Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | REPUBLIC BANCORP, INC. | |
Entity Central Index Key | 0000921557 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2020 | |
Entity File Number | 0-24649 | |
Entity Incorporation, State or Country Code | KY | |
Entity Tax Identification Number | 61-0862051 | |
Entity Address, Address Line One | 601 West Market Street | |
Entity Address, City or Town | Louisville | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40202 | |
City Area Code | 502 | |
Local Phone Number | 584-3600 | |
Title of 12(b) Security | Class A Common | |
Trading Symbol | RBCAA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 18,708,244 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,199,804 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 560,195 | $ 385,303 |
Available-for-sale debt securities, at fair value (amortized cost of $473,971 in 2020 and $467,122 in 2019, allowance for credit losses of $126 in 2020 and $0 in 2019) | 486,847 | 471,355 |
Held-to-maturity debt securities (fair value of $56,266 in 2020 and $63,156 in 2019, allowance for credit losses of $147 in 2020 and $0 in 2019) | 55,745 | 62,531 |
Equity securities with readily determinable fair value | 3,015 | 3,188 |
Mortgage loans held for sale, at fair value | 40,028 | 19,224 |
Consumer loans held for sale, at fair value | 164 | 598 |
Consumer loans held for sale, at the lower of cost or fair value | 12,800 | 11,646 |
Loans (loans carried at fair value of $667 in 2020 and $998 in 2019) | 5,065,092 | 4,433,151 |
Allowance for credit losses | (55,097) | (43,351) |
Loans, net | 5,009,995 | 4,389,800 |
Federal Home Loan Bank stock, at cost | 25,629 | 30,831 |
Premises and equipment, net | 42,753 | 46,196 |
Right-of-use assets | 34,450 | 35,206 |
Goodwill | 16,300 | 16,300 |
Other real estate owned | 2,194 | 113 |
Bank owned life insurance | 67,217 | 66,433 |
Other assets and accrued interest receivable | 103,243 | 81,595 |
TOTAL ASSETS | 6,460,575 | 5,620,319 |
Deposits: | ||
Noninterest-bearing | 1,821,400 | 1,033,379 |
Interest-bearing | 3,196,685 | 2,752,629 |
Total deposits | 5,018,085 | 3,786,008 |
Securities sold under agreements to repurchase and other short-term borrowings | 177,397 | 167,617 |
Operating lease liabilities | 35,571 | 36,530 |
Federal Reserve Paycheck Protection Program Liquidity Facility | 169,209 | |
Federal Home Loan Bank advances | 137,500 | 750,000 |
Subordinated note | 41,240 | 41,240 |
Other liabilities and accrued interest payable | 85,954 | 74,680 |
Total liabilities | 5,664,956 | 4,856,075 |
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 | 4,898 | 4,907 |
Additional paid in capital | 142,813 | 142,068 |
Retained earnings | 638,282 | 614,171 |
Accumulated other comprehensive income | 9,626 | 3,098 |
Total stockholders' equity | 795,619 | 764,244 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,460,575 | $ 5,620,319 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale debt securities | $ 473,971 | $ 467,122 |
Available-for-sale debt securities, allowance for credit losses | 126 | 0 |
Held-to-maturity debt securities | 56,266 | 63,156 |
Held-to-maturity debt securities, allowance for credit losses | 147 | 0 |
Loans held for investment fair value | $ 667 | $ 998 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 54,185 | $ 60,211 | $ 131,698 | $ 137,039 |
Taxable investment securities | 2,712 | 3,284 | 5,495 | 6,875 |
Federal Home Loan Bank stock and other | 194 | 2,169 | 1,057 | 4,383 |
Total interest income | 57,091 | 65,664 | 138,250 | 148,297 |
INTEREST EXPENSE: | ||||
Deposits | 3,647 | 6,903 | 9,949 | 13,651 |
Securities sold under agreements to repurchase and other short-term borrowings | 17 | 330 | 136 | 751 |
Federal Reserve Payment Protection Plan Liquidity Facility | 105 | 105 | ||
Federal Home Loan Bank advances | 822 | 4,062 | 2,470 | 6,792 |
Subordinated note | 295 | 423 | 647 | 858 |
Total interest expense | 4,886 | 11,718 | 13,307 | 22,052 |
NET INTEREST INCOME | 52,205 | 53,946 | 124,943 | 126,245 |
Provision for expected credit loss expense | 6,534 | 4,460 | 29,294 | 21,691 |
NET INTEREST INCOME AFTER PROVISION | 45,671 | 49,486 | 95,649 | 104,554 |
NONINTEREST INCOME: | ||||
Service charges on deposit accounts | 2,451 | 3,598 | 5,587 | 6,901 |
Net refund transfer fees | 2,913 | 3,629 | 18,736 | 20,729 |
Mortgage banking income | 8,398 | 2,416 | 13,193 | 3,955 |
Interchange fee income | 2,808 | 3,257 | 5,360 | 6,014 |
Program fees | 1,138 | 1,037 | 3,762 | 2,111 |
Increase in cash surrender value of bank owned life insurance | 395 | 377 | 784 | 759 |
Net gains on other real estate owned | 1 | 90 | 4 | 220 |
Other | 647 | 721 | 1,894 | 1,853 |
Total noninterest income | 18,751 | 15,125 | 49,320 | 42,542 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 26,324 | 25,286 | 52,946 | 50,362 |
Occupancy and equipment, net | 6,715 | 6,472 | 13,561 | 13,056 |
Communication and transportation | 1,353 | 1,071 | 2,642 | 2,232 |
Marketing and development | 1,018 | 1,278 | 1,851 | 2,380 |
FDIC insurance expense | 299 | 295 | 299 | 743 |
Bank franchise tax expense | 914 | 935 | 3,420 | 3,431 |
Data processing | 2,753 | 2,217 | 5,292 | 4,313 |
Interchange related expense | 1,173 | 1,302 | 2,249 | 2,617 |
Supplies | 539 | 582 | 991 | 1,066 |
Other real estate owned and other repossession expense | 21 | 148 | 39 | 194 |
Legal and professional fees | 1,025 | 844 | 2,262 | 1,730 |
Other | 2,691 | 2,998 | 6,242 | 6,813 |
Total noninterest expense | 44,825 | 43,428 | 91,794 | 88,937 |
INCOME BEFORE INCOME TAX EXPENSE | 19,597 | 21,183 | 53,175 | 58,159 |
INCOME TAX EXPENSE | 3,793 | 3,176 | 10,674 | 10,636 |
NET INCOME | $ 15,804 | $ 18,007 | $ 42,501 | $ 47,523 |
Class A Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share (in dollars per share) | $ 0.77 | $ 0.86 | $ 2.04 | $ 2.29 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share (in dollars per share) | 0.76 | 0.86 | 2.04 | 2.28 |
Class B Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share (in dollars per share) | 0.69 | 0.79 | 1.86 | 2.08 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share (in dollars per share) | $ 0.69 | $ 0.78 | $ 1.85 | $ 2.07 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 15,804 | $ 18,007 | $ 42,501 | $ 47,523 |
OTHER COMPREHENSIVE INCOME | ||||
Change in fair value of derivatives used for cash flow hedges | (10) | (146) | (171) | (215) |
Reclassification amount for net derivative losses (gains) realized in income | 79 | (13) | 108 | (32) |
Change in unrealized gain on AFS debt securities | 1,099 | 2,014 | 8,876 | 5,673 |
Change in unrealized gain of AFS debt security for which a portion of OTTI has been recognized in earnings | (108) | (1) | (107) | (34) |
Total other comprehensive income before income tax | 1,060 | 1,854 | 8,706 | 5,392 |
Tax effect | (265) | (389) | (2,178) | (1,133) |
Total other comprehensive income, net of tax | 795 | 1,465 | 6,528 | 4,259 |
COMPREHENSIVE INCOME | $ 16,599 | $ 19,472 | $ 49,029 | $ 51,782 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common StockClass A Common Stock | Common StockClass B Common Stock | Common Stock | Additional Paid In Capital. | Retained EarningsClass A Common Stock | Retained EarningsClass B Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Class A Common Stock | Class B Common Stock | Total |
Increase (Decrease) in Stockholders' Equity | |||||||||||
Adjustment for adoption | $ 126 | $ 126 | |||||||||
Balance at beginning of period at Dec. 31, 2018 | $ 4,900 | $ 141,018 | 545,013 | $ (997) | 689,934 | ||||||
Balance (in shares) at Dec. 31, 2018 | 18,675 | 2,213 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 47,523 | 47,523 | |||||||||
Net change in accumulated other comprehensive income | 4,259 | 4,259 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (9,865) | $ (1,061) | $ (9,865) | $ (1,061) | |||||||
Stock options exercised, net of shares withheld | 8 | (110) | (102) | ||||||||
Stock options exercised, net of shares withheld (in shares) | 34 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock | (1) | (376) | (2) | (379) | |||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | (8) | ||||||||||
Repurchase of Class A Common Stock | $ (5) | ||||||||||
Repurchase of Class A Common Stock (in shares) | 5 | ||||||||||
Net change in notes receivable on Class A Common Stock | (192) | (192) | |||||||||
Deferred director compensation expense - Class A Common Stock | 106 | 106 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 5 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 226 | 226 | |||||||||
Employee stock purchase plan - Class A Common Stock | 235 | 235 | |||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 5 | ||||||||||
Stock-based awards, Performance stock units | (57) | (57) | |||||||||
Stock-based awards, Performance stock units (in shares) | 23 | ||||||||||
Stock-based awards, Restricted stock | 475 | 475 | |||||||||
Stock-based awards, Restricted stock (in shares) | 1 | ||||||||||
Stock-based awards, Stock options | 200 | 200 | |||||||||
Balance at end of period at Jun. 30, 2019 | 4,907 | 141,525 | 581,734 | 3,262 | 731,428 | ||||||
Balance (in shares) at Jun. 30, 2019 | 18,740 | 2,208 | |||||||||
Balance at beginning of period at Mar. 31, 2019 | 4,899 | 141,206 | 569,189 | 1,797 | 717,091 | ||||||
Balance (in shares) at Mar. 31, 2019 | 18,698 | 2,213 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 18,007 | 18,007 | |||||||||
Net change in accumulated other comprehensive income | 1,465 | 1,465 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (4,932) | (530) | (4,932) | (530) | |||||||
Stock options exercised, net of shares withheld | 8 | (110) | (102) | ||||||||
Stock options exercised, net of shares withheld (in shares) | 34 | ||||||||||
Repurchase of Class A Common Stock (in shares) | 5 | (5) | |||||||||
Net change in notes receivable on Class A Common Stock | (158) | (158) | |||||||||
Deferred director compensation expense - Class A Common Stock | 41 | 41 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 58 | 58 | |||||||||
Employee stock purchase plan - Class A Common Stock | 114 | 114 | |||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 2 | ||||||||||
Stock-based awards, Restricted stock | 295 | 295 | |||||||||
Stock-based awards, Restricted stock (in shares) | 1 | ||||||||||
Stock-based awards, Stock options | 79 | 79 | |||||||||
Balance at end of period at Jun. 30, 2019 | 4,907 | 141,525 | 581,734 | 3,262 | 731,428 | ||||||
Balance (in shares) at Jun. 30, 2019 | 18,740 | 2,208 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Adjustment for adoption | (4,291) | (4,291) | |||||||||
Balance at beginning of period at Dec. 31, 2019 | 4,907 | 142,068 | 614,171 | 3,098 | 764,244 | ||||||
Balance (in shares) at Dec. 31, 2019 | 18,737 | 2,206 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 42,501 | 42,501 | |||||||||
Net change in accumulated other comprehensive income | 6,528 | 6,528 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (10,705) | (1,144) | (10,705) | (1,144) | |||||||
Stock options exercised, net of shares withheld | 8 | 248 | 256 | ||||||||
Stock options exercised, net of shares withheld (in shares) | 19 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 6 | (6) | |||||||||
Repurchase of Class A Common Stock | (20) | (582) | (2,250) | (2,852) | |||||||
Repurchase of Class A Common Stock (in shares) | (86) | ||||||||||
Net change in notes receivable on Class A Common Stock | 114 | 114 | |||||||||
Deferred director compensation expense - Class A Common Stock | 150 | 150 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 4 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 277 | 277 | |||||||||
Employee stock purchase plan - Class A Common Stock | 2 | 289 | 291 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 9 | ||||||||||
Stock-based awards, Performance stock units | (200) | (200) | |||||||||
Stock-based awards, Performance stock units (in shares) | 18 | ||||||||||
Stock-based awards, Restricted stock | 1 | 247 | 248 | ||||||||
Stock-based awards, Restricted stock (in shares) | 1 | ||||||||||
Stock-based awards, Stock options | 202 | 202 | |||||||||
Balance at end of period at Jun. 30, 2020 | 4,898 | 142,813 | 638,282 | 9,626 | 795,619 | ||||||
Balance (in shares) at Jun. 30, 2020 | 18,708 | 2,200 | |||||||||
Balance at beginning of period at Mar. 31, 2020 | 4,890 | 141,928 | 628,397 | 8,831 | 784,046 | ||||||
