Republic Bancorp (RBCAA) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Entity Registrant Name	REPUBLIC BANCORP INC /KY/
Entity Central Index Key	921,557
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Class A Common Stock
Entity Common Stock, Shares Outstanding		18,615,412
Class B Common Stock
Entity Common Stock, Shares Outstanding		2,242,965

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 332,695	$ 289,309
Securities available for sale	464,525	481,275
Securities held to maturity (fair value of $61,594 in 2017 and $53,249 in 2016)	61,159	52,864
Mortgage loans held for sale, at fair value	6,057	11,662
Consumer loans held for sale, at fair value	3,235	2,198
Consumer loans held for sale, at the lower of cost or fair value	2,464	1,310
Loans	3,916,320	3,810,778
Allowance for loan and lease losses	(37,898)	(32,920)
Loans, net	3,878,422	3,777,858
Federal Home Loan Bank stock, at cost	32,067	28,208
Premises and equipment, net	44,255	42,869
Goodwill	16,300	16,300
Other real estate owned	300	1,391
Bank owned life insurance	62,578	61,794
Other assets and accrued interest receivable	51,604	49,271
TOTAL ASSETS	4,955,661	4,816,309
Deposits:
Noninterest-bearing	1,061,637	971,952
Interest-bearing	2,072,301	2,188,740
Total deposits	3,133,938	3,160,692
Securities sold under agreements to repurchase and other short-term borrowings	113,334	173,473
Federal Home Loan Bank advances	1,002,500	802,500
Subordinated note	41,240	41,240
Other liabilities and accrued interest payable	37,758	33,998
Total liabilities	4,328,770	4,211,903
Commitments and contingent liabilities (Footnote 9)
STOCKHOLDERS' EQUITY
Preferred stock, no par value
Class A Common Stock and Class B Common Stock, no par value	4,904	4,906
Additional paid in capital	139,023	138,192
Retained earnings	481,412	460,621
Accumulated other comprehensive income	1,552	687
Total stockholders' equity	626,891	604,406
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 4,955,661	$ 4,816,309

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Securities held to maturity, fair value (in dollars)	$ 61,594	$ 53,249
Preferred stock, no par value	$ 0	$ 0
Class A Common Stock
Common Stock, no par value	0	0
Class B Common Stock
Common Stock, no par value	$ 0	$ 0

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INTEREST INCOME:
Loans, including fees	$ 44,735	$ 37,746	$ 102,739	$ 79,175
Taxable investment securities	2,391	1,983	4,546	3,875
Federal Home Loan Bank stock and other	695	411	1,419	1,105
Total interest income	47,821	40,140	108,704	84,155
INTEREST EXPENSE:
Deposits	2,324	1,347	4,203	2,739
Securities sold under agreements to repurchase and other short-term borrowings	146	15	171	40
Federal Home Loan Bank advances	1,943	2,973	4,235	5,926
Subordinated note	271	228	520	439
Total interest expense	4,684	4,563	9,129	9,144
NET INTEREST INCOME	43,137	35,577	99,575	75,011
Provision for loan and lease losses	5,061	1,814	17,412	7,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES	38,076	33,763	82,163	68,011
NONINTEREST INCOME:
Service charges on deposit accounts	3,390	3,282	6,637	6,422
Net refund transfer fees	2,770	1,909	18,152	18,987
Mortgage banking income	1,445	1,560	2,605	2,821
Interchange fee income	2,547	2,217	4,873	4,340
Program fees	1,284	664	2,375	963
Increase in cash surrender value of bank owned life insurance	393	369	784	708
Net gains on other real estate owned	249	80	391	328
Other	849	721	2,033	1,154
Total noninterest income	12,927	10,802	37,850	35,723
NONINTEREST EXPENSES:
Salaries and employee benefits	20,015	17,814	41,226	34,897
Occupancy and equipment, net	5,903	5,109	11,870	10,528
Communication and transportation	939	872	2,211	1,945
Marketing and development	1,409	1,190	2,413	1,697
FDIC insurance expense	300	480	750	1,138
Bank franchise tax expense	790	647	3,225	3,098
Data processing	1,695	1,543	3,347	2,876
Interchange related expense	1,071	1,047	2,129	1,951
Supplies	261	240	788	689
Other real estate owned expense	132	116	229	196
Legal and professional fees	596	604	1,348	1,427
Other	2,623	2,204	5,137	3,965
Total noninterest expenses	35,734	31,866	74,673	64,407
Income before income tax expense	15,269	12,699	45,340	39,327
INCOME TAX EXPENSE	5,198	4,359	15,252	13,252
NET INCOME	$ 10,071	$ 8,340	$ 30,088	$ 26,075
Class A Common Stock
BASIC EARNINGS PER SHARE:
Basic earnings per share (in dollars per share)	$ 0.48	$ 0.40	$ 1.45	$ 1.26
DILUTED EARNINGS PER SHARE:
Diluted earnings per share (in dollars per share)	0.48	0.40	1.45	1.26
DIVIDENDS DECLARED PER COMMON SHARE:
Dividend declared per common share (in dollars per share)	0.220	0.209	0.429	0.407
Class B Common Stock
BASIC EARNINGS PER SHARE:
Basic earnings per share (in dollars per share)	0.44	0.37	1.32	1.14
DILUTED EARNINGS PER SHARE:
Diluted earnings per share (in dollars per share)	0.44	0.37	1.32	1.14
DIVIDENDS DECLARED PER COMMON SHARE:
Dividend declared per common share (in dollars per share)	$ 0.200	$ 0.190	$ 0.390	$ 0.370

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 10,071	$ 8,340	$ 30,088	$ 26,075
OTHER COMPREHENSIVE INCOME
Change in fair value of derivatives used for cash flow hedges	(104)	(219)	(76)	(790)
Reclassification amount for derivative losses realized in income	58	86	124	173
Change in unrealized gain (loss) on securities available for sale	423	416	1,129	2,708
Change in unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings	101	1	154	(148)
Net unrealized gains	478	284	1,331	1,943
Tax effect	(167)	(97)	(466)	(677)
Total other comprehensive income, net of tax	311	187	865	1,266
COMPREHENSIVE INCOME	$ 10,382	$ 8,527	$ 30,953	$ 27,341

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common StockClass A Common Stock	Common StockClass B Common Stock	Common Stock	Additional Paid In Capital.Class A Common Stock	Additional Paid In Capital.	Retained EarningsClass A Common Stock	Retained EarningsClass B Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Class A Common Stock	Class B Common Stock	Total
Balance at beginning of period at Dec. 31, 2015									$ 2,049
Increase (Decrease) in Stockholders' Equity
Net income												$ 26,075
Net change in accumulated other comprehensive income									1,266			1,266
Balance at end of period at Jun. 30, 2016									3,315
Balance at beginning of period at Dec. 31, 2015									2,049
Balance at end of period at Dec. 31, 2016			$ 4,906		$ 138,192			$ 460,621	687			604,406
Balance (in shares) at Dec. 31, 2016	18,615	2,245
Increase (Decrease) in Stockholders' Equity
Net income								30,088				30,088
Net change in accumulated other comprehensive income									865			865
Dividends declared Common Stock:
Dividends declared Common Stock						$ (7,986)	$ (876)			$ (7,986)	$ (876)
Stock options exercised, net of shares redeemed					33							33
Stock options exercised, net of shares redeemed (in shares)	2
Repurchase of Class A Common Stock	$ (2)			$ (107)		$ (435)				(544)
Repurchase of Class A Common Stock (in shares)	(13)
Conversion of Class B Common Stock to Class A Common Stock (in shares)	2	(2)
Net change in notes receivable on Class A Common Stock				154						154
Deferred director compensation expense - Class A Common Stock				$ 96						$ 96
Deferred director compensation expense - Class A Common Stock (in shares)	5
Stock based compensation expense - performance stock units					237							237
Stock based compensation - restricted stock					292							292
Stock based compensation - restricted stock (in shares)	7
Stock based compensation expense - stock options					126							126
Balance at end of period at Jun. 30, 2017			$ 4,904		$ 139,023			$ 481,412	$ 1,552			$ 626,891
Balance (in shares) at Jun. 30, 2017	18,618	2,243

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES:
Net income	$ 30,088	$ 26,075
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization on investment securities, net	208	279
Accretion on loans deposits and core deposit intangible net	(1,442)	(1,301)
Depreciation of premises and equipment	4,264	3,465
Amortization of mortgaging servicing rights	714	683
Provision for loan and lease losses	17,412	7,000
Net gain on sale of mortgage loans held for sale	(2,256)	(2,560)
Origination of mortgage loans held for sale	(75,776)	(95,787)
Proceeds from sale of mortgage loans held for sale	83,637	90,150
Net gain on sale of consumer loans held for sale	(2,334)	(839)
Origination of consumer loans held for sale	(274,963)	(129,027)
Proceeds from sale of consumer loans held for sale	275,106	122,432
Net gain realized on sale of other real estate owned	(470)	(328)
Writedowns of other real estate owned	79
Deferred director compensation expense - Class A Common Stock	96	100
Stock based compensation expense	655	497
Increase in cash surrender value of bank owned life insurance	(784)	(708)
Net change in other assets and liabilities:
Accrued interest receivable	(219)	(174)
Accrued interest payable	(106)	12
Other assets	(3,076)	211
Other liabilities	3,330	(2,731)
Net cash provided by operating activities	54,163	17,449
INVESTING ACTIVITIES:
Net change in cash for acquisition of Cornerstone Bancorp, Inc.		(9,088)
Purchases of securities available for sale	(64,390)	(390,079)
Purchases of securities held to maturity	(10,096)
Proceeds from calls, maturities and paydowns of securities available for sale	82,224	394,575
Proceeds from calls, maturities and paydowns of securities held to maturity	1,792	2,866
Net change in outstanding warehouse lines of credit	(15,191)	(199,348)
Purchase of non-business acquisition loans, including premiums paid	(2,656)	(47,986)
Net change in other loans	(98,899)	(7,726)
Proceeds from redemption of Federal Home Loan Bank stock		224
Purchase of Federal Home Loan Bank stock	(3,859)
Proceeds from sales of other real estate owned	1,954	1,727
Net purchases of premises and equipment	(5,650)	(3,088)
Net cash used in investing activities	(114,771)	(257,923)
FINANCING ACTIVITIES:
Net change in deposits	(26,754)	163,899
Net change in securities sold under agreements to repurchase and other short-term borrowings	(60,139)	(269,309)
Payments of Federal Home Loan Bank advances	(450,000)	(207,000)
Proceeds from Federal Home Loan Bank advances	650,000	495,000
Repurchase of Class A Common Stock	(544)	(1,134)
Net proceeds from Class A Common Stock options exercised	33	80
Cash dividends paid	(8,602)	(8,165)
Net cash provided by financing activities	103,994	173,371
NET CHANGE IN CASH AND CASH EQUIVALENTS	43,386	(67,103)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	289,309	210,082
CASH AND CASH EQUIVALENTS AT END OF PERIOD	332,695	142,979
Cash paid during the period for:
Interest	9,235	9,115
Income taxes	13,420	12,771
SUPPLEMENTAL NONCASH DISCLOSURES:
Transfers from loans to real estate acquired in settlement of loans	$ 472	1,938
Transfers from loans held for investment to held for sale		74,430
Loans provided for sales of other real estate owned		$ 256

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — The consolidated financial statements include the accounts of Republic Bancorp, Inc. (the “Parent Company”) and its wholly-owned subsidiaries, Republic Bank & Trust Company (“RB&T” or the “Bank”) and Republic Insurance Services, Inc. (the “Captive”). All significant intercompany balances and transactions are eliminated in consolidation. All companies are collectively referred to as (“Republic” or the “Company”). The Bank is a Kentucky-based, state chartered non-member financial institution that provides both traditional and non-traditional banking products through four distinct operating segments using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery channels allow it to reach clients across the United States. The Captive is a Nevada-based, wholly-owned insurance subsidiary of the Company. The Captive provides property and casualty insurance coverage to the Company and the Bank as well as a group of third-party insurance captives for which insurance may not be available or economically feasible. Republic Bancorp Capital Trust (“RBCT”) is a Delaware statutory business trust that is a wholly-owned unconsolidated finance subsidiary of Republic Bancorp, Inc. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and footnotes thereto included in Republic’s Form 10-K for the year ended December 31, 2016. As of June 30, 2017, the Company was divided into four distinct operating segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking and Republic Processing Group (“RPG”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” activities. Correspondent Lending operations and the Company’s national branchless banking platform, MemoryBank ® , are considered part of the Traditional Banking segment. The RPG segment includes the following divisions: Tax Refund Solutions (“TRS”), Republic Credit Solutions (“RCS”) and Republic Payment Solutions (“RPS”). TRS generates the majority of RPG’s income, with the relatively smaller divisions of RPG, RCS and RPS, considered immaterial for separate and independent segment reporting. All divisions of the RPG segment operate through the Bank. Core Banking (includes Traditional Banking, Warehouse Lending and Mortgage Banking segments) The Traditional Banking segment provides traditional banking products primarily to customers in the Company’s market footprint. As of June 30, 2017, Republic had 45 full-service banking centers and one loan production office (“LPO”) with locations as follows:  Kentucky — 33  Metropolitan Louisville — 19  Central Kentucky — 9  Elizabethtown — 1  Frankfort — 1  Georgetown — 1  Lexington — 5  Shelbyville — 1  Western Kentucky — 2  Owensboro — 2  Northern Kentucky — 3  Covington — 1  Florence — 1  Independence — 1  Southern Indiana — 3  Floyds Knobs — 1  Jeffersonville — 1  New Albany — 1  Metropolitan Tampa, Florida — 6  Metropolitan Cincinnati, Ohio — 1  Metropolitan Nashville, Tennessee — 3* *Includes one LPO Republic’s headquarters are located in Louisville, which is the largest city in Kentucky based on population. Core 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 Core 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. Federal Home Loan Bank (“FHLB”) advances have traditionally been a significant borrowing source for the Bank. Other sources of Core Banking income include service charges on deposit accounts, debit and credit card interchange fee income, title insurance commissions, fees charged to clients for trust services, increases in the cash surrender value of Bank Owned Life Insurance (“BOLI”) and revenue generated from Mortgage Banking activities. Mortgage Banking activities represent both the origination and sale of loans in the secondary market and the servicing of loans for others, primarily the Federal Home Loan Mortgage Corporation (“Freddie Mac” or “FHLMC”) and the Federal National Mortgage Association (“Fannie Mae” or “FNMA”). Core Banking operating expenses consist primarily of salaries and employee benefits, occupancy and equipment expenses, communication and transportation costs, data processing, interchange related expenses, marketing and development expenses, Federal Deposit Insurance Corporation (“FDIC”) insurance expense, franchise tax expense and various other general and administrative costs. Core 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. Through its Warehouse Lending segment, the Core Bank provides short-term, revolving credit facilities to mortgage bankers across the United States through mortgage warehouse lines of credit. These credit facilities are primarily secured by single family, first lien residential real estate loans. The credit facility enables the mortgage banking clients to close single family, first lien residential real estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank or purchased by the Bank through its Correspondent Lending channel. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days. Reverse mortgage loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client. Primarily from its Warehouse clients, the Core Bank acquires single family, first lien mortgage loans that meet the Core Bank’s specifications through its Correspondent Lending channel. Substantially all loans purchased through the Correspondent Lending channel are purchased at a premium. Loans acquired through the Correspondent Lending channel generally reflect borrowers outside of the Bank’s historical market footprint, with 73% of loans acquired through this origination channel as of June 30, 2017, secured by collateral in the state of California. The volume of loans purchased through the Correspondent Lending channel may fluctuate from time to time based on several factors, including, but not limited to, borrower demand, other investment options and the Bank’s current and forecasted liquidity position. Republic Processing Group Tax Refund Solutions division — Through its TRS division, the Bank is one of a limited number of financial institutions that facilitates the receipt and payment of federal and state tax refund products and offers a credit product through third-party tax preparers located throughout the United States, as well as tax-preparation software providers (collectively, the “Tax Providers”). Substantially all of the business generated by the TRS division occurs in the first half of the year. The TRS division traditionally operates at a loss during the second half of the year, during which time the division incurs costs preparing for the upcoming year’s tax season. Refund Transfers (“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 on RTs, net of rebates, are reported as noninterest income under the line item “Net refund transfer fees.” TRS first offered its Easy Advance (“EA”) tax credit product during the first two months of 2016 and for a second successive year during the first two months of 2017. For the first quarter 2017 tax season, the Company modified the EA product offering to have more than one advance amount and a different price structure to the Tax Providers based on the amount borrowed by the taxpayer. All other features of the product remained substantially the same as those from the first quarter 2016 tax season, including the following: · No EA fee charged to the taxpayer customer; · All fees for the product were paid by the Tax Providers with a restriction prohibiting the Tax Providers from passing along the fees to the taxpayer customer; · No requirement that the taxpayer customer pay for another bank product, such as an RT; · Multiple funds disbursement methods, including direct deposit, prepaid card, check or Walmart Direct2Cash ® product, based on the taxpayer customer’s election; · Repayment of the EA to the Bank was deducted from the taxpayer customer’s tax refund proceeds; and · If an insufficient refund to repay the EA occurred: o there was no recourse to the taxpayer customer, o no negative credit reporting on the taxpayer customer, and o no collection efforts against the taxpayer customer. Fees paid by the Tax Providers to the Company for the EA product are reported as interest income on loans. EAs during 2017 and 2016 were generally repaid within three weeks after the taxpayer customer’s tax return was submitted to the applicable taxing authority. EAs do not have a contractual due date but are eligible for delinquency consideration three weeks after the taxpayer customer’s tax return is submitted to the applicable taxing authority. Provisions for loan losses on EAs are estimated when advances are made, with all expected loss provisions made in the first quarter of each year. Unpaid EAs are charged-off within 81 days after the taxpayer customer’s tax return is submitted to the applicable taxing authority, with the majority of charge-offs typically recorded during the second quarter of the year. Related to the overall credit losses on EAs, the Bank’s ability to control losses is highly dependent upon its ability to predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s EA approval model is based primarily on the prior-year’s tax refund funding patterns. Because much of the loan volume occurs each year before that year’s tax refund funding 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 funding patterns change materially between years. Republic Credit Solutions division — Through its RCS division, the Bank offers consumer credit products. In general, the credit products are unsecured, small dollar consumer loans with maturities of 30-days-or-more, and are dependent on various factors including the consumer’s ability to repay. RCS loans typically earn a higher yield but also have higher credit risk compared to loans originated through the Traditional Banking segment. The Company reports RCS loans originated for investment under “Loans,” while loans originated for sale are reported under “Consumer loans held for sale.” The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains or losses on sale reported as noninterest income under “Program fees.” Republic Payment Solutions division — Through its RPS division, the Bank is an issuing bank offering general-purpose reloadable prepaid cards through third-party program managers. The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.” Accounting Standards Updates (“ASUs”) The following ASUs were issued prior to June 30, 2017 and are considered relevant to the Company’s financial statements. Generally, if an issued-but-not-yet-effective ASU with an expected immaterial impact to the Company has been disclosed in prior Company financial statements, it will not be included below. ASU. No. Topic Nature of Update Date Adoption Required Method of Adoption Expected Financial Statement Impact 2014-09 Revenue from Contracts with Customers (Topic 606) Requires that revenue from contracts with clients be recognized upon transfer of control of a good or service in the amount of consideration expected to be received. Changes the accounting for certain contract costs, including whether they may be offset against revenue in the statements of income, and requires additional disclosures about revenue and contract costs. January 1, 2018 Full retrospective approach or a modified-retrospective approach. Because most financial instruments are outside the scope of this ASU, the Company believes the impact on its financial statements will likely be immaterial; however, the Company will continue to review its products and services up through the effective date of this ASU. 2016-02 Leases (Topic 842) Most leases are considered operating leases, which are not accounted for on the lessees’ balance sheets. The significant change under this ASU is that those operating leases will be recorded on the balance sheet. January 1, 2019 Modified-retrospective approach, which includes a number of optional practical expedients. During 2017, the Company continued to review all of its leases and further analyzed the impact of adopting this ASU. 2016-13 Financial Instruments – Credit Losses (Topic 326) Amends guidance on reporting credit losses for assets held at amortized-cost basis and available-for-sale debt securities. January 1, 2020 Modified-retrospective approach. As a result of this ASU, the Company expects a substantial, yet fully undetermined, increase in its allowance for credit losses. The Company currently utilizes a third-party software solution as its model to calculate its allowance for loan and lease losses. During 2016 and into 2017, the Company formed a committee to begin the process of transitioning to a current expected credit losses (“CECL”) methodology by the expected adoption date of January 1, 2020. As part of this transition, the committee has analyzed the Company’s loan-level data and preliminarily concluded that no additional loan level segmentation beyond its current methodology segmentation would be warranted under CECL. The Company is also currently analyzing the output from a “beta test” CECL model provided by its third-party software solution. 2017-09 Compensation - Stock Compensation (Topic 718) The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require the Company to apply modification accounting under Topic 718. January 1, 2018 Prospectively, early adoption permitted. Immaterial The following ASUs were adopted by the Company during the six months ended June 30, 2017: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2016-09 Compensation – Stock Compensation (Topic 718) Provides simplification in areas of accounting for share-based payments, including: the income tax consequences; classification of awards as either equity or liabilities; and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. January 1, 2017 Prospectively Immaterial 2017-08 Receivables - Nonrefundable Fees and Other Costs (Topic 310-20) This ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the ASU requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. June 1, 2017 Early adoption, modified retrospective approach. Immaterial

2016 ACQUISITION OF CORNERSTONE

2016 ACQUISITION OF CORNERSTONE BANCORP, INC.	6 Months Ended
	Jun. 30, 2017
2016 ACQUISITION OF CORNERSTONE BANCORP, INC.
2016 ACQUISITION OF CORNERSTONE BANCORP, INC.	2. 2016 ACQUISITION OF CORNERSTONE BANCORP, INC. OVERVIEW On May 17, 2016, the Company completed its acquisition of Cornerstone Bancorp, Inc. (“Cornerstone”), and its wholly-owned bank subsidiary Cornerstone Community Bank, for approximately $32 million in cash. The primary reason for the acquisition of Cornerstone was to expand the Company’s footprint in the Tampa, Florida metropolitan statistical area. ACQUISITION SUMMARY The following table provides a summary of the assets acquired and liabilities assumed as recorded by Cornerstone, 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 final fair values of those assets and liabilities as recorded by the Company. Effective October 1, 2016, management believed it had finalized the fair values of the acquired assets and assumed liabilities within the 12 months following the date of acquisition, as allowed by GAAP. Summary of Assets Acquired and Liabilities Assumed May 17, 2016 As Previously Reported As Recasted As Recorded Fair Value Recast As Recorded (in thousands) by Cornerstone Adjustments Adjustments by Republic Assets acquired: Cash and cash equivalents $ 22,707 $ — $ — $ 22,707 Investment securities 329 — — 329 Loans 195,136 (5,525) a 13 a 189,624 Allowance for loan and lease losses (1,955) 1,955 a — — Loans, net 193,181 (3,570) 13 189,624 Federal Home Loan Bank stock, at cost 224 — — 224 Premises and equipment, net 7,770 4,457 b — 12,227 Core deposit intangible — 1,205 c — 1,205 Deferred income taxes 3,714 (74) d — 3,640 Bank owned life insurance 7,461 — — 7,461 Other assets and accrued interest receivable 658 — — 658 Total assets acquired $ 236,044 $ 2,018 $ 13 $ 238,075 Liabilities assumed: Deposits: Noninterest-bearing $ 52,908 $ — $ — $ 52,908 Interest-bearing 152,257 92 e — 152,349 Total deposits 205,165 92 — 205,257 Subordinated note 4,124 — — 4,124 Other liabilities and accrued interest payable 2,244 787 f — 3,031 Total liabilities assumed 211,533 879 — 212,412 Net assets acquired $ 24,511 $ 1,139 $ 13 25,663 Cash consideration paid (31,795) Goodwill $ 6,132 Explanation of fair value adjustments a. Reflects the fair value adjustment based on the Company’s evaluation of the acquired loan portfolio and to eliminate the acquiree’s recorded allowance for loan losses. b. Reflects the fair value adjustment based on the Company’s evaluation of the premises and equipment acquired. c. Reflects the fair value adjustment for the core deposit intangible asset recorded as a result of the acquisition. d. Reflects the differences in the carrying values of acquired assets and assumed liabilities for financial reporting purposes and their basis for federal income tax purposes. e. Reflects the fair value adjustment based on the Company’s evaluation of the assumed time deposits. f. Reflects the amount needed to adjust other liabilities to estimated fair value and to record certain liabilities directly attributable to the acquisition of Cornerstone. Goodwill of approximately $6 million, which is the excess of the merger consideration over the fair value of net assets acquired, was recorded in the Cornerstone 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 not expected to be deductible for tax purposes. For the three and six months ended June 30, 2016, the Company’s consolidated statements of income included approximately $704,000 and $902,000 of acquisition-related costs associated with the Cornerstone acquisition.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2017
INVESTMENT SECURITIES
INVESTMENT SECURITIES	3. INVESTMENT SECURITIES Securities Available for Sale The gross amortized cost and fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (“AOCI”) were as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2017 (in thousands) Cost Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 270,360 $ 37 $ (812) $ 269,585 Private label mortgage backed security 3,300 1,240 — 4,540 Mortgage backed securities - residential 88,776 1,892 (213) 90,455 Collateralized mortgage obligations 78,382 409 (387) 78,404 Freddie Mac preferred stock — 337 — 337 Community Reinvestment Act mutual fund 2,500 4 (25) 2,479 Corporate bonds 15,003 269 — 15,272 Trust preferred security 3,471 — (18) 3,453 Total securities available for sale $ 461,792 $ 4,188 $ (1,455) $ 464,525 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 (in thousands) Cost Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 295,425 $ 226 $ (1,107) $ 294,544 Private label mortgage backed security 3,691 1,086 — 4,777 Mortgage backed securities - residential 71,197 2,027 (220) 73,004 Collateralized mortgage obligations 88,559 334 (1,239) 87,654 Freddie Mac preferred stock — 483 — 483 Community Reinvestment Act mutual fund 2,500 — (45) 2,455 Corporate bonds 15,004 154 — 15,158 Trust preferred security 3,449 — (249) 3,200 Total securities available for sale $ 479,825 $ 4,310 $ (2,860) $ 481,275 Securities Held to Maturity The carrying value, gross unrecognized gains and losses, and fair value of securities held to maturity were as follows: Gross Gross Carrying Unrecognized Unrecognized Fair June 30, 2017 (in thousands) Value Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 501 $ — $ (1) $ 500 Mortgage backed securities - residential 155 11 — 166 Collateralized mortgage obligations 25,350 200 (59) 25,491 Corporate bonds 35,153 347 (63) 35,437 Total securities held to maturity $ 61,159 $ 558 $ (123) $ 61,594 Gross Gross Carrying Unrecognized Unrecognized Fair December 31, 2016 (in thousands) Value Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 506 $ — $ (2) $ 504 Mortgage backed securities - residential 158 12 — 170 Collateralized mortgage obligations 27,142 250 (124) 27,268 Corporate bonds 25,058 312 (63) 25,307 Total securities held to maturity $ 52,864 $ 574 $ (189) $ 53,249 At June 30, 2017 and December 31, 2016, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity. Sales of Securities Available for Sale During the three and six months ended June 30, 2017 there were no gains or losses on sales or calls of securities available for sale. During the three and six months ended June 30, 2016 there were no gains or losses on sales or calls of securities available for sale. Investment Securities by Contractual Maturity The amortized cost and fair value of the investment securities portfolio by contractual maturity at June 30, 2017 follows. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are detailed separately. Securities Securities Available for Sale Held to Maturity Amortized Fair Carrying Fair June 30, 2017 (in thousands) Cost Value Value Value Due in one year or less $ 35,987 $ 35,989 $ 501 $ 501 Due from one year to five years 239,376 238,626 10,111 10,048 Due from five years to ten years 10,000 10,241 25,042 25,388 Due beyond ten years 3,471 3,454 — — Private label mortgage backed security 3,300 4,540 — — Mortgage backed securities - residential 88,776 90,455 155 166 Collateralized mortgage obligations 78,382 78,404 25,350 25,491 Freddie Mac preferred stock — 337 — — Community Reinvestment Act mutual fund 2,500 2,479 — — Total securities $ 461,792 $ 464,525 $ 61,159 $ 61,594 Freddie Mac Preferred Stock During 2008, the U.S. Treasury, the Federal Reserve Board and the Federal Housing Finance Agency (“FHFA”) announced that the FHFA was placing Freddie Mac under conservatorship and giving management control to the FHFA. The Bank contemporaneously determined that its 40,000 shares of Freddie Mac preferred stock were fully impaired and recorded an other-than-temporary impairment (“OTTI”) charge of $2.1 million in 2008. The OTTI charge brought the carrying value of the stock to $0. In 2014, based on active trading volume of Freddie Mac preferred stock, the Company determined it appropriate to record an unrealized gain to AOCI related to its Freddie Mac preferred stock holdings. Based on the stock’s market closing price as of June 30, 2017, the Company’s unrealized gain for its Freddie Mac preferred stock totaled $337,000. Corporate Bonds The Company’s portfolio of corporate bonds were rated “investment grade” by accredited rating agencies as of their respective purchase dates. The total fair value of the Bank’s corporate bonds represented 10% and 8% of the Bank’s investment portfolio as of June 30, 2017 and December 31, 2016. Mortgage Backed Securities and Collateralized Mortgage Obligations At June 30, 2017, with the exception of the $4.5 million private label mortgage backed security, all other mortgage backed securities and collateralized mortgage obligations (“CMOs”) held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily Freddie Mac and the Fannie Mae. At June 30, 2017 and December 31, 2016, there were gross unrealized losses of $600,000 and $1.5 million related to available for sale mortgage backed securities and CMOs. Because these unrealized losses are attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, management does not consider these securities to have OTTI. Trust Preferred Security During the fourth quarter of 2015, the Parent Company purchased a $3 million floating rate trust preferred security (“TRUP”) at a price of 68% of par. The coupon on this security is based on the 3-month London Interbank Borrowing Rate (“LIBOR”) rate plus 159 basis points. The Company performed an initial analysis prior to acquisition and performs ongoing analysis of the credit risk of the underlying borrower in relation to its TRUP. Unrealized-Loss Analysis Securities with unrealized losses at June 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2017 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Securities available for sale: U.S. Treasury securities and U.S. Government agencies $ — $ — $ 189,503 $ (812) $ 189,503 $ (812) Mortgage backed securities - residential — — 25,977 (213) 25,977 (213) Collateralized mortgage obligations — — 35,936 (387) 35,936 (387) Community Reinvestment Act mutual fund 1,475 (25) — — 1,475 (25) Trust preferred security — — 3,453 (18) 3,453 (18) Total securities available for sale $ 1,475 $ (25) $ 254,869 $ (1,430) $ 256,344 $ (1,455) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2016 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Securities available for sale: U.S. Treasury securities and U.S. Government agencies $ 138,002 $ (1,107) $ — $ — $ 138,002 $ (1,107) Mortgage backed securities - residential 9,427 (122) 4,211 (98) 13,638 (220) Collateralized mortgage obligations 37,547 (690) 15,668 (549) 53,215 (1,239) Community Reinvestment Act mutual fund 2,455 (45) — — 2,455 (45) Trust preferred security 3,200 (249) — — 3,200 (249) Total securities available for sale $ 190,631 $ (2,213) $ 19,879 $ (647) $ 210,510 $ (2,860) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2017 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Securities held to maturity: U.S. Treasury securities and U.S. Government agencies $ 500 $ (1) $ — $ — $ 500 $ (1) Collateralized mortgage obligations — — 6,825 (59) 6,825 (59) Corporate bonds — — 15,030 (63) 15,030 (63) Total securities held to maturity $ 500 $ (1) $ 21,855 $ (122) $ 22,355 $ (123) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2016 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Securities held to maturity: U.S. Treasury securities and U.S. Government agencies $ 506 $ (2) $ — $ — $ 506 $ (2) Collateralized mortgage obligations 13,315 (124) — — 13,315 (124) Corporate bonds — — 4,937 (63) 4,937 (63) Total securities held to maturity $ 13,821 $ (126) $ 4,937 $ (63) $ 18,758 $ (189) At June 30, 2017, the Bank’s security portfolio consisted of 181 securities, 45 of which were in an unrealized loss position. At December 31, 2016, the Bank’s security portfolio consisted of 179 securities, 45 of which were in an unrealized loss position. Other-than-temporary impairment (“OTTI”) Unrealized losses for all investment securities are reviewed to determine whether the losses are “other-than-temporary.” Investment securities are evaluated for OTTI on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in value below amortized cost is other-than-temporary. In conducting this assessment, the Bank evaluates a number of factors including, but not limited to the following: · The length of time and the extent to which fair value has been less than the amortized cost basis; · The Bank’s intent to hold until maturity or sell the debt security prior to maturity; · An analysis of whether it is more-likely-than-not that the Bank will be required to sell the debt security before its anticipated recovery; · Adverse conditions specifically related to the security, an industry, or a geographic area; · The historical and implied volatility of the fair value of the security; · The payment structure of the security and the likelihood of the issuer being able to make payments; · Failure of the issuer to make scheduled interest or principal payments; · Any rating changes by a rating agency; and · Recoveries or additional decline in fair value subsequent to the balance sheet date. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value are not necessarily favorable, or that there is a general lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the value of the security is reduced and a corresponding charge to earnings is recognized for the anticipated credit losses. The Bank owns one private label mortgage backed security with a total carrying value of $4.5 million at June 30, 2017. 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 Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures. Based on this determination, the Bank utilized an income valuation model (“present value model”) approach, in determining the fair value of the security. This approach is beneficial for positions that are not traded in active markets or are subject to transfer restrictions, and/or where valuations are adjusted to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support for this investment. See additional discussion regarding the Bank’s private label mortgage backed security under Footnote 10 “Fair Value” in this section of the filing. Pledged Investment Securities Investment 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: (in thousands) June 30, 2017 December 31, 2016 Carrying amount $ 182,185 $ 231,695 Fair value 182,300 231,891

LOANS HELD FOR SALE

LOANS HELD FOR SALE	6 Months Ended
	Jun. 30, 2017
LOANS HELD FOR SALE.
LOANS HELD FOR SALE	4. 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 operations, while consumer loans originated for sale are originated and sold through the RCS division of the Company’s RPG segment. Mortgage Loans Held for Sale, at Fair Value See additional detail regarding mortgage loans originated for sale, at fair value under Footnote 11 “Mortgage Banking Activities” of this section of the filing. Consumer Loans Held for Sale, at Fair Value During the second quarter of 2016, RCS initiated an installment loan program, in which the Company sells 100% of the receivables approximately 21 days after origination. The Company carries these loans at fair value, with the loans marked to market on a monthly basis and changes in fair value reported as a component of “Program fees.” Activity for consumer loans held for sale and carried at fair value was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 3,679 $ 415 $ 2,198 $ — Origination of consumer loans held for sale 19,542 13,242 31,781 13,657 Proceeds from the sale of consumer loans held for sale (20,089) (6,958) (30,872) (6,958) Net gain on sale of consumer loans held for sale 103 127 128 127 Balance, end of period $ 3,235 $ 6,826 $ 3,235 $ 6,826 Consumer Loans Held for Sale, at Lower of Cost or Fair Value RCS originates for sale its line-of-credit product and its credit card product. The Bank sells 90% of the balances generated through these products within two business days of loan origination and retains a 10% interest. The line-of-credit product represents the substantial majority of activity in consumer loans held for sale and carried at the lower of cost or fair value. Any gains or losses on the sale of RCS products are reported as a component of “Program fees.” Activity for consumer loans held for sale and carried at the lower of cost or market value was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 1,420 $ 566 $ 1,310 $ 514 Origination of consumer loans held for sale 128,496 71,717 243,182 115,370 Proceeds from the sale of consumer loans held for sale (128,576) (71,441) (244,234) (115,474) Net gain on sale of consumer loans held for sale 1,124 280 2,206 712 Balance, end of period $ 2,464 $ 1,122 $ 2,464 $ 1,122

