAP (c/e) | 41.26 | 40.73 | 40.48 | 40.26 | 39.85 |
(5) | The efficiency ratio, a non-GAAP measure with no GAAP comparable, equals total noninterest expense divided by the sum of net interest income and noninterest income. The ratio excludes a non-recurring contract termination fee and net gains (losses) on sales, calls, and impairment of investment securities. |
Three Months Ended | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||
(dollars in thousands) | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||||||||||||||||||||
Net interest income - GAAP | $ | 51,232 | $ | 62,612 | $ | 50,341 | $ | 53,129 | $ | 50,304 | $ | 113,844 | $ | 118,170 | ||||||||||||||
Noninterest income - GAAP | 30,566 | 31,001 | 17,081 | 18,825 | 21,648 | 61,567 | 50,669 | |||||||||||||||||||||
Less: Contract termination fee related to TRS Transaction | — | 5,000 | — | — | — | 5,000 | — | |||||||||||||||||||||
Less: Legal settlement related to TRS Transaction | 13,000 | — | — | — | — | 13,000 | — | |||||||||||||||||||||
Less: Net gain (loss) on securities | (102 | ) | (120 | ) | (23 | ) | (10 | ) | (1 | ) | (222 | ) | (35 | ) | ||||||||||||||
Total adjusted income - Non-GAAP (a) | $ | 68,900 | $ | 88,733 | $ | 67,445 | $ | 71,964 | $ | 71,953 | $ | 157,633 | $ | 168,874 | ||||||||||||||
Noninterest expense - GAAP | $ | 47,653 | $ | 48,573 | $ | 45,036 | $ | 44,435 | $ | 45,714 | $ | 96,226 | $ | 93,595 | ||||||||||||||
Less: Expenses related to TRS Transaction | 699 | 127 | 611 | 300 | 1,000 | 826 | 1,000 | |||||||||||||||||||||
Adjusted noninterest expense - Non-GAAP (b) | $ | 46,954 | $ | 48,446 | $ | 44,425 | $ | 44,135 | $ | 44,714 | $ | 95,400 | $ | 92,595 | ||||||||||||||
Efficiency Ratio - Non-GAAP (b/a) | 68 | % | 55 | % | 66 | % | 61 | % | 62 | % | 61 | % | 55 | % | ||||||||||||||
(6) | The cost of average deposits ratio equals annualized total interest expense on deposits divided by total average interest-bearing deposits plus total average noninterest-bearing deposits. |
(7) | FTEs – Full-time-equivalent employees. |
(8) | The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due. Delinquent loans as of March 31, 2022 included $4.7 million of Easy Advances, which do not have a contractual due date but the Company considered an EA delinquent in 2022 if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. |
NM – Not meaningful
NA – Not applicable
YTD – Year to date
CONTACT:
Republic Bancorp, Inc.
Kevin Sipes
Executive Vice President & Chief Financial Officer
(502) 560-8628
S-12