Balance (in shares) at Mar. 31, 2020 | 18,687 | 2,200 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 15,804 | 15,804 | |||||||||
Net change in accumulated other comprehensive income | 795 | 795 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (5,347) | $ (572) | $ (5,347) | $ (572) | |||||||
Stock options exercised, net of shares withheld | 7 | 291 | 298 | ||||||||
Stock options exercised, net of shares withheld (in shares) | 17 | ||||||||||
Net change in notes receivable on Class A Common Stock | 84 | 84 | |||||||||
Deferred director compensation expense - Class A Common Stock | 71 | 71 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 134 | 134 | |||||||||
Employee stock purchase plan - Class A Common Stock | 1 | 135 | 136 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 4 | ||||||||||
Stock-based awards, Restricted stock | 60 | 60 | |||||||||
Stock-based awards, Stock options | 110 | 110 | |||||||||
Balance at end of period at Jun. 30, 2020 | $ 4,898 | $ 142,813 | $ 638,282 | $ 9,626 | $ 795,619 | ||||||
Balance (in shares) at Jun. 30, 2020 | 18,708 | 2,200 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Class A Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.286 | $ 0.264 | $ 0.572 | $ 0.528 |
Class B Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.260 | $ 0.240 | $ 0.520 | $ 0.480 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES: | ||
Net income | $ 42,501 | $ 47,523 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net (accretion) amortization on investment securities | 732 | (21) |
Net accretion on loans and amortization of core deposit intangible and operating lease components | (2,383) | (1,833) |
Unrealized (gains) losses on equity securities with readily determinable fair value | 173 | (448) |
Depreciation of premises and equipment | 5,041 | 4,572 |
Amortization of mortgage servicing rights | 1,593 | 733 |
Impairment of mortgage servicing rights | 100 | |
Provision for on-balance sheet exposures | 29,294 | 21,691 |
Provision for off-balance sheet exposures | 180 | |
Net gain on sale of mortgage loans held for sale | (13,504) | (3,478) |
Origination of mortgage loans held for sale | (343,941) | (122,696) |
Proceeds from sale of mortgage loans held for sale | 336,641 | 121,262 |
Net gain on sale of consumer loans held for sale | (3,006) | (2,618) |
Origination of consumer loans held for sale | (282,612) | (346,413) |
Proceeds from sale of consumer loans held for sale | 284,898 | 324,260 |
Net gain realized on sale of other real estate owned | (4) | (220) |
Impairment of premises held for sale | 132 | |
Deferred compensation expense - Class A Common Stock | 427 | 332 |
Stock-based awards expense - Class A Common Stock | 250 | 618 |
Net gain on sale of bank premises and equipment | (353) | |
Increase in cash surrender value of bank owned life insurance | (784) | (759) |
Net change in other assets and liabilities: | ||
Accrued interest receivable | 1,765 | (774) |
Accrued interest payable | (1,685) | 491 |
Other assets | (4,465) | 581 |
Other liabilities | (9,486) | (7,775) |
Net cash provided by operating activities | 41,372 | 35,160 |
INVESTING ACTIVITIES: | ||
Purchases of available-for-sale debt securities | (138,894) | |
Proceeds from calls, maturities and paydowns of available-for-sale debt securities | 131,323 | 101,051 |
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities | 6,628 | 1,315 |
Net change in outstanding warehouse lines of credit | (312,321) | (269,099) |
Net change in other loans | (342,083) | (137,490) |
Proceeds from redemption of Federal Home Loan Bank stock | 14,202 | 2,102 |
Purchase of Federal Home Loan Bank stock | (9,000) | (2,277) |
Proceeds from sales of other real estate owned | 32 | 580 |
Proceeds from sale of bank premises and equipment | 894 | |
Net purchases of premises and equipment | (2,139) | (4,083) |
Net cash used in investing activities | (651,358) | (307,901) |
FINANCING ACTIVITIES: | ||
Net change in deposits | 1,232,077 | 257,729 |
Net change in securities sold under agreements to repurchase and other short-term borrowings | 9,780 | 43,012 |
Net change in Federal Reserve Payment Protection Plan Lending Facility borrowings | 169,209 | |
Payments of Federal Home Loan Bank advances | (1,037,500) | (565,000) |
Proceeds from Federal Home Loan Bank advances | 425,000 | 670,000 |
Repurchase of Class A Common Stock | (2,852) | (379) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 291 | 235 |
Net proceeds from Class A Common Stock options exercised and PSUs awarded | 256 | (102) |
Cash dividends paid | (11,383) | (10,449) |
Net cash provided by financing activities | 784,878 | 395,046 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 174,892 | 122,305 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 385,303 | 351,474 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 560,195 | 473,779 |
Cash paid during the period for: | ||
Interest | 14,992 | 21,561 |
Income taxes | 10,008 | 6,726 |
SUPPLEMENTAL NONCASH DISCLOSURES: | ||
Transfers from loans to real estate acquired in settlement of loans | 2,109 | 1,295 |
Transfers from loans held for investment to held for sale | 124,202 | |
Unfunded commitments in low-income-housing investments | 10,000 | |
Right-of-use assets recorded | 2,151 | $ 40,202 |
Allowance for credit losses recorded upon adoption of ASC 326 | $ 7,241 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
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 Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-member financial institution that provides both traditional and non-traditional banking products through five reportable segments using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery channels allow it to reach clients across the U.S. The Captive is a Nevada-based, wholly-owned insurance subsidiary of the Company. The Captive provides property and casualty insurance coverage to the Company and the Bank, as well as a group of third-party insurance captives for which insurance may not be available or economically feasible. Republic Bancorp Capital Trust is a Delaware statutory business trust that is a wholly-owned unconsolidated finance subsidiary of Republic Bancorp, Inc. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, 2019. As of June 30, 2020, the Company was divided into five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute RPG operations. MemoryBank®, the Company’s national branchless banking platform, is part of the Traditional Banking segment. The Company’s financial condition at June 30, 2020 and results of operation for the three and six months ended June 30, 2020 were impacted by the COVID-19 pandemic and the public’s response to it. For additional discussion regarding the COVID-19 pandemic and its impact to the Company, see the following Footnotes in this section of the filing: ● Footnote 2 “Investment Securities” ● Footnote 4 “Loans and Allowance for Credit Losses” ● Footnote 9 “Off Balance Sheet Risks, Commitments, and Contingent Liabilities” Core Bank Traditional Banking segment — ● Kentucky — 28 ● Metropolitan Louisville — 18 ● Central Kentucky — 7 ● Georgetown — 1 ● Lexington — 5 ● Shelbyville — 1 ● Northern Kentucky — 3 ● Covington — 1 ● Crestview Hills — 1 ● Florence — 1 ● Southern Indiana — 3 ● Floyds Knobs — 1 ● Jeffersonville — 1 ● New Albany — 1 ● Metropolitan Tampa, Florida — 8 * ● Metropolitan Cincinnati, Ohio — 2 ● Metropolitan Nashville, Tennessee — 3 * *Includes one LPO Republic’s headquarters are in Louisville, which is the largest city in Kentucky based on population. Traditional Banking results of operations are primarily dependent upon net interest income, which represents the difference between the interest income and fees on interest-earning assets and the interest expense on interest-bearing liabilities. Principal interest-earning Traditional Banking assets represent investment securities and commercial and consumer loans primarily secured by real estate and/or personal property. Interest-bearing liabilities primarily consist of interest-bearing deposit accounts, securities sold under agreements to repurchase, as well as short-term and long-term borrowing sources. FHLB advances have traditionally been a significant borrowing source for the Bank. Other sources of Traditional Banking income include service charges on deposit accounts, debit and credit card interchange fee income, title insurance commissions, fees charged to clients for trust services, and increases in the cash surrender value of BOLI. Traditional Banking operating expenses consist primarily of salaries and employee benefits, occupancy and equipment expenses, communication and transportation costs, data processing, interchange related expenses, marketing and development expenses, FDIC insurance expense, franchise tax expense and various other general and administrative costs. Traditional Banking results of operations are significantly impacted by general economic and competitive conditions, particularly changes in market interest rates, government laws and policies and actions of regulatory agencies. Warehouse Lending segment — Through its Warehouse segment, the Core Bank provides short-term, revolving credit facilities to mortgage bankers across the U.S. through mortgage warehouse lines of credit. These credit facilities are primarily secured by single-family, first-lien residential real estate loans. The credit facility enables the mortgage banking clients to close single-family, first-lien residential real estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days . Reverse mortgage loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client. Mortgage Banking segment — Republic Processing Group Tax Refund Solutions segment — RTs are fee-based products whereby a tax refund is issued to the taxpayer after the Bank has received the refund from the federal or state government. There is no credit risk or borrowing cost associated with these products because they are only delivered to the taxpayer upon receipt of the tax refund directly from the governmental paying authority. Fees earned by the Company on RTs, net of revenue share, are reported as noninterest income under the line item “Net refund transfer fees.” The EA tax credit product is a loan that allows a taxpayer to borrow funds as an advance of a portion of their tax refund. The EA product had the following features during 2019 and 2020: ● Offered only during the first two months of each year; ● The taxpayer was given the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $6,250 ; ● No requirement that the taxpayer pays for another bank product, such as an RT; ● Multiple funds disbursement methods, including direct deposit, prepaid card, check, or Walmart Direct2Cash ® , based on the taxpayer-customer’s election; ● Repayment of the EA to the Bank is deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the EA occurs: o there is no recourse to the taxpayer, o no negative credit reporting on the taxpayer, and o no collection efforts against the taxpayer. The Company reports fees paid for the EA product as interest income on loans. EAs are generally repaid within three weeks after the taxpayer’s tax return is submitted to the applicable taxing authority. EAs do not have a contractual due date but the Company considers an EA delinquent if it remains unpaid three weeks after the taxpayer’s tax return is submitted to the applicable taxing authority. Provision on EAs are estimated when advances are made, with Provision for all expected EA losses made in the first quarter of each year. Unpaid EAs are charged off by June 30 th of each year, with EAs collected during the second half of each year recorded as recoveries of previously charged off loans. Related to the overall credit losses on EAs, the Bank’s ability to control losses is highly dependent upon its ability to predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s EA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the EA volume occurs each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes made, credit losses during a current year could be higher than management’s predictions if tax refund payment patterns change materially between years. In response to changes in the legal, regulatory and competitive environment, management annually reviews and revises the EAs product parameters. Further changes in EA product parameters do not ensure positive results and could have an overall material negative