LOANS AND ALLOWANCE FOR LOAN AN

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES	6 Months Ended
	Jun. 30, 2017
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES	5. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES The composition of the loan portfolio at period end follows: (in thousands) June 30, 2017 December 31, 2016 Traditional Banking: Residential real estate: Owner occupied $ 961,405 $ 1,000,148 Owner occupied - correspondent* 129,792 149,028 Nonowner occupied 172,684 156,605 Commercial real estate 1,104,026 1,060,496 Construction & land development 137,877 119,650 Commercial & industrial 314,433 259,026 Lease financing receivables 14,371 13,614 Home equity 344,946 341,285 Consumer: Credit cards 17,879 13,414 Overdrafts 902 803 Automobile loans 59,921 52,579 Other consumer 15,344 19,744 Total Traditional Banking 3,273,580 3,186,392 Warehouse lines of credit* 600,630 585,439 Total Core Banking 3,874,210 3,771,831 Republic Processing Group*: Commercial & industrial — 6,695 Consumer: Easy Advances — — Republic Credit Solutions 42,110 32,252 Total Republic Processing Group 42,110 38,947 Total loans** 3,916,320 3,810,778 Allowance for loan and lease losses (37,898) (32,920) Total loans, net $ 3,878,422 $ 3,777,858 *Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. The following table reconciles the contractually receivable and carrying amounts of loans at June 30, 2017 and December 31, 2016: (in thousands) June 30, 2017 December 31, 2016 Contractually receivable $ 3,920,955 $ 3,816,086 Unearned income(1) (1,113) (1,050) Unamortized premiums(2) 1,394 1,838 Unaccreted discounts(3) (8,563) (9,397) Net unamortized deferred origination fees and costs(4) 3,647 3,301 Carrying value of loans $ 3,916,320 $ 3,810,778 (1) Unearned income relates to lease financing receivables. (2) Premiums predominately relate to loans acquired through the Bank’s Correspondent Lending channel. (3) Unaccreted discounts include accretable and non-accretable discounts and predominately relate to loans acquired in the Bank’s 2016 Cornerstone acquisition and its 2012 FDIC-assisted transactions. (4) Primarily attributable to the Traditional Banking segment. Loan Purchases The Core Bank acquires for investment single family, first lien mortgage loans that meet the Core Bank’s specifications through its Correspondent Lending channel. In addition, the Bank has acquired in the past unsecured consumer installment loans for investment from a third-party originator. Such consumer loans were purchased at par and were selected by the Bank based on certain underwriting specifications. The following table reflects the purchased activity of single family, first lien mortgage loans and unsecured consumer loans, by class, during the three and six months ended June 30, 2017 and 2016. Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Residential real estate: Owner occupied - correspondent* $ 1,432 $ 23,043 $ 2,656 $ 43,564 Consumer: Other consumer* — 1,756 — 4,422 Total purchased loans $ 1,432 $ 24,799 $ 2,656 $ 47,986 * Represents origination amount, inclusive of applicable purchase premiums. Loans Acquired in Cornerstone Acquisition The following table summarizes loans acquired in the Company’s May 17, 2016 Cornerstone acquisition, finalized as of October 1, 2016: May 17, 2016 (in thousands) Contractual Receivable Non-accretable Discount Accretable Discount Acquisition-Day Fair Value Residential real estate: Owner occupied $ 15,487 $ — $ (393) $ 15,094 Nonowner occupied 11,196 — (101) 11,095 Commercial real estate 106,089 — (1,498) 104,591 Construction & land development 18,277 — (502) 17,775 Commercial & industrial 11,462 — (191) 11,271 Home equity 20,652 — (350) 20,302 Consumer and other 2,347 — (147) 2,200 Total loans - ASC 310-20 185,510 — (3,182) 182,328 Residential real estate: Owner occupied 2,963 (822) (15) 2,126 Nonowner occupied 1,721 (320) (167) 1,234 Commercial real estate 4,315 (617) (197) 3,501 Construction & land development 175 — — 175 Commercial & industrial 66 (1) 1 66 Home equity 382 (178) (11) 193 Consumer and other 4 (3) — 1 Total loans - ASC 310-30 - PCI loans 9,626 (1,941) (389) 7,296 Total loans acquired $ 195,136 $ (1,941) $ (3,571) $ 189,624 Purchased-Credit-Impaired (“PCI”) Loans The Bank acquired PCI loans on May 17, 2016 in its Cornerstone acquisition and during the year ended December 31, 2012 in two FDIC-assisted transactions. PCI loans are accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . Management utilized the following criteria in determining which loans were classified as PCI loans for its May 17, 2016 Cornerstone acquisition: · Loans for which the Bank assigned a non-accretable discount · Loans classified as nonaccrual when acquired · Loans past due 90-days-or-more when acquired The following table reconciles the contractually required and carrying amounts of all PCI loans at June 30, 2017 and December 31, 2016: (in thousands) June 30, 2017 December 31, 2016 Contractually-required principal $ 14,693 $ 15,587 Non-accretable amount (1,787) (1,713) Accretable amount (3,333) (3,600) Carrying value of loans $ 9,573 $ 10,274 The following table presents a rollforward of the accretable amount on all PCI loans: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ (3,409) $ (3,853) $ (3,600) $ (4,125) Transfers between non-accretable and accretable* (15) (23) 75 (478) Net accretion into interest income on loans, including loan fees 91 170 192 897 Generated from acquisition of Cornerstone Bancorp, Inc. (recasted) — (381) — (381) Balance, end of period $ (3,333) $ (4,087) $ (3,333) $ (4,087) * Transfers are primarily attributable to changes in estimated cash flows of the underlying loans. Credit Quality Indicators Based on the Bank’s internal analyses performed as of June 30, 2017 and December 31, 2016, the following tables reflect loans by risk category. Risk categories are defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016: June 30, 2017 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 20,553 $ 12,642 $ — $ 181 $ 1,741 $ 35,117 Owner occupied - correspondent — — — — — — — Nonowner occupied — 869 1,058 — 513 — 2,440 Commercial real estate 1,087,153 5,960 3,984 — 6,929 — 1,104,026 Construction & land development 137,128 — 749 — — — 137,877 Commercial & industrial 313,293 669 449 — 22 — 314,433 Lease financing receivables 14,371 — — — — — 14,371 Home equity — 83 2,158 — 92 95 2,428 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — 99 — — — 99 Other consumer — — 108 — — — 108 Total Traditional Banking 1,551,945 28,134 21,247 — 7,737 1,836 1,610,899 Warehouse lines of credit 600,630 — — — — — 600,630 Total Core Banking 2,152,575 28,134 21,247 — 7,737 1,836 2,211,529 Republic Processing Group: Commercial & industrial — — — — — — — Consumer: Easy Advances — — — — — — — Republic Credit Solutions — — 302 — — — 302 Total Republic Processing Group — — 302 — — — 302 Total rated loans $ 2,152,575 $ 28,134 $ 21,549 $ — $ 7,737 $ 1,836 $ 2,211,831 December 31, 2016 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 21,344 $ 13,117 $ — $ 218 $ 2,267 $ 36,946 Owner occupied - correspondent — — — — — — — Nonowner occupied — 656 1,115 — 523 — 2,294 Commercial real estate 1,042,137 7,086 4,224 — 7,049 — 1,060,496 Construction & land development 118,769 90 791 — — — 119,650 Commercial & industrial 257,579 1,270 154 — 23 — 259,026 Lease financing receivables 13,614 — — — 13,614 Home equity — 256 1,763 — 94 99 2,212 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — — — — — — Other consumer — — 166 — 1 — 167 Total Traditional Banking 1,432,099 30,702 21,330 — 7,908 2,366 1,494,405 Warehouse lines of credit 585,439 — — — — — 585,439 Total Core Banking 2,017,538 30,702 21,330 — 7,908 2,366 2,079,844 Republic Processing Group: Commercial & industrial 6,695 — — — — — 6,695 Consumer: Easy Advances — — — — — — — Republic Credit Solutions — — 82 — — — 82 Total Republic Processing Group 6,695 — 82 — — — 6,777 Total rated loans $ 2,024,233 $ 30,702 $ 21,412 $ — $ 7,908 $ 2,366 $ 2,086,621 * The above tables exclude all non-classified or non-rated residential real estate, home equity and consumer loans at the respective period ends. Allowance for Loan and Lease Losses Activity in the allowance for loan and lease losses (“Allowance”) by loan class follows: Allowance Rollforward Three Months Ended June 30, 2017 2016 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 7,071 $ (288) $ (108) $ 65 $ 6,740 $ 8,049 $ (160) $ (73) $ 77 $ 7,893 Owner occupied - correspondent 353 (29) — — 324 607 (15) — — 592 Nonowner occupied 1,198 42 (3) — 1,237 1,095 (51) — 8 1,052 Commercial real estate 7,898 449 — 21 8,368 7,678 48 — 79 7,805 Construction & land development 2,233 274 — 1 2,508 1,348 (16) — — 1,332 Commercial & industrial 1,488 193 — 1 1,682 1,384 387 (330) — 1,441 Lease financing receivables 145 6 — — 151 97 18 — — 115 Home equity 3,831 (21) (91) 68 3,787 3,054 (67) (49) 78 3,016 Consumer: Credit cards 506 93 (21) 10 588 466 37 (50) 3 456 Overdrafts 641 337 (227) 55 806 450 489 (171) 56 824 Automobile loans 563 84 (7) — 640 145 135 — 1 281 Other consumer 825 321 (306) 78 918 648 (7) (131) 75 585 Total Traditional Banking 26,752 1,461 (763) 299 27,749 25,021 798 (804) 377 25,392 Warehouse lines of credit 1,238 264 — — 1,502 985 480 — — 1,465 Total Core Banking 27,990 1,725 (763) 299 29,251 26,006 1,278 (804) 377 26,857 Republic Processing Group: Commercial & industrial — — — — — — — — — — Consumer: Easy Advances 7,741 (721) (7,261) 241 — 3,169 (354) (3,069) 254 — Refund Anticipation Loans — (17) — 17 — — (43) — 43 — Republic Credit Solutions 6,631 4,074 (2,251) 193 8,647 2,300 933 (874) 92 2,451 Total Republic Processing Group 14,372 3,336 (9,512) 451 8,647 5,469 536 (3,943) 389 2,451 Total $ 42,362 $ 5,061 $ (10,275) $ 750 $ 37,898 $ 31,475 $ 1,814 $ (4,747) $ 766 $ 29,308 Allowance Rollforward Six Months Ended June 30, 2017 2016 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 7,158 $ (431) $ (111) $ 124 $ 6,740 $ 8,301 $ (298) $ (261) $ 151 $ 7,893 Owner occupied - correspondent 373 (49) — — 324 623 (31) — — 592 Nonowner occupied 1,139 112 (14) — 1,237 1,052 (8) — 8 1,052 Commercial real estate 8,078 252 — 38 8,368 7,672 68 (41) 106 7,805 Construction & land development 1,850 657 — 1 2,508 1,303 53 (44) 20 1,332 Commercial & industrial 1,511 149 — 22 1,682 1,455 312 (330) 4 1,441 Lease financing receivables 136 15 — — 151 89 26 — — 115 Home equity 3,757 48 (95) 77 3,787 2,996 — (84) 104 3,016 Consumer: Credit cards 490 131 (48) 15 588 448 58 (62) 12 456 Overdrafts 675 420 (411) 122 806 351 673 (332) 132 824 Automobile loans 526 120 (7) 1 640 56 224 — 1 281 Other consumer 771 504 (536) 179 918 479 201 (262) 167 585 Total Traditional Banking 26,464 1,928 (1,222) 579 27,749 24,825 1,278 (1,416) 705 25,392 Warehouse lines of credit 1,464 38 — — 1,502 967 498 — — 1,465 Total Core Banking 27,928 1,966 (1,222) 579 29,251 25,792 1,776 (1,416) 705 26,857 Republic Processing Group: Commercial & industrial 25 (25) — — — — — — — — Consumer: Easy Advances — 7,880 (8,121) 241 — — 3,220 (3,474) 254 — Refund Anticipation Loans — (252) — 252 — — (290) — 290 — Republic Credit Solutions 4,967 7,843 (4,536) 373 8,647 1,699 2,294 (1,720) 178 2,451 Total Republic Processing Group 4,992 15,446 (12,657) 866 8,647 1,699 5,224 (5,194) 722 2,451 Total $ 32,920 $ 17,412 $ (13,879) $ 1,445 $ 37,898 $ 27,491 $ 7,000 $ (6,610) $ 1,427 $ 29,308 Nonperforming Loans and Nonperforming Assets Detail of nonperforming loans and nonperforming assets follows: (dollars in thousands) June 30, 2017 December 31, 2016 Loans on nonaccrual status* $ 15,467 $ 15,892 Loans past due 90-days-or-more and still on accrual** 335 167 Total nonperforming loans 15,802 16,059 Other real estate owned 300 1,391 Total nonperforming assets $ 16,102 $ 17,450 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.40 % 0.42 % Nonperforming assets to total loans (including OREO) 0.41 0.46 Nonperforming assets to total assets 0.32 0.36 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.40 % 0.42 % Nonperforming assets to total loans (including OREO) 0.41 0.46 Nonperforming assets to total assets 0.32 0.36 *Loans on nonaccrual status include impaired loans. **Loans past due 90-days-or-more and still accruing consist of PCI loans or smaller balance consumer loans. The following table presents the recorded investment in nonaccrual loans and loans past due 90-days-or-more and still on accrual by class of loans: Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Traditional Banking: Residential real estate: Owner occupied $ 9,894 $ 10,955 $ — $ — Owner occupied - correspondent — — — — Nonowner occupied 790 852 — — Commercial real estate 2,613 2,725 — — Construction & land development 71 77 — — Commercial & industrial 449 154 — — Lease financing receivables — — — — Home equity 1,498 1,069 4 — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 99 — — — Other consumer 53 60 29 85 Total Traditional Banking 15,467 15,892 33 85 Warehouse lines of credit — — — — Total Core Banking 15,467 15,892 33 85 Republic Processing Group: Commercial & industrial — — — — Consumer: Easy Advances — — — — Republic Credit Solutions — — 302 82 Total Republic Processing Group — — 302 82 Total $ 15,467 $ 15,892 $ 335 $ 167 * Loans past due 90-days-or-more and still accruing consist of PCI loans or smaller balance consumer loans. Nonaccrual loans and loans past due 90-days-or-more and still on accrual include both smaller balance, primarily retail, homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Nonaccrual loans are typically returned to accrual status when all the principal and interest amounts contractually due are brought current and held current for six consecutive months and future contractual payments are reasonably assured. Troubled Debt Restructurings (“TDRs”) on nonaccrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance under the modified terms. Delinquent Loans The following tables present the aging of the recorded investment in loans by class of loans: 30 - 59 60 - 89 90 or More June 30, 2017 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,744 $ 566 $ 1,410 $ 3,720 $ 957,685 $ 961,405 Owner occupied - correspondent — — — — 129,792 129,792 Nonowner occupied 58 — 26 84 172,600 172,684 Commercial real estate 269 244 492 1,005 1,103,021 1,104,026 Construction & land development — — — — 137,877 137,877 Commercial & industrial 154 300 — 454 313,979 314,433 Lease financing receivables — — — — 14,371 14,371 Home equity 432 84 628 1,144 343,802 344,946 Consumer: Credit cards 54 11 — 65 17,814 17,879 Overdrafts 192 — — 192 710 902 Automobile loans — 25 26 51 59,870 59,921 Other consumer 48 52 29 129 15,215 15,344 Total Traditional Banking 2,951 1,282 2,611 6,844 3,266,736 3,273,580 Warehouse lines of credit — — — — 600,630 600,630 Total Core Banking 2,951 1,282 2,611 6,844 3,867,366 3,874,210 Republic Processing Group: Commercial & industrial — — — — — — Consumer: Easy Advances — — — — — — Republic Credit Solutions 1,502 365 302 2,169 39,941 42,110 Total Republic Processing Group 1,502 365 302 2,169 39,941 42,110 Total $ 4,453 $ 1,647 $ 2,913 $ 9,013 $ 3,907,307 $ 3,916,320 Delinquency ratio*** 0.11 % 0.04 % 0.07 % 0.23 % * All loans past due 90-days-or-more, excluding PCI loans and 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, 2016 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,696 $ 337 $ 2,521 $ 4,554 $ 995,594 $ 1,000,148 Owner occupied - correspondent — — — — 149,028 149,028 Nonowner occupied — — 46 46 156,559 156,605 Commercial real estate 8 — 417 425 1,060,071 1,060,496 Construction & land development — — — — 119,650 119,650 Commercial & industrial 342 — — 342 258,684 259,026 Lease financing receivables — — — — 13,614 13,614 Home equity 316 160 494 970 340,315 341,285 Consumer: Credit cards 14 4 — 18 13,396 13,414 Overdrafts 159 1 1 161 642 803 Automobile loans — — — — 52,579 52,579 Other consumer 114 106 85 305 19,439 19,744 Total Traditional Banking 2,649 608 3,564 6,821 3,179,571 3,186,392 Warehouse lines of credit — — — — 585,439 585,439 Total Core Banking 2,649 608 3,564 6,821 3,765,010 3,771,831 Republic Processing Group: Commercial & industrial — — — — 6,695 6,695 Consumer: Easy Advances — — — — — — Republic Credit Solutions 1,751 304 82 2,137 30,115 32,252 Total Republic Processing Group 1,751 304 82 2,137 36,810 38,947 Total $ 4,400 $ 912 $ 3,646 $ 8,958 $ 3,801,820 $ 3,810,778 Delinquency ratio*** 0.12 % 0.02 % 0.10 % 0.24 % * All loans past due 90-days-or-more, excluding PCI loans and 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. Impaired Loans Information regarding the Bank’s impaired loans follows: (in thousands) June 30, 2017 December 31, 2016 Loans with no allocated Allowance $ 20,344 $ 21,416 Loans with allocated Allowance 26,794 31,268 Total impaired loans $ 47,138 $ 52,684 Amount of the Allowance $ 4,484 $ 4,925 Approximately $2 million and $4 million of impaired loans at June 30, 2017 and December 31, 2016 were PCI loans. Approximately $1 million and $3 million of impaired loans at June 30, 2017 and December 31, 2016 were formerly PCI loans that became classified as “Impaired” through a post-acquisition troubled debt restructuring. The following tables present the balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method: Allowance for Loan and Lease Losses Loans Individually PCI with PCI without Individually PCI with PCI without June 30, 2017 Evaluated Collectively Post Acquisition Post Acquisition Total Evaluated Collectively Post Acquisition Post Acquisition Total (dollars in thousands) Excluding PCI Evaluated Impairment Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Traditional Banking: Residential real estate: Owner occupied $ 3,017 $ 3,573 $ 150 $ — $ 6,740 $ 30,700 $ 928,783 $ 1,741 $ 181 $ 961,405 Owner occupied - correspondent — 324 — — 324 — 129,792 — — 129,792 Nonowner occupied 58 1,172 7 — 1,237 1,760 170,411 262 251 172,684 Commercial real estate 295 8,036 37 — 8,368 8,857 1,088,240 145 6,784 1,104,026 Construction & land development 95 2,413 — — 2,508 749 137,128 — — 137,877 Commercial & industrial 149 1,533 — — 1,682 493 313,918 — 22 314,433 Lease financing receivables — 151 — — 151 — 14,371 — — 14,371 Home equity 510 3,182 95 — 3,787 2,158 342,601 95 92 344,946 Consumer: Credit cards — 588 — — 588 — 17,879 — — 17,879 Overdrafts — 806 — — 806 — 902 — — 902 Automobile loans 33 607 — — 640 99 59,822 — — 59,921 Other consumer 38 880 — — 918 79 15,265 — — 15,344 Total Traditional Banking 4,195 23,265 289 — 27,749 44,895 3,219,112 2,243 7,330 3,273,580 Warehouse lines of credit — 1,502 — — 1,502 — 600,630 — — 600,630 Total Core Banking 4,195 24,767 289 — 29,251 44,895 3,819,742 2,243 7,330 3,874,210 Republic Processing Group: Commercial & industrial — — — — — — — — — — Consumer: Easy Advances — — — — — — — — — — Republic Credit Solutions — 8,647 — — 8,647 — 42,110 — — 42,110 Total Republic Processing Group — 8,647 — — 8,647 — 42,110 — — 42,110 Total $ 4,195 $ 33,414 $ 289 $ — $ 37,898 $ 44,895 $ 3,861,852 $ 2,243 $ 7,330 $ 3,916,320 Allowance for Loan and Lease Losses Loans Individually PCI with PCI without Individually PCI with PCI without December 31, 2016 Evaluated Collectively Post Acquisition Post Acquisition Total Evaluated Collectively Post Acquisition Post Acquisition Total (dollars in thousands) Excluding PCI Evaluated Impairment Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Traditional Banking: Residential real estate: Owner occupied $ 3,203 $ 3,797 $ 158 $ — $ 7,158 $ 31,908 $ 965,755 $ 2,297 $ 188 $ 1,000,148 Owner occupied - correspondent — 373 — — 373 — 149,028 — — 149,028 Nonowner occupied 65 1,067 7 — 1,139 1,601 154,481 268 255 156,605 Commercial real estate 532 7,501 45 — 8,078 11,769 1,041,678 1,164 5,885 1,060,496 Construction & land development 120 1,730 — — 1,850 882 118,768 — — 119,650 Commercial & industrial 227 1,284 — — 1,511 686 258,317 — 23 259,026 Lease financing receivables — 136 — — 136 — 13,614 — — 13,614 Home equity 433 3,225 99 — 3,757 1,929 339,163 99 94 341,285 Consumer: Credit cards — 490 — — 490 — 13,414 — — 13,414 Overdrafts — 675 — — 675 — 803 — — 803 Automobile loans — 526 — — 526 — 52,579 — — 52,579 Other consumer 36 735 — — 771 81 19,662 — 1 19,744 Total Traditional Banking 4,616 21,539 309 — 26,464 48,856 3,127,262 3,828 6,446 3,186,392 Warehouse lines of credit — 1,464 — — 1,464 — 585,439 — — 585,439 Total Core Banking 4,616 23,003 309 — 27,928 48,856 3,712,701 3,828 6,446 3,771,831 Republic Processing Group: Commercial & industrial — 25 — — 25 — 6,695 — — 6,695 Consumer: Easy Advances — — — — — — — — — — Republic Credit Solutions — 4,967 — — 4,967 — 32,252 — — 32,252 Total Republic Processing Group — 4,992 — — 4,992 — 38,947 — — 38,947 Total $ 4,616 $ 27,995 $ 309 $ — $ 32,920 $ 48,856 $ 3,751,648 $ 3,828 $ 6,446 $ 3,810,778 The following tables present loans individually evaluated for impairment by class of loans as of June 30, 2017 and December 31, 2016 and for the three and six months ended June 30, 2017 and 2016. The difference between the “Unpaid Principal Balance” and “Recorded Investment” columns represents life-to-date partial write downs/charge offs taken on individual impaired credits. As of Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 June 30, 2017 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allowance Recorded Income Income Recorded Income Income (in thousands) Balance Investment Allocated Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no related allowance recorded: Residential real estate: Owner occupied $ 12,651 $ 11,712 $ — $ 11,802 $ 48 $ — $ 12,380 $ 95 $ — Owner occupied - correspondent — — — — — — — — — Nonowner occupied 1,576 1,542 — 1,477 7 — 1,293 14 — Commercial real estate 5,812 4,635 — 4,702 20 — 5,235 40 — Construction & land development 598 598 — 537 7 — 507 15 — Commercial & industrial 344 344 — 200 1 — 136 2 — Lease financing receivables — — — — — — — — — Home equity 1,578 1,472 — 1,443 6 — 1,434 13 — Consumer 41 41 — 41 — — 43 — — Impaired loans with an allowance recorded: Residential real estate: Owner occupied 20,800 20,729 3,167 20,780 178 — 21,314 357 — Owner occupied - correspondent — — — — — — — — — Nonowner occupied 480 480 65 483 6 — 620 11 — Commercial real estate 4,367 4,367 332 5,229 49 — 6,579 95 — Construction & land development 151 151 95 273 1 — 342 2 — Commercial & industrial 149 149 149 150 — — 274 — — Lease financing receivables — — — — — — — — — Home equity 821 781 605 826 5 — 698 9 — Consumer 137 137 71 114 — — 76 — — Total impaired loans $ 49,505 $ 47,138 $ 4,484 $ 48,057 $ 328 $ — $ 50,931 $ 653 $ — As of Three Months Ended Six Months Ended December 31, 2016 June 30, 2016 June 30, 2016 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allowance Recorded Income Income Recorded Income Income (in thousands) Balance Investment Allocated Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no related allowance recorded: Residential real estate: Owner occupied $ 13,727 $ 12,629 $ — $ 13,481 $ 30 $ — $ 13,406 $ 61 $ — Owner occupied - correspondent — — — — — — — — — Non owner occupied 1,399 1,376 — 1,475 1 — 1,626 3 — Commercial real estate 6,610 5,536 — 7,157 92 — 7,019 199 — Construction & land development 476 476 — 476 5 — 1,007 10 — Commercial & industrial 67 67 — 158 2 — 111 4 — Lease financing receivables — — — — — — — — — Home equity 1,358 1,287 — 1,924 6 — 1,978 12 — Consumer 45 45 — 94 — — 77 — — Impaired loans with an allowance recorded: Residential real estate: Owner occupied 21,595 21,576 3,361 23,808 211 — 24,488 422 — Owner occupied - correspondent — — — — — — — — — Non owner occupied 491 493 73 841 7 — 963 16 — Commercial real estate 7,397 7,397 577 9,254 115 — 9,670 232 — Construction & land development 405 406 120 431 5 — 504 10 — Commercial & industrial 619 619 227 845 — — 1,062 — — Lease financing receivables — — — — — — — — — Home equity 742 741 532 93 — — 138 — — Consumer 37 36 35 44 — — 43 — — Total impaired loans $ 54,968 $ 52,684 $ 4,925 $ 60,081 $ 474 $ — $ 62,092 $ 969 $ — Troubled Debt Restructurings A TDR is a situation where, due to a borrower’s financial difficulties, the Bank grants a concession to the borrower that the Bank would not otherwise have considered. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of their debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Bank’s internal underwriting policy. All TDRs are considered “Impaired,” including PCI loans subsequently restructured. The majority of the Bank’s commercial related and construction TDRs involve a restructuring of financing terms such as a reduction in the payment amount to require only interest and escrow (if required) and/or extending the maturity date of the debt. The substantial majority of the Bank’s residential real estate TDR concessions involve reducing the client’s loan payment through a rate reduction for a set period based on the borrower’s ability to service the modified loan payment. Retail loans may also be classified as TDRs due to legal modifications, such as bankruptcies. Nonaccrual loans modified as TDRs typically remain on nonaccrual status and continue to be reported as nonperforming loans for a minimum of six consecutive months. Accruing loans modified as TDRs are evaluated for nonaccrual status based on a current evaluation of the borrower’s financial condition and ability and willingness to service the modified debt. At June 30, 2017 and December 31, 2016, $8 million and $10 million of TDRs were on nonaccrual status. Detail of TDRs differentiated by loan type and accrual status follows: Troubled Debt Troubled Debt Total Restructurings on Restructurings on Troubled Debt Nonaccrual Status Accrual Status Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2017 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 66 $ 5,733 198 $ 21,682 264 $ 27,415 Commercial real estate 6 2,327 12 6,034 18 8,361 Construction & land development 1 71 3 678 4 749 Commercial & industrial 1 149 1 44 2 193 Total troubled debt restructurings 74 $ 8,280 214 $ 28,438 288 $ 36,718 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, 2016 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 79 $ 7,199 198 $ 21,554 277 $ 28,753 Commercial real estate 6 2,430 17 8,835 23 11,265 Construction & land development 1 77 4 804 5 881 Commercial & industrial 1 154 2 533 3 687 Total troubled debt restructurings 87 $ 9,860 221 $ 31,726 308 $ 41,586 The Bank considers a TDR to be performing to its modified terms if the loan is in accrual status and not past due 30-days-or-more as of the reporting date. A summary of the categories of TDR loan modifications outstanding and respective performance under modified terms at June 30, 2017 and December 31, 2016 follows: Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2017 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 1 $ 7 1 $ 476 2 $ 483 Rate reduction 148 17,824 50 5,471 198 23,295 Principal deferral 12 1,254 2 124 14 1,378 Legal modification 17 791 33 1,468 50 2,259 Total residential TDRs 178 19,876 86 7,539 264 27,415 Commercial related and construction/land development loans: Interest only payments 3 893 1 388 4 1,281 Rate reduction 7 4,032 2 221 9 4,253 Principal deferral 6 1,831 5 1,938 11 3,769 Total commercial TDRs 16 6,756 8 2,547 24 9,303 Total troubled debt restructurings 194 $ 26,632 94 $ 10,086 288 $ 36,718 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, 2016 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 2 $ 155 1 $ 493 3 $ 648 Rate reduction 148 18,125 57 6,213 205 24,338 Principal deferral 7 616 7 306 14 922 Legal modification 17 806 38 2,039 55 2,845 Total residential TDRs 174 19,702 103 9,051 277 28,753 Commercial related and construction/land development loans: Interest only payments 5 2,666 1 413 6 3,079 Rate reduction 8 4,769 2 228 10 4,997 Principal deferral 10 2,737 5 2,020 15 4,757 Total commercial TDRs 23 10,172 8 2,661 31 12,833 Total troubled debt restructurings 197 $ 29,874 111 $ 11,712 308 $ 41,586 As of June 30, 2017 and December 31, 2016, 73% and 72% of the Bank’s TDRs were performing according to their modified terms. The Bank had provided $3 million and $4 million of specific reserve allocations to clients whose loan terms have been modified in TDRs as of June 30, 2017 and December 31, 2016. The Bank had no commitments to lend any additional material amounts to its existing TDR relationships at June 30, 2017 or December 31, 2016. A summary of the categories of TDR loan modifications by respective performance as of June 30, 2017 and 2016 that were modified during the three months ended June 30, 2017 and 2016 follows: Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2017 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — — $ — — $ — Rate reduction 1 220 — — 1 220 Principal deferral 2 810 — — 2 810 Legal modification 1 11 — — 1 11 Total residential TDRs 4 1,041 — — 4 1,041 Commercial related and construction/land development loans: Interest only payments — — — — — — Rate reduction — — — — — — Principal deferral — — — — — — Total commercial TDRs — — — — — — Total troubled debt restructurings 4 $ 1,041 — $ — 4 $ 1,041 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2016 (dollars in thousands) L

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2017
DEPOSITS
DEPOSITS	6. DEPOSITS Ending deposit balances at June 30, 2017 and December 31, 2016 were as follows: (in thousands) June 30, 2017 December 31, 2016 Core Bank: Demand $ 910,579 $ 872,709 Money market accounts 540,005 541,622 Brokered money market accounts 136,616 360,597 Savings 178,890 164,410 Individual retirement accounts* 45,475 42,642 Time deposits, $250 and over* 61,662 37,200 Other certificates of deposit* 159,484 140,894 Brokered certificates of deposit* 38,186 28,666 Total Core Bank interest-bearing deposits 2,070,897 2,188,740 Total Core Bank noninterest-bearing deposits 1,005,668 943,459 Total Core Bank deposits 3,076,565 3,132,199 Republic Processing Group ("RPG"): Money market accounts 1,404 — Total RPG interest-bearing deposits 1,404 — Brokered prepaid card deposits 1,035 15 Other noninterest-bearing deposits 54,934 28,478 Total RPG noninterest-bearing deposits 55,969 28,493 Total RPG deposits 57,373 28,493 Total deposits $ 3,133,938 $ 3,160,692 *Represents a time deposit. The following table summarizes deposits acquired in the Company’s May 17, 2016 Cornerstone acquisition, finalized as of October 1, 2016: May 17, 2016 (in thousands) Contractual Principal Fair Value Adjustment Acquisition-Day Fair Value Demand $ 59,507 $ — $ 59,507 Money market accounts 53,773 — 53,773 Savings 12,352 — 12,352 Individual retirement accounts* 3,897 13 3,910 Time deposits, $250 and over* 3,385 12 3,397 Other certificates of deposit* 19,343 67 19,410 Total interest-bearing deposits 152,257 92 152,349 Total noninterest-bearing deposits 52,908 — 52,908 Total deposits $ 205,165 $ 92 $ 205,257 *Represents a time deposit.

SECURITIES SOLD UNDER AGREEMENT

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS	6 Months Ended
	Jun. 30, 2017
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS	7. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional securities. To mitigate the risk of under collateralization, the Bank typically pledges at least two percent more in securities than the associated repurchase agreements. All such securities are under the Bank’s control. At June 30, 2017 and December 31, 2016, all securities sold under agreements to repurchase had overnight maturities. Information regarding securities sold under agreements to repurchase follows: (dollars in thousands) June 30, 2017 December 31, 2016 Outstanding balance at end of period $ 113,334 $ 173,473 Weighted average interest rate at end of period 0.38 % 0.05 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 55,812 $ 116,025 Mortgage backed securities - residential 57,295 45,894 Collateralized mortgage obligations 43,485 41,155 Total securities pledged $ 156,592 $ 203,074 Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2017 2016 2017 2016 Average outstanding balance during the period $ 179,594 $ 267,574 $ 198,896 $ 337,636 Average interest rate during the period 0.33 % 0.02 % % 0.02 % Maximum outstanding at any month end during the period $ 156,339 $ 263,228 $ 183,709 $ 367,373

FEDERAL HOME LOAN BANK ADVANCES

FEDERAL HOME LOAN BANK ADVANCES	6 Months Ended
	Jun. 30, 2017
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES	8. FEDERAL HOME LOAN BANK ADVANCES At June 30, 2017 and December 31, 2016, FHLB advances were as follows: (dollars in thousands) June 30, 2017 December 31, 2016 Overnight advances $ 625,000 $ 285,000 Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% due in December 2017 10,000 10,000 Fixed interest rate advances 367,500 457,500 Putable fixed interest rate advances — 50,000 Total FHLB advances $ 1,002,500 $ 802,500 Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity. FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At June 30, 2017 and December 31, 2016, Republic had available borrowing capacity of $96 million and $378 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $125 million and $150 million available through various other financial institutions as of June 30, 2017 and December 31, 2016. 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 2017 (Overnight) $ 625,000 1.17 % 2017 (Term) 40,000 1.36 2018 117,500 1.53 2019 100,000 1.80 2020 90,000 1.81 2021 20,000 1.86 2022 — — Thereafter 10,000 2.14 Total $ 1,002,500 1.36 Due to their nature, the Bank considers average balance information more meaningful than period-end balances for its overnight borrowings from the FHLB. Information regarding overnight FHLB advances follows: (dollars in thousands) June 30, 2017 December 31, 2016 Outstanding balance at end of period $ 625,000 $ 285,000 Weighted average interest rate at end of period 1.17 % 0.64 % Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2017 2016 2017 2016 Average outstanding balance during the period $ 114,121 $ 128,846 $ 111,740 $ 68,352 Average interest rate during the period 1.06 % 0.40 % 0.88 % 0.40 % Maximum outstanding at any month end during the period $ 625,000 $ 495,000 $ 625,000 $ 495,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: (in thousands) June 30, 2017 December 31, 2016 First lien, single family residential real estate $ 1,136,031 $ 1,172,161 Home equity lines of credit 310,459 300,681 Multi-family commercial real estate — 14,913