impact on the performance of the EA product offering and therefore on the Company’s financial condition and results of operations. Republic Payment Solutions — RPS is managed and operated within the TRS segment. The RPS division is an issuing bank offering general-purpose reloadable prepaid cards through third-party service providers. For the projected near-term, as the prepaid card program matures, the operating results of the RPS division are expected to be immaterial to the Company’s overall results of operations and will be reported as part of the TRS segment. The RPS division will not be considered a separate reportable segment until such time, if any, that it meets quantitative reporting thresholds. The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.” Republic Credit Solutions segment — ● RCS line-of-credit product – The Bank originates a line-of-credit product to generally subprime borrowers in multiple states. Elevate Credit, Inc., a third-party service provider subject to the Bank’s oversight and supervision, provides the Bank with certain marketing, servicing, technology, and support services for the RCS line-of-credit program, while a separate third-party also provides customer support, servicing, and other services for the RCS line-of-credit product on the Bank’s behalf. The Bank is the lender for the RCS line-of-credit product and is marketed as such. Further, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of the RCS line-of-credit product. The Bank sells participation interests in the RCS line-of-credit product. These participation interests are a 90% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three business days following the Bank’s funding of the associated advances. Although the Bank retains a 10% participation interest in each advance, it maintains 100% ownership of the underlying RCS line-of-credit account with each borrower. The RCS line-of-credit product represents the substantial majority of RCS activity. Loan balances held for sale through this program are carried at the lower of cost or fair value. ● RCS installment loan products – From the first quarter of 2016 through the first quarter of 2018, the Bank piloted a consumer installment loan product across the U.S. using a third-party service provider. As part of the program, the Bank sold 100% of the balances generated through the program back to its third-party service provider approximately 21 days after origination. During the second quarter of 2018, the Bank and its third-party service provider suspended the origination of new loans and the sale of unsold loans through this program. Since program suspension in 2018, the Bank has carried all unsold loans under this program as “held for investment” on its balance sheet and has continued to wind down those balances. Additionally, loans under this program are carried at fair value under a fair value option on the Bank’s balance sheet with the portfolio marked to market monthly. Approximately $667,000 of balances remained held for investment under this program as of June 30, 2020. Through a new program launched in December 2019, the Bank began offering RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. A third-party service provider subject to the Bank’s oversight and supervision provides the Bank with marketing services and loan servicing for these RCS installment loans. The Bank is the lender for these RCS installment loans, and is marketed as such. Further, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these loans to its third-party service provider generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. ● RCS healthcare receivables products – The Bank originates healthcare-receivables products across the U.S. through two different third-party service providers. In one program, the Bank retains 100% of the receivables originated. In the other program, the Bank retains 100% of the receivables originated in some instances, and in other instances, sells 100% of the receivables within one month of origination. Loan balances held for sale through this program are carried at the lower of cost or fair value. The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains or losses on sale and mark-to-market adjustments of RCS loans are reported as noninterest income under “Program fees.” Recently Adopted Accounting Standards Effective January 1, 2020, the Company adopted ASC 326 Financial Instruments – Credit Losses, The Company adopted ASC 326 primarily using the modified retrospective method for its financial instruments and off-balance sheet credit exposures. Results for periods beginning after December 31, 2019 will be presented under CECL while prior-period amounts will continue to be reported under previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which OTTI had been recognized prior to January 1, 2020. As a result, the amortized cost basis will remain the same before and after the effective date of CECL. The effective interest rate on these debt securities was not changed. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 will be recorded in earnings when received. The Company adopted ASC 326 using the prospective transition approach for PCD assets that were previously classified as PCI assets under ASC 310-30. As allowed by ASC 326, the Company did not reassess whether PCI assets met the PCD criteria as of the date of adoption. On January 1, 2020, the amortized cost basis of PCD assets was adjusted to reflect the addition of million of ACLL formerly classified under previous GAAP as a non-accretable credit discount within gross loans. The remaining noncredit discount on PCD assets will be accreted into interest income at the effective interest rate as of January 1, 2020. The Company elected the fair value option for its RCS installment loan product in 2016. This product will continue to be accounted for at fair value under CECL. When measuring an ACL, CECL primarily differs from the probable-incurred method by: a) incorporating a lower “expected” threshold for loss recognition versus a higher “probable” threshold; b) requiring life-of-loan considerations; and c) requiring reasonable and supportable forecasts. In accordance with the adoption of ASC 326 and CECL, the Company recorded on January 1, 2020 a $6.7 million, or 16%, increase in the ACLL for its loans, a $51,000 ACLS for its investment debt securities, and a $456,000 ACLC for its off-balance sheet credit exposures. Of the $6.7 million increase in ACLL, approximately $1.4 million was a gross-up reclassification of non-accretable discount on previously-PCI, now-PCD, loans as mentioned above, and the remaining $5.3 million was a difference in ACL between CECL and the probable-incurred method. The Company also made a cumulative effect entry of $4.3 million to reduce its opening balance of retained earnings upon adoption of ASC 326, with no impact on 2020 earnings for these adoption entries. The adoption date increase in ACLL for the Company’s loans primarily reflects additional ACLL for longer duration loan portfolios, such as the Company's residential real estate and consumer loan portfolios. No additional segmentation of the Bank's loan portfolios was deemed necessary upon adoption. The following table illustrates the impact of ASC 326 adoption: Allowance for Credit Losses as of January 1, 2020 As Reported Impact Under Pre-ASC 326 of ASC 326 (in thousands) ASC 326 Adoption Adoption Assets: Allowance for credit losses on debt securities: AFS debt securities - Corporate bonds $ — $ — $ — HTM debt securities - Corporate bond 51 — 51 Allowance for credit losses on debt securities $ 51 $ — $ 51 Allowance for credit losses on loans: Traditional Banking: Residential real estate: Owner occupied $ 8,928 $ 4,729 $ 4,199 Nonowner occupied 1,885 1,737 148 Commercial real estate 10,759 10,486 273 Construction & land development 3,599 2,152 1,447 Commercial & industrial 1,564 2,882 (1,318) Lease financing receivables 147 147 — Home equity 4,373 2,721 1,652 Consumer: Credit cards 1,053 1,020 33 Overdrafts 1,169 1,169 — Automobile loans 605 612 (7) Other consumer 857 550 307 Total Traditional Banking 34,939 28,205 6,734 Warehouse lines of credit 1,794 1,794 — Total Core Banking 36,733 29,999 6,734 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — Other TRS loans 234 234 — Republic Credit Solutions 13,118 13,118 — Total Republic Processing Group 13,352 13,352 — Allowance for credit losses on loans $ 50,085 $ 43,351 $ 6,734 Liabilities: Allowance for credit losses on OBS credit exposures $ 456 $ — $ 456 The following ASUs were also adopted by the Company during the six months ended June 30, 2020: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2017-04 Intangibles - Goodwill and Other (Topic 350) This ASU simplifies goodwill impairment testing by eliminating Step 2 from the goodwill impairment test. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. January 1, 2020 Prospectively Immaterial 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help during the global market-wide reference rate transition period; therefore, it will be in effect for a limited time through December 31, 2022. March 12, 2020 Prospectively This ASU is expected to assist in the Company's transition away from LIBOR as a reference rate. Debt Securities Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are generally amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Allowance for Credit Losses on Available-for-Sale Securities — For the Company’s AFS corporate bond, the Company uses third-party PD and LGD data to estimate an ACLS, which is limited by the amount that the bond’s fair value is less than its amortized cost basis. For all other AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written-down to fair value through income. For other AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACLS is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACLS is recognized in other comprehensive income. Changes in ACLS are recorded as a charge or credit to the Provision. Losses are charged against the ACLS when management believes the lack of collectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on AFS debt securities totaled $1 million at June 30, 2020 and is excluded from the ACLS. Accrued interest on AFS debt securities is presented as a component of other assets on the Company’s balance sheet. Allowance for Credit Losses on Held-to-Maturity Securities — The Company measures expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities totaled at June 30, 2020 and is excluded from the ACLS. Accrued interest on HTM debt securities is presented as a component of other assets on the Company’s balance sheet. The estimate of ACLS on HTM debt securities considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company classifies its HTM portfolio into the following major security types: MBS, corporate bonds, and municipal bonds. MBS securities include CMOs. Nearly all of the MBS portfolio is issued by U.S. government entities or government sponsored entities. These securities are highly rated by major rating agencies and have a long history of no credit losses. The MBS portfolio also carries ratings no lower than investment grade. The Company uses PD and LGD estimates provided by a third-party to estimate an ACLS for its corporate and municipal bond portfolios. These PD and LGD estimates are updated at least quarterly by the Company, with these estimates incorporating the most recent market expectations and forecasted information. Loans — Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. Premiums on loans held for investment are amortized into interest income on the level-yield method over the expected life of the loan. Lease financing receivables, all of which are direct financing leases, are reported at their principal balance outstanding net of any unearned income, deferred loan fees and costs, and applicable ACLL. Leasing income is recognized on a basis that achieves a constant periodic rate of return on the outstanding lease financing balances over the lease terms. Interest income on mortgage and commercial loans is typically discontinued at the time the loan is 80 days delinquent unless the loan is well secured and in process of collection. Past due status is based on the contractual terms of the loan, which may define past due status by the number of days or the number of payments past due. In most cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 