OFF BALANCE SHEET RISKS, COMMIT

OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES	6 Months Ended
	Jun. 30, 2017
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES	9. OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES The Company, in the normal course of business, is party to financial instruments with off balance sheet risk. These financial instruments primarily include commitments to extend credit and standby letters of credit. The contract or notional amounts of these instruments reflect the potential future obligations of the Company pursuant to those financial instruments. Creditworthiness for all instruments is evaluated on a case-by-case basis in accordance with the Company’s credit policies. Collateral from the client may be required based on the Company’s credit evaluation of the client and may include business assets of commercial clients, as well as personal property and real estate of individual clients or guarantors. The Company also extends binding commitments to clients and prospective clients. Such commitments assure a borrower of financing for a specified period of time at a specified rate. Additionally, the Company makes binding purchase commitments to third-party loan correspondent originators. These commitments assure that the Company will purchase a loan from such correspondent originators at a specific price for a specific period of time. The risk to the Company under such loan commitments is limited by the terms of the contracts. For example, the Company may not be obligated to advance funds if the client’s financial condition deteriorates or if the client fails to meet specific covenants. An approved but unfunded loan commitment represents a potential credit risk and a liquidity risk, since the Company’s client(s) may demand immediate cash that would require funding. In addition, unfunded loan commitments represent interest rate risk as market interest rates may rise above the rate committed to the Company’s client. Since a portion of these loan commitments normally expire unused, the total amount of outstanding commitments at any point in time may not require future funding. The following table presents the Company’s commitments, exclusive of Mortgage Banking loan commitments, for each period ended: (in thousands) June 30, 2017 December 31, 2016 Unused warehouse lines of credit $ 474,370 $ 453,110 Unused home equity lines of credit 357,497 341,434 Unused loan commitments - other 683,199 560,629 Commitments to purchase loans* 1,154 3,176 Standby letters of credit 12,500 15,568 Total commitments $ 1,528,720 $ 1,373,917 *Commitments made through the Bank's Correspondent Lending channel. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third party. The terms and risk of loss involved in issuing standby letters of credit are similar to those involved in issuing loan commitments and extending credit. In addition to credit risk, the Company also has liquidity risk associated with standby letters of credit because funding for these obligations could be required immediately. The Company does not deem this risk to be material.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2017
FAIR VALUE
FAIR VALUE	10. FAIR VALUE Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Bank used the following methods and significant assumptions to estimate fair value: Securities available for sale: Quoted market prices in an active market are available for the Bank’s Community Reinvestment Act (“CRA”) mutual fund investment and fall within Level 1 of the fair value hierarchy. Except for the Bank’s CRA mutual fund investment, its private label mortgage backed security and its TRUP investment, the fair value of securities available for sale is typically determined by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Bank’s private label mortgage backed security remains illiquid, and as such, the Bank classifies this security as a Level 3 security in accordance with ASC Topic 820, Fair Value Measurements and Disclosures . Based on this determination, the Bank utilized an income valuation model (present value model) approach in determining the fair value of this security. See in this section of the filing under Footnote 3 “Investment Securities” for additional discussion regarding the Bank’s private label mortgage backed security. The Company acquired its TRUP investment in November 2015 and considered the most recent bid price for the same instrument to approximate market value at June 30, 2017. 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. Mortgage loans held for sale, at fair value: The fair value of mortgage loans held for sale is determined using quoted secondary market prices. Mortgage loans held for sale are classified as Level 2 in the fair value hierarchy. Consumer loans held for sale, at fair value: During 2016, RCS initiated an installment loan program and elected to carry all loans originated through this program at fair value. Such loans are generally sold within 21 days of origination, with their fair value based on contractual terms, Level 3 inputs. Mortgage Banking derivatives : Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts (“forward contracts”) and interest rate lock loan commitments. The fair value of the Bank’s derivative instruments is primarily measured by obtaining pricing from broker-dealers recognized to be market participants. The pricing is derived from market observable inputs that can generally be verified and do not typically involve significant judgment by the Bank. Forward contracts and rate-lock loan commitments are classified as Level 2 in the fair value hierarchy. Interest rate swap agreements: Interest rate swaps are recorded at fair value on a recurring basis. The Company values its interest rate swaps using a third-party valuation service and classifies such valuations as Level 2. Valuations of these interest rate swaps are also received from the relevant counterparty and validated against the Company’s calculations. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. Impaired loans: Collateral-dependent impaired loans generally reflect partial charge-downs to their respective fair value, which is commonly based on recent real estate appraisals or broker price opinions (“BPOs”). These appraisals or BPOs may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the process by the independent experts to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Collateral-dependent loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Other real estate owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals or BPOs. These appraisals or BPOs may utilize a single approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the process by the independent experts to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for collateral-dependent impaired 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 Credit Administration Department 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: On at least a quarterly basis, MSRs are evaluated for impairment based upon the fair value of the MSRs as compared to carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded and the respective individual tranche is carried at fair value. If the carrying amount of an individual tranche does not exceed fair value, impairment is reversed if previously recognized and the carrying value of the individual tranche is based on the amortization method. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and can generally be validated against available market data (Level 2). There were no MSR tranches carried at fair value at June 30, 2017 and December 31, 2016. Assets and liabilities measured at fair value on a recurring basis , including financial assets and liabilities for which the Bank has elected the fair value option, are summarized below: Fair Value Measurements at June 30, 2017 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: Securities available for sale: U.S. Treasury securities and U.S. Government agencies $ — $ 269,585 $ — $ 269,585 Private label mortgage backed security — — 4,540 4,540 Mortgage backed securities - residential — 90,455 — 90,455 Collateralized mortgage obligations — 78,404 — 78,404 Freddie Mac preferred stock — 337 — 337 Community Reinvestment Act mutual fund 2,479 — — 2,479 Corporate bonds — 15,272 — 15,272 Trust preferred security — — 3,453 3,453 Total securities available for sale $ 2,479 $ 454,053 $ 7,993 $ 464,525 Mortgage loans held for sale $ — $ 6,057 $ — $ 6,057 Consumer loans held for sale — — 3,235 3,235 Rate lock loan commitments — 582 — 582 Interest rate swap agreements — 432 — 432 Financial liabilities: Mandatory forward contracts $ — $ 48 $ — $ 48 Interest rate swap agreements — 777 — 777 Fair Value Measurements at December 31, 2016 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: Securities available for sale: U.S. Treasury securities and U.S. Government agencies $ — $ 294,544 $ — $ 294,544 Private label mortgage backed security — — 4,777 4,777 Mortgage backed securities - residential — 73,004 — 73,004 Collateralized mortgage obligations — 87,654 — 87,654 Freddie Mac preferred stock — 483 — 483 Community Reinvestment Act mutual fund 2,455 — — 2,455 Corporate bonds — 15,158 — 15,158 Trust preferred security — — 3,200 3,200 Total securities available for sale $ 2,455 $ 470,843 $ 7,977 $ 481,275 Mortgage loans held for sale $ — $ 11,662 $ — $ 11,662 Consumer loans held for sale — — 2,198 2,198 Rate lock loan commitments — 299 — 299 Mandatory forward contracts — 204 — 204 Interest rate swap agreements — 305 — 305 Financial liabilities: Interest rate swap agreements $ — $ 597 $ — 597 All transfers between levels are generally recognized at the end of each quarter. There were no transfers into or out of Level 1, 2 or 3 assets during the three and six months ended June 30, 2017 and 2016. 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) for the periods ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 4,682 $ 4,983 $ 4,777 $ 5,132 Total gains or losses included in earnings: Net change in unrealized gain 101 1 154 (148) Principal paydowns (243) (38) (391) (38) Balance, end of period $ 4,540 $ 4,946 $ 4,540 $ 4,946 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 Fair Isaac Corporation (“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 lower/higher fair value measurement. The following tables present quantitative information about recurring Level 3 fair value measurement inputs for the Bank’s single private label mortgage backed security at June 30, 2017 and December 31, 2016: Fair Valuation June 30, 2017 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 4,540 Discounted cash flow (1) Constant prepayment rate 3.0% - 6.5% (2) Probability of default 3.0% - 8.0% (3) Loss severity 60% - 85% Fair Valuation December 31, 2016 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 4,777 Discounted cash flow (1) Constant prepayment rate 2.0% - 6.5% (2) Probability of default 3.0% - 9.0% (3) Loss severity 60% - 90% 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 three and six months ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 3,200 $ 3,400 $ 3,200 $ 3,405 Total gains or losses included in earnings: Discount accretion 11 11 22 22 Net change in unrealized loss 242 (261) 231 (277) Balance, end of period $ 3,453 $ 3,150 $ 3,453 $ 3,150 The fair value of the Company’s TRUP investment is based on the most recent bid price for this instrument, as provided by a third-party broker. Mortgage Loans Held for Sale The Bank has elected the fair value option for mortgage loans held for sale. These loans are intended for sale and the Bank believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of June 30, 2017 and December 31, 2016. As of June 30, 2017 and December 31, 2016, the aggregate fair value, contractual balance, and unrealized gain was as follows: (in thousands) June 30, 2017 December 31, 2016 Aggregate fair value $ 6,057 $ 11,662 Contractual balance 5,852 11,568 Unrealized gain 205 94 The total amount of gains and losses from changes in fair value included in earnings for the three and six months ended June 30, 2017 and 2016 for mortgage loans held for sale are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Interest income $ 86 $ 40 $ 153 $ 72 Change in fair value 118 39 111 98 Total included in earnings $ 204 $ 79 $ 264 $ 170 Consumer Loans Held for Sale During 2016, RCS initiated an installment loan program and elected to carry all loans originated through this program at fair value. Such loans are generally sold within 21 days of origination, with their fair value based on contractual terms. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of June 30, 2017 and 2016. A reconciliation of the Company’s consumer loans held for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2017 and 2016 is included in Footnote 4 of this section of the filing. The significant unobservable inputs in the fair value measurement of the Bank’s 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 as of June 30, 2017 and December 31, 2016: Fair Valuation June 30, 2017 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 3,235 Contractual Terms (1) Net Premium 0.9% (2) Discounted Sales 5.0% Fair Valuation December 31, 2016 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 2,198 Contractual Terms (1) Net Premium 0.9% (2) Discounted Sales 5.0% As of June 30, 2017 and December 31, 2016 the aggregate fair value, contractual balance, and unrealized gain on consumer loans held for sale, at fair value, was as follows: (in thousands) June 30, 2017 December 31, 2016 Aggregate fair value $ 3,235 $ 2,198 Contractual balance 3,063 2,084 Unrealized gain 172 114 The total amount of net gains from changes in fair value included in earnings for the three and six months ended June 30, 2017 and 2016 for consumer loans held for sale, at fair value, are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Interest income $ 322 $ 161 $ 508 $ 161 Change in fair value (24) 362 58 362 Total included in earnings $ 298 $ 523 $ 566 $ 523 Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at June 30, 2017 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Impaired loans: Residential real estate: Owner occupied $ — $ — $ 4,359 $ 4,359 Nonowner occupied — — 38 38 Commercial real estate — — 2,382 2,382 Home equity — — 642 642 Total impaired loans* $ — $ — $ 7,421 $ 7,421 Fair Value Measurements at December 31, 2016 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Impaired loans: Residential real estate: Owner occupied $ — $ — $ 4,787 $ 4,787 Nonowner occupied — — 8 8 Commercial real estate — — 2,643 2,643 Home equity — — 426 426 Total impaired loans* $ — $ — $ 7,864 $ 7,864 Other real estate owned: Residential real estate $ — $ — $ 400 $ 400 Total other real estate owned $ — $ — $ 400 $ 400 * The difference between the carrying value and the fair value of impaired loans measured at fair value is reconciled in a subsequent table of this Footnote. The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis : Range Fair Valuation Unobservable (Weighted June 30, 2017 (dollars in thousands) Value Technique Inputs Average) Impaired loans - residential real estate owner occupied $ 4,359 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 53% (6%) Impaired loans - residential real estate nonowner occupied $ 38 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 45% (18%) Impaired loans - commercial real estate $ 997 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 23% (4%) Impaired loans - commercial real estate $ 1,385 Income approach Adjustments for differences between net operating income expectations 17% (17%) Impaired loans - home equity $ 642 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 71% (18%) Range Fair Valuation Unobservable (Weighted December 31, 2016 (dollars in thousands) Value Technique Inputs Average) Impaired loans - residential real estate owner occupied $ 4,787 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 53% (6%) Impaired loans - residential real estate nonowner occupied $ 8 Sales comparison approach Adjustments determined for differences between comparable sales 0% (0%) Impaired loans - commercial real estate $ 1,214 Sales comparison approach Adjustments determined for differences between comparable sales 3% - 49% (30%) Impaired loans - commercial real estate $ 1,429 Income approach Adjustments for differences between net operating income expectations 17% (17%) Impaired loans - home equity $ 426 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 29% (16%) Other real estate owned - residential real estate $ 400 Sales comparison approach Adjustments determined for differences between comparable sales 17% (17%) Impaired Loans Collateral-dependent impaired loans are generally measured for impairment using the fair value for reasonable disposition of the underlying collateral. The Bank’s practice is to obtain new or updated appraisals or BPOs on the loans subject to the initial impairment review and then to evaluate the need for an update to this value on an as-necessary or possibly annual basis thereafter (depending on the market conditions impacting the value of the collateral). The Bank may discount the valuation amount as necessary for selling costs and past due real estate taxes. If a new or updated appraisal or BPO is not available at the time of a loan’s impairment review, the Bank may apply a discount to the existing value of an old valuation to reflect the property’s current estimated value if it is believed to have deteriorated in either: (i) the physical or economic aspects of the subject property or (ii) material changes in market conditions. The impairment review generally results in a partial charge-off of the loan if fair value less selling costs are below the loan’s carrying value. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. Impaired collateral-dependent loans are as follows: (in thousands) June 30, 2017 December 31, 2016 Carrying amount of loans measured at fair value $ 6,652 $ 6,963 Estimated selling costs considered in carrying amount 843 936 Valuation allowance (74) (35) Total fair value $ 7,421 $ 7,864 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Provisions on collateral-dependent, impaired loans $ 118 $ 47 $ 190 $ 92 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: (in thousands) June 30, 2017 December 31, 2016 Other real estate owned carried at fair value $ — $ 400 Other real estate owned carried at cost 300 991 Total carrying value of other real estate owned $ 300 $ 1,391 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Other real estate owned write-downs during the period $ 9 $ — $ 79 $ — The carrying amounts and estimated fair values of all financial instruments at June 30, 2017 and December 31, 2016 follows: Fair Value Measurements at June 30, 2017: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 332,695 $ 332,695 $ — $ — $ 332,695 Securities available for sale 464,525 2,479 454,053 7,993 464,525 Securities held to maturity 61,159 — 61,594 — 61,594 Mortgage loans held for sale, at fair value 6,057 — 6,057 — 6,057 Consumer loans held for sale, at fair value 3,235 — — 3,235 3,235 Consumer loans held for sale, at the lower of cost or fair value 2,464 — 2,464 — 2,464 Loans, net 3,878,422 — — 3,858,270 3,858,270 Federal Home Loan Bank stock 32,067 — — — NA Accrued interest receivable 10,575 — 10,575 — 10,575 Liabilities: Noninterest-bearing deposits $ 1,061,637 — $ 1,061,637 — $ 1,061,637 Transaction deposits 1,767,494 — 1,767,494 — 1,767,494 Time deposits 304,807 — 303,846 — 303,846 Securities sold under agreements to repurchase and other short-term borrowings 113,334 — 113,334 — 113,334 Federal Home Loan Bank advances 1,002,500 — 998,996 — 998,996 Subordinated note 41,240 — 32,469 — 32,469 Accrued interest payable 842 — 842 — 842 Fair Value Measurements at December 31, 2016: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 289,309 $ 289,309 $ — $ — $ 289,309 Securities available for sale 481,275 2,455 470,843 7,977 481,275 Securities held to maturity 52,864 — 53,249 — 53,249 Mortgage loans held for sale, at fair value 11,662 — 11,662 — 11,662 Consumer loans held for sale, at fair value 2,198 — — 2,198 2,198 Consumer loans held for sale, at the lower of cost or fair value 1,310 — 1,310 — 1,310 Loans, net 3,777,858 — — 3,757,698 3,757,698 Federal Home Loan Bank stock 28,208 — — — NA Accrued interest receivable 10,356 — 10,356 — 10,356 Liabilities: Noninterest-bearing deposits $ 971,952 — $ 971,952 — $ 971,952 Transaction deposits 1,939,338 — 1,939,338 — 1,939,338 Time deposits 249,417 — 248,684 — 248,684 Securities sold under agreements to repurchase and other short-term borrowings 173,473 — 173,473 — 173,473 Federal Home Loan Bank advances 802,500 — 798,594 — 798,594 Subordinated note 41,240 — 30,821 — 30,821 Accrued interest payable 948 — 948 — 948 NA - Not applicable Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the Bank’s estimates. The assumptions used in the estimation of the fair value of the Company’s financial instruments are explained below. Where quoted market prices are not available, fair values are based on estimates using discounted cash flow and other valuation techniques. Discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following fair value estimates cannot be substantiated by comparison to independent markets and should not be considered representative of the liquidation value of the Company’s financial instruments, but rather a good-faith estimate of the fair value of financial instruments held by the Company. In addition to those previously disclosed, the following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents — The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. Consumer loans held for sale, at lower of cost or fair value – Consumer loans held for sale at the lower of cost or fair value constitute consumer loans generally sold within two business days of origination. The carrying amounts of these loans, due to their nature, approximate fair value and result in a Level 2 classification. Loans, net of Allowance — The fair value of loans is calculated using discounted cash flows by loan type resulting in a Level 3 classification. The discount rate used to determine the present value of the loan portfolio is an estimated market rate that reflects the credit and interest rate risk inherent in the loan portfolio without considering widening credit spreads due to market illiquidity. The estimated maturity is based on the Bank’s historical experience with repayments adjusted to estimate the effect of current market conditions. The Allowance is considered a reasonable discount for credit risk. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. Federal Home Loan Bank stock — It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. Accrued interest receivable/payable — The carrying amounts of accrued interest, due to their short-term nature, approximate fair value and result in a Level 2 classification. Deposits — Fair values for time deposits have been determined using discounted cash flows. The discount rate used is based on estimated market rates for deposits of similar remaining maturities and are classified as Level 2. The carrying amounts of all other deposits, due to their short-term nature, approximate their fair values and are also classified as Level 2. Securities sold under agreements to repurchase and other short-term borrowings — The carrying amount for securities sold under agreements to repurchase and other short-term borrowings generally maturing within ninety days approximates its fair value resulting in a Level 2 classification. Federal Home Loan Bank advances — The fair value of the FHLB advances is obtained from the FHLB and is calculated by discounting contractual cash flows using an estimated interest rate based on the current rates available to the Company for debt of similar remaining maturities and collateral terms resulting in a Level 2 classification. Subordinated note — The fair value for the subordinated note is calculated using discounted cash flows based upon current market spreads to LIBOR for debt of similar remaining maturities and collateral terms resulting in a Level 2 classification. The fair value estimates presented herein are based on pertinent information available to management as of the respective period ends. Although management is not aware of any factors that would dramatically affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, estimates of fair value may differ significantly from the amounts presented.

MORTGAGE BANKING ACTIVITIES

MORTGAGE BANKING ACTIVITIES	6 Months Ended
	Jun. 30, 2017
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES	11. MORTGAGE BANKING ACTIVITIES Activity for mortgage loans held for sale, at fair value, was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 5,193 $ 7,148 $ 11,662 $ 4,083 Origination of mortgage loans held for sale 42,531 58,795 75,776 95,787 Proceeds from the sale of mortgage loans held for sale (42,946) (55,128) (83,637) (90,150) Net gain on sale of mortgage loans held for sale 1,279 1,465 2,256 2,560 Balance, end of period $ 6,057 $ 12,280 $ 6,057 $ 12,280 The following table presents the components of Mortgage Banking income: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Net gain realized on sale of mortgage loans held for sale $ 1,173 $ 1,266 $ 2,114 $ 2,107 Net change in fair value recognized on loans held for sale 118 39 111 98 Net change in fair value recognized on rate lock loan commitments (36) 260 283 535 Net change in fair value recognized on forward contracts 23 (100) (252) (180) Net gain recognized 1,278 1,465 2,256 2,560 Loan servicing income 528 473 1,063 944 Amortization of mortgage servicing rights (361) (378) (714) (683) Net servicing income recognized 167 95 349 261 Total Mortgage Banking income $ 1,445 $ 1,560 $ 2,605 $ 2,821 Activity for capitalized mortgage servicing rights was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 5,158 $ 4,891 $ 5,180 $ 4,912 Additions 361 485 692 769 Amortized to expense (361) (378) (714) (683) Balance, end of period $ 5,158 $ 4,998 $ 5,158 $ 4,998 There was no balance or activity in the valuation allowance for capitalized mortgage servicing rights for the three and six months ended June 30, 2017 and 2016. Other information relating to mortgage servicing rights follows: (dollars in thousands) June 30, 2017 December 31, 2016 Fair value of mortgage servicing rights portfolio $ 7,761 $ 7,478 Monthly weighted average prepayment rate of unpaid principal balance* 197 % 158 % Discount rate 10 % 13 % Weighted average default rate 3.90 % 1.50 % Weighted average life in years * Rates are applied to individual tranches with similar characteristics. Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts and interest rate lock loan commitments. Mandatory forward contracts represent future commitments to deliver loans at a specified price and date and are used to manage interest rate risk on loan commitments and mortgage loans held for sale. Interest rate lock loan commitments represent commitments to fund loans at a specific rate. These derivatives involve underlying items, such as interest rates, and are designed to transfer risk. Substantially all of these instruments expire within 90 days from the date of issuance. Notional amounts are amounts on which calculations and payments are based, but which do not represent credit exposure, as credit exposure is limited to the amounts required to be received or paid. Mandatory forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the counterparties fail to deliver commitments or are unable to fulfill their obligations, the Bank could potentially incur significant additional costs by replacing the positions at then current market rates. The Bank manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management and the Board of Directors. The Bank does not expect any counterparty to default on their obligations and therefore, the Bank does not expect to incur any cost related to counterparty default. The Bank is exposed to interest rate risk on loans held for sale and rate lock loan commitments. As market interest rates fluctuate, the fair value of mortgage loans held for sale and rate lock commitments will decline or increase. To offset this interest rate risk the Bank enters into derivatives, such as mandatory forward contracts to sell loans. The fair value of these mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate-loan lock commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before expiration; and the time period required to close and sell loans. The following table includes the notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives as of the period ends presented: June 30, 2017 December 31, 2016 Notional Notional (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 5,852 $ 6,057 $ 11,568 $ 11,662 Included in other assets: Rate lock loan commitments $ 32,110 $ 582 $ 19,521 $ 299 Mandatory forward contracts — — 25,618 204 Included in other liabilities: Mandatory forward contracts $ 36,179 $ 48 $ — $ —

INTEREST RATE SWAPS

INTEREST RATE SWAPS	6 Months Ended
	Jun. 30, 2017
INTEREST RATE SWAPS
INTEREST RATE SWAPS	12. INTEREST RATE SWAPS Interest rate swap derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a cash flow hedging relationship. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss is recorded as a component of other comprehensive income (“OCI”). For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Interest Rate Swaps Used as Cash Flow Hedges The Bank entered into two interest rate swap agreements (“swaps”) during 2013 as part of its interest rate risk management strategy. The Bank designated the swaps as cash flow hedges intended to reduce the variability in cash flows attributable to either FHLB advances tied to the 3-month LIBOR or the overall changes in cash flows on certain money market deposit accounts tied to 1-month LIBOR. The counterparty for both swaps met the Bank’s credit standards and the Bank believes that the credit risk inherent in the swap contracts is not significant. The swaps were determined to be fully effective during all periods presented; therefore, no amount of ineffectiveness was included in net income. The aggregate fair value of the swaps is recorded in other liabilities with changes in fair value recorded in OCI. The amount included in AOCI would be reclassified to current earnings should the hedge no longer be considered effective. The Bank expects the hedges to remain fully effective during the remaining term of the swaps. The following table reflects information about swaps designated as cash flow hedges as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Unrealized Unrealized Notional Pay Receive Assets / Gain (Loss) Assets / Gain (Loss) (dollars in thousands) Amount Rate Rate Term (Liabilities) AOCI (Liabilities) in AOCI Interest rate swap on money market deposits $ 10,000 2.17 % 1M LIBOR 12/2013 - 12/2020 $ (151) $ (98) $ (186) $ (121) Interest rate swap on FHLB advance 10,000 2.33 % 3M LIBOR 12/2013 - 12/2020 (194) (126) (207) (135) $ 20,000 $ (345) $ (224) $ (393) $ (256) The following table reflects the total interest expense recorded on these swap transactions in the consolidated statements of income for the three and six months ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Interest rate swap on money market deposits $ 29 $ 43 $ 63 $ 86 Interest rate swap on FHLB advance 29 43 61 87 Total interest expense on swap transactions $ 58 $ 86 $ 124 $ 173 The following table presents the net gains (losses) recorded in OCI and the consolidated statements of income relating to the swaps designated as cash flow hedges for the three and six months ended June 30, 2017 and 2016: \ Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Losses recognized in OCI on derivative (effective portion) $ (104) $ (219) $ (76) $ (790) Losses reclassified from OCI on derivative (effective portion) (58) (86) (124) (173) Gains (losses) recognized in income on derivative (ineffective portion) — — — — The estimated net amount of existing losses reported in AOCI at June 30, 2017 expected to be reclassified into earnings within the next 12 months is $172,000 . 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 therefore, has no credit risk. A summary of the Bank’s interest rate swaps related to clients as of June 30, 2017 and December 31, 2016 is included in the following table: June 30, 2017 December 31, 2016 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients Pay variable/receive fixed $ 38,597 $ 299 $ 31,553 $ 156 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 38,597 (299) 31,553 (55) Total $ 77,194 $ — $ 63,106 $ 101 The Bank is required to pledge securities as collateral when the Bank is in a net loss position exceeding $250,000 for all swaps with dealer counterparties. The fair value of cash or investment securities pledged as collateral by the Bank to cover such net loss positions totaled $1.2 million and $1.8 million at June 30, 2017 and December 31, 2016.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
EARNINGS PER SHARE
EARNINGS PER SHARE	13. EARNINGS PER SHARE Class A and Class B Shares participate equally in undistributed earnings. The difference in earnings per share between the two classes of common stock results solely from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock. A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2017 2016 2017 2016 Net income $ 10,071 $ 8,340 $ 30,088 $ 26,075 Weighted average shares outstanding 21,151 20,947 20,918 20,956 Effect of dilutive securities 79 11 78 10 Average shares outstanding including dilutive securities 21,230 20,958 20,996 20,966 Basic earnings per share: Class A Common Stock $ 0.48 $ 0.40 $ 1.45 $ 1.26 Class B Common Stock 0.44 0.37 1.32 1.14 Diluted earnings per share: Class A Common Stock $ 0.48 $ 0.40 $ 1.45 $ 1.26 Class B Common Stock 0.44 0.37 1.32 1.14 Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Antidilutive stock options 2,500 10,000 2,500 10,000 Average antidilutive stock options 1,166 7,500 584 8,150

STOCK PLANS AND STOCK BASED COM

STOCK PLANS AND STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2017
STOCK PLANS AND STOCK BASED COMPENSATION
STOCK PLANS AND STOCK BASED COMPENSATION	14. 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 became effective April 2015 when the Company’s shareholders approved the 2015 Plan. The 2015 Plan replaced the Company’s 2005 Stock Incentive Plan, which expired March 2015. 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 five to six years after the issue date. Stock options generally must be exercised within one year from the date the options become exercisable and have an exercise price that is at least equal to the fair market value of the Company’s stock on their grant date. Forfeitures of stock-based awards are accounted for when incurred in lieu of using forfeiture estimates. All shares issued under the above-mentioned plans 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 following table summarizes stock option activity from January 1, 2016 through June 30, 2017: Weighted Weighted Average Options Average Remaining Aggregate Class A Exercise Contractual Intrinsic Shares Price Term Value Outstanding, January 1, 2016 323,400 $ 24.40 Granted 5,000 26.43 Exercised (4,000) 20.12 Forfeited or expired (11,800) 24.47 Outstanding, December 31, 2016 312,600 $ 24.49 3.77 $ 4,705,807 Outstanding, January 1, 2017 312,600 $ 24.49 Granted 2,500 35.26 Exercised (2,000) 16.61 Forfeited or expired (2,000) 24.93 Outstanding, June 30, 2017 311,100 $ 24.62 3.34 $ 3,446,803 Fully vested and unvested 311,100 $ 24.62 3.34 $ 3,446,803 Exercisable (vested) at June 30, 2017 — $ — — $ — Information related to stock options for each period follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2017 2016 2017 2016 Intrinsic value of options exercised $ — $ 2 $ 44 $ 18 Cash received from options exercised, net of shares redeemed — 25 33 80 Weighted-average fair value per share of options granted 5.61 3.27 5.61 3.27 NA - Not applicable Restricted Stock Awards Restricted stock awards generally vest five to six years after issue, 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 restricted stock awards activity from January 1, 2016 through June 30, 2017: Restricted Stock Awards Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2016 79,000 $ 20.02 Granted — — Forfeited (2,000) 19.85 Earned and issued — — Outstanding, December 31, 2016 77,000 $ 20.02 Outstanding, January 1, 2017 77,000 $ 20.02 Granted 7,413 35.77 Forfeited — — Earned and issued (3,702) 35.12 Outstanding, June 30, 2017 80,711 $ 20.78 Fully vested and unvested 80,711 $ 20.78 Vested at June 30, 2017 — $ — Performance Stock Units The Company first granted performance stock units (“PSUs”) under the 2015 Plan in January 2016. Shares of stock underlying the PSUs may be earned over a four-year performance period commencing on January 1, 2017 and ending on December 31, 2020 as follows: · If the Company achieves a Return on Average Assets (“ROAA”), as defined in the award agreement, of 1.25% for a calendar year in the performance period, then between March 1 and March 15 of the following year, provided that the recipient is still employed in good standing on the payment date, the Company will issue shares of fully-vested stock to the participant equal to 50% of the number of the PSUs initially granted to the participant; and · If the ROAA of 1.25% is met again at the end of another calendar year during the remaining term of the performance period, the Company will similarly issue fully vested stock in an amount equal to the remaining 50% of the initial PSUs granted to the participant. The following table summarizes PSU activity from January 1, 2016 through June 30, 2017: Performance Stock Units Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2016 — $ — Granted 55,000 23.13 Forfeited — — Earned and issued — — Outstanding, December 31, 2016 55,000 $ 23.13 Outstanding, January 1, 2017 55,000 $ 23.13 Granted — — Forfeited (2,500) 25.29 Earned and issued — — Outstanding, June 30, 2017 52,500 $ 23.08 Fully vested and unvested 52,500 $ 23.08 Vested at June 30, 2017 — $ — Expense Related to the 2015 Stock Incentive Plan The Company recorded expense related to the 2015 Plan for the three and six months ended June 30, 2017 and 2016 as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Stock option expense $ 63 $ 64 $ 126 $ 126 Restricted stock award expense 77 45 292 117 Performance stock unit expense 105 127 237 254 Total expense $ 245 $ 236 $ 655 $ 497 Unrecognized expenses related to unvested awards (net of estimated forfeitures) under the 2015 Plan are estimated as follows: Stock Restricted Performance Year Ended (in thousands) Options Stock Awards Stock Units Total 2017 $ 129 $ 151 $ 237 $ 517 2018 254 138 198 590 2019 146 35 — 181 2020 35 27 — 62 2021 3 12 — 15 2022 1 2 — 3 Total $ 568 $ 365 $ 435 $ 1,368

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 2017
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME	15. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Available for Sale Securities: Change in unrealized gain (loss) on securities available for sale $ 423 $ 416 $ 1,129 $ 2,708 Change in unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings 101 1 154 (148) Net unrealized gains 524 417 1,283 2,560 Tax effect (183) (145) (450) (893) Net of tax 341 272 833 1,667 Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges (104) (219) (76) (790) Reclassification amount for derivative losses realized in income 58 86 124 173 Net unrealized gains (losses) (46) (133) 48 (617) Tax effect 16 48 (16) 216 Net of tax (30) (85) 32 (401) Total other comprehensive income (loss) components, net of tax $ 311 $ 187 $ 865 $ 1,266 Significant amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2017 and 2016: Amounts Reclassified From Accumulated Other Comprehensive Income Affected Line Items Three Months Ended Six Months Ended in the Consolidated June 30, June 30, (in thousands) Statements of Income 2017 2016 2017 2016 Cash Flow Hedges: Interest rate swap on money market deposits Interest expense on deposits (29) (43) $ (63) $ (86) Interest rate swap on FHLB advance Interest expense on FHLB advances (29) (43) (61) (87) Total derivative losses on cash flow hedges Total interest expense (58) (86) (124) (173) Tax effect Income tax expense 20 30 43 61 Net of tax Net income $ (38) (56) $ (81) $ (112) The following is a summary of the AOCI balances, net of tax: 2017 (in thousands) December 31, 2016 Change June 30, 2017 Unrealized gain on securities available for sale $ 237 $ 733 $ 970 Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings 706 100 806 Unrealized loss on cash flow hedge (256) 32 (224) Total unrealized gain $ 687 $ 865 $ 1,552 2016 (in thousands) December 31, 2015 Change June 30, 2016 Unrealized gain on securities available for sale $ 1,727 $ 1,763 $ 3,490 Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings 712 (96) 616 Unrealized loss on cash flow hedge (390) (401) (791) Total unrealized gain $ 2,049 $ 1,266 $ 3,315

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	16. SEGMENT INFORMATION Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar. As of June 30, 2017, the Company was divided into four distinct operating segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking and Republic Processing Group (“RPG”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” activities. Correspondent Lending operations are considered part of Traditional Banking. The RPG segment includes the following divisions: Tax Refund Solutions (“TRS”), Republic Credit Solutions (“RCS”) and Republic Payment Solutions (“RPS”). TRS generates the majority of RPG’s income, with the relatively smaller divisions of RPG, RPS and RCS, considered immaterial for separate and independent segment reporting. All divisions of the RPG segment operate through the Bank. The nature of segment operations and the primary drivers of net revenues by reportable segment are provided below: Segment: Nature of Operations: Primary Drivers of Net Revenues: Traditional Banking Provides traditional banking products to clients primarily in its market footprint via its network of banking centers and to clients outside of its market footprint primarily via its digital and Correspondent Lending delivery channels. Loans, investments and deposits Core Banking Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the Nation. 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 its market footprint. Loan sales and servicing Republic Processing Group The TRS division facilitates the receipt and payment of federal and state tax refund products. The RCS division offers credit products. RPG products are primarily provided to clients outside of the Bank’s market footprint. The RPS division offers general-purpose reloadable cards. Refund transfers and unsecured, small-dollar 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 2016 Annual Report on Form 10-K. Segment performance is evaluated using operating income. Goodwill is allocated to the Traditional Banking segment. Income taxes are generally allocated based on income before income tax expense unless specific segment allocations can be reasonably made. Transactions among reportable segments are made at carrying value. Segment information for the three months ended June 30, 2017 and 2016 follows: Three Months Ended June 30, 2017 Core Banking Total Republic Traditional Warehouse Mortgage Core Processing Total (dollars in thousands) Banking Lending Banking Banking Group Company Net interest income $ 33,434 $ 4,435 $ 86 $ 37,955 $ 5,182 $ 43,137 Provision for loan and lease losses 1,461 264 — 1,725 3,336 5,061 Net refund transfer fees — — — — 2,770 2,770 Mortgage banking income — — 1,445 1,445 — 1,445 Program fees — — — — 1,284 1,284 Other noninterest income 6,969 10 115 7,094 334 7,428 Total noninterest income 6,969 10 1,560 8,539 4,388 12,927 Total noninterest expenses 31,185 822 984 32,991 2,743 35,734 Income before income tax expense 7,757 3,359 662 11,778 3,491 15,269 Income tax expense 2,471 1,228 232 3,931 1,267 5,198 Net income $ 5,286 $ 2,131 $ 430 $ 7,847 $ 2,224 $ 10,071 Segment end-of-period assets $ 4,283,741 $ 600,060 $ 13,920 $ 4,897,721 $ 57,940 $ 4,955,661 Net interest margin 3.44 % 3.62 % NM 3.46 % NM 3.87 % Three Months Ended June 30, 2016 Core Banking Total Republic Traditional Warehouse Mortgage Core Processing Total (dollars in thousands) Banking Lending Banking Banking Group Company Net interest income $ 29,537 $ 3,790 $ 40 $ 33,367 $ 2,210 $ 35,577 Provision for loan and lease losses 798 480 — 1,278 536 1,814 Net refund transfer fees — — — — 1,909 1,909 Mortgage banking income — — 1,560 1,560 — 1,560 Program fees — — — — 664 664 Other noninterest income 6,371 5 63 6,439 230 6,669 Total noninterest income 6,371 5 1,623 7,999 2,803 10,802 Total noninterest expenses 27,737 735 1,152 29,624 2,242 31,866 Income before income tax expense 7,373 2,580 511 10,464 2,235 12,699 Income tax expense 2,413 958 179 3,550 809 4,359 Net income $ 4,960 $ 1,622 $ 332 $ 6,914 $ 1,426 $ 8,340 Segment end-of-period assets $ 3,989,769 $ 585,441 $ 18,133 $ 4,593,343 $ 53,579 $ 4,646,922 Net interest margin 3.23 % 3.67 % NM 3.28 % NM 3.43 % Segment assets are reported as of the respective period ends while income and margin data are reported for the respective periods. NM — Not Meaningful Segment information for the six months ended June 30, 2017 and 2016 follows: Six Months Ended June 30, 2017 Core Banking Total Republic Traditional Warehouse Mortgage Core Processing Total (dollars in thousands) Banking Lending Banking Banking Group Company Net interest income $ 66,094 $ 8,336 $ 153 $ 74,583 $ 24,992 $ 99,575 Provision for loan and lease losses 1,928 38 — 1,966 15,446 17,412 Net refund transfer fees — — — — 18,152 18,152 Mortgage banking income — — 2,605 2,605 — 2,605 Program fees — — — — 2,375 2,375 Other noninterest income 13,491 16 127 13,634 1,084 14,718 Total noninterest income 13,491 16 2,732 16,239 21,611 37,850 Total noninterest expenses 61,275 1,600 2,198 65,073 9,600 74,673 Income before income tax expense 16,382 6,714 687 23,783 21,557 45,340 Income tax expense 4,733 2,455 241 7,429 7,823 15,252 Net income $ 11,649 $ 4,259 $ 446 $ 16,354 $ 13,734 $ 30,088 Segment end-of-period assets $ 4,283,741 $ 600,060 $ 13,920 $ 4,897,721 $ 57,940 $ 4,955,661 Net interest margin 3.37 % 3.60 % NM 3.39 % NM 4.44 % Six Months Ended June 30, 2016 Core Banking Total Republic Traditional Warehouse Mortgage Core Processing Total (dollars in thousands) Banking Lending Banking Banking Group Company Net interest income $ 58,145 $ 6,445 $ 72 $ 64,662 $ 10,349 $ 75,011 Provision for loan and lease losses 1,278 498 — 1,776 5,224 7,000 Net refund transfer fees — — — — 18,987 18,987 Mortgage banking income — — 2,821 2,821 — 2,821 Program fees — — — — 963 963 Other noninterest income 12,481 10 155 12,646 306 12,952 Total noninterest income 12,481 10 2,976 15,467 20,256 35,723 Total noninterest expenses 52,612 1,430 2,392 56,434 7,973 64,407 Income before income tax expense 16,736 4,527 656 21,919 17,408 39,327 Income tax expense 5,026 1,681 230 6,937 6,315 13,252 Net income $ 11,710 $ 2,846 $ 426 $ 14,982 $ 11,093 $ 26,075 Segment end-of-period assets $ 3,989,769 $ 585,441 $ 18,133 $ 4,593,343 $ 53,579 $ 4,646,922 Net interest margin 3.15 % 3.65 % NM 3.19 % NM 3.60 % Segment assets are reported as of the respective period ends while income and margin data are reported for the respective periods. NM — Not Meaningful

BASIS OF PRESENTATION AND SUM24

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation — The consolidated financial statements include the accounts of Republic Bancorp, Inc. (the “Parent Company”) and its wholly-owned subsidiaries, Republic Bank & Trust Company (“RB&T” or the “Bank”) and Republic Insurance Services, Inc. (the “Captive”). All significant intercompany balances and transactions are eliminated in consolidation. All companies are collectively referred to as (“Republic” or the “Company”). The Bank is a Kentucky-based, state chartered non-member financial institution that provides both traditional and non-traditional banking products through four distinct operating segments using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery channels allow it to reach clients across the United States. The Captive is a Nevada-based, wholly-owned insurance subsidiary of the Company. The Captive provides property and casualty insurance coverage to the Company and the Bank as well as a group of third-party insurance captives for which insurance may not be available or economically feasible. Republic Bancorp Capital Trust (“RBCT”) is a Delaware statutory business trust that is a wholly-owned unconsolidated finance subsidiary of Republic Bancorp, Inc. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and footnotes thereto included in Republic’s Form 10-K for the year ended December 31, 2016. As of June 30, 2017, the Company was divided into four distinct operating segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking and Republic Processing Group (“RPG”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” activities. Correspondent Lending operations and the Company’s national branchless banking platform, MemoryBank ® , are considered part of the Traditional Banking segment. The RPG segment includes the following divisions: Tax Refund Solutions (“TRS”), Republic Credit Solutions (“RCS”) and Republic Payment Solutions (“RPS”). TRS generates the majority of RPG’s income, with the relatively smaller divisions of RPG, RCS and RPS, considered immaterial for separate and independent segment reporting. All divisions of the RPG segment operate through the Bank.
Core Bank	Core Banking (includes Traditional Banking, Warehouse Lending and Mortgage Banking segments) The Traditional Banking segment provides traditional banking products primarily to customers in the Company’s market footprint. As of June 30, 2017, Republic had 45 full-service banking centers and one loan production office (“LPO”) with locations as follows:  Kentucky — 33  Metropolitan Louisville — 19  Central Kentucky — 9  Elizabethtown — 1  Frankfort — 1  Georgetown — 1  Lexington — 5  Shelbyville — 1  Western Kentucky — 2  Owensboro — 2  Northern Kentucky — 3  Covington — 1  Florence — 1  Independence — 1  Southern Indiana — 3  Floyds Knobs — 1  Jeffersonville — 1  New Albany — 1  Metropolitan Tampa, Florida — 6  Metropolitan Cincinnati, Ohio — 1  Metropolitan Nashville, Tennessee — 3* *Includes one LPO Republic’s headquarters are located in Louisville, which is the largest city in Kentucky based on population. Core 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 Core 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. Federal Home Loan Bank (“FHLB”) advances have traditionally been a significant borrowing source for the Bank. Other sources of Core Banking income include service charges on deposit accounts, debit and credit card interchange fee income, title insurance commissions, fees charged to clients for trust services, increases in the cash surrender value of Bank Owned Life Insurance (“BOLI”) and revenue generated from Mortgage Banking activities. Mortgage Banking activities represent both the origination and sale of loans in the secondary market and the servicing of loans for others, primarily the Federal Home Loan Mortgage Corporation (“Freddie Mac” or “FHLMC”) and the Federal National Mortgage Association (“Fannie Mae” or “FNMA”). Core Banking operating expenses consist primarily of salaries and employee benefits, occupancy and equipment expenses, communication and transportation costs, data processing, interchange related expenses, marketing and development expenses, Federal Deposit Insurance Corporation (“FDIC”) insurance expense, franchise tax expense and various other general and administrative costs. Core 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. Through its Warehouse Lending segment, the Core Bank provides short-term, revolving credit facilities to mortgage bankers across the United States through mortgage warehouse lines of credit. These credit facilities are primarily secured by single family, first lien residential real estate loans. The credit facility enables the mortgage banking clients to close single family, first lien residential real estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank or purchased by the Bank through its Correspondent Lending channel. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days. Reverse mortgage loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client. Primarily from its Warehouse clients, the Core Bank acquires single family, first lien mortgage loans that meet the Core Bank’s specifications through its Correspondent Lending channel. Substantially all loans purchased through the Correspondent Lending channel are purchased at a premium. Loans acquired through the Correspondent Lending channel generally reflect borrowers outside of the Bank’s historical market footprint, with 73% of loans acquired through this origination channel as of June 30, 2017, secured by collateral in the state of California. The volume of loans purchased through the Correspondent Lending channel may fluctuate from time to time based on several factors, including, but not limited to, borrower demand, other investment options and the Bank’s current and forecasted liquidity position.
Republic Processing Group	Republic Processing Group Tax Refund Solutions division — Through its TRS division, the Bank is one of a limited number of financial institutions that facilitates the receipt and payment of federal and state tax refund products and offers a credit product through third-party tax preparers located throughout the United States, as well as tax-preparation software providers (collectively, the “Tax Providers”). Substantially all of the business generated by the TRS division occurs in the first half of the year. The TRS division traditionally operates at a loss during the second half of the year, during which time the division incurs costs preparing for the upcoming year’s tax season. Refund Transfers (“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 on RTs, net of rebates, are reported as noninterest income under the line item “Net refund transfer fees.” TRS first offered its Easy Advance (“EA”) tax credit product during the first two months of 2016 and for a second successive year during the first two months of 2017. For the first quarter 2017 tax season, the Company modified the EA product offering to have more than one advance amount and a different price structure to the Tax Providers based on the amount borrowed by the taxpayer. All other features of the product remained substantially the same as those from the first quarter 2016 tax season, including the following: · No EA fee charged to the taxpayer customer; · All fees for the product were paid by the Tax Providers with a restriction prohibiting the Tax Providers from passing along the fees to the taxpayer customer; · No requirement that the taxpayer customer pay for another bank product, such as an RT; · Multiple funds disbursement methods, including direct deposit, prepaid card, check or Walmart Direct2Cash ® product, based on the taxpayer customer’s election; · Repayment of the EA to the Bank was deducted from the taxpayer customer’s tax refund proceeds; and · If an insufficient refund to repay the EA occurred: o there was no recourse to the taxpayer customer, o no negative credit reporting on the taxpayer customer, and o no collection efforts against the taxpayer customer. Fees paid by the Tax Providers to the Company for the EA product are reported as interest income on loans. EAs during 2017 and 2016 were generally repaid within three weeks after the taxpayer customer’s tax return was submitted to the applicable taxing authority. EAs do not have a contractual due date but are eligible for delinquency consideration three weeks after the taxpayer customer’s tax return is submitted to the applicable taxing authority. Provisions for loan losses on EAs are estimated when advances are made, with all expected loss provisions made in the first quarter of each year. Unpaid EAs are charged-off within 81 days after the taxpayer customer’s tax return is submitted to the applicable taxing authority, with the majority of charge-offs typically recorded during the second quarter of the year. Related to the overall credit losses on EAs, the Bank’s ability to control losses is highly dependent upon its ability to predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s EA approval model is based primarily on the prior-year’s tax refund funding patterns. Because much of the loan volume occurs each year before that year’s tax refund funding 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 funding patterns change materially between years.
Republic Credit Solutions (“RCS”) division	Republic Credit Solutions division — Through its RCS division, the Bank offers consumer credit products. In general, the credit products are unsecured, small dollar consumer loans with maturities of 30-days-or-more, and are dependent on various factors including the consumer’s ability to repay. RCS loans typically earn a higher yield but also have higher credit risk compared to loans originated through the Traditional Banking segment. The Company reports RCS loans originated for investment under “Loans,” while loans originated for sale are reported under “Consumer loans held for sale.” The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains or losses on sale reported as noninterest income under “Program fees.”
Republic Payment Solutions (“RPS”) division	Republic Payment Solutions division — Through its RPS division, the Bank is an issuing bank offering general-purpose reloadable prepaid cards through third-party program managers. The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.”
Accounting Standards Update (“ASUs”)	Accounting Standards Updates (“ASUs”) The following ASUs were issued prior to June 30, 2017 and are considered relevant to the Company’s financial statements. Generally, if an issued-but-not-yet-effective ASU with an expected immaterial impact to the Company has been disclosed in prior Company financial statements, it will not be included below. ASU. No. Topic Nature of Update Date Adoption Required Method of Adoption Expected Financial Statement Impact 2014-09 Revenue from Contracts with Customers (Topic 606) Requires that revenue from contracts with clients be recognized upon transfer of control of a good or service in the amount of consideration expected to be received. Changes the accounting for certain contract costs, including whether they may be offset against revenue in the statements of income, and requires additional disclosures about revenue and contract costs. January 1, 2018 Full retrospective approach or a modified-retrospective approach. Because most financial instruments are outside the scope of this ASU, the Company believes the impact on its financial statements will likely be immaterial; however, the Company will continue to review its products and services up through the effective date of this ASU. 2016-02 Leases (Topic 842) Most leases are considered operating leases, which are not accounted for on the lessees’ balance sheets. The significant change under this ASU is that those operating leases will be recorded on the balance sheet. January 1, 2019 Modified-retrospective approach, which includes a number of optional practical expedients. During 2017, the Company continued to review all of its leases and further analyzed the impact of adopting this ASU. 2016-13 Financial Instruments – Credit Losses (Topic 326) Amends guidance on reporting credit losses for assets held at amortized-cost basis and available-for-sale debt securities. January 1, 2020 Modified-retrospective approach. As a result of this ASU, the Company expects a substantial, yet fully undetermined, increase in its allowance for credit losses. The Company currently utilizes a third-party software solution as its model to calculate its allowance for loan and lease losses. During 2016 and into 2017, the Company formed a committee to begin the process of transitioning to a current expected credit losses (“CECL”) methodology by the expected adoption date of January 1, 2020. As part of this transition, the committee has analyzed the Company’s loan-level data and preliminarily concluded that no additional loan level segmentation beyond its current methodology segmentation would be warranted under CECL. The Company is also currently analyzing the output from a “beta test” CECL model provided by its third-party software solution. 2017-09 Compensation - Stock Compensation (Topic 718) The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require the Company to apply modification accounting under Topic 718. January 1, 2018 Prospectively, early adoption permitted. Immaterial The following ASUs were adopted by the Company during the six months ended June 30, 2017: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2016-09 Compensation – Stock Compensation (Topic 718) Provides simplification in areas of accounting for share-based payments, including: the income tax consequences; classification of awards as either equity or liabilities; and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. January 1, 2017 Prospectively Immaterial 2017-08 Receivables - Nonrefundable Fees and Other Costs (Topic 310-20) This ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the ASU requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. June 1, 2017 Early adoption, modified retrospective approach. Immaterial

2016 ACQUISITION OF CORNERSTO25

2016 ACQUISITION OF CORNERSTONE BANCORP, INC. (Tables)	6 Months Ended
	Jun. 30, 2017
2016 ACQUISITION OF CORNERSTONE BANCORP, INC.
Summary of Assets Acquired and Liabilities Assumed	Summary of Assets Acquired and Liabilities Assumed May 17, 2016 As Previously Reported As Recasted As Recorded Fair Value Recast As Recorded (in thousands) by Cornerstone Adjustments Adjustments by Republic Assets acquired: Cash and cash equivalents $ 22,707 $ — $ — $ 22,707 Investment securities 329 — — 329 Loans 195,136 (5,525) a 13 a 189,624 Allowance for loan and lease losses (1,955) 1,955 a — — Loans, net 193,181 (3,570) 13 189,624 Federal Home Loan Bank stock, at cost 224 — — 224 Premises and equipment, net 7,770 4,457 b — 12,227 Core deposit intangible — 1,205 c — 1,205 Deferred income taxes 3,714 (74) d — 3,640 Bank owned life insurance 7,461 — — 7,461 Other assets and accrued interest receivable 658 — — 658 Total assets acquired $ 236,044 $ 2,018 $ 13 $ 238,075 Liabilities assumed: Deposits: Noninterest-bearing $ 52,908 $ — $ — $ 52,908 Interest-bearing 152,257 92 e — 152,349 Total deposits 205,165 92 — 205,257 Subordinated note 4,124 — — 4,124 Other liabilities and accrued interest payable 2,244 787 f — 3,031 Total liabilities assumed 211,533 879 — 212,412 Net assets acquired $ 24,511 $ 1,139 $ 13 25,663 Cash consideration paid (31,795) Goodwill $ 6,132 Explanation of fair value adjustments a. Reflects the fair value adjustment based on the Company’s evaluation of the acquired loan portfolio and to eliminate the acquiree’s recorded allowance for loan losses. b. Reflects the fair value adjustment based on the Company’s evaluation of the premises and equipment acquired. c. Reflects the fair value adjustment for the core deposit intangible asset recorded as a result of the acquisition. d. Reflects the differences in the carrying values of acquired assets and assumed liabilities for financial reporting purposes and their basis for federal income tax purposes. e. Reflects the fair value adjustment based on the Company’s evaluation of the assumed time deposits. f. Reflects the amount needed to adjust other liabilities to estimated fair value and to record certain liabilities directly attributable to the acquisition of Cornerstone.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2017
INVESTMENT SECURITIES
Gross Amortized Cost and Fair Value of Securities Available for Sale and Related Gross Unrealized Gains and Losses Recognized in Accumulated Other Comprehensive Income (Loss)	Gross Gross Amortized Unrealized Unrealized Fair June 30, 2017 (in thousands) Cost Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 270,360 $ 37 $ (812) $ 269,585 Private label mortgage backed security 3,300 1,240 — 4,540 Mortgage backed securities - residential 88,776 1,892 (213) 90,455 Collateralized mortgage obligations 78,382 409 (387) 78,404 Freddie Mac preferred stock — 337 — 337 Community Reinvestment Act mutual fund 2,500 4 (25) 2,479 Corporate bonds 15,003 269 — 15,272 Trust preferred security 3,471 — (18) 3,453 Total securities available for sale $ 461,792 $ 4,188 $ (1,455) $ 464,525 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 (in thousands) Cost Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 295,425 $ 226 $ (1,107) $ 294,544 Private label mortgage backed security 3,691 1,086 — 4,777 Mortgage backed securities - residential 71,197 2,027 (220) 73,004 Collateralized mortgage obligations 88,559 334 (1,239) 87,654 Freddie Mac preferred stock — 483 — 483 Community Reinvestment Act mutual fund 2,500 — (45) 2,455 Corporate bonds 15,004 154 — 15,158 Trust preferred security 3,449 — (249) 3,200 Total securities available for sale $ 479,825 $ 4,310 $ (2,860) $ 481,275
Carrying Value, Gross Unrecognized Gains and Losses, and Fair Value of Securities to be Held to Maturity	Gross Gross Carrying Unrecognized Unrecognized Fair June 30, 2017 (in thousands) Value Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 501 $ — $ (1) $ 500 Mortgage backed securities - residential 155 11 — 166 Collateralized mortgage obligations 25,350 200 (59) 25,491 Corporate bonds 35,153 347 (63) 35,437 Total securities held to maturity $ 61,159 $ 558 $ (123) $ 61,594 Gross Gross Carrying Unrecognized Unrecognized Fair December 31, 2016 (in thousands) Value Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 506 $ — $ (2) $ 504 Mortgage backed securities - residential 158 12 — 170 Collateralized mortgage obligations 27,142 250 (124) 27,268 Corporate bonds 25,058 312 (63) 25,307 Total securities held to maturity $ 52,864 $ 574 $ (189) $ 53,249
Amortized Cost and Fair Value of Investment Securities Portfolio by Contractual Maturity	Securities Securities Available for Sale Held to Maturity Amortized Fair Carrying Fair June 30, 2017 (in thousands) Cost Value Value Value Due in one year or less $ 35,987 $ 35,989 $ 501 $ 501 Due from one year to five years 239,376 238,626 10,111 10,048 Due from five years to ten years 10,000 10,241 25,042 25,388 Due beyond ten years 3,471 3,454 — — Private label mortgage backed security 3,300 4,540 — — Mortgage backed securities - residential 88,776 90,455 155 166 Collateralized mortgage obligations 78,382 78,404 25,350 25,491 Freddie Mac preferred stock — 337 — — Community Reinvestment Act mutual fund 2,500 2,479 — — Total securities $ 461,792 $ 464,525 $ 61,159 $ 61,594
Securities with Unrealized Losses, Aggregated by Investment Category with Continuous Unrealized Loss Position	Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2017 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Securities available for sale: U.S. Treasury securities and U.S. Government agencies $ — $ — $ 189,503 $ (812) $ 189,503 $ (812) Mortgage backed securities - residential — — 25,977 (213) 25,977 (213) Collateralized mortgage obligations — — 35,936 (387) 35,936 (387) Community Reinvestment Act mutual fund 1,475 (25) — — 1,475 (25) Trust preferred security — — 3,453 (18) 3,453 (18) Total securities available for sale $ 1,475 $ (25) $ 254,869 $ (1,430) $ 256,344 $ (1,455) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2016 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Securities available for sale: U.S. Treasury securities and U.S. Government agencies $ 138,002 $ (1,107) $ — $ — $ 138,002 $ (1,107) Mortgage backed securities - residential 9,427 (122) 4,211 (98) 13,638 (220) Collateralized mortgage obligations 37,547 (690) 15,668 (549) 53,215 (1,239) Community Reinvestment Act mutual fund 2,455 (45) — — 2,455 (45) Trust preferred security 3,200 (249) — — 3,200 (249) Total securities available for sale $ 190,631 $ (2,213) $ 19,879 $ (647) $ 210,510 $ (2,860) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2017 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Securities held to maturity: U.S. Treasury securities and U.S. Government agencies $ 500 $ (1) $ — $ — $ 500 $ (1) Collateralized mortgage obligations — — 6,825 (59) 6,825 (59) Corporate bonds — — 15,030 (63) 15,030 (63) Total securities held to maturity $ 500 $ (1) $ 21,855 $ (122) $ 22,355 $ (123) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2016 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Securities held to maturity: U.S. Treasury securities and U.S. Government agencies $ 506 $ (2) $ — $ — $ 506 $ (2) Collateralized mortgage obligations 13,315 (124) — — 13,315 (124) Corporate bonds — — 4,937 (63) 4,937 (63) Total securities held to maturity $ 13,821 $ (126) $ 4,937 $ (63) $ 18,758 $ (189)
Pledged Investment Securities	(in thousands) June 30, 2017 December 31, 2016 Carrying amount $ 182,185 $ 231,695 Fair value 182,300 231,891

LOANS HELD FOR SALE (Tables)

LOANS HELD FOR SALE (Tables)	6 Months Ended
	Jun. 30, 2017
LOANS HELD FOR SALE.
Schedule of activity of consumer loans held for sale and carried at fair value	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 3,679 $ 415 $ 2,198 $ — Origination of consumer loans held for sale 19,542 13,242 31,781 13,657 Proceeds from the sale of consumer loans held for sale (20,089) (6,958) (30,872) (6,958) Net gain on sale of consumer loans held for sale 103 127 128 127 Balance, end of period $ 3,235 $ 6,826 $ 3,235 $ 6,826
Schedule of activity of consumer loans held for sale and carried at lower of cost or fair value	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 1,420 $ 566 $ 1,310 $ 514 Origination of consumer loans held for sale 128,496 71,717 243,182 115,370 Proceeds from the sale of consumer loans held for sale (128,576) (71,441) (244,234) (115,474) Net gain on sale of consumer loans held for sale 1,124 280 2,206 712 Balance, end of period $ 2,464 $ 1,122 $ 2,464 $ 1,122

LOANS AND ALLOWANCE FOR LOAN 28

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	6 Months Ended
	Jun. 30, 2017
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES
Schedule of composition of loan portfolio	(in thousands) June 30, 2017 December 31, 2016 Traditional Banking: Residential real estate: Owner occupied $ 961,405 $ 1,000,148 Owner occupied - correspondent* 129,792 149,028 Nonowner occupied 172,684 156,605 Commercial real estate 1,104,026 1,060,496 Construction & land development 137,877 119,650 Commercial & industrial 314,433 259,026 Lease financing receivables 14,371 13,614 Home equity 344,946 341,285 Consumer: Credit cards 17,879 13,414 Overdrafts 902 803 Automobile loans 59,921 52,579 Other consumer 15,344 19,744 Total Traditional Banking 3,273,580 3,186,392 Warehouse lines of credit* 600,630 585,439 Total Core Banking 3,874,210 3,771,831 Republic Processing Group*: Commercial & industrial — 6,695 Consumer: Easy Advances — — Republic Credit Solutions 42,110 32,252 Total Republic Processing Group 42,110 38,947 Total loans** 3,916,320 3,810,778 Allowance for loan and lease losses (37,898) (32,920) Total loans, net $ 3,878,422 $ 3,777,858 *Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail.
Schedule that reconciles the contractually receivable and carrying amounts of loans	(in thousands) June 30, 2017 December 31, 2016 Contractually receivable $ 3,920,955 $ 3,816,086 Unearned income(1) (1,113) (1,050) Unamortized premiums(2) 1,394 1,838 Unaccreted discounts(3) (8,563) (9,397) Net unamortized deferred origination fees and costs(4) 3,647 3,301 Carrying value of loans $ 3,916,320 $ 3,810,778 (1) Unearned income relates to lease financing receivables. (2) Premiums predominately relate to loans acquired through the Bank’s Correspondent Lending channel. (3) Unaccreted discounts include accretable and non-accretable discounts and predominately relate to loans acquired in the Bank’s 2016 Cornerstone acquisition and its 2012 FDIC-assisted transactions. (4) Primarily attributable to the Traditional Banking segment.
Schedule of loans purchased by class	. Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Residential real estate: Owner occupied - correspondent* $ 1,432 $ 23,043 $ 2,656 $ 43,564 Consumer: Other consumer* — 1,756 — 4,422 Total purchased loans $ 1,432 $ 24,799 $ 2,656 $ 47,986 * Represents origination amount, inclusive of applicable purchase premiums.
Schedule of loans acquired	May 17, 2016 (in thousands) Contractual Receivable Non-accretable Discount Accretable Discount Acquisition-Day Fair Value Residential real estate: Owner occupied $ 15,487 $ — $ (393) $ 15,094 Nonowner occupied 11,196 — (101) 11,095 Commercial real estate 106,089 — (1,498) 104,591 Construction & land development 18,277 — (502) 17,775 Commercial & industrial 11,462 — (191) 11,271 Home equity 20,652 — (350) 20,302 Consumer and other 2,347 — (147) 2,200 Total loans - ASC 310-20 185,510 — (3,182) 182,328 Residential real estate: Owner occupied 2,963 (822) (15) 2,126 Nonowner occupied 1,721 (320) (167) 1,234 Commercial real estate 4,315 (617) (197) 3,501 Construction & land development 175 — — 175 Commercial & industrial 66 (1) 1 66 Home equity 382 (178) (11) 193 Consumer and other 4 (3) — 1 Total loans - ASC 310-30 - PCI loans 9,626 (1,941) (389) 7,296 Total loans acquired $ 195,136 $ (1,941) $ (3,571) $ 189,624
Reconciliation of contractually-required and carrying amounts of PCI loans	(in thousands) June 30, 2017 December 31, 2016 Contractually-required principal $ 14,693 $ 15,587 Non-accretable amount (1,787) (1,713) Accretable amount (3,333) (3,600) Carrying value of loans $ 9,573 $ 10,274
Rollforward of the accretable amount on PCI loans	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ (3,409) $ (3,853) $ (3,600) $ (4,125) Transfers between non-accretable and accretable* (15) (23) 75 (478) Net accretion into interest income on loans, including loan fees 91 170 192 897 Generated from acquisition of Cornerstone Bancorp, Inc. (recasted) — (381) — (381) Balance, end of period $ (3,333) $ (4,087) $ (3,333) $ (4,087) * Transfers are primarily attributable to changes in estimated cash flows of the underlying loans.
Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed	June 30, 2017 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 20,553 $ 12,642 $ — $ 181 $ 1,741 $ 35,117 Owner occupied - correspondent — — — — — — — Nonowner occupied — 869 1,058 — 513 — 2,440 Commercial real estate 1,087,153 5,960 3,984 — 6,929 — 1,104,026 Construction & land development 137,128 — 749 — — — 137,877 Commercial & industrial 313,293 669 449 — 22 — 314,433 Lease financing receivables 14,371 — — — — — 14,371 Home equity — 83 2,158 — 92 95 2,428 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — 99 — — — 99 Other consumer — — 108 — — — 108 Total Traditional Banking 1,551,945 28,134 21,247 — 7,737 1,836 1,610,899 Warehouse lines of credit 600,630 — — — — — 600,630 Total Core Banking 2,152,575 28,134 21,247 — 7,737 1,836 2,211,529 Republic Processing Group: Commercial & industrial — — — — — — — Consumer: Easy Advances — — — — — — — Republic Credit Solutions — — 302 — — — 302 Total Republic Processing Group — — 302 — — — 302 Total rated loans $ 2,152,575 $ 28,134 $ 21,549 $ — $ 7,737 $ 1,836 $ 2,211,831 December 31, 2016 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 21,344 $ 13,117 $ — $ 218 $ 2,267 $ 36,946 Owner occupied - correspondent — — — — — — — Nonowner occupied — 656 1,115 — 523 — 2,294 Commercial real estate 1,042,137 7,086 4,224 — 7,049 — 1,060,496 Construction & land development 118,769 90 791 — — — 119,650 Commercial & industrial 257,579 1,270 154 — 23 — 259,026 Lease financing receivables 13,614 — — — 13,614 Home equity — 256 1,763 — 94 99 2,212 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — — — — — — Other consumer — — 166 — 1 — 167 Total Traditional Banking 1,432,099 30,702 21,330 — 7,908 2,366 1,494,405 Warehouse lines of credit 585,439 — — — — — 585,439 Total Core Banking 2,017,538 30,702 21,330 — 7,908 2,366 2,079,844 Republic Processing Group: Commercial & industrial 6,695 — — — — — 6,695 Consumer: Easy Advances — — — — — — — Republic Credit Solutions — — 82 — — — 82 Total Republic Processing Group 6,695 — 82 — — — 6,777 Total rated loans $ 2,024,233 $ 30,702 $ 21,412 $ — $ 7,908 $ 2,366 $ 2,086,621 * The above tables exclude all non-classified or non-rated residential real estate, home equity and consumer loans at the respective period ends.
Schedule of activity in the allowance for loan and lease losses	Allowance Rollforward Three Months Ended June 30, 2017 2016 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 7,071 $ (288) $ (108) $ 65 $ 6,740 $ 8,049 $ (160) $ (73) $ 77 $ 7,893 Owner occupied - correspondent 353 (29) — — 324 607 (15) — — 592 Nonowner occupied 1,198 42 (3) — 1,237 1,095 (51) — 8 1,052 Commercial real estate 7,898 449 — 21 8,368 7,678 48 — 79 7,805 Construction & land development 2,233 274 — 1 2,508 1,348 (16) — — 1,332 Commercial & industrial 1,488 193 — 1 1,682 1,384 387 (330) — 1,441 Lease financing receivables 145 6 — — 151 97 18 — — 115 Home equity 3,831 (21) (91) 68 3,787 3,054 (67) (49) 78 3,016 Consumer: Credit cards 506 93 (21) 10 588 466 37 (50) 3 456 Overdrafts 641 337 (227) 55 806 450 489 (171) 56 824 Automobile loans 563 84 (7) — 640 145 135 — 1 281 Other consumer 825 321 (306) 78 918 648 (7) (131) 75 585 Total Traditional Banking 26,752 1,461 (763) 299 27,749 25,021 798 (804) 377 25,392 Warehouse lines of credit 1,238 264 — — 1,502 985 480 — — 1,465 Total Core Banking 27,990 1,725 (763) 299 29,251 26,006 1,278 (804) 377 26,857 Republic Processing Group: Commercial & industrial — — — — — — — — — — Consumer: Easy Advances 7,741 (721) (7,261) 241 — 3,169 (354) (3,069) 254 — Refund Anticipation Loans — (17) — 17 — — (43) — 43 — Republic Credit Solutions 6,631 4,074 (2,251) 193 8,647 2,300 933 (874) 92 2,451 Total Republic Processing Group 14,372 3,336 (9,512) 451 8,647 5,469 536 (3,943) 389 2,451 Total $ 42,362 $ 5,061 $ (10,275) $ 750 $ 37,898 $ 31,475 $ 1,814 $ (4,747) $ 766 $ 29,308 Allowance Rollforward Six Months Ended June 30, 2017 2016 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 7,158 $ (431) $ (111) $ 124 $ 6,740 $ 8,301 $ (298) $ (261) $ 151 $ 7,893 Owner occupied - correspondent 373 (49) — — 324 623 (31) — — 592 Nonowner occupied 1,139 112 (14) — 1,237 1,052 (8) — 8 1,052 Commercial real estate 8,078 252 — 38 8,368 7,672 68 (41) 106 7,805 Construction & land development 1,850 657 — 1 2,508 1,303 53 (44) 20 1,332 Commercial & industrial 1,511 149 — 22 1,682 1,455 312 (330) 4 1,441 Lease financing receivables 136 15 — — 151 89 26 — — 115 Home equity 3,757 48 (95) 77 3,787 2,996 — (84) 104 3,016 Consumer: Credit cards 490 131 (48) 15 588 448 58 (62) 12 456 Overdrafts 675 420 (411) 122 806 351 673 (332) 132 824 Automobile loans 526 120 (7) 1 640 56 224 — 1 281 Other consumer 771 504 (536) 179 918 479 201 (262) 167 585 Total Traditional Banking 26,464 1,928 (1,222) 579 27,749 24,825 1,278 (1,416) 705 25,392 Warehouse lines of credit 1,464 38 — — 1,502 967 498 — — 1,465 Total Core Banking 27,928 1,966 (1,222) 579 29,251 25,792 1,776 (1,416) 705 26,857 Republic Processing Group: Commercial & industrial 25 (25) — — — — — — — — Consumer: Easy Advances — 7,880 (8,121) 241 — — 3,220 (3,474) 254 — Refund Anticipation Loans — (252) — 252 — — (290) — 290 — Republic Credit Solutions 4,967 7,843 (4,536) 373 8,647 1,699 2,294 (1,720) 178 2,451 Total Republic Processing Group 4,992 15,446 (12,657) 866 8,647 1,699 5,224 (5,194) 722 2,451 Total $ 32,920 $ 17,412 $ (13,879) $ 1,445 $ 37,898 $ 27,491 $ 7,000 $ (6,610) $ 1,427 $ 29,308
Schedule of non-performing loans and non-performing assets and select credit quality ratios	(dollars in thousands) June 30, 2017 December 31, 2016 Loans on nonaccrual status* $ 15,467 $ 15,892 Loans past due 90-days-or-more and still on accrual** 335 167 Total nonperforming loans 15,802 16,059 Other real estate owned 300 1,391 Total nonperforming assets $ 16,102 $ 17,450 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.40 % 0.42 % Nonperforming assets to total loans (including OREO) 0.41 0.46 Nonperforming assets to total assets 0.32 0.36 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.40 % 0.42 % Nonperforming assets to total loans (including OREO) 0.41 0.46 Nonperforming assets to total assets 0.32 0.36 *Loans on nonaccrual status include impaired loans. **Loans past due 90-days-or-more and still accruing consist of PCI loans or smaller balance consumer loans.
Schedule of recorded investment in non-accrual loans and loans past due over 90-days-or-more and still on accrual by class of loans	Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Traditional Banking: Residential real estate: Owner occupied $ 9,894 $ 10,955 $ — $ — Owner occupied - correspondent — — — — Nonowner occupied 790 852 — — Commercial real estate 2,613 2,725 — — Construction & land development 71 77 — — Commercial & industrial 449 154 — — Lease financing receivables — — — — Home equity 1,498 1,069 4 — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 99 — — — Other consumer 53 60 29 85 Total Traditional Banking 15,467 15,892 33 85 Warehouse lines of credit — — — — Total Core Banking 15,467 15,892 33 85 Republic Processing Group: Commercial & industrial — — — — Consumer: Easy Advances — — — — Republic Credit Solutions — — 302 82 Total Republic Processing Group — — 302 82 Total $ 15,467 $ 15,892 $ 335 $ 167 * Loans past due 90-days-or-more and still accruing consist of PCI loans or smaller balance consumer loans
Schedule of aging of the recorded investment in loans by class of loans	30 - 59 60 - 89 90 or More June 30, 2017 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,744 $ 566 $ 1,410 $ 3,720 $ 957,685 $ 961,405 Owner occupied - correspondent — — — — 129,792 129,792 Nonowner occupied 58 — 26 84 172,600 172,684 Commercial real estate 269 244 492 1,005 1,103,021 1,104,026 Construction & land development — — — — 137,877 137,877 Commercial & industrial 154 300 — 454 313,979 314,433 Lease financing receivables — — — — 14,371 14,371 Home equity 432 84 628 1,144 343,802 344,946 Consumer: Credit cards 54 11 — 65 17,814 17,879 Overdrafts 192 — — 192 710 902 Automobile loans — 25 26 51 59,870 59,921 Other consumer 48 52 29 129 15,215 15,344 Total Traditional Banking 2,951 1,282 2,611 6,844 3,266,736 3,273,580 Warehouse lines of credit — — — — 600,630 600,630 Total Core Banking 2,951 1,282 2,611 6,844 3,867,366 3,874,210 Republic Processing Group: Commercial & industrial — — — — — — Consumer: Easy Advances — — — — — — Republic Credit Solutions 1,502 365 302 2,169 39,941 42,110 Total Republic Processing Group 1,502 365 302 2,169 39,941 42,110 Total $ 4,453 $ 1,647 $ 2,913 $ 9,013 $ 3,907,307 $ 3,916,320 Delinquency ratio*** 0.11 % 0.04 % 0.07 % 0.23 % * All loans past due 90-days-or-more, excluding PCI loans and 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, 2016 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,696 $ 337 $ 2,521 $ 4,554 $ 995,594 $ 1,000,148 Owner occupied - correspondent — — — — 149,028 149,028 Nonowner occupied — — 46 46 156,559 156,605 Commercial real estate 8 — 417 425 1,060,071 1,060,496 Construction & land development — — — — 119,650 119,650 Commercial & industrial 342 — — 342 258,684 259,026 Lease financing receivables — — — — 13,614 13,614 Home equity 316 160 494 970 340,315 341,285 Consumer: Credit cards 14 4 — 18 13,396 13,414 Overdrafts 159 1 1 161 642 803 Automobile loans — — — — 52,579 52,579 Other consumer 114 106 85 305 19,439 19,744 Total Traditional Banking 2,649 608 3,564 6,821 3,179,571 3,186,392 Warehouse lines of credit — — — — 585,439 585,439 Total Core Banking 2,649 608 3,564 6,821 3,765,010 3,771,831 Republic Processing Group: Commercial & industrial — — — — 6,695 6,695 Consumer: Easy Advances — — — — — — Republic Credit Solutions 1,751 304 82 2,137 30,115 32,252 Total Republic Processing Group 1,751 304 82 2,137 36,810 38,947 Total $ 4,400 $ 912 $ 3,646 $ 8,958 $ 3,801,820 $ 3,810,778 Delinquency ratio*** 0.12 % 0.02 % 0.10 % 0.24 % * All loans past due 90-days-or-more, excluding PCI loans and 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.
Schedule of Bank's impaired loans	(in thousands) June 30, 2017 December 31, 2016 Loans with no allocated Allowance $ 20,344 $ 21,416 Loans with allocated Allowance 26,794 31,268 Total impaired loans $ 47,138 $ 52,684 Amount of the Allowance $ 4,484 $ 4,925
Schedule of balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method	Allowance for Loan and Lease Losses Loans Individually PCI with PCI without Individually PCI with PCI without June 30, 2017 Evaluated Collectively Post Acquisition Post Acquisition Total Evaluated Collectively Post Acquisition Post Acquisition Total (dollars in thousands) Excluding PCI Evaluated Impairment Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Traditional Banking: Residential real estate: Owner occupied $ 3,017 $ 3,573 $ 150 $ — $ 6,740 $ 30,700 $ 928,783 $ 1,741 $ 181 $ 961,405 Owner occupied - correspondent — 324 — — 324 — 129,792 — — 129,792 Nonowner occupied 58 1,172 7 — 1,237 1,760 170,411 262 251 172,684 Commercial real estate 295 8,036 37 — 8,368 8,857 1,088,240 145 6,784 1,104,026 Construction & land development 95 2,413 — — 2,508 749 137,128 — — 137,877 Commercial & industrial 149 1,533 — — 1,682 493 313,918 — 22 314,433 Lease financing receivables — 151 — — 151 — 14,371 — — 14,371 Home equity 510 3,182 95 — 3,787 2,158 342,601 95 92 344,946 Consumer: Credit cards — 588 — — 588 — 17,879 — — 17,879 Overdrafts — 806 — — 806 — 902 — — 902 Automobile loans 33 607 — — 640 99 59,822 — — 59,921 Other consumer 38 880 — — 918 79 15,265 — — 15,344 Total Traditional Banking 4,195 23,265 289 — 27,749 44,895 3,219,112 2,243 7,330 3,273,580 Warehouse lines of credit — 1,502 — — 1,502 — 600,630 — — 600,630 Total Core Banking 4,195 24,767 289 — 29,251 44,895 3,819,742 2,243 7,330 3,874,210 Republic Processing Group: Commercial & industrial — — — — — — — — — — Consumer: Easy Advances — — — — — — — — — — Republic Credit Solutions — 8,647 — — 8,647 — 42,110 — — 42,110 Total Republic Processing Group — 8,647 — — 8,647 — 42,110 — — 42,110 Total $ 4,195 $ 33,414 $ 289 $ — $ 37,898 $ 44,895 $ 3,861,852 $ 2,243 $ 7,330 $ 3,916,320 Allowance for Loan and Lease Losses Loans Individually PCI with PCI without Individually PCI with PCI without December 31, 2016 Evaluated Collectively Post Acquisition Post Acquisition Total Evaluated Collectively Post Acquisition Post Acquisition Total (dollars in thousands) Excluding PCI Evaluated Impairment Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Traditional Banking: Residential real estate: Owner occupied $ 3,203 $ 3,797 $ 158 $ — $ 7,158 $ 31,908 $ 965,755 $ 2,297 $ 188 $ 1,000,148 Owner occupied - correspondent — 373 — — 373 — 149,028 — — 149,028 Nonowner occupied 65 1,067 7 — 1,139 1,601 154,481 268 255 156,605 Commercial real estate 532 7,501 45 — 8,078 11,769 1,041,678 1,164 5,885 1,060,496 Construction & land development 120 1,730 — — 1,850 882 118,768 — — 119,650 Commercial & industrial 227 1,284 — — 1,511 686 258,317 — 23 259,026 Lease financing receivables — 136 — — 136 — 13,614 — — 13,614 Home equity 433 3,225 99 — 3,757 1,929 339,163 99 94 341,285 Consumer: Credit cards — 490 — — 490 — 13,414 — — 13,414 Overdrafts — 675 — — 675 — 803 — — 803 Automobile loans — 526 — — 526 — 52,579 — — 52,579 Other consumer 36 735 — — 771 81 19,662 — 1 19,744 Total Traditional Banking 4,616 21,539 309 — 26,464 48,856 3,127,262 3,828 6,446 3,186,392 Warehouse lines of credit — 1,464 — — 1,464 — 585,439 — — 585,439 Total Core Banking 4,616 23,003 309 — 27,928 48,856 3,712,701 3,828 6,446 3,771,831 Republic Processing Group: Commercial & industrial — 25 — — 25 — 6,695 — — 6,695 Consumer: Easy Advances — — — — — — — — — — Republic Credit Solutions — 4,967 — — 4,967 — 32,252 — — 32,252 Total Republic Processing Group — 4,992 — — 4,992 — 38,947 — — 38,947 Total $ 4,616 $ 27,995 $ 309 $ — $ 32,920 $ 48,856 $ 3,751,648 $ 3,828 $ 6,446 $ 3,810,778
Schedule of loans individually evaluated for impairment by class of loans	As of Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 June 30, 2017 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allowance Recorded Income Income Recorded Income Income (in thousands) Balance Investment Allocated Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no related allowance recorded: Residential real estate: Owner occupied $ 12,651 $ 11,712 $ — $ 11,802 $ 48 $ — $ 12,380 $ 95 $ — Owner occupied - correspondent — — — — — — — — — Nonowner occupied 1,576 1,542 — 1,477 7 — 1,293 14 — Commercial real estate 5,812 4,635 — 4,702 20 — 5,235 40 — Construction & land development 598 598 — 537 7 — 507 15 — Commercial & industrial 344 344 — 200 1 — 136 2 — Lease financing receivables — — — — — — — — — Home equity 1,578 1,472 — 1,443 6 — 1,434 13 — Consumer 41 41 — 41 — — 43 — — Impaired loans with an allowance recorded: Residential real estate: Owner occupied 20,800 20,729 3,167 20,780 178 — 21,314 357 — Owner occupied - correspondent — — — — — — — — — Nonowner occupied 480 480 65 483 6 — 620 11 — Commercial real estate 4,367 4,367 332 5,229 49 — 6,579 95 — Construction & land development 151 151 95 273 1 — 342 2 — Commercial & industrial 149 149 149 150 — — 274 — — Lease financing receivables — — — — — — — — — Home equity 821 781 605 826 5 — 698 9 — Consumer 137 137 71 114 — — 76 — — Total impaired loans $ 49,505 $ 47,138 $ 4,484 $ 48,057 $ 328 $ — $ 50,931 $ 653 $ — As of Three Months Ended Six Months Ended December 31, 2016 June 30, 2016 June 30, 2016 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allowance Recorded Income Income Recorded Income Income (in thousands) Balance Investment Allocated Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no related allowance recorded: Residential real estate: Owner occupied $ 13,727 $ 12,629 $ — $ 13,481 $ 30 $ — $ 13,406 $ 61 $ — Owner occupied - correspondent — — — — — — — — — Non owner occupied 1,399 1,376 — 1,475 1 — 1,626 3 — Commercial real estate 6,610 5,536 — 7,157 92 — 7,019 199 — Construction & land development 476 476 — 476 5 — 1,007 10 — Commercial & industrial 67 67 — 158 2 — 111 4 — Lease financing receivables — — — — — — — — — Home equity 1,358 1,287 — 1,924 6 — 1,978 12 — Consumer 45 45 — 94 — — 77 — — Impaired loans with an allowance recorded: Residential real estate: Owner occupied 21,595 21,576 3,361 23,808 211 — 24,488 422 — Owner occupied - correspondent — — — — — — — — — Non owner occupied 491 493 73 841 7 — 963 16 — Commercial real estate 7,397 7,397 577 9,254 115 — 9,670 232 — Construction & land development 405 406 120 431 5 — 504 10 — Commercial & industrial 619 619 227 845 — — 1,062 — — Lease financing receivables — — — — — — — — — Home equity 742 741 532 93 — — 138 — — Consumer 37 36 35 44 — — 43 — — Total impaired loans $ 54,968 $ 52,684 $ 4,925 $ 60,081 $ 474 $ — $ 62,092 $ 969 $ —
Schedule of TDRs differentiated by loan type and accrual status	Troubled Debt Troubled Debt Total Restructurings on Restructurings on Troubled Debt Nonaccrual Status Accrual Status Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2017 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 66 $ 5,733 198 $ 21,682 264 $ 27,415 Commercial real estate 6 2,327 12 6,034 18 8,361 Construction & land development 1 71 3 678 4 749 Commercial & industrial 1 149 1 44 2 193 Total troubled debt restructurings 74 $ 8,280 214 $ 28,438 288 $ 36,718 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, 2016 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 79 $ 7,199 198 $ 21,554 277 $ 28,753 Commercial real estate 6 2,430 17 8,835 23 11,265 Construction & land development 1 77 4 804 5 881 Commercial & industrial 1 154 2 533 3 687 Total troubled debt restructurings 87 $ 9,860 221 $ 31,726 308 $ 41,586
Schedule of categories of TDR loan modifications outstanding and respective performance under modified terms	Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2017 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 1 $ 7 1 $ 476 2 $ 483 Rate reduction 148 17,824 50 5,471 198 23,295 Principal deferral 12 1,254 2 124 14 1,378 Legal modification 17 791 33 1,468 50 2,259 Total residential TDRs 178 19,876 86 7,539 264 27,415 Commercial related and construction/land development loans: Interest only payments 3 893 1 388 4 1,281 Rate reduction 7 4,032 2 221 9 4,253 Principal deferral 6 1,831 5 1,938 11 3,769 Total commercial TDRs 16 6,756 8 2,547 24 9,303 Total troubled debt restructurings 194 $ 26,632 94 $ 10,086 288 $ 36,718 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, 2016 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 2 $ 155 1 $ 493 3 $ 648 Rate reduction 148 18,125 57 6,213 205 24,338 Principal deferral 7 616 7 306 14 922 Legal modification 17 806 38 2,039 55 2,845 Total residential TDRs 174 19,702 103 9,051 277 28,753 Commercial related and construction/land development loans: Interest only payments 5 2,666 1 413 6 3,079 Rate reduction 8 4,769 2 228 10 4,997 Principal deferral 10 2,737 5 2,020 15 4,757 Total commercial TDRs 23 10,172 8 2,661 31 12,833 Total troubled debt restructurings 197 $ 29,874 111 $ 11,712 308 $ 41,586
Summary of categories of TDR loan modifications that occurred during the period	A summary of the categories of TDR loan modifications by respective performance as of June 30, 2017 and 2016 that were modified during the three months ended June 30, 2017 and 2016 follows: Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2017 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — — $ — — $ — Rate reduction 1 220 — — 1 220 Principal deferral 2 810 — — 2 810 Legal modification 1 11 — — 1 11 Total residential TDRs 4 1,041 — — 4 1,041 Commercial related and construction/land development loans: Interest only payments — — — — — — Rate reduction — — — — — — Principal deferral — — — — — — Total commercial TDRs — — — — — — Total troubled debt restructurings 4 $ 1,041 — $ — 4 $ 1,041 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2016 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — — $ — — $ — Rate reduction 1 133 2 98 3 231 Principal deferral — — — — — — Legal modification — — — — — — Total residential TDRs 1 133 2 98 3 231 Commercial related and construction/land development loans: Interest only payments — — — — — — Rate reduction — — — — — — Principal deferral — — — — — — Total commercial TDRs — — — — — — Total troubled debt restructurings 1 $ 133 2 $ 98 3 $ 231 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. As of June 30, 2017 and 2016, 100% and 58% of the Bank’s TDRs that occurred during the second quarters of 2017 and 2016 were performing according to their modified terms. The Bank provided approximately $30,000 and $29,000 in specific reserve allocations to clients whose loan terms were modified in TDRs during the second quarters of 2017 and 2016. There was no significant change between the pre and post modification loan balances for the three months ending June 30, 2017 and 2016. A summary of the categories of TDR loan modifications by respective performance as of June 30, 2017 and 2016 that were modified during the six months ended June 30, 2017 and 2016 follows: Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2017 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — — $ — — $ — Rate reduction 2 379 — — 2 379 Principal deferral 2 810 — — 2 810 Legal modification 1 11 — — 1 11 Total residential TDRs 5 1,200 — — 5 1,200 Commercial related and construction/land development loans: Interest only payments — — — — — — Rate reduction — — — — — — Principal deferral — — — — — — Total commercial TDRs — — — — — — Total troubled debt restructurings 5 $ 1,200 — $ — 5 $ 1,200 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2016 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — — $ — — $ — Rate reduction 3 187 3 153 6 340 Principal deferral — — — — — — Legal modification 2 88 2 78 4 166 Total residential TDRs 5 275 5 231 10 506 Commercial related and construction/land development loans: Interest only payments — — — — — — Rate reduction — — — — — — Principal deferral — — — — — — Total commercial TDRs — — — — — — Total troubled debt restructurings 5 $ 275 5 $ 231 10 $ 506
Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Recorded Number of Recorded Number of Recorded Number of Recorded (dollars in thousands) Loans Investment Loans Investment Loans Investment Loans Investment Residential real estate: Owner occupied — $ — 1 $ 94 — $ — 5 $ 258 Owner occupied - correspondent — — — — — — — — Nonowner occupied — — — — — — — — Commercial real estate — — — — — — 2 140 Construction & land development — — — — — — — — Commercial & industrial — — — — — — — — Lease financing receivables — — — — — — — — Home equity — — 1 4 — — 1 4 Consumer — — — — — — — — Total — $ — 2 $ 98 — $ — 8 $ 402
Schedule of carrying amount of foreclosed properties held	(in thousands) June 30, 2017 December 31, 2016 Residential real estate $ 300 $ 1,391 Total other real estate owned $ 300 $ 1,391
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties	(in thousands) June 30, 2017 December 31, 2016 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure $ 1,179 $ 1,677
Schedule of Easy Advances	Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2017 2016 2017 2016 Easy Advances originated $ — $ — $ 328,523 $ 123,230 Net Charge (Credit) to the Provision for Easy Advances (721) (354) 7,880 3,220 Provision to total Easy Advances originated NA NA 2.40 % 2.61 % Easy Advances net charge-offs $ 7,020 $ 2,815 $ 7,880 $ 3,220 Easy Advances net charge-offs to total Easy Advances originated NA NA 2.40 % 2.61 % NA – Not applicable