80 days still on accrual include smaller balance, homogeneous loans that are evaluated collectively or individually for loss. Interest accrued but not received for all classes of loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, typically a minimum of six months of performance. Consumer and credit card loans are not placed on nonaccrual status but are reviewed periodically and charged off when the loan is deemed uncollectible, generally no more than 120 days. Purchased Credit Deteriorated Loans — ● Non-accretable discount assigned by the Bank ● Classified by either the acquired bank or the Bank as Special Mention or Substandard ● Nonaccrual status when purchased ● Past due 30 days or more when purchased ● Loans that have been at least one time over 30 days past due ● Past maturity date when purchased ● Select loans that are cross collateralized with any loans identified above PCD loans are recorded at the amount paid. An ACLL is determined using the same methodology as other loans held for investment. The initial ACLL determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACLL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACLL are recorded through the Provision. Allowance for Credit Losses on Loans — The ACLL is measured on a collective or pooled basis when similar risk characteristics exist. The first table of Footnote 4 illustrates the Company’s loan portfolio by ACLL risk pool. This pooling method is primarily based on the pool’s collateral type or the pool’s purpose and generally follows the Bank’s loan segmentation for regulatory reporting. For each of its loan pools, the Company uses a “static-pool” method, which analyzes historical closed pools of similar loans over their expected lives to attain a loss rate. This loss rate is then adjusted for current conditions and reasonable and supportable forecasts prior to being applied to the current balance of the analyzed pools. Adjustments to the historical loss rate for current conditions include differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, such as changes in property values or other relevant factors. One-year forecast adjustments to the historical loss rate are based on a forecast of the U.S. national unemployment rate, which has shown a relatively strong historical correlation to the Bank’s loan losses. Subsequent to the one-year forecast, loss rates are assumed to immediately revert back to the historical loss rate calculated under a static pool analysis plus adjustments for current conditions. Loans that do not share risk characteristics are evaluated on an individual basis, with the Company choosing to individually evaluate all TDRs. Loans evaluated individually are not also included in the pooled evaluation. When management determines that a loan is collateral dependent and foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs if appropriate. Determining Expected Loan Lives: Expected credit losses are estimated over the contractual loan term, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. 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. The Company measures the ACLL for TDRs individually using either a discounted cash flow method or the collateral method, if the TDR is collateral dependent. TDRs whose ACLL is measured using a discounted cash flow method use the original pre-modification interest rate on the loan for discounting. Performing loans modified due to COVID-19 are not classified as TDRs. ● For additional discussion regarding loans modified due to COVID-19, see Footnote 4 “Loans and Allowance for Credit Losses” in this section of the filing. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures — The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The likelihood that funding will occur is based on the historical usage rate of such commitments. A listing of off-balance sheet credit exposures the Company generally considers for an ACLC is illustrated in Footnote 9 in this section of the filing. The ACLC is recorded as a component of other liabilities on the Company’s balance sheet. Any provision for the ACLC is recorded on the Company’s income statement as a component of other noninterest expense. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES Available-for-Sale Debt Securities The following tables summarize the amortized cost, fair value, and ACLS of AFS debt securities and the corresponding amounts of related gross unrealized gains and losses recognized in AOCI: Gross Gross Allowance Amortized Unrealized Unrealized for Fair June 30, 2020 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 137,739 $ 2,057 $ — $ — $ 139,796 Private label mortgage backed security 1,845 1,178 — — 3,023 Mortgage backed securities - residential 263,760 9,521 — — 273,281 Collateralized mortgage obligations 57,030 678 (110) — 57,598 Corporate bonds 10,000 — (225) (126) 9,649 Trust preferred security 3,597 — (97) — 3,500 Total available-for-sale debt securities $ 473,971 $ 13,434 $ (432) $ (126) $ 486,847 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2019 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 134,765 $ 59 $ (184) NA $ 134,640 Private label mortgage backed security 2,210 1,285 — NA 3,495 Mortgage backed securities - residential 253,288 2,916 (357) NA 255,847 Collateralized mortgage obligations 63,284 258 (171) NA 63,371 Corporate bonds 10,000 2 — NA 10,002 Trust preferred security 3,575 425 — NA 4,000 Total available-for-sale debt securities $ 467,122 $ 4,945 $ (712) NA $ 471,355 Held-to-Maturity Debt Securities The following tables summarize the amortized cost, fair value, and ACLS of HTM debt securities and the corresponding amounts of related gross unrecognized gains and losses: Gross Gross Allowance Carrying Unrecognized Unrecognized Fair for June 30, 2020 (in thousands) Value Gains Losses Value Credit Losses Mortgage backed securities - residential $ 102 $ 5 $ — $ 107 $ — Collateralized mortgage obligations 15,338 132 (1) 15,469 — Corporate bonds 39,991 250 (21) 40,220 (147) Obligations of state and political subdivisions 461 9 — 470 — Total held-to-maturity debt securities $ 55,892 $ 396 $ (22) $ 56,266 $ (147) Gross Gross Allowance Carrying Unrecognized Unrecognized Fair for December 31, 2019 (in thousands) Value Gains Losses Value Credit Losses Mortgage backed securities - residential $ 104 $ 6 $ — $ 110 NA Collateralized mortgage obligations 16,970 94 (21) 17,043 NA Corporate bonds 44,995 544 — 45,539 NA Obligations of state and political subdivisions 462 2 — 464 NA Total held-to-maturity debt securities $ 62,531 $ 646 $ (21) $ 63,156 NA Sales of Available-for-Sale Debt Securities During the three and six months ended June 30, 2020 and 2019, there were no gains or losses on sales or calls of AFS debt securities. Debt Securities by Contractual Maturity The amortized cost and fair value of debt securities by contractual maturity at June 30, 2020 follow. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are detailed separately. Available-for-Sale Held-to-Maturity Debt Securities Debt Securities Amortized Fair Carrying Fair June 30, 2020 (in thousands) Cost Value Value Value Due in one year or less $ — $ — $ 105 $ 105 Due from one year to five years 147,739 149,445 35,395 35,654 Due from five years to ten years — — 4,952 4,931 Due beyond ten years 3,597 3,500 — — Private label mortgage backed security 1,845 3,023 — — Mortgage backed securities - residential 263,760 273,281 102 107 Collateralized mortgage obligations 57,030 57,598 15,338 15,469 Total debt securities $ 473,971 $ 486,847 $ 55,892 $ 56,266 Unrealized-Loss Analysis on Debt Securities The following table summarizes AFS debt securities in an unrealized loss position for which an ACLS had not been recorded at June 30, 2020, aggregated by investment category and length of time in a continuous unrealized loss position: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2020 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: Collateralized mortgage obligations $ 8,258 $ (101) $ 2,971 $ (9) $ 11,229 (110) Trust preferred security 3,500 (97) — — 3,500 (97) Total available-for-sale debt securities $ 11,758 $ (198) $ 2,971 $ (9) $ 14,729 $ (207) Debt securities with unrealized losses at December 31, 2019, aggregated by investment category and length of time in a continuous unrealized loss position, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2019 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ 40,165 $ (176) $ 14,992 $ (8) $ 55,157 $ (184) Mortgage backed securities - residential 65,630 (269) 16,633 (88) 82,263 (357) Collateralized mortgage obligations 12,444 (36) 10,738 (135) 23,182 (171) Total available-for-sale debt securities $ 118,239 $ (481) $ 42,363 $ (231) $ 160,602 $ (712) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2019 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Held-to-maturity debt securities: Collateralized mortgage obligations $ 4 $ (2) $ 4,827 $ (19) $ 4,831 $ (21) Total held-to-maturity debt securities: $ 4 $ (2) $ 4,827 $ (19) $ 4,831 $ (21) At June 30, 2020, the Bank’s security portfolio consisted of 171 securities, 14 of which were in an unrealized loss position. At December 31, 2019, the Bank’s security portfolio consisted of 173 securities, 34 of which were in an unrealized loss position. At June 30, 2020 and December 31, 2019, there were no holdings of debt securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity. Mortgage Backed Securities and Collateralized Mortgage Obligations At June 30, 2020, with the exception of the $3.0 million private label mortgage backed security, all other mortgage backed securities and CMOs held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily the FHLMC and FNMA. At June 30, 2020 and December 31, 2019, there were gross unrealized losses of $110,000 and $528,000 related to AFS mortgage backed securities and CMOs. Because these unrealized losses are attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, management does not consider these securities to have OTTI. Trust Preferred Security During 2015, the Parent Company purchased a $3 million floating rate TRUP at a price of 68% of par. The coupon on this security is based on the 3-month LIBOR rate plus 159 basis points. The Company performed an initial analysis prior to acquisition and performs ongoing analysis of the credit risk of the underlying borrower in relation to its TRUP. Private Label Mortgage Backed Security The Bank owns one private label mortgage backed security with a total carrying value of $3.0 million as of June 30, 2020. This security is mostly backed by “Alternative A” first lien mortgage loans, but also has an insurance “wrap” or guarantee as an added layer of protection to the security holder. This asset is illiquid, and as such, the Bank determined it to be a Level 3 security in accordance with ASC Topic 820, Fair Value Measurement. See additional discussion regarding the Bank’s private label mortgage backed security under Footnote 10 “Fair Value” in this section of the filing. Rollforward of the Allowance for Credit Losses on Debt Securities The tables below present a rollforward for the three and six months ended June 30, 2020 of the ACLS on AFS and HTM debt securities: ACLS Rollforward Three Months Ended June 30, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ 126 $ — $ — $ — $ — $ 126 Held-to-Maturity Securities: Corporate Bonds 171 — (24) — — 147 Total $ 297 $ — $ (24) $ — $ — $ 273 The Company reduced the ACLS on its HTM corporate bonds during the three months ended June 30, 2020 due to the maturity of one $5 million bond. ACLS Rollforward Six Months Ended June 30, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ 126 $ — $ — $ 126 Held-to-Maturity Securities: Corporate Bonds — 51 96 — — 147 Total $ — $ 51 $ 222 $ — $ — $ 273 The Company increased the ACLS on its AFS and HTM corporate bonds during the six months ended June 30, 2020 based on higher PD and LGD estimates on these bonds resulting from economic concerns from the COVID-19 pandemic. There were no HTM debt securities on nonaccrual or past due over 89 days as of June 30, 2020. All of the Company’s HTM corporate bonds were rated investment grade as of June 30, 2020. There were no HTM debt securities considered collateral dependent as of June 30, 2020. Pledged Debt Securities Debt securities pledged to secure public deposits, securities sold under agreements to repurchase and debt securities held for other purposes, as required or permitted by law are as follows: (in thousands) June 30, 2020 December 31, 2019 Carrying amount $ 259,808 $ 229,700 Fair value 259,812 229,706 Equity Securities The carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values were as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2020 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 485 $ — $ 485 Community Reinvestment Act mutual fund 2,500 30 — 2,530 Total equity securities with readily determinable fair values $ 2,500 $ 515 $ — $ 3,015 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 714 $ — $ 714 Community Reinvestment Act mutual fund 2,500 — (26) 2,474 Total equity securities with readily determinable fair values $ 2,500 $ 714 $ (26) $ 3,188 For equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company’s consolidated statements of income were as follows: Gains (Losses) Recognized on Equity Securities Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 191 $ 191 $ — $ 126 $ 126 Community Reinvestment Act mutual fund — 16 16 — 33 33 Total equity securities with readily determinable fair value $ — $ 207 $ 207 $ — $ 159 $ 159 Gains (Losses) Recognized on Equity Securities Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (229) $ (229) $ — $ 378 $ 378 Community Reinvestment Act mutual fund — 56 56 — 70 70 Total equity securities with readily determinable fair value $ — $ (173) $ (173) $ — $ 448 $ 448 |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2020 | |