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2017
Deposit Liabilities
Ending deposit balances	(in thousands) June 30, 2017 December 31, 2016 Core Bank: Demand $ 910,579 $ 872,709 Money market accounts 540,005 541,622 Brokered money market accounts 136,616 360,597 Savings 178,890 164,410 Individual retirement accounts* 45,475 42,642 Time deposits, $250 and over* 61,662 37,200 Other certificates of deposit* 159,484 140,894 Brokered certificates of deposit* 38,186 28,666 Total Core Bank interest-bearing deposits 2,070,897 2,188,740 Total Core Bank noninterest-bearing deposits 1,005,668 943,459 Total Core Bank deposits 3,076,565 3,132,199 Republic Processing Group ("RPG"): Money market accounts 1,404 — Total RPG interest-bearing deposits 1,404 — Brokered prepaid card deposits 1,035 15 Other noninterest-bearing deposits 54,934 28,478 Total RPG noninterest-bearing deposits 55,969 28,493 Total RPG deposits 57,373 28,493 Total deposits $ 3,133,938 $ 3,160,692 *Represents a time deposit.
Cornerstone
Deposit Liabilities
Schedule of deposits liabilities acquired	May 17, 2016 (in thousands) Contractual Principal Fair Value Adjustment Acquisition-Day Fair Value Demand $ 59,507 $ — $ 59,507 Money market accounts 53,773 — 53,773 Savings 12,352 — 12,352 Individual retirement accounts* 3,897 13 3,910 Time deposits, $250 and over* 3,385 12 3,397 Other certificates of deposit* 19,343 67 19,410 Total interest-bearing deposits 152,257 92 152,349 Total noninterest-bearing deposits 52,908 — 52,908 Total deposits $ 205,165 $ 92 $ 205,257 *Represents a time deposit.

SECURITIES SOLD UNDER AGREEME30

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2017
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS
Schedule of securities sold under agreements to repurchase	(dollars in thousands) June 30, 2017 December 31, 2016 Outstanding balance at end of period $ 113,334 $ 173,473 Weighted average interest rate at end of period 0.38 % 0.05 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 55,812 $ 116,025 Mortgage backed securities - residential 57,295 45,894 Collateralized mortgage obligations 43,485 41,155 Total securities pledged $ 156,592 $ 203,074 Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2017 2016 2017 2016 Average outstanding balance during the period $ 179,594 $ 267,574 $ 198,896 $ 337,636 Average interest rate during the period 0.33 % 0.02 % % 0.02 % Maximum outstanding at any month end during the period $ 156,339 $ 263,228 $ 183,709 $ 367,373

FEDERAL HOME LOAN BANK ADVANC31

FEDERAL HOME LOAN BANK ADVANCES (Tables)	6 Months Ended
	Jun. 30, 2017
FEDERAL HOME LOAN BANK ADVANCES
Federal Home Loan Bank Advances	(dollars in thousands) June 30, 2017 December 31, 2016 Overnight advances $ 625,000 $ 285,000 Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% due in December 2017 10,000 10,000 Fixed interest rate advances 367,500 457,500 Putable fixed interest rate advances — 50,000 Total FHLB advances $ 1,002,500 $ 802,500
Aggregate Future Principal Payments on FHLB Advances	Weighted Average Year (dollars in thousands) Principal Rate 2017 (Overnight) $ 625,000 1.17 % 2017 (Term) 40,000 1.36 2018 117,500 1.53 2019 100,000 1.80 2020 90,000 1.81 2021 20,000 1.86 2022 — — Thereafter 10,000 2.14 Total $ 1,002,500 1.36
Information Regarding Short Term Overnight FHLB Advances	(dollars in thousands) June 30, 2017 December 31, 2016 Outstanding balance at end of period $ 625,000 $ 285,000 Weighted average interest rate at end of period 1.17 % 0.64 % Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2017 2016 2017 2016 Average outstanding balance during the period $ 114,121 $ 128,846 $ 111,740 $ 68,352 Average interest rate during the period 1.06 % 0.40 % 0.88 % 0.40 % Maximum outstanding at any month end during the period $ 625,000 $ 495,000 $ 625,000 $ 495,000
Real Estate Loans Pledged	(in thousands) June 30, 2017 December 31, 2016 First lien, single family residential real estate $ 1,136,031 $ 1,172,161 Home equity lines of credit 310,459 300,681 Multi-family commercial real estate — 14,913

OFF BALANCE SHEET RISKS, COMM32

OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES
Bank Commitment Exclusive of Mortgage Bank Loan Commitments	(in thousands) June 30, 2017 December 31, 2016 Unused warehouse lines of credit $ 474,370 $ 453,110 Unused home equity lines of credit 357,497 341,434 Unused loan commitments - other 683,199 560,629 Commitments to purchase loans* 1,154 3,176 Standby letters of credit 12,500 15,568 Total commitments $ 1,528,720 $ 1,373,917 *Commitments made through the Bank's Correspondent Lending channel.

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures
Assets and Liabilities Measured at Fair Value on Recurring Basis	Fair Value Measurements at June 30, 2017 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: Securities available for sale: U.S. Treasury securities and U.S. Government agencies $ — $ 269,585 $ — $ 269,585 Private label mortgage backed security — — 4,540 4,540 Mortgage backed securities - residential — 90,455 — 90,455 Collateralized mortgage obligations — 78,404 — 78,404 Freddie Mac preferred stock — 337 — 337 Community Reinvestment Act mutual fund 2,479 — — 2,479 Corporate bonds — 15,272 — 15,272 Trust preferred security — — 3,453 3,453 Total securities available for sale $ 2,479 $ 454,053 $ 7,993 $ 464,525 Mortgage loans held for sale $ — $ 6,057 $ — $ 6,057 Consumer loans held for sale — — 3,235 3,235 Rate lock loan commitments — 582 — 582 Interest rate swap agreements — 432 — 432 Financial liabilities: Mandatory forward contracts $ — $ 48 $ — $ 48 Interest rate swap agreements — 777 — 777 Fair Value Measurements at December 31, 2016 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: Securities available for sale: U.S. Treasury securities and U.S. Government agencies $ — $ 294,544 $ — $ 294,544 Private label mortgage backed security — — 4,777 4,777 Mortgage backed securities - residential — 73,004 — 73,004 Collateralized mortgage obligations — 87,654 — 87,654 Freddie Mac preferred stock — 483 — 483 Community Reinvestment Act mutual fund 2,455 — — 2,455 Corporate bonds — 15,158 — 15,158 Trust preferred security — — 3,200 3,200 Total securities available for sale $ 2,455 $ 470,843 $ 7,977 $ 481,275 Mortgage loans held for sale $ — $ 11,662 $ — $ 11,662 Consumer loans held for sale — — 2,198 2,198 Rate lock loan commitments — 299 — 299 Mandatory forward contracts — 204 — 204 Interest rate swap agreements — 305 — 305 Financial liabilities: Interest rate swap agreements $ — $ 597 $ — 597
Assets Measured at Fair Value on a Non-Recurring Basis	Fair Value Measurements at June 30, 2017 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Impaired loans: Residential real estate: Owner occupied $ — $ — $ 4,359 $ 4,359 Nonowner occupied — — 38 38 Commercial real estate — — 2,382 2,382 Home equity — — 642 642 Total impaired loans* $ — $ — $ 7,421 $ 7,421 Fair Value Measurements at December 31, 2016 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Impaired loans: Residential real estate: Owner occupied $ — $ — $ 4,787 $ 4,787 Nonowner occupied — — 8 8 Commercial real estate — — 2,643 2,643 Home equity — — 426 426 Total impaired loans* $ — $ — $ 7,864 $ 7,864 Other real estate owned: Residential real estate $ — $ — $ 400 $ 400 Total other real estate owned $ — $ — $ 400 $ 400 * The difference between the carrying value and the fair value of impaired loans measured at fair value is reconciled in a subsequent table of this Footnote.
Impaired collateral dependent loans classified with Level 3 fair value hierarchy	(in thousands) June 30, 2017 December 31, 2016 Carrying amount of loans measured at fair value $ 6,652 $ 6,963 Estimated selling costs considered in carrying amount 843 936 Valuation allowance (74) (35) Total fair value $ 7,421 $ 7,864
Provisions for loss on collateral dependent impaired loans	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Provisions on collateral-dependent, impaired loans $ 118 $ 47 $ 190 $ 92
Other Real Estate Owned	(in thousands) June 30, 2017 December 31, 2016 Other real estate owned carried at fair value $ — $ 400 Other real estate owned carried at cost 300 991 Total carrying value of other real estate owned $ 300 $ 1,391 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Other real estate owned write-downs during the period $ 9 $ — $ 79 $ —
Carrying Amount and Estimated Fair Values of Financial Instruments	Fair Value Measurements at June 30, 2017: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 332,695 $ 332,695 $ — $ — $ 332,695 Securities available for sale 464,525 2,479 454,053 7,993 464,525 Securities held to maturity 61,159 — 61,594 — 61,594 Mortgage loans held for sale, at fair value 6,057 — 6,057 — 6,057 Consumer loans held for sale, at fair value 3,235 — — 3,235 3,235 Consumer loans held for sale, at the lower of cost or fair value 2,464 — 2,464 — 2,464 Loans, net 3,878,422 — — 3,858,270 3,858,270 Federal Home Loan Bank stock 32,067 — — — NA Accrued interest receivable 10,575 — 10,575 — 10,575 Liabilities: Noninterest-bearing deposits $ 1,061,637 — $ 1,061,637 — $ 1,061,637 Transaction deposits 1,767,494 — 1,767,494 — 1,767,494 Time deposits 304,807 — 303,846 — 303,846 Securities sold under agreements to repurchase and other short-term borrowings 113,334 — 113,334 — 113,334 Federal Home Loan Bank advances 1,002,500 — 998,996 — 998,996 Subordinated note 41,240 — 32,469 — 32,469 Accrued interest payable 842 — 842 — 842 Fair Value Measurements at December 31, 2016: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 289,309 $ 289,309 $ — $ — $ 289,309 Securities available for sale 481,275 2,455 470,843 7,977 481,275 Securities held to maturity 52,864 — 53,249 — 53,249 Mortgage loans held for sale, at fair value 11,662 — 11,662 — 11,662 Consumer loans held for sale, at fair value 2,198 — — 2,198 2,198 Consumer loans held for sale, at the lower of cost or fair value 1,310 — 1,310 — 1,310 Loans, net 3,777,858 — — 3,757,698 3,757,698 Federal Home Loan Bank stock 28,208 — — — NA Accrued interest receivable 10,356 — 10,356 — 10,356 Liabilities: Noninterest-bearing deposits $ 971,952 — $ 971,952 — $ 971,952 Transaction deposits 1,939,338 — 1,939,338 — 1,939,338 Time deposits 249,417 — 248,684 — 248,684 Securities sold under agreements to repurchase and other short-term borrowings 173,473 — 173,473 — 173,473 Federal Home Loan Bank advances 802,500 — 798,594 — 798,594 Subordinated note 41,240 — 30,821 — 30,821 Accrued interest payable 948 — 948 — 948 NA - Not applicable
Nonrecurring basis
Fair Value Disclosures
Fair value inputs quantitative information	Range Fair Valuation Unobservable (Weighted June 30, 2017 (dollars in thousands) Value Technique Inputs Average) Impaired loans - residential real estate owner occupied $ 4,359 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 53% (6%) Impaired loans - residential real estate nonowner occupied $ 38 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 45% (18%) Impaired loans - commercial real estate $ 997 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 23% (4%) Impaired loans - commercial real estate $ 1,385 Income approach Adjustments for differences between net operating income expectations 17% (17%) Impaired loans - home equity $ 642 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 71% (18%) Range Fair Valuation Unobservable (Weighted December 31, 2016 (dollars in thousands) Value Technique Inputs Average) Impaired loans - residential real estate owner occupied $ 4,787 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 53% (6%) Impaired loans - residential real estate nonowner occupied $ 8 Sales comparison approach Adjustments determined for differences between comparable sales 0% (0%) Impaired loans - commercial real estate $ 1,214 Sales comparison approach Adjustments determined for differences between comparable sales 3% - 49% (30%) Impaired loans - commercial real estate $ 1,429 Income approach Adjustments for differences between net operating income expectations 17% (17%) Impaired loans - home equity $ 426 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 29% (16%) Other real estate owned - residential real estate $ 400 Sales comparison approach Adjustments determined for differences between comparable sales 17% (17%)
Mortgage loans held for sale
Fair Value Disclosures
Schedule of aggregate fair value, contractual balance and unrealized gain	(in thousands) June 30, 2017 December 31, 2016 Aggregate fair value $ 6,057 $ 11,662 Contractual balance 5,852 11,568 Unrealized gain 205 94
Schedule of gains and losses from changes in fair value included in earnings	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Interest income $ 86 $ 40 $ 153 $ 72 Change in fair value 118 39 111 98 Total included in earnings $ 204 $ 79 $ 264 $ 170
Consumer Loans Held For Sale
Fair Value Disclosures
Schedule of aggregate fair value, contractual balance and unrealized gain	(in thousands) June 30, 2017 December 31, 2016 Aggregate fair value $ 3,235 $ 2,198 Contractual balance 3,063 2,084 Unrealized gain 172 114
Schedule of gains and losses from changes in fair value included in earnings	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Interest income $ 322 $ 161 $ 508 $ 161 Change in fair value (24) 362 58 362 Total included in earnings $ 298 $ 523 $ 566 $ 523
Consumer Loans Held For Sale | Recurring basis
Fair Value Disclosures
Fair value inputs quantitative information	Fair Valuation June 30, 2017 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 3,235 Contractual Terms (1) Net Premium 0.9% (2) Discounted Sales 5.0% Fair Valuation December 31, 2016 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 2,198 Contractual Terms (1) Net Premium 0.9% (2) Discounted Sales 5.0%
Private label mortgage backed security
Fair Value Disclosures
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 4,682 $ 4,983 $ 4,777 $ 5,132 Total gains or losses included in earnings: Net change in unrealized gain 101 1 154 (148) Principal paydowns (243) (38) (391) (38) Balance, end of period $ 4,540 $ 4,946 $ 4,540 $ 4,946
Private label mortgage backed security | Recurring basis
Fair Value Disclosures
Fair value inputs quantitative information	Fair Valuation June 30, 2017 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 4,540 Discounted cash flow (1) Constant prepayment rate 3.0% - 6.5% (2) Probability of default 3.0% - 8.0% (3) Loss severity 60% - 85% Fair Valuation December 31, 2016 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 4,777 Discounted cash flow (1) Constant prepayment rate 2.0% - 6.5% (2) Probability of default 3.0% - 9.0% (3) Loss severity 60% - 90%
Trust preferred security
Fair Value Disclosures
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 3,200 $ 3,400 $ 3,200 $ 3,405 Total gains or losses included in earnings: Discount accretion 11 11 22 22 Net change in unrealized loss 242 (261) 231 (277) Balance, end of period $ 3,453 $ 3,150 $ 3,453 $ 3,150

MORTGAGE BANKING ACTIVITIES (Ta

MORTGAGE BANKING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2017
MORTGAGE BANKING ACTIVITIES
Activity for Mortgage Loans Held for Sale, at fair value	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 5,193 $ 7,148 $ 11,662 $ 4,083 Origination of mortgage loans held for sale 42,531 58,795 75,776 95,787 Proceeds from the sale of mortgage loans held for sale (42,946) (55,128) (83,637) (90,150) Net gain on sale of mortgage loans held for sale 1,279 1,465 2,256 2,560 Balance, end of period $ 6,057 $ 12,280 $ 6,057 $ 12,280
Components of Mortgage Banking Income	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Net gain realized on sale of mortgage loans held for sale $ 1,173 $ 1,266 $ 2,114 $ 2,107 Net change in fair value recognized on loans held for sale 118 39 111 98 Net change in fair value recognized on rate lock loan commitments (36) 260 283 535 Net change in fair value recognized on forward contracts 23 (100) (252) (180) Net gain recognized 1,278 1,465 2,256 2,560 Loan servicing income 528 473 1,063 944 Amortization of mortgage servicing rights (361) (378) (714) (683) Net servicing income recognized 167 95 349 261 Total Mortgage Banking income $ 1,445 $ 1,560 $ 2,605 $ 2,821
Activity for capitalized mortgage servicing rights	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 5,158 $ 4,891 $ 5,180 $ 4,912 Additions 361 485 692 769 Amortized to expense (361) (378) (714) (683) Balance, end of period $ 5,158 $ 4,998 $ 5,158 $ 4,998
Other information relating to mortgage servicing rights	(dollars in thousands) June 30, 2017 December 31, 2016 Fair value of mortgage servicing rights portfolio $ 7,761 $ 7,478 Monthly weighted average prepayment rate of unpaid principal balance* 197 % 158 % Discount rate 10 % 13 % Weighted average default rate 3.90 % 1.50 % Weighted average life in years * Rates are applied to individual tranches with similar characteristics.
Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives	June 30, 2017 December 31, 2016 Notional Notional (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 5,852 $ 6,057 $ 11,568 $ 11,662 Included in other assets: Rate lock loan commitments $ 32,110 $ 582 $ 19,521 $ 299 Mandatory forward contracts — — 25,618 204 Included in other liabilities: Mandatory forward contracts $ 36,179 $ 48 $ — $ —

INTEREST RATE SWAPS (Tables)

INTEREST RATE SWAPS (Tables)	6 Months Ended
	Jun. 30, 2017
INTEREST RATE SWAPS
Summary of swaps designated as cash flow hedges	June 30, 2017 December 31, 2016 Unrealized Unrealized Notional Pay Receive Assets / Gain (Loss) Assets / Gain (Loss) (dollars in thousands) Amount Rate Rate Term (Liabilities) AOCI (Liabilities) in AOCI Interest rate swap on money market deposits $ 10,000 2.17 % 1M LIBOR 12/2013 - 12/2020 $ (151) $ (98) $ (186) $ (121) Interest rate swap on FHLB advance 10,000 2.33 % 3M LIBOR 12/2013 - 12/2020 (194) (126) (207) (135) $ 20,000 $ (345) $ (224) $ (393) $ (256)
Schedule of interest expense recorded on swap transactions in the consolidated statements of income	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Interest rate swap on money market deposits $ 29 $ 43 $ 63 $ 86 Interest rate swap on FHLB advance 29 43 61 87 Total interest expense on swap transactions $ 58 $ 86 $ 124 $ 173
Summary of net gains recorded in AOCI and the consolidated statements of income relating to the swaps	\ Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Losses recognized in OCI on derivative (effective portion) $ (104) $ (219) $ (76) $ (790) Losses reclassified from OCI on derivative (effective portion) (58) (86) (124) (173) Gains (losses) recognized in income on derivative (ineffective portion) — — — —
Summary of interest rate swaps related to clients	June 30, 2017 December 31, 2016 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients Pay variable/receive fixed $ 38,597 $ 299 $ 31,553 $ 156 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 38,597 (299) 31,553 (55) Total $ 77,194 $ — $ 63,106 $ 101

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
EARNINGS PER SHARE
Earnings Per Share and Diluted Earnings Per Share	Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2017 2016 2017 2016 Net income $ 10,071 $ 8,340 $ 30,088 $ 26,075 Weighted average shares outstanding 21,151 20,947 20,918 20,956 Effect of dilutive securities 79 11 78 10 Average shares outstanding including dilutive securities 21,230 20,958 20,996 20,966 Basic earnings per share: Class A Common Stock $ 0.48 $ 0.40 $ 1.45 $ 1.26 Class B Common Stock 0.44 0.37 1.32 1.14 Diluted earnings per share: Class A Common Stock $ 0.48 $ 0.40 $ 1.45 $ 1.26 Class B Common Stock 0.44 0.37 1.32 1.14
Stock Option	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Antidilutive stock options 2,500 10,000 2,500 10,000 Average antidilutive stock options 1,166 7,500 584 8,150

STOCK PLANS AND STOCK BASED C37

STOCK PLANS AND STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2017
STOCK PLANS AND STOCK BASED COMPENSATION
Summary of stock option activity	Weighted Weighted Average Options Average Remaining Aggregate Class A Exercise Contractual Intrinsic Shares Price Term Value Outstanding, January 1, 2016 323,400 $ 24.40 Granted 5,000 26.43 Exercised (4,000) 20.12 Forfeited or expired (11,800) 24.47 Outstanding, December 31, 2016 312,600 $ 24.49 3.77 $ 4,705,807 Outstanding, January 1, 2017 312,600 $ 24.49 Granted 2,500 35.26 Exercised (2,000) 16.61 Forfeited or expired (2,000) 24.93 Outstanding, June 30, 2017 311,100 $ 24.62 3.34 $ 3,446,803 Fully vested and unvested 311,100 $ 24.62 3.34 $ 3,446,803 Exercisable (vested) at June 30, 2017 — $ — — $ —
Schedule of intrinsic value and cash received from options exercised and weighted average fair value of options granted	Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2017 2016 2017 2016 Intrinsic value of options exercised $ — $ 2 $ 44 $ 18 Cash received from options exercised, net of shares redeemed — 25 33 80 Weighted-average fair value per share of options granted 5.61 3.27 5.61 3.27
Summary of activity for non-vested restricted stock awards	Restricted Stock Awards Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2016 79,000 $ 20.02 Granted — — Forfeited (2,000) 19.85 Earned and issued — — Outstanding, December 31, 2016 77,000 $ 20.02 Outstanding, January 1, 2017 77,000 $ 20.02 Granted 7,413 35.77 Forfeited — — Earned and issued (3,702) 35.12 Outstanding, June 30, 2017 80,711 $ 20.78 Fully vested and unvested 80,711 $ 20.78 Vested at June 30, 2017 — $ —
Summary of PSU activity	Performance Stock Units Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2016 — $ — Granted 55,000 23.13 Forfeited — — Earned and issued — — Outstanding, December 31, 2016 55,000 $ 23.13 Outstanding, January 1, 2017 55,000 $ 23.13 Granted — — Forfeited (2,500) 25.29 Earned and issued — — Outstanding, June 30, 2017 52,500 $ 23.08 Fully vested and unvested 52,500 $ 23.08 Vested at June 30, 2017 — $ —
Schedule of expenses recorded related to stock options and restricted stock awards	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Stock option expense $ 63 $ 64 $ 126 $ 126 Restricted stock award expense 77 45 292 117 Performance stock unit expense 105 127 237 254 Total expense $ 245 $ 236 $ 655 $ 497
Schedule of estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures)	Stock Restricted Performance Year Ended (in thousands) Options Stock Awards Stock Units Total 2017 $ 129 $ 151 $ 237 $ 517 2018 254 138 198 590 2019 146 35 — 181 2020 35 27 — 62 2021 3 12 — 15 2022 1 2 — 3 Total $ 568 $ 365 $ 435 $ 1,368

OTHER COMPREHENSIVE INCOME (Tab

OTHER COMPREHENSIVE INCOME (Tables)	6 Months Ended
	Jun. 30, 2017
OTHER COMPREHENSIVE INCOME
Summary of OCI components and related tax effects	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Available for Sale Securities: Change in unrealized gain (loss) on securities available for sale $ 423 $ 416 $ 1,129 $ 2,708 Change in unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings 101 1 154 (148) Net unrealized gains 524 417 1,283 2,560 Tax effect (183) (145) (450) (893) Net of tax 341 272 833 1,667 Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges (104) (219) (76) (790) Reclassification amount for derivative losses realized in income 58 86 124 173 Net unrealized gains (losses) (46) (133) 48 (617) Tax effect 16 48 (16) 216 Net of tax (30) (85) 32 (401) Total other comprehensive income (loss) components, net of tax $ 311 $ 187 $ 865 $ 1,266
Summary of amounts reclassified out of each component of AOCI	Amounts Reclassified From Accumulated Other Comprehensive Income Affected Line Items Three Months Ended Six Months Ended in the Consolidated June 30, June 30, (in thousands) Statements of Income 2017 2016 2017 2016 Cash Flow Hedges: Interest rate swap on money market deposits Interest expense on deposits (29) (43) $ (63) $ (86) Interest rate swap on FHLB advance Interest expense on FHLB advances (29) (43) (61) (87) Total derivative losses on cash flow hedges Total interest expense (58) (86) (124) (173) Tax effect Income tax expense 20 30 43 61 Net of tax Net income $ (38) (56) $ (81) $ (112)
Summary of the AOCI balances, net of tax	2017 (in thousands) December 31, 2016 Change June 30, 2017 Unrealized gain on securities available for sale $ 237 $ 733 $ 970 Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings 706 100 806 Unrealized loss on cash flow hedge (256) 32 (224) Total unrealized gain $ 687 $ 865 $ 1,552 2016 (in thousands) December 31, 2015 Change June 30, 2016 Unrealized gain on securities available for sale $ 1,727 $ 1,763 $ 3,490 Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings 712 (96) 616 Unrealized loss on cash flow hedge (390) (401) (791) Total unrealized gain $ 2,049 $ 1,266 $ 3,315

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
SEGMENT INFORMATION
Segment Information	Three Months Ended June 30, 2017 Core Banking Total Republic Traditional Warehouse Mortgage Core Processing Total (dollars in thousands) Banking Lending Banking Banking Group Company Net interest income $ 33,434 $ 4,435 $ 86 $ 37,955 $ 5,182 $ 43,137 Provision for loan and lease losses 1,461 264 — 1,725 3,336 5,061 Net refund transfer fees — — — — 2,770 2,770 Mortgage banking income — — 1,445 1,445 — 1,445 Program fees — — — — 1,284 1,284 Other noninterest income 6,969 10 115 7,094 334 7,428 Total noninterest income 6,969 10 1,560 8,539 4,388 12,927 Total noninterest expenses 31,185 822 984 32,991 2,743 35,734 Income before income tax expense 7,757 3,359 662 11,778 3,491 15,269 Income tax expense 2,471 1,228 232 3,931 1,267 5,198 Net income $ 5,286 $ 2,131 $ 430 $ 7,847 $ 2,224 $ 10,071 Segment end-of-period assets $ 4,283,741 $ 600,060 $ 13,920 $ 4,897,721 $ 57,940 $ 4,955,661 Net interest margin 3.44 % 3.62 % NM 3.46 % NM 3.87 % Three Months Ended June 30, 2016 Core Banking Total Republic Traditional Warehouse Mortgage Core Processing Total (dollars in thousands) Banking Lending Banking Banking Group Company Net interest income $ 29,537 $ 3,790 $ 40 $ 33,367 $ 2,210 $ 35,577 Provision for loan and lease losses 798 480 — 1,278 536 1,814 Net refund transfer fees — — — — 1,909 1,909 Mortgage banking income — — 1,560 1,560 — 1,560 Program fees — — — — 664 664 Other noninterest income 6,371 5 63 6,439 230 6,669 Total noninterest income 6,371 5 1,623 7,999 2,803 10,802 Total noninterest expenses 27,737 735 1,152 29,624 2,242 31,866 Income before income tax expense 7,373 2,580 511 10,464 2,235 12,699 Income tax expense 2,413 958 179 3,550 809 4,359 Net income $ 4,960 $ 1,622 $ 332 $ 6,914 $ 1,426 $ 8,340 Segment end-of-period assets $ 3,989,769 $ 585,441 $ 18,133 $ 4,593,343 $ 53,579 $ 4,646,922 Net interest margin 3.23 % 3.67 % NM 3.28 % NM 3.43 % Segment assets are reported as of the respective period ends while income and margin data are reported for the respective periods. NM — Not Meaningful Segment information for the six months ended June 30, 2017 and 2016 follows: Six Months Ended June 30, 2017 Core Banking Total Republic Traditional Warehouse Mortgage Core Processing Total (dollars in thousands) Banking Lending Banking Banking Group Company Net interest income $ 66,094 $ 8,336 $ 153 $ 74,583 $ 24,992 $ 99,575 Provision for loan and lease losses 1,928 38 — 1,966 15,446 17,412 Net refund transfer fees — — — — 18,152 18,152 Mortgage banking income — — 2,605 2,605 — 2,605 Program fees — — — — 2,375 2,375 Other noninterest income 13,491 16 127 13,634 1,084 14,718 Total noninterest income 13,491 16 2,732 16,239 21,611 37,850 Total noninterest expenses 61,275 1,600 2,198 65,073 9,600 74,673 Income before income tax expense 16,382 6,714 687 23,783 21,557 45,340 Income tax expense 4,733 2,455 241 7,429 7,823 15,252 Net income $ 11,649 $ 4,259 $ 446 $ 16,354 $ 13,734 $ 30,088 Segment end-of-period assets $ 4,283,741 $ 600,060 $ 13,920 $ 4,897,721 $ 57,940 $ 4,955,661 Net interest margin 3.37 % 3.60 % NM 3.39 % NM 4.44 % Six Months Ended June 30, 2016 Core Banking Total Republic Traditional Warehouse Mortgage Core Processing Total (dollars in thousands) Banking Lending Banking Banking Group Company Net interest income $ 58,145 $ 6,445 $ 72 $ 64,662 $ 10,349 $ 75,011 Provision for loan and lease losses 1,278 498 — 1,776 5,224 7,000 Net refund transfer fees — — — — 18,987 18,987 Mortgage banking income — — 2,821 2,821 — 2,821 Program fees — — — — 963 963 Other noninterest income 12,481 10 155 12,646 306 12,952 Total noninterest income 12,481 10 2,976 15,467 20,256 35,723 Total noninterest expenses 52,612 1,430 2,392 56,434 7,973 64,407 Income before income tax expense 16,736 4,527 656 21,919 17,408 39,327 Income tax expense 5,026 1,681 230 6,937 6,315 13,252 Net income $ 11,710 $ 2,846 $ 426 $ 14,982 $ 11,093 $ 26,075 Segment end-of-period assets $ 3,989,769 $ 585,441 $ 18,133 $ 4,593,343 $ 53,579 $ 4,646,922 Net interest margin 3.15 % 3.65 % NM 3.19 % NM 3.60 % Segment assets are reported as of the respective period ends while income and margin data are reported for the respective periods. NM — Not Meaningful

BASIS OF PRESENTATION AND SUM40

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details)	6 Months Ended
	Jun. 30, 2017segmentitem
Basis of Presentation
Number of operating segments | segment	4
Number of banking centers	45
Number of loan production offices	1
Kentucky
Basis of Presentation
Number of banking centers	33
Metropolitan Louisville
Basis of Presentation
Number of banking centers	19
Central Kentucky
Basis of Presentation
Number of banking centers	9
Elizabethtown
Basis of Presentation
Number of banking centers	1
Frankfort
Basis of Presentation
Number of banking centers	1
Georgetown
Basis of Presentation
Number of banking centers	1
Lexington
Basis of Presentation
Number of banking centers	5
Shelbyville
Basis of Presentation
Number of banking centers	1
Western Kentucky
Basis of Presentation
Number of banking centers	2
Owensboro
Basis of Presentation
Number of banking centers	2
Northern Kentucky
Basis of Presentation
Number of banking centers	3
Covington
Basis of Presentation
Number of banking centers	1
Florence
Basis of Presentation
Number of banking centers	1
Independence
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	6
Metropolitan Cincinnati, Ohio
Basis of Presentation
Number of banking centers	1
Metropolitan Nashville, Tennessee
Basis of Presentation
Number of banking centers	3
Core Banking Activities
Basis of Presentation
Number of operating segments | segment	3
Loans acquired (as a percent)	73.00%
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

BASIS OF PRESENTATION AND SUM41

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS - RPG (Details) - Republic Processing Group $ in Thousands	2 Months Ended		3 Months Ended	6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Mar. 31, 2017loan	Jun. 30, 2017USD ($)
TRS division | Easy Advances
Basis of Presentation
Amount of credit risk associated with refund transfers				$ 0
Period Easy Advance tax credit product offered	2 months	2 months
Fee charged				$ 0
EA's repayment term				21 days
Duration of unpaid EA's write off				81 days
TRS division | Easy Advances | Minimum
Basis of Presentation
Number of EA's per customer | loan			1
Republic Credit Solutions
Basis of Presentation
Minimum maturity of unsecured, small dollar consumer loans				30 days

2016 ACQUISITION OF CORNERSTO42

2016 ACQUISITION OF CORNERSTONE BANCORP, INC. - ACQUISITION SUMMARY (Details) - USD ($)	May 17, 2016	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Deposits
Goodwill				$ 16,300,000	$ 16,300,000
Fair Value Adjustments
Assets acquired:
Loans	$ (5,525,000)
Allowance for loan and lease losses	1,955,000
Loans, net	(3,570,000)
Premises and equipment, net	4,457,000
Core deposit intangible	1,205,000
Deferred income taxes	(74,000)
Total assets acquired	2,018,000
Deposits
Deposits	92,000
Other liabilities and accrued interest payable	787,000
Total liabilities assumed	879,000
Net assets acquired	1,139,000
Recast Adjustments
Assets acquired:
Loans	13,000
Loans, net	13,000
Total assets acquired	13,000
Deposits
Net assets acquired	13,000
Deposits: Interest-bearing | Fair Value Adjustments
Deposits
Deposits	92,000
Cornerstone
Assets acquired:
Cash and cash equivalents	22,707,000
Investment securities	329,000
Loans	195,136,000
Allowance for loan and lease losses	(1,955,000)
Loans, net	193,181,000
Federal Home Loan Bank Stock	224,000
Premises and equipment, net	7,770,000
Deferred income taxes	3,714,000
Bank owned life insurance	7,461,000
Other assets and accrued interest receivable	658,000
Total assets acquired	236,044,000
Deposits
Deposits	205,165,000
Subordinated note	4,124,000
Other liabilities and accrued interest payable	2,244,000
Total liabilities assumed	211,533,000
Net assets acquired	24,511,000
Cornerstone | Deposits: Non interest-bearing
Deposits
Deposits	52,908,000
Cornerstone | Deposits: Interest-bearing
Deposits
Deposits	152,257,000
Cornerstone
Assets acquired:
Cash and cash equivalents	22,707,000
Investment securities	329,000
Loans	189,624,000
Loans, net	189,624,000
Federal Home Loan Bank Stock	224,000
Premises and equipment, net	12,227,000
Core deposit intangible	1,205,000
Deferred income taxes	3,640,000
Bank owned life insurance	7,461,000
Other assets and accrued interest receivable	658,000
Total assets acquired	238,075,000
Deposits
Deposits	205,257,000
Subordinated note	4,124,000
Other liabilities and accrued interest payable	3,031,000
Total liabilities assumed	212,412,000
Net assets acquired	25,663,000
Cash consideration paid	(31,795,000)
Goodwill	6,132,000
Acquisition-related costs		$ 704,000	$ 902,000
Cornerstone | Deposits: Non interest-bearing
Deposits
Deposits	52,908,000
Cornerstone | Deposits: Interest-bearing
Deposits
Deposits	$ 152,349,000