LOANS HELD FOR SALE. | |
LOANS HELD FOR SALE | 3. LOANS HELD FOR SALE In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Mortgage Banking segment, while consumer loans originated for sale are originated and sold through the RCS segment. Mortgage Loans Held for Sale, at Fair Value See additional detail regarding mortgage loans originated for sale, at fair value under Footnote 11 “Mortgage Banking Activities” of this section of the filing. Consumer Loans Held for Sale, at Fair Value In December 2019, the Bank began offering RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intent to sell generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. Activity for consumer loans held for sale and carried at fair value was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance, beginning of period $ 3,431 $ — $ 598 $ — Origination of consumer loans held for sale 555 — 47,741 — Proceeds from the sale of consumer loans held for sale (3,963) — (49,691) — Net gain (loss) recognized on consumer loans held for sale 141 — 1,516 — Balance, end of period $ 164 $ — $ 164 $ — Consumer Loans Held for Sale, at the Lower of Cost or Fair Value RCS originates for sale 90% of the balances from its line-of-credit product and a portion of its hospital receivables product. Ordinary gains or losses on the sale of these RCS products are reported as a component of “Program fees.” Activity for consumer loans held for sale and carried at the lower of cost or market value was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance, beginning of period $ 12,089 $ 12,864 $ 11,646 $ 12,838 Origination of consumer loans held for sale 86,936 200,327 234,871 346,413 Proceeds from the sale of consumer loans held for sale (86,796) (176,759) (235,207) (324,260) Net gain on sale of consumer loans held for sale 571 1,177 1,490 2,618 Balance, end of period $ 12,800 $ 37,609 $ 12,800 $ 37,609 |
LOANS AND ALLOWANCE FOR LOAN AN
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES | 6 Months Ended |
Jun. 30, 2020 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES | 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio follows: (in thousands) June 30, 2020 December 31, 2019 Traditional Banking: Residential real estate: Owner occupied $ 885,325 $ 949,568 Nonowner occupied 254,700 258,803 Commercial real estate 1,322,290 1,303,000 Construction & land development 157,254 159,702 Commercial & industrial* 904,727 477,236 Lease financing receivables 11,864 14,040 Home equity 265,266 293,186 Consumer: Credit cards 14,265 17,836 Overdrafts 488 1,522 Automobile loans 41,059 52,923 Other consumer 78,585 68,115 Total Traditional Banking 3,935,823 3,595,931 Warehouse lines of credit** 1,029,779 717,458 Total Core Banking 4,965,602 4,313,389 Republic Processing Group**: Tax Refund Solutions: Easy Advances — — Other TRS loans 289 14,365 Republic Credit Solutions 99,201 105,397 Total Republic Processing Group 99,490 119,762 Total loans*** 5,065,092 4,433,151 Allowance for credit losses (55,097) (43,351) Total loans, net $ 5,009,995 $ 4,389,800 *Includes $511 million of PPP loans at June 30, 2020. **Identifies loans to borrowers located primarily outside of the Bank’s market footprint. *** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. The following table reconciles the contractually receivable and carrying amounts of loans: (in thousands) June 30, 2020 December 31, 2019 Contractually receivable $ 5,063,496 $ 4,432,351 Unearned income (944) (1,139) Unamortized premiums 279 366 Unaccreted discounts (1,157) (2,534) Net unamortized deferred origination fees and costs 3,418 4,107 Carrying value of loans $ 5,065,092 $ 4,433,151 Credit Quality Indicators The Company’s loan segments as of June 30, 2020 remain unchanged from those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The following tables include loans by segment and risk category. Risk categories, which are based on the Bank’s internal analyses, are defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. As of June 30, 2020, for non-revolving loans originated after 2016, loans are also classified by origination year. Loan extensions and renewals are generally considered originated in the year extended or renewed unless the loan is classified as a TDR. Loan extensions and renewals classified as TDRs generally receive no change in origination date upon extension or renewal. Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of June 30, 2020 2020 2019 2018 2017 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 90,354 $ 166,133 $ 108,759 $ 87,604 $ 404,104 $ — $ — $ 856,954 Special Mention — — 46 1,627 9,826 — — 11,499 Substandard — 1,543 822 691 13,816 — — 16,872 Doubtful — — — — — — — — Total $ 90,354 $ 167,676 $ 109,627 $ 89,922 $ 427,746 $ — $ — $ 885,325 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 23,599 $ 74,957 $ 52,683 $ 50,441 $ 51,297 $ — $ — $ 252,977 Special Mention 300 — — — 158 — — 458 Substandard — 539 — — 726 — — 1,265 Doubtful — — — — — — — — Total $ 23,899 $ 75,496 $ 52,683 $ 50,441 $ 52,181 $ — $ — $ 254,700 Commercial real estate: Risk Rating Pass or not rated $ 116,710 $ 328,746 $ 209,251 $ 217,425 $ 398,039 $ — $ 36,887 $ 1,307,058 Special Mention 878 — — — 2,883 — 2,846 6,607 Substandard 2,964 — — 1,222 4,439 — — 8,625 Doubtful — — — — — — — — Total $ 120,552 $ 328,746 $ 209,251 $ 218,647 $ 405,361 $ — $ 39,733 $ 1,322,290 Construction and land development: Risk Rating Pass or not rated $ 55,961 $ 55,460 $ 16,050 $ 11,719 $ 15,455 $ — $ — $ 154,645 Special Mention — 2,421 — — — — — 2,421 Substandard — 188 — — — — — 188 Doubtful — — — — — — — — Total $ 55,961 $ 58,069 $ 16,050 $ 11,719 $ 15,455 $ — $ — $ 157,254 Commercial and industrial: Risk Rating Pass or not rated $ 594,084 $ 149,970 $ 50,438 $ 49,358 $ 56,571 $ 2,087 $ — $ 902,508 Special Mention 450 — 150 — 35 — — 635 Substandard 21 490 118 — 201 754 — 1,584 Doubtful — — — — — — — — Total $ 594,555 $ 150,460 $ 50,706 $ 49,358 $ 56,807 $ 2,841 $ — $ 904,727 Lease financing receivables: Risk Rating Pass or not rated $ 711 $ 4,602 $ 2,510 $ 3,232 $ 809 $ — $ — $ 11,864 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 711 $ 4,602 $ 2,510 $ 3,232 $ 809 $ — $ — $ 11,864 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 262,318 $ — $ 262,318 Special Mention — — — — — 128 — 128 Substandard — — — — — 2,820 — 2,820 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 265,266 $ — $ 265,266 Consumer: Risk Rating Pass or not rated $ 17,151 $ 48,923 $ 29,201 $ 11,644 $ 12,524 $ 14,402 $ — $ 133,845 Special Mention — — — — — 11 — 11 Substandard — 38 64 199 240 — — 541 Doubtful — — — — — — — — Total $ 17,151 $ 48,961 $ 29,265 $ 11,843 $ 12,764 $ 14,413 $ — $ 134,397 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of June 30, 2020 2020 2019 2018 2017 Prior Cost Basis to Term Total Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 1,029,779 $ — $ 1,029,779 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 1,029,779 $ — $ 1,029,779 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 77 $ — $ 77 Special Mention — — — — — — — — Substandard — — — — — 212 — 212 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 289 $ — $ 289 RCS: Risk Rating Pass or not rated $ 7,098 $ 8,596 $ 3,622 $ 1,677 $ 2,779 $ 74,734 $ — $ 98,506 Special Mention — — — — — — — — Substandard — — — — — 695 — 695 Doubtful — — — — — — — — Total $ 7,098 $ 8,596 $ 3,622 $ 1,677 $ 2,779 $ 75,429 $ — $ 99,201 Grand Total: Risk Rating Pass or not rated $ 905,668 $ 837,387 $ 472,514 $ 433,100 $ 941,578 $ 1,383,397 $ 36,887 $ 5,010,531 Special Mention 1,628 2,421 196 1,627 12,902 139 2,846 21,759 Substandard 2,985 2,798 1,004 2,112 19,422 4,481 — 32,802 Doubtful — — — — — — — — Grand Total $ 910,281 $ 842,606 $ 473,714 $ 436,839 $ 973,902 $ 1,388,017 $ 39,733 $ 5,065,092 December 31, 2019 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 12,153 $ 14,441 $ — $ 140 $ 1,281 $ 28,015 Nonowner occupied — 487 1,285 — — — 1,772 Commercial real estate 1,286,623 4,623 11,123 — 631 — 1,303,000 Construction & land development 157,165 2,339 198 — — — 159,702 Commercial & industrial 473,094 2,152 1,968 — 22 — 477,236 Lease financing receivables 14,040 — — — — — 14,040 Home equity — — 3,276 — 4 6 3,286 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — 247 — — — 247 Other consumer — — 351 — — 2 353 Total Traditional Banking 1,930,922 21,754 32,889 — 797 1,289 1,987,651 Warehouse lines of credit 717,458 — — — — — 717,458 Total Core Banking 2,648,380 21,754 32,889 — 797 1,289 2,705,109 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — Other TRS loans — — 53 — — — 53 Republic Credit Solutions — — 355 — — — 355 Total Republic Processing Group — — 408 — — — 408 Total rated loans $ 2,648,380 $ 21,754 $ 33,297 $ — $ 797 $ 1,289 $ 2,705,517 *The above table excludes all non-classified residential real estate, home equity and consumer loans . Allowance for Credit Losses on Loans The following table presents the activity in the ACLL by portfolio class: ACLL Rollforward Three Months Ended June 30, 2020 2019 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 $ 9,387 $ (127) $ — $ 43 $ 9,303 $ 5,801 $ (442) $ (367) $ 221 $ 5,213 Nonowner occupied 2,165 107 — 2 2,274 1,720 48 (1) 8 1,775 Commercial real estate 13,381 3,187 (270) 2 16,300 10,235 329 — 2 10,566 Construction & land development 4,536 404 — — 4,940 2,443 467 — — 2,910 Commercial & industrial 2,541 15 (192) 41 2,405 3,235 983 — 3 4,221 Lease financing receivables 133 (8) — — 125 150 31 — — 181 Home equity 5,290 (178) — 12 5,124 3,337 (221) — 8 3,124 Consumer: Credit cards 978 16 (71) 5 928 1,079 14 (76) 11 1,028 Overdrafts 758 (189) (159) 78 488 892 250 (299) 51 894 Automobile loans 546 (74) — 1 473 768 (61) — 1 708 Other consumer 839 (49) (8) 35 817 512 29 (48) 56 549 Total Traditional Banking 40,554 3,104 (700) 219 43,177 30,172 1,427 (791) 361 31,169 Warehouse lines of credit 2,126 449 — — 2,575 1,397 417 — — 1,814 Total Core Banking 42,680 3,553 (700) 219 45,752 31,569 1,844 (791) 361 32,983 Republic Processing Group: Tax Refund Solutions: Easy Advances 15,270 4,305 (19,575) — — 13,381 39 (13,425) 5 — Other TRS loans 95 143 (28) 1 211 149 353 (264) (6) 232 Republic Credit Solutions 12,386 (1,443) (2,008) 199 9,134 12,862 2,224 (2,683) 365 12,768 Total Republic Processing Group 27,751 3,005 (21,611) 200 9,345 26,392 2,616 (16,372) 364 13,000 Total $ 70,431 $ 6,558 $ (22,311) $ 419 $ 55,097 $ 57,961 $ 4,460 $ (17,163) $ 725 $ 45,983 ACLL Rollforward Six Months Ended June 30, 2020 2019 Beginning ASC 326 Charge- Ending Beginning Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 4,729 $ 4,199 $ 320 $ (27) $ 82 $ 9,303 $ 6,035 $ (697) $ (384) $ 259 $ 5,213 Nonowner occupied 1,737 148 385 — 4 2,274 1,662 178 (73) 8 1,775 Commercial real estate 10,486 273 5,338 (270) 473 16,300 10,030 532 — 4 10,566 Construction & land development 2,152 1,447 1,341 — — 4,940 2,555 355 — — 2,910 Commercial & industrial 2,882 (1,318) 989 (192) 44 2,405 2,873 1,343 — 5 4,221 