INVESTMENT SECURITIES - AFS (De

INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2008
Securities available for sale:
Amortized Cost	$ 461,792	$ 479,825
Gross Unrealized Gains	4,188	4,310
Gross Unrealized Losses	(1,455)	(2,860)
Fair Value	464,525	481,275
U.S. Treasury securities and U.S. Government agencies
Securities available for sale:
Amortized Cost	270,360	295,425
Gross Unrealized Gains	37	226
Gross Unrealized Losses	(812)	(1,107)
Fair Value	269,585	294,544
Private label mortgage backed security
Securities available for sale:
Amortized Cost	3,300	3,691
Gross Unrealized Gains	1,240	1,086
Fair Value	4,540	4,777
Mortgage backed securities - residential
Securities available for sale:
Amortized Cost	88,776	71,197
Gross Unrealized Gains	1,892	2,027
Gross Unrealized Losses	(213)	(220)
Fair Value	90,455	73,004
Collateralized mortgage obligations
Securities available for sale:
Amortized Cost	78,382	88,559
Gross Unrealized Gains	409	334
Gross Unrealized Losses	(387)	(1,239)
Fair Value	78,404	87,654
Freddie Mac preferred stock
Securities available for sale:
Gross Unrealized Gains	337	483
Fair Value	337	483	$ 0
Community Reinvestment Act mutual fund
Securities available for sale:
Amortized Cost	2,500	2,500
Gross Unrealized Gains	4
Gross Unrealized Losses	(25)	(45)
Fair Value	2,479	2,455
Corporate bonds
Securities available for sale:
Amortized Cost	15,003	15,004
Gross Unrealized Gains	269	154
Fair Value	15,272	15,158
Trust preferred security
Securities available for sale:
Amortized Cost	3,471	3,449
Gross Unrealized Losses	(18)	(249)
Fair Value	$ 3,453	$ 3,200

INVESTMENT SECURITIES - HTM (De

INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Securities held to maturity:
Carrying Value	$ 61,159	$ 52,864
Gross Unrecognized Gains	558	574
Total Unrecognized Losses	(123)	(189)
Total securities	$ 61,594	$ 53,249
Maximum percentage of holdings of securities of any one issuer, other than the U.S. Government and its agencies	10.00%	10.00%
U.S. Treasury securities and U.S. Government agencies
Securities held to maturity:
Carrying Value	$ 501	$ 506
Total Unrecognized Losses	(1)	(2)
Total securities	500	504
Mortgage backed securities - residential
Securities held to maturity:
Carrying Value	155	158
Gross Unrecognized Gains	11	12
Total securities	166	170
Collateralized mortgage obligations
Securities held to maturity:
Carrying Value	25,350	27,142
Gross Unrecognized Gains	200	250
Total Unrecognized Losses	(59)	(124)
Total securities	25,491	27,268
Corporate bonds
Securities held to maturity:
Carrying Value	35,153	25,058
Gross Unrecognized Gains	347	312
Total Unrecognized Losses	(63)	(63)
Total securities	$ 35,437	$ 25,307

INVESTMENT SECURITIES - SALES O

INVESTMENT SECURITIES - SALES OF AFS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INVESTMENT SECURITIES
Gain (loss) on call of securities available for sale	$ 0	$ 0	$ 0	$ 0

INVESTMENT SECURITIES - AMORTIZ

INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2008
Securities available for Sale - Amortized Cost
Due in one year or less	$ 35,987,000		$ 35,987,000
Due from one year to five years	239,376,000		239,376,000
Due from five years to ten years	10,000,000		10,000,000
Due beyond ten years	3,471,000		3,471,000
Total securities	461,792,000		461,792,000
Securities available for Sale - Fair Value
Due in one year or less	35,989,000		35,989,000
Due from one year to five years	238,626,000		238,626,000
Due from five years to ten years	10,241,000		10,241,000
Due beyond ten years	3,454,000		3,454,000
Total securities	464,525,000		464,525,000
Securities held to maturity - Carrying Value
Due in one year or less	501,000		501,000
Due from one year to five years	10,111,000		10,111,000
Due from five years to ten years	25,042,000		25,042,000
Total securities	61,159,000		61,159,000		$ 52,864,000
Securities held to maturity - Fair Value
Due in one year or less	501,000		501,000
Due from one year to five years	10,048,000		10,048,000
Due from five years to ten years	25,388,000		25,388,000
Total securities	$ 61,594,000		$ 61,594,000		$ 53,249,000
Number of Securities Held	181		181		179
Securities available for sale	$ 464,525,000		$ 464,525,000		$ 481,275,000
Total unrealized gain	423,000	$ 416,000	1,129,000	$ 2,708,000
Private label mortgage backed security
Securities available for Sale - Amortized Cost
Securities not due at a single maturity date	3,300,000		3,300,000
Securities available for Sale - Fair Value
Securities not due at a single maturity date	4,540,000		4,540,000
Securities held to maturity - Carrying Value
Securities not due at a single maturity date	$ 4,500,000		$ 4,500,000
Securities held to maturity - Fair Value
Number of Securities Held	1		1
Securities available for sale	$ 4,540,000		$ 4,540,000		4,777,000
Mortgage backed securities - residential
Securities available for Sale - Amortized Cost
Securities not due at a single maturity date	88,776,000		88,776,000
Securities available for Sale - Fair Value
Securities not due at a single maturity date	90,455,000		90,455,000
Securities held to maturity - Carrying Value
Securities not due at a single maturity date	155,000		155,000
Total securities	155,000		155,000		158,000
Securities held to maturity - Fair Value
Securities not due at a single maturity date	166,000		166,000
Total securities	166,000		166,000		170,000
Securities available for sale	90,455,000		90,455,000		73,004,000
Collateralized mortgage obligations
Securities available for Sale - Amortized Cost
Securities not due at a single maturity date	78,382,000		78,382,000
Securities available for Sale - Fair Value
Securities not due at a single maturity date	78,404,000		78,404,000
Securities held to maturity - Carrying Value
Securities not due at a single maturity date	25,350,000		25,350,000
Total securities	25,350,000		25,350,000		27,142,000
Securities held to maturity - Fair Value
Securities not due at a single maturity date	25,491,000		25,491,000
Total securities	25,491,000		25,491,000		27,268,000
Securities available for sale	78,404,000		78,404,000		87,654,000
Freddie Mac preferred stock
Securities available for Sale - Fair Value
Securities not due at a single maturity date	337,000		337,000
Securities held to maturity - Fair Value
Number of Securities Held						40,000
Other Than Temporary Impairment ("OTTI") charge						$ 2,100,000
Securities available for sale	337,000		337,000		483,000	$ 0
Total unrealized gain			337,000
Community Reinvestment Act mutual fund
Securities available for Sale - Amortized Cost
Securities not due at a single maturity date	2,500,000		2,500,000
Securities available for Sale - Fair Value
Securities not due at a single maturity date	2,479,000		2,479,000
Securities held to maturity - Fair Value
Securities available for sale	2,479,000		2,479,000		2,455,000
Corporate bonds
Securities held to maturity - Carrying Value
Total securities	35,153,000		35,153,000		25,058,000
Securities held to maturity - Fair Value
Total securities	35,437,000		35,437,000		25,307,000
Securities available for sale	$ 15,272,000		$ 15,272,000		$ 15,158,000
Percentage of concentration risk			10.00%		8.00%

INVESTMENT SECURITIES - TRUST P

INVESTMENT SECURITIES - TRUST PREFERRED SECURITY (Details) - USD ($)	3 Months Ended	6 Months Ended		12 Months Ended
	Dec. 31, 2015	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Amortized cost and fair value of the investment securities portfolio by contractual maturity
Fair Value		$ 464,525,000		$ 481,275,000
Amount of floating rate		64,390,000	$ 390,079,000
Private label mortgage backed security
Amortized cost and fair value of the investment securities portfolio by contractual maturity
Fair Value		4,540,000		4,777,000
Mortgage backed securities and CMOs
Amortized cost and fair value of the investment securities portfolio by contractual maturity
Gross unrealized losses on available for sale securities		600,000		1,500,000
Trust preferred security
Amortized cost and fair value of the investment securities portfolio by contractual maturity
Fair Value		$ 3,453,000		$ 3,200,000
Amount of floating rate	$ 3,000,000
Price as percentage of face value	68.00%
3 Month London Interbank Offered Rate (LIBOR) | Trust preferred security
Amortized cost and fair value of the investment securities portfolio by contractual maturity
Interest rate - Basis Spread	1.59%

INVESTMENT SECURITIES - INVESTM

INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Available for sale
Less than 12 months Fair Value	$ 1,475	$ 190,631
Less than 12 months Unrealized Losses	(25)	(2,213)
12 months or more Fair Value	254,869	19,879
12 months or more Unrealized Losses	(1,430)	(647)
Total Fair Value	256,344	210,510
Total Unrealized Losses	$ (1,455)	$ (2,860)
Number of securities held	181	179
Number of securities held in an unrealized loss position	45	45
Held to maturity
Less than 12 months Fair Value	$ 500	$ 13,821
Less than 12 months Unrealized Losses	(1)	(126)
12 months or more Fair Value	21,855	4,937
12 months or more Unrealized Losses	(122)	(63)
Total Fair Value	22,355	18,758
Total Unrealized Losses	(123)	(189)
U.S. Treasury securities and U.S. Government agencies
Available for sale
Less than 12 months Fair Value		138,002
Less than 12 months Unrealized Losses		(1,107)
12 months or more Fair Value	189,503
12 months or more Unrealized Losses	(812)
Total Fair Value	189,503	138,002
Total Unrealized Losses	(812)	(1,107)
Held to maturity
Less than 12 months Fair Value	500	506
Less than 12 months Unrealized Losses	(1)	(2)
Total Fair Value	500	506
Total Unrealized Losses	(1)	(2)
Mortgage backed securities - residential
Available for sale
Less than 12 months Fair Value		9,427
Less than 12 months Unrealized Losses		(122)
12 months or more Fair Value	25,977	4,211
12 months or more Unrealized Losses	(213)	(98)
Total Fair Value	25,977	13,638
Total Unrealized Losses	(213)	(220)
Collateralized mortgage obligations
Available for sale
Less than 12 months Fair Value		37,547
Less than 12 months Unrealized Losses		(690)
12 months or more Fair Value	35,936	15,668
12 months or more Unrealized Losses	(387)	(549)
Total Fair Value	35,936	53,215
Total Unrealized Losses	(387)	(1,239)
Held to maturity
Less than 12 months Fair Value		13,315
Less than 12 months Unrealized Losses		(124)
12 months or more Fair Value	6,825
12 months or more Unrealized Losses	(59)
Total Fair Value	6,825	13,315
Total Unrealized Losses	(59)	(124)
Community Reinvestment Act mutual fund
Available for sale
Less than 12 months Fair Value	1,475	2,455
Less than 12 months Unrealized Losses	(25)	(45)
Total Fair Value	1,475	2,455
Total Unrealized Losses	(25)	(45)
Corporate bonds
Held to maturity
12 months or more Fair Value	15,030	4,937
12 months or more Unrealized Losses	(63)	(63)
Total Fair Value	15,030	4,937
Total Unrealized Losses	(63)	(63)
Trust preferred security
Available for sale
Less than 12 months Fair Value		3,200
Less than 12 months Unrealized Losses		(249)
12 months or more Fair Value	3,453
12 months or more Unrealized Losses	(18)
Total Fair Value	3,453	3,200
Total Unrealized Losses	$ (18)	$ (249)

INVESTMENT SECURITIES - ROLLFOR

INVESTMENT SECURITIES - ROLLFORWARD OF CREDIT LOSSES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Bank's private label mortgage backed security credit losses recognized in earnings
Available-for-sale Securities	$ 464,525	$ 481,275
Number of securities held	181	179
Private label mortgage backed security
Bank's private label mortgage backed security credit losses recognized in earnings
Available-for-sale Securities	$ 4,540	$ 4,777
Number of securities held	1

INVESTMENT SECURITIES - PLEDGED

INVESTMENT SECURITIES - PLEDGED INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
INVESTMENT SECURITIES
Carrying amount	$ 182,185	$ 231,695
Fair value	$ 182,300	$ 231,891

LOANS HELD FOR SALE (Details)

LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Carried at fair value
Balance, beginning of period	$ 3,679	$ 415	$ 2,198
Origination of consumer loans held for sale, at fair value	19,542	13,242	31,781	$ 13,657
Proceeds from the sale of consumer loans held for sale	(20,089)	(6,958)	(30,872)	(6,958)
Net gain on sale of consumer loans held for sale	103	127	128	127
Balance, end of period	3,235	6,826	3,235	6,826	$ 2,198
Carried at lower of cost or fair value
Balance, beginning of period	1,420	566	1,310	514	514
Origination of consumer loans held for sale	128,496	71,717	243,182	115,370
Proceeds from the sale of consumer loans held for sale	(128,576)	(71,441)	(244,234)	(115,474)
Net gain on sale of consumer loans held for sale	1,124	280	2,206	712
Balance, end of period	$ 2,464	$ 1,122	$ 2,464	$ 1,122	$ 1,310
Installment loan
Loans held for sale
Percentage of loan receivable held for sale (as a percent)		100.00%
Consumer loans held for sale period		21 days			21 days
Line of credit and credit card
Loans held for sale
Percentage of loan receivable held for sale (as a percent)			90.00%
Consumer loans held for sale period			2 days
Interest retained (as a percent)			10.00%

LOANS AND ALLOWANCE FOR LOAN 52

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - COMPOSITION OF LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Loans disclosures
Total loans	$ 3,916,320		$ 3,810,778
Allowance for loan and lease losses	(37,898)	$ (42,362)	(32,920)	$ (29,308)	$ (31,475)	$ (27,491)
Loans, net	3,878,422		3,777,858
Core Banking Activities
Loans disclosures
Total loans	3,874,210		3,771,831
Allowance for loan and lease losses	(29,251)	(27,990)	(27,928)	(26,857)	(26,006)	(25,792)
Traditional Banking
Loans disclosures
Total loans	3,273,580		3,186,392
Allowance for loan and lease losses	(27,749)	(26,752)	(26,464)	(25,392)	(25,021)	(24,825)
Republic Processing Group
Loans disclosures
Total loans	42,110		38,947
Allowance for loan and lease losses	(8,647)	(14,372)	(4,992)	(2,451)	(5,469)	(1,699)
Residential Real Estate - Owner Occupied | Traditional Banking
Loans disclosures
Total loans	961,405		1,000,148
Allowance for loan and lease losses	(6,740)	(7,071)	(7,158)	(7,893)	(8,049)	(8,301)
Residential Real Estate - Owner Occupied - Correspondent | Traditional Banking
Loans disclosures
Total loans	129,792		149,028
Allowance for loan and lease losses	(324)	(353)	(373)	(592)	(607)	(623)
Residential Real Estate - Non Owner Occupied | Traditional Banking
Loans disclosures
Total loans	172,684		156,605
Allowance for loan and lease losses	(1,237)	(1,198)	(1,139)	(1,052)	(1,095)	(1,052)
Commercial Real Estate | Traditional Banking
Loans disclosures
Total loans	1,104,026		1,060,496
Allowance for loan and lease losses	(8,368)	(7,898)	(8,078)	(7,805)	(7,678)	(7,672)
Construction & land development | Traditional Banking
Loans disclosures
Total loans	137,877		119,650
Allowance for loan and lease losses	(2,508)	(2,233)	(1,850)	(1,332)	(1,348)	(1,303)
Commercial & Industrial | Traditional Banking
Loans disclosures
Total loans	314,433		259,026
Allowance for loan and lease losses	(1,682)	(1,488)	(1,511)	(1,441)	(1,384)	(1,455)
Commercial & Industrial | Republic Processing Group
Loans disclosures
Total loans			6,695
Allowance for loan and lease losses			(25)
Lease Financing Receivables | Traditional Banking
Loans disclosures
Total loans	14,371		13,614
Allowance for loan and lease losses	(151)	(145)	(136)	(115)	(97)	(89)
Home equity lines of credit | Traditional Banking
Loans disclosures
Total loans	344,946		341,285
Allowance for loan and lease losses	(3,787)	(3,831)	(3,757)	(3,016)	(3,054)	(2,996)
Consumer: Credit cards | Traditional Banking
Loans disclosures
Total loans	17,879		13,414
Allowance for loan and lease losses	(588)	(506)	(490)	(456)	(466)	(448)
Consumer: Overdrafts | Traditional Banking
Loans disclosures
Total loans	902		803
Allowance for loan and lease losses	(806)	(641)	(675)	(824)	(450)	(351)
Consumer: Automobile loan | Traditional Banking
Loans disclosures
Total loans	59,921		52,579
Allowance for loan and lease losses	(640)	(563)	(526)	(281)	(145)	(56)
Other consumer | Traditional Banking
Loans disclosures
Total loans	15,344		19,744
Allowance for loan and lease losses	(918)	(825)	(771)	(585)	(648)	(479)
Warehouse lines of credit | Warehouse Lending
Loans disclosures
Total loans	600,630		585,439
Allowance for loan and lease losses	(1,502)	(1,238)	(1,464)	(1,465)	(985)	(967)
Easy Advances | Republic Processing Group
Loans disclosures
Allowance for loan and lease losses		(7,741)			(3,169)
Republic Credit Solutions | Republic Processing Group
Loans disclosures
Total loans	42,110		32,252
Allowance for loan and lease losses	$ (8,647)	$ (6,631)	$ (4,967)	$ (2,451)	$ (2,300)	$ (1,699)

LOANS AND ALLOWANCE FOR LOAN 53

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES
Contractual receivable	$ 3,920,955	$ 3,816,086
Unearned income	(1,113)	(1,050)
Unamortized premiums	1,394	1,838
Unaccreted discounts	(8,563)	(9,397)
Net unamortized deferred origination fees and costs	3,647	3,301
Carrying value of loans	$ 3,916,320	$ 3,810,778

LOANS AND ALLOWANCE FOR LOAN 54

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - LOAN PURCHASES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Loans disclosures
Total loans	$ 1,432	$ 24,799	$ 2,656	$ 47,986
Residential Real Estate - Owner Occupied - Correspondent
Loans disclosures
Total loans	$ 1,432	23,043	$ 2,656	43,564
Other consumer
Loans disclosures
Total loans		$ 1,756		$ 4,422

LOANS AND ALLOWANCE FOR LOAN 55

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - PCI RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands	May 17, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Disclosures on loans acquired
Contractual receivable						$ 3,920,955	$ 3,816,086
Carrying value of loans						3,916,320	3,810,778
Cornerstone
Disclosures on loans acquired
Contractual receivable	$ 195,136
Non-accretable Discount	(1,941)
Accretable Discount	(3,571)
Acquisition-Day Fair Value	$ 189,624
Cornerstone | Minimum
Disclosures on loans acquired
Period of past due loans to be considered PCI loans	90 days
Non PCI Loans | Cornerstone
Disclosures on loans acquired
Contractual receivable	$ 185,510
Accretable Discount	(3,182)
Acquisition-Day Fair Value	182,328
PCI loan
Disclosures on loans acquired
Contractual receivable						14,693	15,587
Non-accretable amount						(1,787)	(1,713)
Accretable amount		$ (3,409)	$ (3,853)	$ (3,600)	$ (4,125)	(3,333)	(3,600)
Carrying value of loans						$ 9,573	$ 10,274
Rollforward of the accretable discount on purchased loans within the scope of ASC Topic 310-30
Balance at the beginning of the period		(3,409)	(3,853)	(3,600)	(4,125)
Transfers between non-accretable and accretable		(15)	(23)	75	(478)
Net accretion into interest income on loans, including loan fees		91	170	192	897
Generated from acquisition of Cornerstone Bancorp, Inc. (recasted)			(381)		(381)
Balance at the end of the period		$ (3,333)	$ (4,087)	$ (3,333)	$ (4,087)
PCI loan | Cornerstone
Disclosures on loans acquired
Contractual receivable	9,626
Non-accretable Discount	(1,941)
Accretable Discount	(389)
Acquisition-Day Fair Value	7,296
Residential Real Estate - Owner Occupied | Non PCI Loans | Cornerstone
Disclosures on loans acquired
Contractual receivable	15,487
Accretable Discount	(393)
Acquisition-Day Fair Value	15,094
Residential Real Estate - Owner Occupied | PCI loan | Cornerstone
Disclosures on loans acquired
Contractual receivable	2,963
Non-accretable Discount	(822)
Accretable Discount	(15)
Acquisition-Day Fair Value	2,126
Residential Real Estate - Non Owner Occupied | Non PCI Loans | Cornerstone
Disclosures on loans acquired
Contractual receivable	11,196
Accretable Discount	(101)
Acquisition-Day Fair Value	11,095
Residential Real Estate - Non Owner Occupied | PCI loan | Cornerstone
Disclosures on loans acquired
Contractual receivable	1,721
Non-accretable Discount	(320)
Accretable Discount	(167)
Acquisition-Day Fair Value	1,234
Commercial Real Estate | Non PCI Loans | Cornerstone
Disclosures on loans acquired
Contractual receivable	106,089
Accretable Discount	(1,498)
Acquisition-Day Fair Value	104,591
Commercial Real Estate | PCI loan | Cornerstone
Disclosures on loans acquired
Contractual receivable	4,315
Non-accretable Discount	(617)
Accretable Discount	(197)
Acquisition-Day Fair Value	3,501
Construction & land development | Non PCI Loans | Cornerstone
Disclosures on loans acquired
Contractual receivable	18,277
Accretable Discount	(502)
Acquisition-Day Fair Value	17,775
Construction & land development | PCI loan | Cornerstone
Disclosures on loans acquired
Contractual receivable	175
Acquisition-Day Fair Value	175
Commercial & Industrial | Non PCI Loans | Cornerstone
Disclosures on loans acquired
Contractual receivable	11,462
Accretable Discount	(191)
Acquisition-Day Fair Value	11,271
Commercial & Industrial | PCI loan | Cornerstone
Disclosures on loans acquired
Contractual receivable	66
Non-accretable Discount	(1)
Accretable Discount	1
Acquisition-Day Fair Value	66
Home equity lines of credit | Non PCI Loans | Cornerstone
Disclosures on loans acquired
Contractual receivable	20,652
Accretable Discount	(350)
Acquisition-Day Fair Value	20,302
Home equity lines of credit | PCI loan | Cornerstone
Disclosures on loans acquired
Contractual receivable	382
Non-accretable Discount	(178)
Accretable Discount	(11)
Acquisition-Day Fair Value	193
Consumer and other | Non PCI Loans | Cornerstone
Disclosures on loans acquired
Contractual receivable	2,347
Accretable Discount	(147)
Acquisition-Day Fair Value	2,200
Consumer and other | PCI loan | Cornerstone
Disclosures on loans acquired
Contractual receivable	4
Non-accretable Discount	(3)
Acquisition-Day Fair Value	$ 1

LOANS AND ALLOWANCE FOR LOAN 56

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - RISK CATEGORY (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Risk category of rated loans
Loans	$ 3,916,320	$ 3,810,778
Pass
Risk category of rated loans
Loans	2,152,575	2,024,233
Special Mention
Risk category of rated loans
Loans	28,134	30,702
Substandard
Risk category of rated loans
Loans	21,549	21,412
Purchased Credit Impaired Loans - Group 1
Risk category of rated loans
Loans	7,737	7,908
Purchased Credit Impaired Loans - Substandard
Risk category of rated loans
Loans	1,836	2,366
Rated Loans
Risk category of rated loans
Loans	2,211,831	2,086,621
Core Banking Activities
Risk category of rated loans
Loans	3,874,210	3,771,831
Core Banking Activities | Pass
Risk category of rated loans
Loans	2,152,575	2,017,538
Core Banking Activities | Special Mention
Risk category of rated loans
Loans	28,134	30,702
Core Banking Activities | Substandard
Risk category of rated loans
Loans	21,247	21,330
Core Banking Activities | Purchased Credit Impaired Loans - Group 1
Risk category of rated loans
Loans	7,737	7,908
Core Banking Activities | Purchased Credit Impaired Loans - Substandard
Risk category of rated loans
Loans	1,836	2,366
Core Banking Activities | Rated Loans
Risk category of rated loans
Loans	2,211,529	2,079,844
Traditional Banking
Risk category of rated loans
Loans	3,273,580	3,186,392
Traditional Banking | Residential Real Estate - Owner Occupied
Risk category of rated loans
Loans	961,405	1,000,148
Traditional Banking | Residential Real Estate - Owner Occupied - Correspondent
Risk category of rated loans
Loans	129,792	149,028
Traditional Banking | Residential Real Estate - Non Owner Occupied
Risk category of rated loans
Loans	172,684	156,605
Traditional Banking | Commercial Real Estate
Risk category of rated loans
Loans	1,104,026	1,060,496
Traditional Banking | Construction & land development
Risk category of rated loans
Loans	137,877	119,650
Traditional Banking | Commercial & Industrial
Risk category of rated loans
Loans	314,433	259,026
Traditional Banking | Lease Financing Receivables
Risk category of rated loans
Loans	14,371	13,614
Traditional Banking | Home equity lines of credit
Risk category of rated loans
Loans	344,946	341,285
Traditional Banking | Consumer: Credit cards
Risk category of rated loans
Loans	17,879	13,414
Traditional Banking | Consumer: Overdrafts
Risk category of rated loans
Loans	902	803
Traditional Banking | Consumer: Automobile loan
Risk category of rated loans
Loans	59,921	52,579
Traditional Banking | Other consumer
Risk category of rated loans
Loans	15,344	19,744
Traditional Banking | Pass
Risk category of rated loans
Loans	1,551,945	1,432,099
Traditional Banking | Pass | Commercial Real Estate
Risk category of rated loans
Loans	1,087,153	1,042,137
Traditional Banking | Pass | Construction & land development
Risk category of rated loans
Loans	137,128	118,769
Traditional Banking | Pass | Commercial & Industrial
Risk category of rated loans
Loans	313,293	257,579
Traditional Banking | Pass | Lease Financing Receivables
Risk category of rated loans
Loans	14,371	13,614
Traditional Banking | Special Mention
Risk category of rated loans
Loans	28,134	30,702
Traditional Banking | Special Mention | Residential Real Estate - Owner Occupied
Risk category of rated loans
Loans	20,553	21,344
Traditional Banking | Special Mention | Residential Real Estate - Non Owner Occupied
Risk category of rated loans
Loans	869	656
Traditional Banking | Special Mention | Commercial Real Estate
Risk category of rated loans
Loans	5,960	7,086
Traditional Banking | Special Mention | Construction & land development
Risk category of rated loans
Loans		90
Traditional Banking | Special Mention | Commercial & Industrial
Risk category of rated loans
Loans	669	1,270
Traditional Banking | Special Mention | Home equity lines of credit
Risk category of rated loans
Loans	83	256
Traditional Banking | Substandard
Risk category of rated loans
Loans	21,247	21,330
Traditional Banking | Substandard | Residential Real Estate - Owner Occupied
Risk category of rated loans
Loans	12,642	13,117
Traditional Banking | Substandard | Residential Real Estate - Non Owner Occupied
Risk category of rated loans
Loans	1,058	1,115
Traditional Banking | Substandard | Commercial Real Estate
Risk category of rated loans
Loans	3,984	4,224
Traditional Banking | Substandard | Construction & land development
Risk category of rated loans
Loans	749	791
Traditional Banking | Substandard | Commercial & Industrial
Risk category of rated loans
Loans	449	154
Traditional Banking | Substandard | Home equity lines of credit
Risk category of rated loans
Loans	2,158	1,763
Traditional Banking | Substandard | Consumer: Automobile loan
Risk category of rated loans
Loans	99
Traditional Banking | Substandard | Other consumer
Risk category of rated loans
Loans	108	166
Traditional Banking | Purchased Credit Impaired Loans - Group 1
Risk category of rated loans
Loans	7,737	7,908
Traditional Banking | Purchased Credit Impaired Loans - Group 1 | Residential Real Estate - Owner Occupied
Risk category of rated loans
Loans	181	218
Traditional Banking | Purchased Credit Impaired Loans - Group 1 | Residential Real Estate - Non Owner Occupied
Risk category of rated loans
Loans	513	523
Traditional Banking | Purchased Credit Impaired Loans - Group 1 | Commercial Real Estate
Risk category of rated loans
Loans	6,929	7,049
Traditional Banking | Purchased Credit Impaired Loans - Group 1 | Commercial & Industrial
Risk category of rated loans
Loans	22	23
Traditional Banking | Purchased Credit Impaired Loans - Group 1 | Home equity lines of credit
Risk category of rated loans
Loans	92	94
Traditional Banking | Purchased Credit Impaired Loans - Group 1 | Other consumer
Risk category of rated loans
Loans		1
Traditional Banking | Purchased Credit Impaired Loans - Substandard
Risk category of rated loans
Loans	1,836	2,366
Traditional Banking | Purchased Credit Impaired Loans - Substandard | Residential Real Estate - Owner Occupied
Risk category of rated loans
Loans	1,741	2,267
Traditional Banking | Purchased Credit Impaired Loans - Substandard | Home equity lines of credit
Risk category of rated loans
Loans	95	99
Traditional Banking | Rated Loans
Risk category of rated loans
Loans	1,610,899	1,494,405
Traditional Banking | Rated Loans | Residential Real Estate - Owner Occupied
Risk category of rated loans
Loans	35,117	36,946
Traditional Banking | Rated Loans | Residential Real Estate - Non Owner Occupied
Risk category of rated loans
Loans	2,440	2,294
Traditional Banking | Rated Loans | Commercial Real Estate
Risk category of rated loans
Loans	1,104,026	1,060,496
Traditional Banking | Rated Loans | Construction & land development
Risk category of rated loans
Loans	137,877	119,650
Traditional Banking | Rated Loans | Commercial & Industrial
Risk category of rated loans
Loans	314,433	259,026
Traditional Banking | Rated Loans | Lease Financing Receivables
Risk category of rated loans
Loans	14,371	13,614
Traditional Banking | Rated Loans | Home equity lines of credit
Risk category of rated loans
Loans	2,428	2,212
Traditional Banking | Rated Loans | Consumer: Automobile loan
Risk category of rated loans
Loans	99
Traditional Banking | Rated Loans | Other consumer
Risk category of rated loans
Loans	108	167
Warehouse Lending | Warehouse lines of credit
Risk category of rated loans
Loans	600,630	585,439
Warehouse Lending | Pass | Warehouse lines of credit
Risk category of rated loans
Loans	600,630	585,439
Warehouse Lending | Rated Loans | Warehouse lines of credit
Risk category of rated loans
Loans	600,630	585,439
Republic Processing Group
Risk category of rated loans
Loans	42,110	38,947
Republic Processing Group | Commercial & Industrial
Risk category of rated loans
Loans		6,695
Republic Processing Group | Republic Credit Solutions
Risk category of rated loans
Loans	42,110	32,252
Republic Processing Group | Pass
Risk category of rated loans
Loans		6,695
Republic Processing Group | Pass | Commercial & Industrial
Risk category of rated loans
Loans		6,695
Republic Processing Group | Substandard
Risk category of rated loans
Loans	302	82
Republic Processing Group | Substandard | Republic Credit Solutions
Risk category of rated loans
Loans	302	82
Republic Processing Group | Rated Loans
Risk category of rated loans
Loans	302	6,777
Republic Processing Group | Rated Loans | Commercial & Industrial
Risk category of rated loans
Loans		6,695
Republic Processing Group | Rated Loans | Republic Credit Solutions
Risk category of rated loans
Loans	$ 302	$ 82

LOANS AND ALLOWANCE FOR LOAN 57

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Allowance for loan losses rollforward
Beginning Balance	$ 42,362	$ 31,475	$ 32,920	$ 27,491
Provision for loan and lease losses	5,061	1,814	17,412	7,000
Charged-off	(10,275)	(4,747)	(13,879)	(6,610)
Recoveries	750	766	1,445	1,427
Ending Balance	37,898	29,308	37,898	29,308
Core Banking Activities
Allowance for loan losses rollforward
Beginning Balance	27,990	26,006	27,928	25,792
Provision for loan and lease losses	1,725	1,278	1,966	1,776
Charged-off	(763)	(804)	(1,222)	(1,416)
Recoveries		377	579	705
Ending Balance	29,251	26,857	29,251	26,857
Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	26,752	25,021	26,464	24,825
Provision for loan and lease losses	1,461	798	1,928	1,278
Charged-off	(763)	(804)	(1,222)	(1,416)
Recoveries	299	377	579	705
Ending Balance	27,749	25,392	27,749	25,392
Warehouse Lending
Allowance for loan losses rollforward
Provision for loan and lease losses	264	480	38	498
Republic Processing Group
Allowance for loan losses rollforward
Beginning Balance	14,372	5,469	4,992	1,699
Provision for loan and lease losses	3,336	536	15,446	5,224
Charged-off	(9,512)	(3,943)	(12,657)	(5,194)
Recoveries	451	389	866	722
Ending Balance	8,647	2,451	8,647	2,451
Residential Real Estate - Owner Occupied | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	7,071	8,049	7,158	8,301
Provision for loan and lease losses	(288)	(160)	(431)	(298)
Charged-off	(108)	(73)	(111)	(261)
Recoveries	65	77	124	151
Ending Balance	6,740	7,893	6,740	7,893
Residential Real Estate - Owner Occupied - Correspondent | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	353	607	373	623
Provision for loan and lease losses	(29)	(15)	(49)	(31)
Ending Balance	324	592	324	592
Residential Real Estate - Non Owner Occupied | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	1,198	1,095	1,139	1,052
Provision for loan and lease losses	42	(51)	112	(8)
Charged-off	(3)		(14)
Recoveries		8		8
Ending Balance	1,237	1,052	1,237	1,052
Commercial Real Estate | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	7,898	7,678	8,078	7,672
Provision for loan and lease losses	449	48	252	68
Charged-off				(41)
Recoveries	21	79	38	106
Ending Balance	8,368	7,805	8,368	7,805
Construction & land development | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	2,233	1,348	1,850	1,303
Provision for loan and lease losses	274	(16)	657	53
Charged-off				(44)
Recoveries	1		1	20
Ending Balance	2,508	1,332	2,508	1,332
Commercial & Industrial | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	1,488	1,384	1,511	1,455
Provision for loan and lease losses	193	387	149	312
Charged-off		(330)		(330)
Recoveries	1		22	4
Ending Balance	1,682	1,441	1,682	1,441
Commercial & Industrial | Republic Processing Group
Allowance for loan losses rollforward
Beginning Balance			25
Provision for loan and lease losses			(25)
Lease Financing Receivables | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	145	97	136	89
Provision for loan and lease losses	6	18	15	26
Ending Balance	151	115	151	115
Home equity lines of credit | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	3,831	3,054	3,757	2,996
Provision for loan and lease losses	(21)	(67)	48
Charged-off	(91)	(49)	(95)	(84)
Recoveries	68	78	77	104
Ending Balance	3,787	3,016	3,787	3,016
Consumer: Credit cards | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	506	466	490	448
Provision for loan and lease losses	93	37	131	58
Charged-off	(21)	(50)	(48)	(62)
Recoveries	10	3	15	12
Ending Balance	588	456	588	456
Consumer: Overdrafts | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	641	450	675	351
Provision for loan and lease losses	337	489	420	673
Charged-off	(227)	(171)	(411)	(332)
Recoveries	55	56	122	132
Ending Balance	806	824	806	824
Consumer: Automobile loan | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	563	145	526	56
Provision for loan and lease losses	84	135	120	224
Charged-off	(7)		(7)
Recoveries		1	1	1
Ending Balance	640	281	640	281
Other consumer | Traditional Banking
Allowance for loan losses rollforward
Beginning Balance	825	648	771	479
Provision for loan and lease losses	321	(7)	504	201
Charged-off	(306)	(131)	(536)	(262)
Recoveries	78	75	179	167
Ending Balance	918	585	918	585
Warehouse lines of credit | Warehouse Lending
Allowance for loan losses rollforward
Beginning Balance	1,238	985	1,464	967
Provision for loan and lease losses	264	480	38	498
Ending Balance	1,502	1,465	1,502	1,465
Easy Advances | Republic Processing Group
Allowance for loan losses rollforward
Beginning Balance	7,741	3,169
Provision for loan and lease losses	(721)	(354)	7,880	3,220
Charged-off	(7,261)	(3,069)	(8,121)	(3,474)
Recoveries	241	254	241	254
Refund Anticipation Loans | Republic Processing Group
Allowance for loan losses rollforward
Provision for loan and lease losses	(17)	(43)	(252)	(290)
Recoveries	17	43	252	290
Republic Credit Solutions | Republic Processing Group
Allowance for loan losses rollforward
Beginning Balance	6,631	2,300	4,967	1,699
Provision for loan and lease losses	4,074	933	7,843	2,294
Charged-off	(2,251)	(874)	(4,536)	(1,720)
Recoveries	193	92	373	178
Ending Balance	$ 8,647	$ 2,451	$ 8,647	$ 2,451

LOANS AND ALLOWANCE FOR LOAN 58

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Non-performing loans and non-performing assets disclosures
Loans on nonaccrual status	$ 15,467	$ 15,892
Loans past due 90 days or more and still on accrual	335	167
Total nonperforming loans	15,802	16,059
Other real estate owned	300	1,391
Total nonperforming assets	$ 16,102	$ 17,450
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans (as percent)	0.40%	0.42%
Nonperforming assets to total loans (including OREO) (as percent)	0.41%	0.46%
Nonperforming assets to total assets (as percent)	0.32%	0.36%
Core Banking Activities
Non-performing loans and non-performing assets disclosures
Loans on nonaccrual status	$ 15,467	$ 15,892
Loans past due 90 days or more and still on accrual	$ 33	$ 85
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans (as percent)	0.40%	0.42%
Nonperforming assets to total loans (including OREO) (as percent)	0.41%	0.46%
Nonperforming assets to total assets (as percent)	0.32%	0.36%

LOANS AND ALLOWANCE FOR LOAN 59

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - AGING (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)item	Dec. 31, 2016USD ($)
Aging or recorded investments in loans
Nonaccrual Loan	$ 15,467	$ 15,892
Loans Past Due 90 Days or More and Still Accruing Interest	$ 335	167
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 Loan	$ 15,467	15,892
Loans Past Due 90 Days or More and Still Accruing Interest	33	85
Traditional Banking
Aging or recorded investments in loans
Nonaccrual Loan	15,467	15,892
Loans Past Due 90 Days or More and Still Accruing Interest	33	85
Traditional Banking | Residential Real Estate - Owner Occupied
Aging or recorded investments in loans
Nonaccrual Loan	9,894	10,955
Traditional Banking | Residential Real Estate - Non Owner Occupied
Aging or recorded investments in loans
Nonaccrual Loan	790	852
Traditional Banking | Commercial Real Estate
Aging or recorded investments in loans
Nonaccrual Loan	2,613	2,725
Traditional Banking | Construction & land development
Aging or recorded investments in loans
Nonaccrual Loan	71	77
Traditional Banking | Commercial & Industrial
Aging or recorded investments in loans
Nonaccrual Loan	449	154
Traditional Banking | Home equity lines of credit
Aging or recorded investments in loans
Nonaccrual Loan	1,498	1,069
Loans Past Due 90 Days or More and Still Accruing Interest	4
Traditional Banking | Consumer: Automobile loan
Aging or recorded investments in loans
Nonaccrual Loan	99
Traditional Banking | Other consumer
Aging or recorded investments in loans
Nonaccrual Loan	53	60
Loans Past Due 90 Days or More and Still Accruing Interest	29	85
Republic Processing Group
Aging or recorded investments in loans
Loans Past Due 90 Days or More and Still Accruing Interest	302	82
Republic Processing Group | Republic Credit Solutions
Aging or recorded investments in loans
Loans Past Due 90 Days or More and Still Accruing Interest	$ 302	$ 82

LOANS AND ALLOWANCE FOR LOAN 60

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Aging or recorded investments in loans
Total Loans Delinquent	$ 9,013	$ 8,958
Total Loans Not Delinquent	3,907,307	3,801,820
Carrying value of loans	$ 3,916,320	$ 3,810,778
Delinquent acquired bank loans to total acquired bank loans (as a percent)	0.23%	0.24%
30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	$ 4,453	$ 4,400
Delinquent acquired bank loans to total acquired bank loans (as a percent)	0.11%	0.12%
60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	$ 1,647	$ 912
Delinquent acquired bank loans to total acquired bank loans (as a percent)	0.04%	0.02%
90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	$ 2,913	$ 3,646
Delinquent acquired bank loans to total acquired bank loans (as a percent)	0.07%	0.10%
Core Banking Activities
Aging or recorded investments in loans
Total Loans Delinquent	$ 6,844	$ 6,821
Total Loans Not Delinquent	3,867,366	3,765,010
Carrying value of loans	3,874,210	3,771,831
Core Banking Activities | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	2,951	2,649
Core Banking Activities | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	1,282	608
Core Banking Activities | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	2,611	3,564
Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	6,844	6,821
Total Loans Not Delinquent	3,266,736	3,179,571
Carrying value of loans	3,273,580	3,186,392
Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	2,951	2,649
Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	1,282	608
Traditional Banking | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	2,611	3,564
Republic Processing Group
Aging or recorded investments in loans
Total Loans Delinquent	2,169	2,137
Total Loans Not Delinquent	39,941	36,810
Carrying value of loans	42,110	38,947
Republic Processing Group | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	1,502	1,751
Republic Processing Group | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	365	304
Republic Processing Group | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	302	82
Residential Real Estate - Owner Occupied | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	3,720	4,554
Total Loans Not Delinquent	957,685	995,594
Carrying value of loans	961,405	1,000,148
Residential Real Estate - Owner Occupied | Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	1,744	1,696
Residential Real Estate - Owner Occupied | Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	566	337
Residential Real Estate - Owner Occupied | Traditional Banking | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	1,410	2,521
Residential Real Estate - Owner Occupied - Correspondent | Traditional Banking
Aging or recorded investments in loans
Total Loans Not Delinquent	129,792	149,028
Carrying value of loans	129,792	149,028
Residential Real Estate - Non Owner Occupied | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	84	46
Total Loans Not Delinquent	172,600	156,559
Carrying value of loans	172,684	156,605
Residential Real Estate - Non Owner Occupied | Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	58
Residential Real Estate - Non Owner Occupied | Traditional Banking | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	26	46
Commercial Real Estate | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	1,005	425
Total Loans Not Delinquent	1,103,021	1,060,071
Carrying value of loans	1,104,026	1,060,496
Commercial Real Estate | Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	269	8
Commercial Real Estate | Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	244
Commercial Real Estate | Traditional Banking | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	492	417
Construction & land development | Traditional Banking
Aging or recorded investments in loans
Total Loans Not Delinquent	137,877	119,650
Carrying value of loans	137,877	119,650
Commercial & Industrial | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	454	342
Total Loans Not Delinquent	313,979	258,684
Carrying value of loans	314,433	259,026
Commercial & Industrial | Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	154	342
Commercial & Industrial | Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	300
Commercial & Industrial | Republic Processing Group
Aging or recorded investments in loans
Total Loans Not Delinquent		6,695
Carrying value of loans		6,695
Lease Financing Receivables | Traditional Banking
Aging or recorded investments in loans
Total Loans Not Delinquent	14,371	13,614
Carrying value of loans	14,371	13,614
Home equity lines of credit | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	1,144	970
Total Loans Not Delinquent	343,802	340,315
Carrying value of loans	344,946	341,285
Home equity lines of credit | Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	432	316
Home equity lines of credit | Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	84	160
Home equity lines of credit | Traditional Banking | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	628	494
Consumer: Credit cards | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	65	18
Total Loans Not Delinquent	17,814	13,396
Carrying value of loans	17,879	13,414
Consumer: Credit cards | Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	54	14
Consumer: Credit cards | Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	11	4
Consumer: Overdrafts | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	192	161
Total Loans Not Delinquent	710	642
Carrying value of loans	902	803
Consumer: Overdrafts | Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	192	159
Consumer: Overdrafts | Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent		1
Consumer: Overdrafts | Traditional Banking | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent		1
Consumer: Automobile loan | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	51
Total Loans Not Delinquent	59,870	52,579
Carrying value of loans	59,921	52,579
Consumer: Automobile loan | Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	25
Consumer: Automobile loan | Traditional Banking | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	26
Other consumer | Traditional Banking
Aging or recorded investments in loans
Total Loans Delinquent	129	305
Total Loans Not Delinquent	15,215	19,439
Carrying value of loans	15,344	19,744
Other consumer | Traditional Banking | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	48	114
Other consumer | Traditional Banking | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	52	106
Other consumer | Traditional Banking | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	29	85
Warehouse lines of credit | Warehouse Lending
Aging or recorded investments in loans
Total Loans Not Delinquent	600,630	585,439
Carrying value of loans	600,630	585,439
Republic Credit Solutions | Republic Processing Group
Aging or recorded investments in loans
Total Loans Delinquent	2,169	2,137
Total Loans Not Delinquent	39,941	30,115
Carrying value of loans	42,110	32,252
Republic Credit Solutions | Republic Processing Group | 30 - 59 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	1,502	1,751
Republic Credit Solutions | Republic Processing Group | 60 - 89 Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	365	304
Republic Credit Solutions | Republic Processing Group | 90 + Days Delinquent
Aging or recorded investments in loans
Total Loans Delinquent	$ 302	$ 82

LOANS AND ALLOWANCE FOR LOAN 61

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - IMPAIRED LOANS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Impaired loans
Loans with no allocated Allowance	$ 20,344	$ 21,416
Loans with allocated Allowance	26,794	31,268
Total impaired loans	47,138	52,684
Amount of the Allowance	4,484	4,925
PCI loan
Impaired loans
Total impaired loans	2,000	4,000
Impaired Loans
Impaired loans
Total impaired loans	$ 1,000	$ 3,000

LOANS AND ALLOWANCE FOR LOAN 62

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - PORTFOLIO CLASS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	$ 4,195		$ 4,616
Collectively evaluated for impairment	33,414		27,995
PCI loans with post acquisition impairment	289		309
Total ending allowance for loan losses	37,898	$ 42,362	32,920	$ 29,308	$ 31,475	$ 27,491
Impaired loans individually evaluated, excluding PCI loans	44,895		48,856
Loans collectively evaluated for impairment	3,861,852		3,751,648
PCI loans with post acquisition impairment	2,243		3,828
PCI loans without post acquisition impairment	7,330		6,446
Carrying value of loans	3,916,320		3,810,778
Core Banking Activities
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	4,195		4,616
Collectively evaluated for impairment	24,767		23,003
PCI loans with post acquisition impairment	289		309
Total ending allowance for loan losses	29,251	27,990	27,928	26,857	26,006	25,792
Impaired loans individually evaluated, excluding PCI loans	44,895		48,856
Loans collectively evaluated for impairment	3,819,742		3,712,701
PCI loans with post acquisition impairment	2,243		3,828
PCI loans without post acquisition impairment	7,330		6,446
Carrying value of loans	3,874,210		3,771,831
Traditional Banking
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	4,195		4,616
Collectively evaluated for impairment	23,265		21,539
PCI loans with post acquisition impairment	289		309
Total ending allowance for loan losses	27,749	26,752	26,464	25,392	25,021	24,825
Impaired loans individually evaluated, excluding PCI loans	44,895		48,856
Loans collectively evaluated for impairment	3,219,112		3,127,262
PCI loans with post acquisition impairment	2,243		3,828
PCI loans without post acquisition impairment	7,330		6,446
Carrying value of loans	3,273,580		3,186,392
Traditional Banking | Residential Real Estate - Owner Occupied
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	3,017		3,203
Collectively evaluated for impairment	3,573		3,797
PCI loans with post acquisition impairment	150		158
Total ending allowance for loan losses	6,740	7,071	7,158	7,893	8,049	8,301
Impaired loans individually evaluated, excluding PCI loans	30,700		31,908
Loans collectively evaluated for impairment	928,783		965,755
PCI loans with post acquisition impairment	1,741		2,297
PCI loans without post acquisition impairment	181		188
Carrying value of loans	961,405		1,000,148
Traditional Banking | Residential Real Estate - Owner Occupied - Correspondent
Allowance for loans losses
Collectively evaluated for impairment	324		373
Total ending allowance for loan losses	324	353	373	592	607	623
Loans collectively evaluated for impairment	129,792		149,028
Carrying value of loans	129,792		149,028
Traditional Banking | Residential Real Estate - Non Owner Occupied
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	58		65
Collectively evaluated for impairment	1,172		1,067
PCI loans with post acquisition impairment	7		7
Total ending allowance for loan losses	1,237	1,198	1,139	1,052	1,095	1,052
Impaired loans individually evaluated, excluding PCI loans	1,760		1,601
Loans collectively evaluated for impairment	170,411		154,481
PCI loans with post acquisition impairment	262		268
PCI loans without post acquisition impairment	251		255
Carrying value of loans	172,684		156,605
Traditional Banking | Commercial Real Estate
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	295		532
Collectively evaluated for impairment	8,036		7,501
PCI loans with post acquisition impairment	37		45
Total ending allowance for loan losses	8,368	7,898	8,078	7,805	7,678	7,672
Impaired loans individually evaluated, excluding PCI loans	8,857		11,769
Loans collectively evaluated for impairment	1,088,240		1,041,678
PCI loans with post acquisition impairment	145		1,164
PCI loans without post acquisition impairment	6,784		5,885
Carrying value of loans	1,104,026		1,060,496
Traditional Banking | Construction & land development
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	95		120
Collectively evaluated for impairment	2,413		1,730
Total ending allowance for loan losses	2,508	2,233	1,850	1,332	1,348	1,303
Impaired loans individually evaluated, excluding PCI loans	749		882
Loans collectively evaluated for impairment	137,128		118,768
Carrying value of loans	137,877		119,650
Traditional Banking | Commercial & Industrial
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	149		227
Collectively evaluated for impairment	1,533		1,284
Total ending allowance for loan losses	1,682	1,488	1,511	1,441	1,384	1,455
Impaired loans individually evaluated, excluding PCI loans	493		686
Loans collectively evaluated for impairment	313,918		258,317
PCI loans without post acquisition impairment	22		23
Carrying value of loans	314,433		259,026
Traditional Banking | Lease Financing Receivables
Allowance for loans losses
Collectively evaluated for impairment	151		136
Total ending allowance for loan losses	151	145	136	115	97	89
Loans collectively evaluated for impairment	14,371		13,614
Carrying value of loans	14,371		13,614
Traditional Banking | Home equity lines of credit
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	510		433
Collectively evaluated for impairment	3,182		3,225
PCI loans with post acquisition impairment	95		99
Total ending allowance for loan losses	3,787	3,831	3,757	3,016	3,054	2,996
Impaired loans individually evaluated, excluding PCI loans	2,158		1,929
Loans collectively evaluated for impairment	342,601		339,163
PCI loans with post acquisition impairment	95		99
PCI loans without post acquisition impairment	92		94
Carrying value of loans	344,946		341,285
Traditional Banking | Consumer: Credit cards
Allowance for loans losses
Collectively evaluated for impairment	588		490
Total ending allowance for loan losses	588	506	490	456	466	448
Loans collectively evaluated for impairment	17,879		13,414
Carrying value of loans	17,879		13,414
Traditional Banking | Consumer: Overdrafts
Allowance for loans losses
Collectively evaluated for impairment	806		675
Total ending allowance for loan losses	806	641	675	824	450	351
Loans collectively evaluated for impairment	902		803
Carrying value of loans	902		803
Traditional Banking | Consumer: Automobile loan
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	33
Collectively evaluated for impairment	607		526
Total ending allowance for loan losses	640	563	526	281	145	56
Impaired loans individually evaluated, excluding PCI loans	99
Loans collectively evaluated for impairment	59,822		52,579
Carrying value of loans	59,921		52,579
Traditional Banking | Other consumer
Allowance for loans losses
Individually evaluated for impairment, excluding PCI loans	38		36
Collectively evaluated for impairment	880		735
Total ending allowance for loan losses	918	825	771	585	648	479
Impaired loans individually evaluated, excluding PCI loans	79		81
Loans collectively evaluated for impairment	15,265		19,662
PCI loans without post acquisition impairment			1
Carrying value of loans	15,344		19,744
Warehouse Lending | Warehouse lines of credit
Allowance for loans losses
Collectively evaluated for impairment	1,502		1,464
Total ending allowance for loan losses	1,502	1,238	1,464	1,465	985	967
Loans collectively evaluated for impairment	600,630		585,439
Carrying value of loans	600,630		585,439
Republic Processing Group
Allowance for loans losses
Collectively evaluated for impairment	8,647		4,992
Total ending allowance for loan losses	8,647	14,372	4,992	2,451	5,469	1,699
Loans collectively evaluated for impairment	42,110		38,947
Carrying value of loans	42,110		38,947
Republic Processing Group | Commercial & Industrial
Allowance for loans losses
Collectively evaluated for impairment			25
Total ending allowance for loan losses			25
Loans collectively evaluated for impairment			6,695
Carrying value of loans			6,695
Republic Processing Group | Easy Advances
Allowance for loans losses
Total ending allowance for loan losses		7,741			3,169
Republic Processing Group | Republic Credit Solutions
Allowance for loans losses
Collectively evaluated for impairment	8,647		4,967
Total ending allowance for loan losses	8,647	$ 6,631	4,967	$ 2,451	$ 2,300	$ 1,699
Loans collectively evaluated for impairment	42,110		32,252
Carrying value of loans	$ 42,110		$ 32,252

LOANS AND ALLOWANCE FOR LOAN 63

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS EVALUATED FOR IMPAIRMENT BY CLASS OF LOANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Impaired loans with no related allowance recorded:
Recorded Investment	$ 20,344		$ 20,344		$ 21,416
Impaired loans with allowance recorded:
Recorded Investment	26,794		26,794		31,268
Allowance for Loan Losses Allocated	4,484		4,484		4,925
Total impaired loans
Unpaid Principal Balance	49,505		49,505		54,968
Recorded Investment	47,138		47,138		52,684
Allowance for Loan Losses Allocated	4,484		4,484		4,925
Average Recorded Investment	48,057	$ 60,081	50,931	$ 62,092
Interest Income Recognized	328	474	653	969
Residential Real Estate - Owner Occupied
Impaired loans with no related allowance recorded:
Unpaid Principal Balance	12,651		12,651		13,727
Recorded Investment	11,712		11,712		12,629
Average Recorded Investment	11,802	13,481	12,380	13,406
Interest Income Recognized	48	30	95	61
Impaired loans with allowance recorded:
Unpaid Principal Balance	20,800		20,800		21,595
Recorded Investment	20,729		20,729		21,576
Allowance for Loan Losses Allocated	3,167		3,167		3,361
Average Recorded Investment	20,780	23,808	21,314	24,488
Interest Income Recognized	178	211	357	422
Total impaired loans
Allowance for Loan Losses Allocated	3,167		3,167		3,361
Residential Real Estate - Non Owner Occupied
Impaired loans with no related allowance recorded:
Unpaid Principal Balance	1,576		1,576		1,399
Recorded Investment	1,542		1,542		1,376
Average Recorded Investment	1,477	1,475	1,293	1,626
Interest Income Recognized	7	1	14	3
Impaired loans with allowance recorded:
Unpaid Principal Balance	480		480		491
Recorded Investment	480		480		493
Allowance for Loan Losses Allocated	65		65		73
Average Recorded Investment	483	841	620	963
Interest Income Recognized	6	7	11	16
Total impaired loans
Allowance for Loan Losses Allocated	65		65		73
Commercial Real Estate
Impaired loans with no related allowance recorded:
Unpaid Principal Balance	5,812		5,812		6,610
Recorded Investment	4,635		4,635		5,536
Average Recorded Investment	4,702	7,157	5,235	7,019
Interest Income Recognized	20	92	40	199
Impaired loans with allowance recorded:
Unpaid Principal Balance	4,367		4,367		7,397
Recorded Investment	4,367		4,367		7,397
Allowance for Loan Losses Allocated	332		332		577
Average Recorded Investment	5,229	9,254	6,579	9,670
Interest Income Recognized	49	115	95	232
Total impaired loans
Allowance for Loan Losses Allocated	332		332		577
Construction & land development
Impaired loans with no related allowance recorded:
Unpaid Principal Balance	598		598		476
Recorded Investment	598		598		476
Average Recorded Investment	537	476	507	1,007
Interest Income Recognized	7	5	15	10
Impaired loans with allowance recorded:
Unpaid Principal Balance	151		151		405
Recorded Investment	151		151		406
Allowance for Loan Losses Allocated	95		95		120
Average Recorded Investment	273	431	342	504
Interest Income Recognized	1	5	2	10
Total impaired loans
Allowance for Loan Losses Allocated	95		95		120
Commercial & Industrial
Impaired loans with no related allowance recorded:
Unpaid Principal Balance	344		344		67
Recorded Investment	344		344		67
Average Recorded Investment	200	158	136	111
Interest Income Recognized	1	2	2	4
Impaired loans with allowance recorded:
Unpaid Principal Balance	149		149		619
Recorded Investment	149		149		619
Allowance for Loan Losses Allocated	149		149		227
Average Recorded Investment	150	845	274	1,062
Total impaired loans
Allowance for Loan Losses Allocated	149		149		227
Home equity lines of credit
Impaired loans with no related allowance recorded:
Unpaid Principal Balance	1,578		1,578		1,358
Recorded Investment	1,472		1,472		1,287
Average Recorded Investment	1,443	1,924	1,434	1,978
Interest Income Recognized	6	6	13	12
Impaired loans with allowance recorded:
Unpaid Principal Balance	821		821		742
Recorded Investment	781		781		741
Allowance for Loan Losses Allocated	605		605		532
Average Recorded Investment	826	93	698	138
Interest Income Recognized	5		9
Total impaired loans
Allowance for Loan Losses Allocated	605		605		532
Consumer
Impaired loans with no related allowance recorded:
Unpaid Principal Balance	41		41		45
Recorded Investment	41		41		45
Average Recorded Investment	41	94	43	77
Impaired loans with allowance recorded:
Unpaid Principal Balance	137		137		37
Recorded Investment	137		137		36
Allowance for Loan Losses Allocated	71		71		35
Average Recorded Investment	114	$ 44	76	$ 43
Total impaired loans
Allowance for Loan Losses Allocated	$ 71		$ 71		$ 35

LOANS AND ALLOWANCE FOR LOAN 64

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - TDR ACCRUAL STATUS (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)loan	Dec. 31, 2016USD ($)loan
Troubled Debt Restructurings disclosures
Number of Loans | loan	288	308
Recorded Investment | $	$ 36,718	$ 41,586
Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan	264	277
Recorded Investment | $	$ 27,415	$ 28,753
Commercial Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan	18	23
Recorded Investment | $	$ 8,361	$ 11,265
Construction & land development
Troubled Debt Restructurings disclosures
Number of Loans | loan	4	5
Recorded Investment | $	$ 749	$ 881
Commercial & Industrial
Troubled Debt Restructurings disclosures
Number of Loans | loan	2	3
Recorded Investment | $	$ 193	$ 687
Loans on nonaccrual status
Troubled Debt Restructurings disclosures
Minimum period for which TDRs continue to be reported as non-performing loans	6 months
Number of Loans | loan	74	87
Recorded Investment | $	$ 8,280	$ 9,860
Loans on nonaccrual status | Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan	66	79
Recorded Investment | $	$ 5,733	$ 7,199
Loans on nonaccrual status | Commercial Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan	6	6
Recorded Investment | $	$ 2,327	$ 2,430
Loans on nonaccrual status | Construction & land development
Troubled Debt Restructurings disclosures
Number of Loans | loan	1	1
Recorded Investment | $	$ 71	$ 77
Loans on nonaccrual status | Commercial & Industrial
Troubled Debt Restructurings disclosures
Number of Loans | loan	1	1
Recorded Investment | $	$ 149	$ 154
Accrual Loans
Troubled Debt Restructurings disclosures
Number of Loans | loan	214	221
Recorded Investment | $	$ 28,438	$ 31,726
Accrual Loans | Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan	198	198
Recorded Investment | $	$ 21,682	$ 21,554
Accrual Loans | Commercial Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan	12	17
Recorded Investment | $	$ 6,034	$ 8,835
Accrual Loans | Construction & land development
Troubled Debt Restructurings disclosures
Number of Loans | loan	3	4
Recorded Investment | $	$ 678	$ 804
Accrual Loans | Commercial & Industrial
Troubled Debt Restructurings disclosures
Number of Loans | loan	1	2
Recorded Investment | $	$ 44	$ 533

LOANS AND ALLOWANCE FOR LOAN 65

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - TDR MODIFICATIONS (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)loan	Jun. 30, 2016USD ($)loan	Jun. 30, 2017USD ($)loan	Jun. 30, 2016USD ($)loan	Dec. 31, 2016USD ($)loan
Troubled Debt Restructurings disclosures
Period of time loans are not past due in which TDR loans are performing			30 days
Number of Loans | loan			288		308
Recorded Investment			$ 36,718,000		$ 41,586,000
Commitments to lend any additional material amounts to existing TDR relationships	$ 0		0		$ 0
Change between the pre and post modification loan	$ 0	$ 0	$ 0	$ 0
Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan			264		277
Recorded Investment			$ 27,415,000		$ 28,753,000
Residential Real Estate | Interest only payments
Troubled Debt Restructurings disclosures
Number of Loans | loan			2		3
Recorded Investment			$ 483,000		$ 648,000
Residential Real Estate | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan			198		205
Recorded Investment			$ 23,295,000		$ 24,338,000
Residential Real Estate | Principal deferral
Troubled Debt Restructurings disclosures
Number of Loans | loan			14		14
Recorded Investment			$ 1,378,000		$ 922,000
Residential Real Estate | Legal modifications
Troubled Debt Restructurings disclosures
Number of Loans | loan			50		55
Recorded Investment			$ 2,259,000		$ 2,845,000
Commercial Real Estate and Commercial Construction
Troubled Debt Restructurings disclosures
Number of Loans | loan			24		31
Recorded Investment			$ 9,303,000		$ 12,833,000
Commercial Real Estate and Commercial Construction | Interest only payments
Troubled Debt Restructurings disclosures
Number of Loans | loan			4		6
Recorded Investment			$ 1,281,000		$ 3,079,000
Commercial Real Estate and Commercial Construction | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan			9		10
Recorded Investment			$ 4,253,000		$ 4,997,000
Commercial Real Estate and Commercial Construction | Principal deferral
Troubled Debt Restructurings disclosures
Number of Loans | loan			11		15
Recorded Investment			$ 3,769,000		$ 4,757,000
Modified During The Period
Troubled Debt Restructurings disclosures
Number of Loans | loan	4	3
Recorded Investment	$ 1,041,000	$ 231,000
Modified During The Period | Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan	4	3	5	10
Recorded Investment	$ 1,041,000	$ 231,000	$ 1,200,000	$ 506,000
Modified During The Period | Residential Real Estate | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan	1	3	2	6
Recorded Investment	$ 220,000	$ 231,000	$ 379,000	$ 340,000
Modified During The Period | Residential Real Estate | Principal deferral
Troubled Debt Restructurings disclosures
Number of Loans | loan	2		2
Recorded Investment	$ 810,000		$ 810,000
Modified During The Period | Residential Real Estate | Legal modifications
Troubled Debt Restructurings disclosures
Number of Loans | loan	1		1	4
Recorded Investment	$ 11,000		$ 11,000	$ 166,000
Modified During The Period | Commercial Real Estate and Commercial Construction
Troubled Debt Restructurings disclosures
Number of Loans | loan			5	10
Recorded Investment			$ 1,200,000	$ 506,000
Performing Financing Receivable
Troubled Debt Restructurings disclosures
Number of Loans | loan			194		197
Recorded Investment			$ 26,632,000		$ 29,874,000
Percentage of troubled debt restructurings performing as per terms of modifications	73.00%		73.00%		72.00%
Specific reserve allocations made to customers	$ 3,000,000		$ 3,000,000		$ 4,000,000
Percentage of Bank's TDRs that occurred during period, which were performing according to their modified terms	100.00%	58.00%	100.00%	54.00%
Specific reserve allocations made to customers whose loan terms were modified in TDRs during period	$ 30,000	$ 29,000	$ 65,000	$ 45,000
Performing Financing Receivable | Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan			178		174
Recorded Investment			$ 19,876,000		$ 19,702,000
Performing Financing Receivable | Residential Real Estate | Interest only payments
Troubled Debt Restructurings disclosures
Number of Loans | loan			1		2
Recorded Investment			$ 7,000		$ 155,000
Performing Financing Receivable | Residential Real Estate | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan			148		148
Recorded Investment			$ 17,824,000		$ 18,125,000
Performing Financing Receivable | Residential Real Estate | Principal deferral
Troubled Debt Restructurings disclosures
Number of Loans | loan			12		7
Recorded Investment			$ 1,254,000		$ 616,000
Performing Financing Receivable | Residential Real Estate | Legal modifications
Troubled Debt Restructurings disclosures
Number of Loans | loan			17		17
Recorded Investment			$ 791,000		$ 806,000
Performing Financing Receivable | Commercial Real Estate and Commercial Construction
Troubled Debt Restructurings disclosures
Number of Loans | loan			16		23
Recorded Investment			$ 6,756,000		$ 10,172,000
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Interest only payments
Troubled Debt Restructurings disclosures
Number of Loans | loan			3		5
Recorded Investment			$ 893,000		$ 2,666,000
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan			7		8
Recorded Investment			$ 4,032,000		$ 4,769,000
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Principal deferral
Troubled Debt Restructurings disclosures
Number of Loans | loan			6		10
Recorded Investment			$ 1,831,000		$ 2,737,000
Performing Financing Receivable | Modified During The Period
Troubled Debt Restructurings disclosures
Number of Loans | loan	4	1
Recorded Investment	$ 1,041,000	$ 133,000
Performing Financing Receivable | Modified During The Period | Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan	4	1	5	5
Recorded Investment	$ 1,041,000	$ 133,000	$ 1,200,000	$ 275,000
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan	1	1	2	3
Recorded Investment	$ 220,000	$ 133,000	$ 379,000	$ 187,000
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Principal deferral
Troubled Debt Restructurings disclosures
Number of Loans | loan	2		2
Recorded Investment	$ 810,000		$ 810,000
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Legal modifications
Troubled Debt Restructurings disclosures
Number of Loans | loan	1		1	2
Recorded Investment	$ 11,000		$ 11,000	$ 88,000
Performing Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction
Troubled Debt Restructurings disclosures
Number of Loans | loan			5	5
Recorded Investment			$ 1,200,000	$ 275,000
Nonperforming Financing Receivable
Troubled Debt Restructurings disclosures
Number of Loans | loan			94		111
Recorded Investment			$ 10,086,000		$ 11,712,000
Nonperforming Financing Receivable | Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan			86		103
Recorded Investment			$ 7,539,000		$ 9,051,000
Nonperforming Financing Receivable | Residential Real Estate | Interest only payments
Troubled Debt Restructurings disclosures
Number of Loans | loan			1		1
Recorded Investment			$ 476,000		$ 493,000
Nonperforming Financing Receivable | Residential Real Estate | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan			50		57
Recorded Investment			$ 5,471,000		$ 6,213,000
Nonperforming Financing Receivable | Residential Real Estate | Principal deferral
Troubled Debt Restructurings disclosures
Number of Loans | loan			2		7
Recorded Investment			$ 124,000		$ 306,000
Nonperforming Financing Receivable | Residential Real Estate | Legal modifications
Troubled Debt Restructurings disclosures
Number of Loans | loan			33		38
Recorded Investment			$ 1,468,000		$ 2,039,000
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction
Troubled Debt Restructurings disclosures
Number of Loans | loan			8		8
Recorded Investment			$ 2,547,000		$ 2,661,000
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Interest only payments
Troubled Debt Restructurings disclosures
Number of Loans | loan			1		1
Recorded Investment			$ 388,000		$ 413,000
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan			2		2
Recorded Investment			$ 221,000		$ 228,000
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Principal deferral
Troubled Debt Restructurings disclosures
Number of Loans | loan			5		5
Recorded Investment			$ 1,938,000		$ 2,020,000
Nonperforming Financing Receivable | Modified During The Period
Troubled Debt Restructurings disclosures
Number of Loans | loan		2
Recorded Investment		$ 98,000
Nonperforming Financing Receivable | Modified During The Period | Residential Real Estate
Troubled Debt Restructurings disclosures
Number of Loans | loan		2		5
Recorded Investment		$ 98,000		$ 231,000
Nonperforming Financing Receivable | Modified During The Period | Residential Real Estate | Rate reduction
Troubled Debt Restructurings disclosures
Number of Loans | loan		2		3
Recorded Investment		$ 98,000		$ 153,000
Nonperforming Financing Receivable | Modified During The Period | Residential Real Estate | Legal modifications
Troubled Debt Restructurings disclosures
Number of Loans | loan				2
Recorded Investment				$ 78,000
Nonperforming Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction
Troubled Debt Restructurings disclosures
Number of Loans | loan				5
Recorded Investment				$ 231,000

LOANS AND ALLOWANCE FOR LOAN 66

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - TDR MODIFIED CLASS (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)loan	Jun. 30, 2016USD ($)loan
Troubled Debt Restructurings disclosures
Number of Loans with payment default | loan	2	8
Recorded Investment with payment default | $	$ 98	$ 402
Residential Real Estate - Owner Occupied
Troubled Debt Restructurings disclosures
Number of Loans with payment default | loan	1	5
Recorded Investment with payment default | $	$ 94	$ 258
Commercial Real Estate
Troubled Debt Restructurings disclosures
Number of Loans with payment default | loan		2
Recorded Investment with payment default | $		$ 140
Home equity lines of credit
Troubled Debt Restructurings disclosures
Number of Loans with payment default | loan	1	1
Recorded Investment with payment default | $	$ 4	$ 4

LOANS AND ALLOWANCE FOR LOAN 67

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Troubled Debt Restructurings disclosures
Carrying amount of foreclosed properties	$ 300	$ 1,391
Residential Real Estate - Owner Occupied
Troubled Debt Restructurings disclosures
Carrying amount of foreclosed properties	$ 300	$ 1,391

LOANS AND ALLOWANCE FOR LOAN 68

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Recorded investment in residential and consumer loans based on payment activity
Loans and Leases Receivable Gross Carrying Amount	$ 3,916,320	$ 3,810,778
Residential Real Estate - Owner Occupied | Foreclosure Proceedings In Process
Recorded investment in residential and consumer loans based on payment activity
Loans and Leases Receivable Gross Carrying Amount	$ 1,179	$ 1,677

LOANS AND ALLOWANCE FOR LOAN 69

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - EASY ADVANCES (Details) - RPG - TRS division - Easy Advances - USD ($) $ in Thousands	2 Months Ended		3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Period Easy Advance tax credit product offered	2 months	2 months
Easy Advances originated					$ 328,523	$ 123,230
Net Charge (Credit) to the Provision for Easy Advances			$ (721)	$ (354)	$ 7,880	$ 3,220
Provision to total Easy Advances originated					2.40%	2.61%
Easy Advances net charged offs			$ 7,020	$ 2,815	$ 7,880	$ 3,220
Percentage of Easy Advances net charge-offs to Total Easy Advances Originated					2.40%	2.61%

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	May 17, 2016
Deposit Liabilities
Total interest-bearing deposits	$ 2,072,301	$ 2,188,740
Total non interest-bearing deposits	1,061,637	971,952
Total deposits	3,133,938	3,160,692
Cornerstone
Deposit Liabilities
Demand			$ 59,507
Money market accounts			53,773
Savings			12,352
Individual retirement accounts			3,910
Time deposits, $250 and over			3,397
Other certificates of deposit			19,410
Total interest-bearing deposits			152,349
Total non interest-bearing deposits			52,908
Total deposits			205,257
Cornerstone
Deposit Liabilities
Demand			59,507
Money market accounts			53,773
Savings			12,352
Individual retirement accounts			3,897
Time deposits, $250 and over			3,385
Other certificates of deposit			19,343
Total interest-bearing deposits			152,257
Total non interest-bearing deposits			52,908
Total deposits			205,165
Core Banking Activities
Deposit Liabilities
Demand	910,579	872,709
Savings	178,890	164,410
Time deposits, $250 and over	61,662	37,200
Other certificates of deposit	159,484	140,894
Total interest-bearing deposits	2,070,897	2,188,740
Total non interest-bearing deposits	1,005,668	943,459
Total deposits	3,076,565	3,132,199
Core Banking Activities | Brokered Deposits
Deposit Liabilities
Money market accounts	136,616	360,597
Brokered certificates of deposit	38,186	28,666
Core Banking Activities | Individual Deposits
Deposit Liabilities
Money market accounts	540,005	541,622
Individual retirement accounts	45,475	42,642
Republic Processing Group
Deposit Liabilities
Money market accounts	1,404
Total interest-bearing deposits	1,404
Other noninterest-bearing deposits	54,934	28,478
Total non interest-bearing deposits	55,969	28,493
Total deposits	57,373	28,493
Republic Processing Group | Brokered Deposits
Deposit Liabilities
Brokered prepaid cards deposits	$ 1,035	$ 15
Fair Value Adjustments
Deposit Liabilities
Individual retirement accounts			13
Time deposits, $250 and over			12
Other certificates of deposit			67
Total interest-bearing deposits			92
Total deposits			$ 92

SECURITIES SOLD UNDER AGREEME71

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Securities sold under agreements to repurchase
Outstanding balance at end of period	$ 113,334		$ 113,334		$ 173,473
Securities sold under agreements to repurchase
Securities sold under agreements to repurchase
Securities pledged more than repurchase agreements (as a percent)	2.00%		2.00%
Outstanding balance at end of period	$ 113,334		$ 113,334		$ 173,473
Weighted average interest rate at end of period (as a percent)	0.38%		0.38%		0.05%
Fair Value of securities pledged	$ 156,592		$ 156,592		$ 203,074
Average outstanding balance during the period	$ 179,594	$ 267,574	$ 198,896	$ 337,636
Average interest rate during the period (as a percent)	0.33%	0.02%	0.17%	0.02%
Maximum outstanding at any month end during the period	$ 156,339	$ 263,228	$ 183,709	$ 367,373
Securities sold under agreements to repurchase | U.S. Treasury securities and U.S. Government agencies
Securities sold under agreements to repurchase
Fair Value of securities pledged	55,812		55,812		116,025
Securities sold under agreements to repurchase | Mortgage backed securities - residential
Securities sold under agreements to repurchase
Fair Value of securities pledged	57,295		57,295		45,894
Securities sold under agreements to repurchase | Collateralized mortgage obligations
Securities sold under agreements to repurchase
Fair Value of securities pledged	$ 43,485		$ 43,485		$ 41,155

FEDERAL HOME LOAN BANK ADVANC72

FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
FHLB advances
Total FHLB advances	$ 1,002,500	$ 802,500
Additional collateralized advances available	96,000	378,000
Overnight advance
FHLB advances
Total FHLB advances	625,000	285,000
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% due in December 2017
FHLB advances
Total FHLB advances	$ 10,000	$ 10,000
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% due in December 2017 | London Interbank Offered Rate (LIBOR)
FHLB advances
Applicable margin (as a percent)	0.14%	0.14%
Fixed interest rate advances
FHLB advances
Total FHLB advances	$ 367,500	$ 457,500
Putable fixed interest rate advances
FHLB advances
Total FHLB advances		50,000
Various other unsecured lines of credit
FHLB advances
Unsecured lines of credit	$ 125,000	$ 150,000

FEDERAL HOME LOAN BANK ADVANC73

FEDERAL HOME LOAN BANK ADVANCES - MATURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
FEDERAL HOME LOAN BANK ADVANCES
2017 (Overnight)	$ 625,000
2017 (Term)	40,000
2,018	117,500
2,019	100,000
2,020	90,000
2,021	20,000
Thereafter	10,000
Total	$ 1,002,500	$ 802,500
Weighted Average Rate
2017 (Overnight)	1.17%
2017 (Term)	1.36%
2,018	1.53%
2,019	1.80%
2,020	1.81%
2,021	1.86%
Thereafter	2.14%
Total	1.36%

FEDERAL HOME LOAN BANK ADVANC74

FEDERAL HOME LOAN BANK ADVANCES - SHORT-TERM FHLB ADVANCES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
FHLB advances
Federal Home Loan Bank advances	$ 1,002,500		$ 1,002,500		$ 802,500
Interest rate (as percent)	1.36%		1.36%
Federal Home Loan Bank overnight advances
FHLB advances
Federal Home Loan Bank advances	$ 625,000		$ 625,000		$ 285,000
Average outstanding balance during the period	$ 114,121	$ 128,846	$ 111,740	$ 68,352
Average interest rate during the year (as percent)	1.06%	0.40%	0.88%	0.40%
Maximum outstanding at any month end during the period	$ 625,000	$ 495,000	$ 625,000	$ 495,000
Federal Home Loan Bank overnight advances | Weighted Average
FHLB advances
Interest rate (as percent)	1.17%		1.17%		0.64%

FEDERAL HOME LOAN BANK ADVANC75

FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
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	$ 1,136,031	$ 1,172,161
Home equity lines of credit
Real estate loans pledged to collateralize advances and letters of credit with the FHLB
Real estate loans pledged to collateralize advances and letters of credit with FHLB	$ 310,459	300,681
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		$ 14,913

OFF BALANCE SHEET RISKS, COMM76

OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Commitments and letters of credit
Loan commitment, line credit	$ 1,528,720	$ 1,373,917
Unused warehouse lines of credit
Commitments and letters of credit
Loan commitment, line credit	474,370	453,110
Unused home equity lines of credit
Commitments and letters of credit
Loan commitment, line credit	357,497	341,434
Unused loan commitments - other
Commitments and letters of credit
Loan commitment, line credit	683,199	560,629
Commitments to purchase loans
Commitments and letters of credit
Loan commitment, line credit	1,154	3,176
Standby letters of credit
Commitments and letters of credit
Loan commitment, line credit	$ 12,500	$ 15,568