Lease financing receivables 147 — (22) — — 125 158 23 — — 181 Home equity 2,721 1,652 664 — 87 5,124 3,477 (378) (13) 38 3,124 Consumer: Credit cards 1,020 33 38 (177) 14 928 1,140 79 (226) 35 1,028 Overdrafts 1,169 — (311) (503) 133 488 1,102 269 (593) 116 894 Automobile loans 612 (7) (153) (8) 29 473 724 (23) — 7 708 Other consumer 550 307 (142) (45) 147 817 591 (65) (114) 137 549 Total Traditional Banking 28,205 6,734 8,447 (1,222) 1,013 43,177 30,347 1,616 (1,403) 609 31,169 Warehouse lines of credit 1,794 — 781 — — 2,575 1,172 642 — — 1,814 Total Core Banking 29,999 6,734 9,228 (1,222) 1,013 45,752 31,519 2,258 (1,403) 609 32,983 Republic Processing Group: Tax Refund Solutions: Easy Advances — — 19,533 (19,575) 42 — — 13,420 (13,425) 5 — Other TRS loans 234 — 48 (72) 1 211 107 406 (281) — 232 Republic Credit Solutions 13,118 — 263 (4,717) 470 9,134 13,049 5,607 (6,507) 619 12,768 Total Republic Processing Group 13,352 — 19,844 (24,364) 513 9,345 13,156 19,433 (20,213) 624 13,000 Total $ 43,351 $ 6,734 $ 29,072 $ (25,586) $ 1,526 $ 55,097 $ 44,675 $ 21,691 $ (21,616) $ 1,233 $ 45,983 The cumulative loss rate used as the basis for the estimate of ACLL at June 30, 2020 was primarily based on a static pool analysis of each of the Company’s loan pools using the Company’s loss experience from 2013 through 2019, adjusted for current and forecasted conditions that consider the economic impact of the COVID-19 pandemic and the public’s response to it. The U.S. unemployment rate rose from 4.4% in March 2020 to 11.1% in June 2020. As of June 30, 2020 the Company forecasted for the upcoming year that the U.S. unemployment rate would remain above 8% , and the Company’s loan losses would rise to levels consistent with this continued elevated level of U.S. unemployment. Furthermore, it is management’s expectation that the Company’s loss rates will immediately revert back after this one-year forecast to long-term historical averages, which include periods of economic expansion and contraction. Nonperforming Loans and Nonperforming Assets Detail of nonperforming loans, nonperforming assets and select credit quality ratios follows: (dollars in thousands) June 30, 2020 December 31, 2019 Loans on nonaccrual status* $ 19,884 $ 23,332 Loans past due 90-days-or-more and still on accrual** 535 157 Total nonperforming loans 20,419 23,489 Other real estate owned 2,194 113 Total nonperforming assets $ 22,613 $ 23,602 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.40 % 0.53 % Nonperforming assets to total loans (including OREO) 0.45 0.53 Nonperforming assets to total assets 0.35 0.42 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.40 % 0.54 % Nonperforming assets to total loans (including OREO) 0.44 0.54 Nonperforming assets to total assets 0.36 0.43 * Loans on nonaccrual status include collateral-dependent loans. ** Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. The following tables present 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, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Traditional Banking: Residential real estate: Owner occupied $ 14,106 $ 12,220 $ — $ — Nonowner occupied 952 623 — — Commercial real estate 881 6,865 — — Construction & land development — 143 — — Commercial & industrial 1,563 1,424 — — Lease financing receivables — — — — Home equity 2,209 1,865 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 152 179 — — Other consumer 21 13 — — Total Traditional Banking 19,884 23,332 — — Warehouse lines of credit — — — — Total Core Banking 19,884 23,332 — — Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — 182 53 Republic Credit Solutions — — 353 104 Total Republic Processing Group — — 535 157 Total $ 19,884 $ 23,332 $ 535 $ 157 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended Six Months Ended As of June 30, 2020 June 30, 2020 June 30, 2020 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 2,999 $ 11,107 $ 14,106 $ 169 $ 380 Nonowner occupied — 952 952 2 4 Commercial real estate 611 270 881 13 686 Construction & land development — — — — — Commercial & industrial — 1,563 1,563 3 9 Lease financing receivables — — — — — Home equity 133 2,076 2,209 14 14 Consumer 107 66 173 2 2 Total $ 3,850 $ 16,034 $ 19,884 $ 203 $ 1,095 * Includes interest income for loans on nonaccrual loans as of the beginning of the period that were paid off during the period. Nonaccrual loans and loans past due 90-days-or-more and still on accrual include both smaller balance, primarily retail, homogeneous loans. Nonaccrual loans are typically returned to accrual status when all the principal and interest amounts contractually due are brought current and held current for six consecutive months and future contractual payments are reasonably assured. TDRs on nonaccrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance under the modified terms. Delinquent Loans The following tables present the aging of the recorded investment in loans by class of loans: 30 - 59 60 - 89 90 or More June 30, 2020 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,527 $ 576 $ 2,111 $ 4,214 $ 881,111 $ 885,325 Nonowner occupied — — 539 539 254,161 254,700 Commercial real estate — — 543 543 1,321,747 1,322,290 Construction & land development — — — — 157,254 157,254 Commercial & industrial — 490 872 1,362 903,365 904,727 Lease financing receivables — — — — 11,864 11,864 Home equity 397 23 633 1,053 264,213 265,266 Consumer: Credit cards 2 5 — 7 14,258 14,265 Overdrafts 91 3 — 94 394 488 Automobile loans — 12 15 27 41,032 41,059 Other consumer 3 19 — 22 78,563 78,585 Total Traditional Banking 2,020 1,128 4,713 7,861 3,927,962 3,935,823 Warehouse lines of credit — — — — 1,029,779 1,029,779 Total Core Banking 2,020 1,128 4,713 7,861 4,957,741 4,965,602 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans — 77 182 259 30 289 Republic Credit Solutions 4,371 1,202 353 5,926 93,275 99,201 Total Republic Processing Group 4,371 1,279 535 6,185 93,305 99,490 Total $ 6,391 $ 2,407 $ 5,248 $ 14,046 $ 5,051,046 $ 5,065,092 Delinquency ratio*** 0.13 % 0.05 % 0.10 % 0.28 % * All loans past due 90-days-or-more, excluding small balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. 30 - 59 60 - 89 90 or More December 31, 2019 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,460 $ 1,153 $ 1,821 $ 4,434 $ 945,134 $ 949,568 Nonowner occupied — — 539 539 258,264 258,803 Commercial real estate 155 — 3,145 3,300 1,299,700 1,303,000 Construction & land development — — — — 159,702 159,702 Commercial & industrial 200 128 1,027 1,355 475,881 477,236 Lease financing receivables — — — — 14,040 14,040 Home equity 1,810 166 942 2,918 290,268 293,186 Consumer: Credit cards 80 75 — 155 17,681 17,836 Overdrafts 278 4 1 283 1,239 1,522 Automobile loans 16 15 18 49 52,874 52,923 Other consumer 2 6 1 9 68,106 68,115 Total Traditional Banking 4,001 1,547 7,494 13,042 3,582,889 3,595,931 Warehouse lines of credit — — — — 717,458 717,458 Total Core Banking 4,001 1,547 7,494 13,042 4,300,347 4,313,389 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans 35 31 53 119 14,246 14,365 Republic Credit Solutions 6,054 1,485 104 7,643 97,754 105,397 Total Republic Processing Group 6,089 1,516 157 7,762 112,000 119,762 Total $ 10,090 $ 3,063 $ 7,651 $ 20,804 $ 4,412,347 $ 4,433,151 Delinquency ratio*** 0.23 % 0.07 % 0.17 % 0.47 % * All loans past due 90-days-or-more, excluding smaller balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. Collateral-Dependent Loans The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2020: Secured Secured June 30, 2020 by Real by Personal (dollars in thousands) Estate Property Traditional Banking: Residential real estate: Owner occupied $ 17,044 $ — Nonowner occupied 1,423 — Commercial real estate 8,571 — Construction & land development 138 — Commercial & industrial — 1,601 Lease financing receivables — — Home equity 2,841 — Consumer — 523 Total Traditional Banking $ 30,017 $ 2,124 Collateral-dependent loans are generally secured by real estate or personal property. If there is insufficient collateral value to secure the Company’s recorded investment in these loans, they are charged down to collateral value less estimated selling cost, when selling costs are applicable. Selling costs range from , with those percentages based on annual studies performed by the Company. Impaired Loans Information regarding the Bank’s impaired loans follows: (in thousands) December 31, 2019 Loans with no allocated ACLL $ 33,061 Loans with allocated ACLL 17,289 Total recorded investment in impaired loans $ 50,350 Amount of ACLL allocated $ 2,512 The following table presents the balance in the ACLL and the recorded investment in loans by portfolio class based on impairment method as of December 31, 2019: Allowance for Credit Losses on Loans Loans Individually PCI with Individually PCI with PCI without December 31, 2019 Evaluated Collectively Post-Acquisition Total Evaluated Collectively Post-Acquisition Post-Acquisition Total Allowance to (dollars in thousands) Excluding PCI Evaluated Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Total Loans Traditional Banking: Residential real estate: Owner occupied $ 1,207 $ 3,337 $ 185 $ 4,729 $ 25,384 $ 922,764 $ 1,420 $ — $ 949,568 0.50 % Nonowner occupied — 1,737 — 1,737 1,448 257,355 — — 258,803 0.67 Commercial real estate 426 10,054 6 10,486 15,144 1,287,225 631 — 1,303,000 0.80 Construction & land development — 2,152 — 2,152 198 159,504 — — 159,702 1.35 Commercial & industrial 22 2,860 — 2,882 1,989 475,225 — 22 477,236 0.60 Lease financing receivables — 147 — 147 — 14,040 — — 14,040 1.05 Home equity 174 2,547 — 2,721 3,276 289,900 10 — 293,186 0.93 Consumer: Credit cards — 1,020 — 1,020 — 17,836 — — 17,836 5.72 Overdrafts — 1,169 — 1,169 — 1,522 — — 1,522 76.81 Automobile loans 43 569 — 612 247 52,676 — — 52,923 1.16 Other consumer 333 217 — 550 350 67,762 2 1 68,115 0.81 Total Traditional Banking 2,205 25,809 191 28,205 48,036 3,545,809 2,063 23 3,595,931 0.78 W |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2020 | |
DEPOSITS | |
DEPOSITS | 5. DEPOSITS The composition of the deposit portfolio follows: (in thousands) June 30, 2020 December 31, 2019 Core Bank: Demand $ 1,124,321 $ 922,972 Money market accounts 748,832 793,950 Savings 207,729 175,588 Individual retirement accounts (1) 51,715 51,548 Time deposits, $250 and over (1) 111,725 104,412 Other certificates of deposit (1) 258,884 248,161 Reciprocal money market and time deposits (1) 290,441 189,774 Brokered deposits (1) 400,000 200,072 Total Core Bank interest-bearing deposits 3,193,647 2,686,477 Total Core Bank noninterest-bearing deposits 1,431,866 981,164 Total Core Bank deposits 4,625,513 3,667,641 Republic Processing Group: Money market accounts 3,038 66,152 Total RPG interest-bearing deposits 3,038 66,152 Brokered prepaid card deposits 256,703 9,128 Other noninterest-bearing deposits 132,831 43,087 Total RPG noninterest-bearing deposits 389,534 52,215 Total RPG deposits 392,572 118,367 Total deposits $ 5,018,085 $ 3,786,008 (1) Includes time deposits. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 6 Months Ended |
Jun. 30, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 6. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional securities. To mitigate the risk of under collateralization, the Bank typically pledges at least two percent more in securities than the associated repurchase agreements. All such securities are under the Bank’s control. At June 30, 2020 and December 31, 2019, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase follows: (dollars in thousands) June 30, 2020 December 31, 2019 Outstanding balance at end of period $ 177,397 $ 167,617 Weighted average interest rate at end of period 0.04 % 0.32 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 7,515 $ 70,015 Mortgage backed securities - residential 167,945 134,265 Collateralized mortgage obligations 12,915 17,030 Total securities pledged $ 188,375 $ 221,310 Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2020 2019 2020 2019 Average outstanding balance during the period $ 176,541 $ 220,189 $ 192,755 $ 225,864 Average interest rate during the period 0.04 % 0.60 % 0.14 % 0.67 % Maximum outstanding at any month end during the period $ 177,397 $ 226,002 $ 177,397 $ 226,002 |
RIGHT-OF-USE ASSETS AND OPERATI
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 6 Months Ended |