FAIR VALUE - RECURRING BASIS (D

FAIR VALUE - RECURRING BASIS (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)item	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2008USD ($)
Financial assets:
Securities available for sale	$ 464,525		$ 464,525		$ 481,275
Mortgage loans held for sale, at fair value	6,057	$ 12,280	6,057	$ 12,280	11,662	$ 5,193	$ 7,148	$ 4,083
Consumer loans held for sale	$ 3,235	$ 6,826	$ 3,235	6,826	$ 2,198	$ 3,679	$ 415
Mortgage Servicing Rights
Assets and Liabilities Measured on Recurring Basis
Number of tranches carried at fair value | item	0		0		0
Installment loan
Financial Liabilities:
Consumer loans held for sale period		21 days			21 days
U.S. Treasury securities and U.S. Government agencies
Financial assets:
Securities available for sale	$ 269,585		$ 269,585		$ 294,544
Private label mortgage backed security
Financial assets:
Securities available for sale	4,540		4,540		4,777
Mortgage backed securities - residential
Financial assets:
Securities available for sale	90,455		90,455		73,004
Collateralized mortgage obligations
Financial assets:
Securities available for sale	78,404		78,404		87,654
Freddie Mac preferred stock
Financial assets:
Securities available for sale	337		337		483				$ 0
Community Reinvestment Act mutual fund
Financial assets:
Securities available for sale	2,479		2,479		2,455
Corporate bonds
Financial assets:
Securities available for sale	15,272		15,272		15,158
Trust preferred security
Financial assets:
Securities available for sale	3,453		3,453		3,200
Fair Value, Inputs, Level 1
Financial assets:
Securities available for sale	2,479		2,479		2,455
Fair Value, Inputs, Level 2
Financial assets:
Securities available for sale	454,053		454,053		470,843
Mortgage loans held for sale, at fair value	6,057		6,057		11,662
Fair Value, Inputs, Level 3
Financial assets:
Securities available for sale	7,993		7,993		7,977
Consumer loans held for sale	3,235		3,235		2,198
Recurring basis
Financial assets:
Securities available for sale	464,525		464,525		481,275
Mortgage loans held for sale, at fair value	6,057		6,057		11,662
Consumer loans held for sale	3,235		3,235		2,198
Rate lock loan commitments	582		582		299
Mandatory forward contracts					204
Interest rate swap agreements	432		432		305
Financial Liabilities:
Mandatory forward contracts	48		48
Interest rate swap agreements	777		777		597
Transfers between Level 1, 2 or 3	0	$ 0	0	$ 0
Recurring basis | U.S. Treasury securities and U.S. Government agencies
Financial assets:
Securities available for sale	269,585		269,585		294,544
Recurring basis | Private label mortgage backed security
Financial assets:
Securities available for sale	4,540		4,540		4,777
Recurring basis | Mortgage backed securities - residential
Financial assets:
Securities available for sale	90,455		90,455		73,004
Recurring basis | Collateralized mortgage obligations
Financial assets:
Securities available for sale	78,404		78,404		87,654
Recurring basis | Freddie Mac preferred stock
Financial assets:
Securities available for sale	337		337		483
Recurring basis | Community Reinvestment Act mutual fund
Financial assets:
Securities available for sale	2,479		2,479		2,455
Recurring basis | Corporate bonds
Financial assets:
Securities available for sale	15,272		15,272		15,158
Recurring basis | Trust preferred security
Financial assets:
Securities available for sale	3,453		3,453		3,200
Recurring basis | Fair Value, Inputs, Level 1
Financial assets:
Securities available for sale	2,479		2,479		2,455
Recurring basis | Fair Value, Inputs, Level 1 | Community Reinvestment Act mutual fund
Financial assets:
Securities available for sale	2,479		2,479		2,455
Recurring basis | Fair Value, Inputs, Level 2
Financial assets:
Securities available for sale	454,053		454,053		470,843
Mortgage loans held for sale, at fair value	6,057		6,057		11,662
Rate lock loan commitments	582		582		299
Mandatory forward contracts					204
Interest rate swap agreements	432		432		305
Financial Liabilities:
Mandatory forward contracts	48		48
Interest rate swap agreements	777		777		597
Recurring basis | Fair Value, Inputs, Level 2 | U.S. Treasury securities and U.S. Government agencies
Financial assets:
Securities available for sale	269,585		269,585		294,544
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential
Financial assets:
Securities available for sale	90,455		90,455		73,004
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations
Financial assets:
Securities available for sale	78,404		78,404		87,654
Recurring basis | Fair Value, Inputs, Level 2 | Freddie Mac preferred stock
Financial assets:
Securities available for sale	337		337		483
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds
Financial assets:
Securities available for sale	15,272		15,272		15,158
Recurring basis | Fair Value, Inputs, Level 3
Financial assets:
Securities available for sale	7,993		7,993		7,977
Consumer loans held for sale	3,235		3,235		2,198
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security
Financial assets:
Securities available for sale	4,540		4,540		4,777
Recurring basis | Fair Value, Inputs, Level 3 | Trust preferred security
Financial assets:
Securities available for sale	$ 3,453		$ 3,453		$ 3,200

FAIR VALUE - RECONCILIATION USI

FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Private label mortgage backed security
Assets measured on recurring basis, unobservable input reconciliation
Balance, beginning of period	$ 4,682	$ 4,983	$ 4,777	$ 5,132
Net change in unrealized gain (loss)	101	1	154	(148)
Principal paydowns	(243)	(38)	(391)	(38)
Balance, end of period	4,540	4,946	4,540	4,946
Trust preferred security
Assets measured on recurring basis, unobservable input reconciliation
Balance, beginning of period	3,200	3,400	3,200	3,405
Discount accretion	11	11	22	22
Net change in unrealized gain (loss)	242	(261)	231	(277)
Balance, end of period	$ 3,453	$ 3,150	$ 3,453	$ 3,150

FAIR VALUE - RECURRING LEVEL 3

FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016
Fair value inputs quantitative information
Aggregate fair value of consumer loan	$ 3,235	$ 2,198	$ 3,679	$ 6,826	$ 415
Fair Value, Inputs, Level 3
Fair value inputs quantitative information
Aggregate fair value of consumer loan	3,235	2,198
Recurring basis
Fair value inputs quantitative information
Aggregate fair value of consumer loan	3,235	2,198
Recurring basis | Fair Value, Inputs, Level 3
Fair value inputs quantitative information
Aggregate fair value of consumer loan	3,235	2,198
Consumer Loans Held For Sale
Fair value inputs quantitative information
Aggregate fair value of consumer loan	3,235	2,198
Consumer Loans Held For Sale | Recurring basis | Fair Value, Inputs, Level 3
Fair value inputs quantitative information
Aggregate fair value of consumer loan	$ 3,235	$ 2,198
Consumer Loans Held For Sale | Contractual Terms | Recurring basis | Fair Value, Inputs, Level 3
Fair value inputs quantitative information
Net Premium (as a percent)	0.90%	0.90%
Discount rate (as a percent)	5.00%	5.00%
Private label mortgage backed security | Recurring basis | Fair Value, Inputs, Level 3
Fair value inputs quantitative information
Mortgage backed security fair value	$ 4,540	$ 4,777
Private label mortgage backed security | Discounted cash flow | Minimum | Recurring basis | Fair Value, Inputs, Level 3
Fair value inputs quantitative information
Constant prepayment rate (as a percent)	3.00%	2.00%
Probability of default (as a percent)	3.00%	3.00%
Loss severity (as a percent)	60.00%	60.00%
Private label mortgage backed security | Discounted cash flow | Maximum | Recurring basis | Fair Value, Inputs, Level 3
Fair value inputs quantitative information
Constant prepayment rate (as a percent)	6.50%	6.50%
Probability of default (as a percent)	8.00%	9.00%
Loss severity (as a percent)	85.00%	90.00%

FAIR VALUE - GAINS AND LOSSES (

FAIR VALUE - GAINS AND LOSSES (Details) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)loan	Jun. 30, 2016USD ($)loan	Jun. 30, 2017USD ($)loan	Dec. 31, 2016USD ($)loan	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Fair Value, Option
Aggregate fair value of mortgage loan	$ 6,057	$ 12,280	$ 6,057	$ 11,662	$ 5,193	$ 7,148	$ 4,083
Aggregate fair value of consumer loan	3,235	6,826	3,235	2,198	$ 3,679	$ 415
Contractual balance	$ 3,920,955		$ 3,920,955	$ 3,816,086
Mortgage loans held for sale
Fair Value, Option
Number of loans past due 90 days or more or on nonaccrual | loan	0		0	0
Aggregate fair value of mortgage loan	$ 6,057		$ 6,057	$ 11,662
Contractual balance	5,852		5,852	11,568
Unrealized gain	205		205	94
Gains (losses) from changes in fair value included in earnings	204	79	264	170
Mortgage loans held for sale | Interest Income
Fair Value, Option
Gains (losses) from changes in fair value included in earnings	86	40	153	72
Mortgage loans held for sale | Change In Fair Value
Fair Value, Option
Gains (losses) from changes in fair value included in earnings	$ 118	$ 39	$ 111	98
Consumer Loans Held For Sale
Fair Value, Option
Consumer loans held for sale period			21 days
Number of loans past due 90 days or more or on nonaccrual | loan	0	0	0
Aggregate fair value of consumer loan	$ 3,235		$ 3,235	2,198
Contractual balance	3,063		3,063	2,084
Unrealized gain	172		172	114
Gains (losses) from changes in fair value included in earnings	298	$ 523	566	523
Consumer Loans Held For Sale | Interest Income
Fair Value, Option
Gains (losses) from changes in fair value included in earnings	322	161	508	161
Consumer Loans Held For Sale | Change In Fair Value
Fair Value, Option
Gains (losses) from changes in fair value included in earnings	$ (24)	$ 362	$ 58	$ 362

FAIR VALUE - ASSETS MEASURED ON

FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Disclosures
Impaired loan on non-recurring basis	$ 7,421	$ 7,864
Other real estate owned		400
Other Real Estate Owned
Fair Value Disclosures
Other real estate owned		400
Residential Real Estate - Owner Occupied
Fair Value Disclosures
Impaired loan on non-recurring basis	4,359	4,787
Residential Real Estate - Non Owner Occupied
Fair Value Disclosures
Impaired loan on non-recurring basis	38	8
Commercial Real Estate
Fair Value Disclosures
Impaired loan on non-recurring basis	2,382	2,643
Home equity lines of credit
Fair Value Disclosures
Impaired loan on non-recurring basis	642	426
Fair Value, Inputs, Level 3
Fair Value Disclosures
Impaired loan on non-recurring basis	7,421	7,864
Other real estate owned		400
Fair Value, Inputs, Level 3 | Other Real Estate Owned
Fair Value Disclosures
Other real estate owned		400
Fair Value, Inputs, Level 3 | Residential Real Estate - Owner Occupied
Fair Value Disclosures
Impaired loan on non-recurring basis	4,359	4,787
Fair Value, Inputs, Level 3 | Residential Real Estate - Non Owner Occupied
Fair Value Disclosures
Impaired loan on non-recurring basis	38	8
Fair Value, Inputs, Level 3 | Commercial Real Estate
Fair Value Disclosures
Impaired loan on non-recurring basis	2,382	2,643
Fair Value, Inputs, Level 3 | Home equity lines of credit
Fair Value Disclosures
Impaired loan on non-recurring basis	$ 642	$ 426

FAIR VALUE - NON-RECURRING LEVE

FAIR VALUE - NON-RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 - Nonrecurring basis - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Impaired Loans | Commercial Real Estate | Sale comparison approach
Fair value inputs quantitative information
Fair Value	$ 997	$ 1,214
Impaired Loans | Commercial Real Estate | Sale comparison approach | Minimum
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	0.00%	3.00%
Impaired Loans | Commercial Real Estate | Sale comparison approach | Maximum
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	23.00%	49.00%
Impaired Loans | Commercial Real Estate | Sale comparison approach | Weighted Average
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	4.00%	30.00%
Impaired Loans | Commercial Real Estate | Income approach
Fair value inputs quantitative information
Fair Value	$ 1,385	$ 1,429
Adjustments determined by management for differences (as a percent)	17.00%	17.00%
Impaired Loans | Commercial Real Estate | Income approach | Weighted Average
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	17.00%	17.00%
Impaired Loans | Residential Real Estate - Owner Occupied | Sale comparison approach
Fair value inputs quantitative information
Fair Value	$ 4,359	$ 4,787
Impaired Loans | Residential Real Estate - Owner Occupied | Sale comparison approach | Minimum
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	0.00%	0.00%
Impaired Loans | Residential Real Estate - Owner Occupied | Sale comparison approach | Maximum
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	53.00%	53.00%
Impaired Loans | Residential Real Estate - Owner Occupied | Sale comparison approach | Weighted Average
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	6.00%	6.00%
Impaired Loans | Residential Real Estate - Non Owner Occupied | Sale comparison approach
Fair value inputs quantitative information
Fair Value	$ 38	$ 8
Adjustments determined by management for differences (as a percent)		0.00%
Impaired Loans | Residential Real Estate - Non Owner Occupied | Sale comparison approach | Minimum
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	0.00%
Impaired Loans | Residential Real Estate - Non Owner Occupied | Sale comparison approach | Maximum
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	45.00%
Impaired Loans | Residential Real Estate - Non Owner Occupied | Sale comparison approach | Weighted Average
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	18.00%	0.00%
Impaired Loans | Home equity lines of credit | Sale comparison approach
Fair value inputs quantitative information
Fair Value	$ 642	$ 426
Impaired Loans | Home equity lines of credit | Sale comparison approach | Minimum
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	0.00%	0.00%
Impaired Loans | Home equity lines of credit | Sale comparison approach | Maximum
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	71.00%	29.00%
Impaired Loans | Home equity lines of credit | Sale comparison approach | Weighted Average
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)	18.00%	16.00%
Other Real Estate Owned | Residential Real Estate | Sale comparison approach
Fair value inputs quantitative information
Fair Value		$ 400
Adjustments determined by management for differences (as a percent)		17.00%
Other Real Estate Owned | Residential Real Estate | Sale comparison approach | Weighted Average
Fair value inputs quantitative information
Adjustments determined by management for differences (as a percent)		17.00%

FAIR VALUE - IMPAIRED LOANS (De

FAIR VALUE - IMPAIRED LOANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Impaired loans
Carrying amount of loans measured at fair value	$ 26,794		$ 26,794	$ 31,268
Valuation allowance	(4,484)		(4,484)	(4,925)
Nonrecurring basis
Impaired loans
Total fair value	7,421		7,421	7,864
Provision for impairment on loan, lease and other losses
Provisions on collateral-dependent, impaired loans	118	$ 47	190	92
Fair Value, Inputs, Level 3 | Nonrecurring basis
Impaired loans
Carrying amount of loans measured at fair value	6,652		6,652	6,963
Estimated selling costs considered in carrying amount	843		843	936
Valuation allowance	(74)		(74)	(35)
Total fair value	$ 7,421		$ 7,421	$ 7,864

FAIR VALUE - OTHER REAL ESTATE

FAIR VALUE - OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Real Estate, Write-down or Reserve
Total Carrying value of other real estate owned	$ 300	$ 300	$ 1,391
Other real estate owned write-downs during the years ended		79
Nonrecurring basis
Real Estate, Write-down or Reserve
Other real estate owned carried at fair value			400
Nonrecurring basis | Other Real Estate Owned
Real Estate, Write-down or Reserve
Other real estate owned carried at fair value			400
Nonrecurring basis | Fair Value, Inputs, Level 3
Real Estate, Write-down or Reserve
Other real estate owned carried at fair value			400
Nonrecurring basis | Fair Value, Inputs, Level 3 | Other Real Estate Owned
Real Estate, Write-down or Reserve
Other real estate owned carried at fair value			400
Other real estate owned carried at cost	300	300	991
Total Carrying value of other real estate owned	300	300	$ 1,391
Other real estate owned write-downs during the years ended	$ 9	$ 79

FAIR VALUE - CARRYING AMOUNTS A

FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Assets:
Securities available for sale	$ 464,525		$ 481,275
Securities to be held to maturity	61,594		53,249
Aggregate fair value of mortgage loan	6,057	$ 5,193	11,662	$ 12,280	$ 7,148	$ 4,083
Aggregate fair value of consumer loan	3,235	3,679	2,198	6,826	415
Consumer loans held for sale, at the lower of cost or fair value	2,464	$ 1,420	1,310	$ 1,122	$ 566	$ 514
Fair Value, Inputs, Level 1
Assets:
Cash and cash equivalents	332,695		289,309
Securities available for sale	2,479		2,455
Fair Value, Inputs, Level 2
Assets:
Securities available for sale	454,053		470,843
Securities to be held to maturity	61,594		53,249
Aggregate fair value of mortgage loan	6,057		11,662
Consumer loans held for sale, at the lower of cost or fair value	2,464		1,310
Accrued interest receivable	10,575		10,356
Liabilities:
Securities sold under agreements to repurchase and other short-term borrowings	113,334		173,473
Federal Home Loan Bank advances	998,996		798,594
Subordinated note	32,469		30,821
Accrued interest payable	842		948
Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits
Liabilities:
Deposit liabilities, fair value	1,061,637		971,952
Fair Value, Inputs, Level 2 | Transaction deposits
Liabilities:
Deposit liabilities, fair value	1,767,494		1,939,338
Fair Value, Inputs, Level 2 | Time deposits.
Liabilities:
Deposit liabilities, fair value	303,846		248,684
Fair Value, Inputs, Level 3
Assets:
Securities available for sale	7,993		7,977
Aggregate fair value of consumer loan	3,235		2,198
Loans, net	3,858,270		3,757,698
Carrying Value
Assets:
Cash and cash equivalents	332,695		289,309
Securities available for sale	464,525		481,275
Securities to be held to maturity	61,159		52,864
Aggregate fair value of mortgage loan	6,057		11,662
Aggregate fair value of consumer loan	3,235		2,198
Consumer loans held for sale, at the lower of cost or fair value	2,464		1,310
Loans, net	3,878,422		3,777,858
Federal Home Loan Bank stock	32,067		28,208
Accrued interest receivable	10,575		10,356
Liabilities:
Securities sold under agreements to repurchase and other short-term borrowings	113,334		173,473
Federal Home Loan Bank advances	1,002,500		802,500
Subordinated note	41,240		41,240
Accrued interest payable	842		948
Carrying Value | Non Interest Bearing Deposits
Liabilities:
Deposit liabilities, fair value	1,061,637		971,952
Carrying Value | Transaction deposits
Liabilities:
Deposit liabilities, fair value	1,767,494		1,939,338
Carrying Value | Time deposits.
Liabilities:
Deposit liabilities, fair value	304,807		249,417
Total Fair Value
Assets:
Cash and cash equivalents	332,695		289,309
Securities available for sale	464,525		481,275
Securities to be held to maturity	61,594		53,249
Aggregate fair value of mortgage loan	6,057		11,662
Aggregate fair value of consumer loan	3,235		2,198
Consumer loans held for sale, at the lower of cost or fair value	2,464		1,310
Loans, net	3,858,270		3,757,698
Accrued interest receivable	10,575		10,356
Liabilities:
Securities sold under agreements to repurchase and other short-term borrowings	113,334		173,473
Federal Home Loan Bank advances	998,996		798,594
Subordinated note	32,469		30,821
Accrued interest payable	842		948
Total Fair Value | Non Interest Bearing Deposits
Liabilities:
Deposit liabilities, fair value	1,061,637		971,952
Total Fair Value | Transaction deposits
Liabilities:
Deposit liabilities, fair value	1,767,494		1,939,338
Total Fair Value | Time deposits.
Liabilities:
Deposit liabilities, fair value	303,846		248,684
Recurring basis
Assets:
Securities available for sale	464,525		481,275
Aggregate fair value of mortgage loan	6,057		11,662
Aggregate fair value of consumer loan	3,235		2,198
Recurring basis | Fair Value, Inputs, Level 1
Assets:
Securities available for sale	2,479		2,455
Recurring basis | Fair Value, Inputs, Level 2
Assets:
Securities available for sale	454,053		470,843
Aggregate fair value of mortgage loan	6,057		11,662
Recurring basis | Fair Value, Inputs, Level 3
Assets:
Securities available for sale	7,993		7,977
Aggregate fair value of consumer loan	$ 3,235		$ 2,198

MORTGAGE BANKING ACTIVITIES - M

MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
MORTGAGE BANKING ACTIVITIES
Balance, beginning of period	$ 5,193	$ 7,148	$ 11,662	$ 4,083
Origination of mortgage loans held for sale	42,531	58,795	75,776	95,787
Proceeds from the sale of mortgage loans held for sale	(42,946)	(55,128)	(83,637)	(90,150)
Net gain on sale of mortgage loans held for sale	1,279	1,465	2,256	2,560
Balance, end of period	$ 6,057	$ 12,280	$ 6,057	$ 12,280

MORTGAGE BANKING ACTIVITIES - C

MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Mortgage servicing rights
Net gain realized on sale of mortgage loans held for sale	$ 1,173	$ 1,266	$ 2,114	$ 2,107
Net gain recognized	1,278	1,465	2,256	2,560
Loan servicing income	528	473	1,063	944
Amortization of mortgage servicing rights	(361)	(378)	(714)	(683)
Net servicing income recognized	167	95	349	261
Total Mortgage Banking income	1,445	1,560	2,605	2,821
Mortgage loans held for sale
Mortgage servicing rights
Net change in fair value	118	39	111	98
Rate lock loan commitments
Mortgage servicing rights
Net change in fair value	(36)	260	283	535
Mandatory forward contracts
Mortgage servicing rights
Net change in fair value	$ 23	$ (100)	$ (252)	$ (180)

MORTGAGE BANKING ACTIVITIES -88

MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
MORTGAGE BANKING ACTIVITIES
Balance, beginning of period	$ 5,158	$ 4,891	$ 5,180	$ 4,912
Additions	361	485	692	769
Amortized to expense	(361)	(378)	(714)	(683)
Balance, end of period	5,158	4,998	5,158	4,998
Change in valuation allowance	$ 0	$ 0	$ 0	$ 0

MORTGAGE BANKING ACTIVITIES - O

MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
MORTGAGE BANKING ACTIVITIES
Fair value of mortgage servicing rights portfolio	$ 7,761	$ 7,478
Monthly weighted average prepayment rate of unpaid principle balance (as percent)	197.00%	158.00%
Discount rate (as percent)	10.00%	13.00%
Weighted average default rate (as percent)	3.90%	1.50%
Weighted average life in years	5 years 6 months 22 days	6 years 9 months

MORTGAGE BANKING ACTIVITIES - N

MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Mortgage servicing rights
Derivative instruments expiration period	90 days
Mortgage loans held for sale
Information about derivatives and swaps
Notional Amount, Assets	$ 5,852	$ 11,568
Fair Value, Assets	6,057	11,662
Rate lock loan commitments
Information about derivatives and swaps
Notional Amount, Assets	32,110	19,521
Fair Value, Assets	582	299
Mandatory forward contracts
Information about derivatives and swaps
Notional Amount, Assets		25,618
Fair Value, Assets		$ 204
Notional Amount, Liabilities	36,179
Fair Value, Liabilities	$ 48

INTEREST RATE SWAPS - CASH FLOW

INTEREST RATE SWAPS - CASH FLOW HEDGES (Details) - Interest rate swap - Cash flow hedge $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2013item
Derivative [Line Items]
Number of derivative agreements | item			2
Summary information about interest rate swaps
Notional amount	$ 20,000
Assets / (Liabilities)	(345)	$ (393)
Unrealized Gain (Loss) in AOCI	(224)	(256)
1-month LIBOR
Summary information about interest rate swaps
Notional amount	$ 10,000
Pay rate (as a percent)	2.17%
Assets / (Liabilities)	$ (151)	(186)
Unrealized Gain (Loss) in AOCI	(98)	(121)
3-month LIBOR
Summary information about interest rate swaps
Notional amount	$ 10,000
Pay rate (as a percent)	2.33%
Assets / (Liabilities)	$ (194)	(207)
Unrealized Gain (Loss) in AOCI	$ (126)	$ (135)

INTEREST RATE SWAPS - INTEREST

INTEREST RATE SWAPS - INTEREST EXPENSE (Details) - Interest rate swap - Cash flow hedge - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Information about derivatives and swaps
Interest expense on deposits related to money market swap transaction	$ 29	$ 43	$ 63	$ 86
Interest expense on FHLB Advances related to FHLB swap transaction	29	43	61	87
Total interest expense on swap transaction	$ 58	$ 86	$ 124	$ 173

INTEREST RATE SWAPS - GAINS (LO

INTEREST RATE SWAPS - GAINS (LOSSES) (Details) - Interest rate swap - Cash flow hedge - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative [Line Items]
Losses recognized in OCI on derivative (effective portion)	$ (104,000)	$ (219,000)	$ (76,000)	$ (790,000)
Losses reclassified from OCI on derivative (effective portion)	(58,000)	(86,000)	(124,000)	(173,000)
Losses recognized in income on derivative (ineffective portion)	0	$ 0	0	$ 0
Expected reclassification amount for derivative losses realized in income	$ 172,000		$ 172,000

INTEREST RATE SWAPS - NON-HEDGE

INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Information about derivatives and swaps
Fair value of investment securities pledged as collateral	$ 182,300,000	$ 231,891,000
Counterparty
Information about derivatives and swaps
Fair value of investment securities pledged as collateral	1,200,000	1,800,000
Counterparty | Minimum
Information about derivatives and swaps
Net loss position in which pledged securities as collateral are required	250,000
Interest rate swap | Non-Hedge
Information about derivatives and swaps
Notional amount	77,194,000	63,106,000
Fair Value		101,000
Interest rate swap | Non-Hedge | Bank Clients
Information about derivatives and swaps
Notional amount	38,597,000	31,553,000
Fair Value	299,000	156,000
Interest rate swap | Non-Hedge | Counterparty
Information about derivatives and swaps
Notional amount	38,597,000	31,553,000
Fair Value	$ (299,000)	$ (55,000)

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
EARNINGS PER SHARE
Net income	$ 10,071	$ 8,340	$ 30,088	$ 26,075
Weighted average shares outstanding	21,151,000	20,947,000	20,918,000	20,956,000
Effect of dilutive securities (in shares)	79,000	11,000	78,000	10,000
Average shares outstanding including dilutive securities	21,230,000	20,958,000	20,996,000	20,966,000
Diluted earnings per share:
Antidilutive stock options (in shares)	2,500	10,000	2,500	10,000
Average antidilutive stock options (in shares)	1,166	7,500	584	8,150
Class A Common Stock
EARNINGS PER SHARE
Cash dividend premium per share (as a percent)			10.00%
Basic earnings per share:
Basic earnings per share	$ 0.48	$ 0.40	$ 1.45	$ 1.26
Diluted earnings per share:
Diluted earnings per share	0.48	0.40	1.45	1.26
Class B Common Stock
Basic earnings per share:
Basic earnings per share	0.44	0.37	1.32	1.14
Diluted earnings per share:
Diluted earnings per share	$ 0.44	$ 0.37	$ 1.32	$ 1.14

STOCK PLANS AND STOCK BASED C96

STOCK PLANS AND STOCK BASED COMPENSATION (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
STOCK PLANS AND STOCK BASED COMPENSATION
Number of shares available for grant permitted by plan	3,000,000		3,000,000
Information related to stock option and restricted stock awards granted
Expenses	$ 245,000	$ 236,000	$ 655,000	$ 497,000
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures)
2,017	517,000		517,000
2,018	590,000		590,000
2,019	181,000		181,000
2,020	62,000		62,000
2,021	15,000		15,000
2,022	3,000		3,000
Total	$ 1,368,000		$ 1,368,000
Class B Common Stock
STOCK PLANS AND STOCK BASED COMPENSATION
Number of shares available for grant permitted by plan	0		0
Minimum
STOCK PLANS AND STOCK BASED COMPENSATION
Vesting period			3 years
Stock option
STOCK PLANS AND STOCK BASED COMPENSATION
Exercisable period			1 year
Information related to the stock option plan
Intrinsic value of options exercised		2,000	$ 44,000	18,000
Cash received from options exercised, net of shares redeemed		$ 25,000	$ 33,000	$ 80,000
Weighted-average fair value per share of options granted (in dollars per share)	$ 5.61	$ 3.27	$ 5.61	$ 3.27
Information related to stock option and restricted stock awards granted
Expenses	$ 63,000	$ 64,000	$ 126,000	$ 126,000
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures)
2,017	129,000		129,000
2,018	254,000		254,000
2,019	146,000		146,000
2,020	35,000		35,000
2,021	3,000		3,000
2,022	1,000		1,000
Total	$ 568,000		$ 568,000
Stock option | Class A Common Stock
Options
Outstanding, beginning of year (in shares)			312,600	323,400	323,400
Granted (in shares)			2,500		5,000
Exercised (in shares)			(2,000)		(4,000)
Forfeited or expired (in shares)			(2,000)		(11,800)
Outstanding, end of year (in shares)	311,100		311,100		312,600
Fully vested and unvested (in shares)	311,100		311,100
Weighted Average Exercise Price
Outstanding, beginning of year (in dollars per share)			$ 24.49	$ 24.40	$ 24.40
Granted (in dollars per share)			35.26		26.43
Exercised (in dollars per share)			16.61		20.12
Forfeited or expired (in dollars per share)			24.93		24.47
Outstanding, end of year (in dollars per share)	$ 24.62		24.62		$ 24.49
Fully vested and unvested (in dollars per share)	$ 24.62		$ 24.62
Weighted Average Remaining Contractual Term
Outstanding, end of year			3 years 4 months 2 days		3 years 9 months 7 days
Fully vested and unvested			3 years 4 months 2 days
Aggregate Intrinsic Value
Outstanding, end of year	$ 3,446,803		$ 3,446,803		$ 4,705,807
Fully vested and unvested	$ 3,446,803		$ 3,446,803
Stock option | Minimum
STOCK PLANS AND STOCK BASED COMPENSATION
Exercisable period			5 years
Stock option | Maximum
STOCK PLANS AND STOCK BASED COMPENSATION
Exercisable period			6 years
Restricted Stock Awards
Shares
Outstanding, beginning of year (in shares)			77,000	79,000	79,000
Granted (in shares)			7,413
Forfeited (in shares)					(2,000)
Earned and issued (in shares)			(3,702)
Outstanding, end of year (in shares)	80,711		80,711		77,000
Fully vested and unvested (in shares)	80,711		80,711
Weighted-average grant date fair value
Outstanding, beginning of year (in dollars per share)			$ 20.02	$ 20.02	$ 20.02
Granted (in dollars per share)			35.77
Forfeited (in dollars per share)					19.85
Earned and issued (in dollars per share)			35.12
Outstanding, end of year (in dollars per share)	$ 20.78		20.78		$ 20.02
Fully vested and unvested (in dollars per share)			$ 20.78
Information related to stock option and restricted stock awards granted
Expenses	$ 77,000	45,000	$ 292,000	$ 117,000
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures)
2,017	151,000		151,000
2,018	138,000		138,000
2,019	35,000		35,000
2,020	27,000		27,000
2,021	12,000		12,000
2,022	2,000		2,000
Total	$ 365,000		$ 365,000
Restricted Stock Awards | Minimum
STOCK PLANS AND STOCK BASED COMPENSATION
Vesting period			5 years
Restricted Stock Awards | Maximum
STOCK PLANS AND STOCK BASED COMPENSATION
Vesting period			6 years
Performance Stock Units
STOCK PLANS AND STOCK BASED COMPENSATION
Vesting period			4 years
Shares
Outstanding, beginning of year (in shares)			55,000
Granted (in shares)					55,000
Forfeited (in shares)			(2,500)
Outstanding, end of year (in shares)	52,500		52,500		55,000
Fully vested and unvested (in shares)	52,500		52,500
Weighted-average grant date fair value
Outstanding, beginning of year (in dollars per share)			$ 23.13
Granted (in dollars per share)					$ 23.13
Forfeited (in dollars per share)			25.29
Outstanding, end of year (in dollars per share)	$ 23.08		23.08		$ 23.13
Fully vested and unvested (in dollars per share)			$ 23.08
Information related to stock option and restricted stock awards granted
Expenses	$ 105,000	$ 127,000	$ 237,000	$ 254,000
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures)
2,017	237,000		237,000
2,018	198,000		198,000
Total	$ 435,000		$ 435,000
Performance Stock Units | Tranche One
Information related to stock option and restricted stock awards granted
Return on average assets (as a percent)			1.25%
Vesting rights (as a percent)			50.00%
Performance Stock Units | Tranche Two
Information related to stock option and restricted stock awards granted
Return on average assets (as a percent)			1.25%
Vesting rights (as a percent)			50.00%

OTHER COMPREHENSIVE INCOME - CO

OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Available for Sale Securities:
Change in unrealized gain (loss) on securities available for sale	$ 423	$ 416	$ 1,129	$ 2,708
Change in unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings	101	1	154	(148)
Net unrealized gains	524	417	1,283	2,560
Tax effect	(183)	(145)	(450)	(893)
Net of tax	341	272	833	1,667
Cash Flow Hedges:
Change in fair value of derivatives used for cash flow hedges	(104)	(219)	(76)	(790)
Reclassification amount for derivative losses realized in income	58	86	124	173
Net unrealized gains (losses)	(46)	(133)	48	(617)
Tax effect	16	48	(16)	216
Net of tax	(30)	(85)	32	(401)
Total other comprehensive income, net of tax	$ 311	$ 187	$ 865	$ 1,266

OTHER COMPREHENSIVE INCOME - RE

OTHER COMPREHENSIVE INCOME - RECLASSIFICATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Significant amounts reclassified out of each component of AOCI
Interest expense on deposits	$ (2,324)	$ (1,347)	$ (4,203)	$ (2,739)
Interest expense on FHLB advances	(1,943)	(2,973)	(4,235)	(5,926)
Total interest expense	(4,684)	(4,563)	(9,129)	(9,144)
Income tax expense	(5,198)	(4,359)	(15,252)	(13,252)
NET INCOME	10,071	8,340	30,088	26,075
Unrealized loss on cash flow hedge | Reclassification out of Accumulated Other Comprehensive Income
Significant amounts reclassified out of each component of AOCI
Interest expense on deposits	(29)	(43)	(63)	(86)
Interest expense on FHLB advances	(29)	(43)	(61)	(87)
Total interest expense	(58)	(86)	(124)	(173)
Income tax expense	20	30	43	61
NET INCOME	$ (38)	$ (56)	$ (81)	$ (112)

OTHER COMPREHENSIVE INCOME - AO

OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of the AOCI balances, net of tax
Balance at beginning of period			$ 604,406
Current Year Change	$ 311	$ 187	865	$ 1,266
Balance at end of period	626,891		626,891
Accumulated Other Comprehensive Income
Summary of the AOCI balances, net of tax
Balance at beginning of period			687	2,049
Current Year Change			865	1,266
Balance at end of period	1,552	3,315	1,552	3,315
Unrealized gain on securities available for sale
Summary of the AOCI balances, net of tax
Balance at beginning of period			237	1,727
Current Year Change			733	1,763
Balance at end of period	970	3,490	970	3,490
Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings
Summary of the AOCI balances, net of tax
Balance at beginning of period			706	712
Current Year Change			100	(96)
Balance at end of period	806	616	806	616
Unrealized loss on cash flow hedge
Summary of the AOCI balances, net of tax
Balance at beginning of period			(256)	(390)
Current Year Change			32	(401)
Balance at end of period	$ (224)	$ (791)	$ (224)	$ (791)

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Disclosure information
Number of operating segments | segment			4
Segment information
Net interest income	$ 43,137	$ 35,577	$ 99,575	$ 75,011
Provision for loan and lease losses	5,061	1,814	17,412	7,000
Net refund transfer fees	2,770	1,909	18,152	18,987
Mortgage banking income	1,445	1,560	2,605	2,821
Program fees	1,284	664	2,375	963
Other noninterest income	7,428	6,669	14,718	12,952
Total noninterest income	12,927	10,802	37,850	35,723
Total noninterest expenses	35,734	31,866	74,673	64,407
Income before income tax expense	15,269	12,699	45,340	39,327
Income tax expense	5,198	4,359	15,252	13,252
NET INCOME	10,071	8,340	30,088	26,075
Segment end of period assets	$ 4,955,661	$ 4,646,922	$ 4,955,661	$ 4,646,922	$ 4,816,309
Net interest margin (as percent)	3.87%	3.43%	4.44%	3.60%
Core Banking Activities
Segment Disclosure information
Number of operating segments | segment			3
Segment information
Net interest income	$ 37,955	$ 33,367	$ 74,583	$ 64,662
Provision for loan and lease losses	1,725	1,278	1,966	1,776
Mortgage banking income	1,445	1,560	2,605	2,821
Other noninterest income	7,094	6,439	13,634	12,646
Total noninterest income	8,539	7,999	16,239	15,467
Total noninterest expenses	32,991	29,624	65,073	56,434
Income before income tax expense	11,778	10,464	23,783	21,919
Income tax expense	3,931	3,550	7,429	6,937
NET INCOME	7,847	6,914	16,354	14,982
Segment end of period assets	$ 4,897,721	$ 4,593,343	$ 4,897,721	$ 4,593,343
Net interest margin (as percent)	3.46%	3.28%	3.39%	3.19%
Traditional Banking
Segment information
Net interest income	$ 33,434	$ 29,537	$ 66,094	$ 58,145
Provision for loan and lease losses	1,461	798	1,928	1,278
Other noninterest income	6,969	6,371	13,491	12,481
Total noninterest income	6,969	6,371	13,491	12,481
Total noninterest expenses	31,185	27,737	61,275	52,612
Income before income tax expense	7,757	7,373	16,382	16,736
Income tax expense	2,471	2,413	4,733	5,026
NET INCOME	5,286	4,960	11,649	11,710
Segment end of period assets	$ 4,283,741	$ 3,989,769	$ 4,283,741	$ 3,989,769
Net interest margin (as percent)	3.44%	3.23%	3.37%	3.15%
Warehouse Lending
Segment information
Net interest income	$ 4,435	$ 3,790	$ 8,336	$ 6,445
Provision for loan and lease losses	264	480	38	498
Other noninterest income	10	5	16	10
Total noninterest income	10	5	16	10
Total noninterest expenses	822	735	1,600	1,430
Income before income tax expense	3,359	2,580	6,714	4,527
Income tax expense	1,228	958	2,455	1,681
NET INCOME	2,131	1,622	4,259	2,846
Segment end of period assets	$ 600,060	$ 585,441	$ 600,060	$ 585,441
Net interest margin (as percent)	3.62%	3.67%	3.60%	3.65%
Mortgage Banking
Segment information
Net interest income	$ 86	$ 40	$ 153	$ 72
Mortgage banking income	1,445	1,560	2,605	2,821
Other noninterest income	115	63	127	155
Total noninterest income	1,560	1,623	2,732	2,976
Total noninterest expenses	984	1,152	2,198	2,392
Income before income tax expense	662	511	687	656
Income tax expense	232	179	241	230
NET INCOME	430	332	446	426
Segment end of period assets	13,920	18,133	13,920	18,133
Republic Processing Group
Segment information
Net interest income	5,182	2,210	24,992	10,349
Provision for loan and lease losses	3,336	536	15,446	5,224
Net refund transfer fees	2,770	1,909	18,152	18,987
Program fees	1,284	664	2,375	963
Other noninterest income	334	230	1,084	306
Total noninterest income	4,388	2,803	21,611	20,256
Total noninterest expenses	2,743	2,242	9,600	7,973
Income before income tax expense	3,491	2,235	21,557	17,408
Income tax expense	1,267	809	7,823	6,315
NET INCOME	2,224	1,426	13,734	11,093
Segment end of period assets	$ 57,940	$ 53,579	$ 57,940	$ 53,579