Jun. 30, 2020 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 7. RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES The Company records as operating lease liabilities the present value of its required minimum lease payments plus any amounts probable of being owed under a residual value guarantee. Offsetting these operating lease liabilities, the Company records right-of-use assets for the underlying leased property. At June 30, 2020, the Company was under 49 separate and distinct operating lease contracts to lease the land and/or buildings for 38 of its offices, with 15 such operating leases contracted with a related party of the Company. As of June 30, 2020, payments on Prior to the release of these financial statements, the Company executed a new operating lease for its Corporate Center location that commences in August 2020. The estimated right-of-use asset and lease liability to be recorded for this lease is approximately $19 million. The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within the category “Occupancy and equipment, net” for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Operating lease expense: Related Party: Variable lease expense $ 1,183 $ 1,156 $ 2,371 $ 2,314 Fixed lease expense 23 10 47 18 Third Party: Variable lease expense 180 211 361 435 Fixed lease expense 368 384 738 745 Short-term lease expense — 12 4 26 Total operating lease expense $ 1,754 $ 1,773 $ 3,521 $ 3,538 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,793 $ 1,794 $ 3,630 3,577 Short-term lease payments not included in the measurement of lease liabilities — 12 4 26 The following table presents the weighted average remaining term and weighted average discount rate for the Company’s non-short-term operating leases as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Weighted average remaining term in years 7.99 8.02 Weighted average discount rate 3.55 % 3.46 % The following table presents a maturity schedule of the Company’s operating lease liabilities based on undiscounted cash flows, and a reconciliation of those undiscounted cash flows to the operating lease liabilities recognized on the Company’s balance sheet as of June 30, 2020: Year (in thousands) Related Party Third Party Total 2020 $ 2,283 $ 1,345 $ 3,628 2021 4,194 2,525 6,719 2022 3,332 2,120 5,452 2023 3,332 1,600 4,932 2024 3,205 1,173 4,378 Thereafter 12,718 3,376 16,094 Total undiscounted cash flows $ 29,064 $ 12,139 $ 41,203 Discount applied to cash flows (4,103) (1,529) (5,632) Total discounted cash flows reported as operating lease liabilities $ 24,961 $ 10,610 $ 35,571 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 6 Months Ended |
Jun. 30, 2020 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 8. FEDERAL HOME LOAN BANK ADVANCES FHLB advances were as follows: (in thousands) June 30, 2020 December 31, 2019 Overnight advances $ — $ 200,000 Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% 10,000 10,000 Fixed interest rate advances 127,500 540,000 Total FHLB advances $ 137,500 $ 750,000 Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity. FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At June 30, 2020 and December 31, 2019, Republic had available borrowing capacity of $814 million and $259 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $125 million and $125 million available through various other financial institutions as of June 30, 2020 and December 31, 2019. 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 2020 (Overnight) $ — — % 2020 (Term) 67,500 1.58 2021 30,000 1.93 2022 20,000 2.12 2023 20,000 2.56 2024 — — Thereafter — — Total $ 137,500 1.87 % Due to their nature, the Bank considers average balance information more meaningful than period-end balances for its overnight borrowings from the FHLB. Information regarding overnight FHLB advances follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2020 2019 2020 2019 Average outstanding balance during the period $ 42,198 $ 448,077 $ 43,681 $ 331,768 Average interest rate during the period 0.22 % 2.50 % 0.92 % 2.49 % Maximum outstanding at any month end during the period $ 165,000 $ 785,000 $ 250,000 $ 785,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: (in thousands) June 30, 2020 December 31, 2019 First lien, single family residential real estate $ 1,031,671 $ 1,099,941 Home equity lines of credit 250,257 274,990 |
OFF BALANCE SHEET RISKS, COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2020 | |
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 COVID-19 Pandemic COVID-19 was declared a pandemic by the World Health Organization on March 11, 2020. Since March 2020, to slow the spread of COVID-19, jurisdictions within the U.S. have imposed economic and social restrictions on the population in general and non-essential businesses in particular. These restrictions in combination with the public’s response to them effectively suspended or curtailed economic activity for many industries across the U.S., with industries in the Company’s market footprint impacted. The potential financial impact of the COVID-19 pandemic is unknown at this time; however, this pandemic and the public’s response to it could cause the Company to experience a material adverse impact on its business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on the Company’s intangible assets, investments, loans, MSRs, deferred tax assets, or counterparty risk derivatives. Commitments to Extend Credit The Company, in the normal course of business, is party to financial instruments with off balance sheet risk. These financial instruments primarily include commitments to extend credit and standby letters of credit. The contract or notional amounts of these instruments reflect the potential future obligations of the Company pursuant to those financial instruments. Creditworthiness for all instruments is evaluated on a case-by-case basis in accordance with the Company’s credit policies. Collateral from the client may be required based on the Company’s credit evaluation of the client and may include business assets of commercial clients, as well as personal property and real estate of individual clients or guarantors. The Company also extends binding commitments to clients and prospective clients. Such commitments assure a borrower of financing for a specified period of time at a specified rate. The risk to the Company under such loan commitments is limited by the terms of the contracts. For example, the Company may not be obligated to advance funds if the client’s financial condition deteriorates or if the client fails to meet specific covenants. An approved but unfunded loan commitment represents a potential credit risk and a liquidity risk, since the Company’s client(s) may demand immediate cash that would require funding. In addition, unfunded loan commitments represent interest rate risk as market interest rates may rise above the rate committed to the Company’s client. Since a portion of these loan commitments normally expire unused, the total amount of outstanding commitments at any point in time may not require future funding. The following table presents the Company’s commitments, exclusive of Mortgage Banking loan commitments, for each period ended: (in thousands) June 30, 2020 December 31, 2019 Unused warehouse lines of credit $ 174,220 $ 436,541 Unused home equity lines of credit 362,177 363,195 Unused loan commitments - other 803,204 757,657 Standby letters of credit 10,791 11,252 FHLB letter of credit 643 2,485 Total commitments $ 1,351,035 $ 1,571,130 Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third-party. The terms and risk of loss involved in issuing standby letters of credit are similar to those involved in issuing loan commitments and extending credit. In addition to credit risk, the Company also has liquidity risk associated with standby letters of credit because funding for these obligations could be required immediately. The Company does not deem this risk to be material. The following tables present a rollforward of the ACLC for the three and six months ended June 30, 2020: ACLC Rollforward Three Months Ended June 30, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ 55 $ — $ 3 $ — $ — $ 58 Unused home equity lines of credit 112 — 12 — — 124 Unused loan commitments - other 391 — 63 — — 454 Total $ 558 $ — $ 78 $ — $ — $ 636 The Company increased its ACLC during the three months ended June 30, 2020 based on higher loss expectations on expected usage of unused commitments. Current and forecasted economic concerns driven by the COVID-19 pandemic drove the Company’s higher loss expectations. ACLC Rollforward Six Months Ended June 30, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ — $ 55 $ 3 $ — $ — $ 58 Unused home equity lines of credit — 89 35 — — 124 Unused loan commitments - other — 312 142 — — 454 Total $ — $ 456 $ 180 $ — $ — $ 636 The Company increased its ACLC during the six months ended June 30, 2020 based on higher loss expectations on expected usage of unused commitments. Current and forecasted economic concerns driven by the COVID-19 pandemic drove the Company’s higher loss expectations. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2020 | |
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: Level 2: Level 3: The Bank used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Available-for-sale debt securities: The Bank’s private label mortgage backed security remains illiquid, and as such, the Bank classifies this security as a Level 3 security in accordance with ASC Topic 820, Fair Value Measurement See in this section of the filing under Footnote 2 “Investment Securities” for additional discussion regarding the Bank’s private label mortgage backed security. The Company acquired its TRUP investment in 2015 and considered the most recent bid price for the same instrument to approximate market value at June 30, 2020. The Company’s TRUP investment is considered highly illiquid and also valued using Level 3 inputs, as the most recent bid price for this instrument is not always considered generally observable. Equity securities with readily determinable fair value: The fair value of the Company’s Freddie Mac preferred stock is determined by matrix pricing, as described above (Level 2 inputs). Mortgage loans held for sale, at fair value: Consumer loans held for sale, at fair value: In December 2019, the Bank began offering RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intent to sell sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. Fair value for these loans is based on contractual sales terms, Level 3 inputs. Consumer loans held for investment, at fair value: Mortgage Banking derivatives Interest rate swap agreements: Collateral-dependent loans: Mortgage servicing rights: Assets and liabilities measured at fair value on a recurring basis Fair Value Measurements at June 30, 2020 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Financial assets: Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ 139,796 $ — $ 139,796 Private label mortgage backed security — — 3,023 3,023 Mortgage backed securities - residential — 273,281 — 273,281 Collateralized mortgage obligations — 57,598 — 57,598 Corporate bonds — 9,649 — 9,649 Trust preferred security — — 3,500 3,500 Total available-for-sale debt securities $ — $ 480,324 $ 6,523 $ 486,847 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 485 $ — $ 485 Community Reinvestment Act mutual fund 2,530 — — 2,530 Total equity securities with readily determinable fair value $ 2,530 $ 485 $ — $ 3,015 Mortgage loans held for sale $ — $ 40,028 $ — $ 40,028 Consumer loans held for sale — — 164 164 Consumer loans held for investment — — 667 667 Rate lock loan commitments — 4,436 — 4,436 Interest rate swap agreements — 15,324 — 15,324 Financial liabilities: Mandatory forward contracts $ — $ 659 $ — $ 659 Interest rate swap agreements — 15,491 — 15,491 Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Financial assets: Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ 134,640 $ — $ 134,640 Private label mortgage backed security — — 3,495 3,495 Mortgage backed securities - residential — 255,847 — 255,847 Collateralized mortgage obligations — 63,371 — 63,371 Corporate bonds — 10,002 — 10,002 Trust preferred security — — 4,000 4,000 Total available-for-sale debt securities $ — $ 463,860 $ 7,495 $ 471,355 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 714 $ — $ 714 Community Reinvestment Act mutual fund 2,474 — — 2,474 Total equity securities with readily determinable fair value $ 2,474 $ 714 $ — $ 3,188 Mortgage loans held for sale $ — $ 19,224 $ — $ 19,224 Consumer loans held for sale — 598 598 Consumer loans held for investment — — 998 998 Rate lock loan commitments — 789 — 789 Interest rate swap agreements — 5,062 — 5,062 Financial liabilities: Mandatory forward contracts $ — $ 131 $ — $ 131 Interest rate swap agreements — 5,166 — 5,166 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, 2020 and 2019. Private Label Mortgage Backed Security The following table presents a reconciliation of the Bank’s private label mortgage backed security measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance, beginning of period $ 3,249 $ 3,660 $ 3,495 $ 3,712 Total gains or losses included in earnings: Net change in unrealized gain (107) (2) (107) (34) Recovery of actual losses previously recorded — 38 — 75 Principal paydowns (119) (81) (365) (138) Balance, end of period $ 3,023 $ 3,615 $ 3,023 $ 3,615 The fair value of the Bank’s single private label mortgage backed security is supported by analysis prepared by an independent third party. The third party’s approach to determining fair value involved several steps: 1) detailed collateral analysis of the underlying mortgages, including consideration of geographic location, original loan-to-value and the weighted average FICO score of the borrowers; 2) collateral performance projections for each pool of mortgages underlying the security (probability of default, severity of default, and prepayment probabilities) and 3) discounted cash flow modeling. The significant unobservable inputs in the fair value measurement of the Bank’s single private label mortgage backed security are prepayment rates, probability of default and loss severity in the event of default. Significant fluctuations in any of those inputs in isolation would result in a significantly different fair value measurement. Quantitative information about recurring Level 3 fair value measurement inputs for the Bank’s single private label mortgage backed security follows: Fair Valuation June 30, 2020 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 3,023 Discounted cash flow (1) Constant prepayment rate 3.0% - 4.5% (2) Probability of default 1.8% - 6.9% (3) Loss severity 50% - 75% Fair Valuation December 31, 2019 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 3,495 Discounted cash flow (1) Constant prepayment rate 2.3% - 5.0% (2) Probability of default 1.8% - 6.3% (3) Loss severity 50% - 75% Trust Preferred Security The following table presents a reconciliation of the Company’s TRUP measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance, beginning of period $ 4,100 $ 4,100 $ 4,000 $ 4,075 Total gains or losses included in earnings: Discount accretion 11 11 22 21 Net change in unrealized gain (611) (111) (522) (96) Balance, end of period $ 3,500 $ 4,000 $ 3,500 $ 4,000 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, 2020 and December 31, 2019. The aggregate fair value, contractual balance, and unrealized gain were as follows: (in thousands) June 30, 2020 December 31, 2019 Aggregate fair value $ 40,028 $ 19,224 Contractual balance 38,238 18,690 Unrealized gain 1,790 534 The total amount of gains and losses from changes in fair value included in earnings for the three and six months ended June 30, 2020 and 2019 for mortgage loans held for sale are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Interest income $ 419 $ 170 $ 632 $ 272 Change in fair value 614 128 1,256 46 Total included in earnings $ 1,033 $ 298 $ 1,888 $ 318 Consumer Loans Held for Sale RCS carries loans originated through its installment loan program at fair value. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of June 30, 2020 and December 31, 2019. The significant unobservable inputs in the fair value measurement of the Bank’s short-term installment loans are the net contractual premiums and level of loans sold at a discount price. Significant fluctuations in any of those inputs in isolation would result in a significantly lower/higher fair value measurement. The following table presents quantitative information about recurring Level 3 fair value measurement inputs for installment loans: Fair Valuation June 30, 2020 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 164 Contract Terms (1) Net Premium 1.4% (2) Discounted Sales 5.00% Fair Valuation December 31, 2019 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 598 Contract Terms (1) Net Premium 1.4% (2) Discounted Sales 5.00% The aggregate fair value, contractual balance, and unrealized gain on consumer loans held for sale, at fair value, were as follows: (in thousands) June 30, 2020 December 31, 2019 Aggregate fair value $ 164 $ 598 Contractual balance 163 593 Unrealized (loss) gain 1 5 The total amount of net gains from changes in fair value included in earnings for consumer loans held for sale, at fair value, are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Interest income $ 45 $ — $ 1,521 $ — Change in fair value (22) — (4) — Total included in earnings $ 23 $ — $ 1,517 $ — Assets measured at fair value on a non-recurring basis Fair Value Measurements at June 30, 2020 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Collateral-dependent loans: Residential real estate: Owner occupied $ — $ — $ 3,655 $ 3,655 Commercial real estate — — 98 98 Commercial & industrial — — 1,055 1,055 Home equity — — 323 323 Total collateral-dependent loans* $ — $ — $ 5,131 $ 5,131 Mortgage servicing rights $ — $ 4,062 $ — $ 4,062 Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Impaired loans: Residential real estate: Owner occupied $ — $ — $ 3,598 $ 3,598 Nonowner occupied — — 14 14 Commercial real estate — — 3,276 3,276 Commercial & industrial — — 1,562 1,562 Home equity — — 470 470 Total impaired loans* $ — $ — $ 8,920 $ 8,920 * The difference between the carrying value and the fair value of collateral-dependent/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, 2020 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 3,655 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 51% (11%) Collateral-dependent loans - commercial real estate $ 98 Sales comparison approach Adjustments determined for differences between comparable sales 7% (7%) Collateral-dependent loans - commercial & industrial $ 1,055 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 29% ( Collateral-dependent loans - home equity $ 323 Sales comparison approach Adjustments determined for differences between comparable sales 2% (2%) Range Fair Valuation Unobservable (Weighted December 31, 2019 (dollars in thousands) Value Technique Inputs Average) Impaired loans - residential real estate owner occupied $ 3,598 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 58% (12%) Impaired loans - residential real estate nonowner occupied $ 14 Sales comparison approach Adjustments determined for differences between comparable sales 5% (5%) Impaired loans - commercial real estate $ 3,276 Sales comparison approach Adjustments determined for differences between comparable sales 1% - 10% (4%) Impaired loans - commercial & industrial $ 1,562 Income approach Adjustments for differences between net operating income expectations 3% - 50% ( Impaired loans - home equity $ 470 Sales comparison approach Adjustments determined for differences between comparable sales 2% (2%) Collateral Dependent/Impaired Loans Collateral-dependent impaired loans are generally measured for loss using the fair value for reasonable disposition of the underlying collateral. The Bank’s practice is to obtain new or updated appraisals or BPOs on the loans subject to the initial 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 loss review, the Bank may apply a discount to the existing value of an old valuation to reflect the property’s current estimated value if it is believed to have deteriorated in either: (I) the physical or economic aspects of the subject property or (ii) material changes in market conditions. The 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. Collateral-dependent loans are valued within Level 3 of the fair value hierarchy. Collateral-dependent/impaired loans are as follows: (in thousands) June 30, 2020 December 31, 2019 Carrying amount of loans measured at fair value $ 4,331 $ 7,729 Estimated selling costs considered in carrying amount 802 1,193 Valuation allowance (2) (2) Total fair value $ 5,131 $ 8,920 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Provision on collateral-dependent, impaired loans $ 98 $ 5 $ 128 $ 27 The carrying amounts and estimated exit price fair values of all financial instruments follow: Fair Value Measurements at June 30, 2020: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 560,195 $ 560,195 $ — $ — $ 560,195 Available-for-sale debt securities 486,847 — 480,324 6,523 486,847 Held-to-maturity debt securities 55,745 — 56,266 — 56,266 Equity securities with readily determinable fair values 3,015 2,530 485 — 3,015 Mortgage loans held for sale, at fair value 40,028 — 40,028 — 40,028 Consumer loans held for sale, at fair value 164 — — 164 164 Consumer loans held for sale, at the lower of cost or fair value 12,800 — — 12,800 12,800 Loans, net 5,009,995 — — 4,979,895 4,979,895 Federal Home Loan Bank stock 25,629 — — — NA Accrued interest receivable 11,146 — 11,146 — 11,146 Rate lock loan commitments 4,436 — 4,436 — 4,436 Interest rate swap agreements 15,324 — 15,324 — 15,324 Liabilities: Noninterest-bearing deposits $ 1,821,400 — $ 1,821,400 — $ 1,821,400 Transaction deposits 2,305,085 — 2,305,085 — 2,305,085 Time deposits 891,600 — 901,588 — 901,588 Securities sold under agreements to repurchase and other short-term borrowings 177,397 — 177,397 — 177,397 Federal Home Loan Bank advances 137,500 — 139,831 — 139,831 Subordinated note 41,240 — 31,805 — 31,805 Accrued interest payable 1,117 — 1,117 — 1,117 Mandatory forward contracts 659 — 659 — 659 Interest rate swap agreements 15,491 — 15,491 — 15,491 Fair Value Measurements at December 31, 2019: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 385,303 $ 385,303 $ — $ — $ 385,303 Available-for-sale debt securities 471,355 — 463,860 7,495 471,355 Held-to-maturity debt securities 62,531 — 63,156 — 63,156 Equity securities with readily determinable fair values 3,188 2,474 714 — 3,188 Mortgage loans held for sale, at fair value 19,224 — 19,224 — 19,224 Consumer loans held for sale, at fair value 598 — — 598 598 Consumer loans held for sale, at the lower of cost or fair value 11,646 — — 11,646 11,646 Loans, net 4,389,800 — — 4,381,396 4,381,396 Federal Home Loan Bank stock 30,831 — — — NA Accrued interest receivable 12,937 — 12,937 — 12,937 Rate lock loan commitments 789 — 789 — 789 Interest rate swap agreements 5,062 — 5,062 — 5,062 Liabilities: Noninterest-bearing deposits $ 1,033,379 — $ 1,033,379 — $ 1,033,379 Transaction deposits 2,018,687 — 2,018,687 — 2,018,687 Time deposits 733,942 — 737,733 — 737,733 Securities sold under agreements to repurchase and other short-term borrowings 167,617 — 167,617 — 167,617 Federal Home Loan Bank advances 750,000 — 749,667 — 749,667 Subordinated note 41,240 — 32,587 — 32,587 Accrued interest payable 2,802 — 2,802 — 2,802 Mandatory forward contracts 131 — 131 — 131 Interest rate swap agreements 5,166 — 5,166 — 5,166 |
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 6 Months Ended |
Jun. 30, 2020 | |
MORTGAGE BANKING ACTIVITIES | |
MORTGAGE BANKING ACTIVITIES | 11. MORTGAGE BANKING ACTIVITIES Mortgage Banking activities primarily include residential mortgage originations and servicing. Activity for mortgage loans held for sale, at fair value, was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance, beginning of period $ 39,384 $ 11,313 $ 19,224 $ 8,971 Origination of mortgage loans held for sale 218,668 81,982 343,941 122,696 Proceeds from the sale of mortgage loans held for sale (226,723) (81,630) (336,641) (121,262) Net gain on sale of mortgage loans held for sale 8,699 2,218 13,504 3,478 Balance, end of period $ 40,028 $ 13,883 $ 40,028 $ 13,883 The following table presents the components of Mortgage Banking income: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Net gain realized on sale of mortgage loans held for sale $ 6,050 $ 1,896 $ 9,128 $ 2,771 Net change in fair value recognized on loans held for sale 614 128 1,256 46 Net change in fair value recognized on rate lock loan commitments (132) 379 3,647 866 Net change in fair value recognized on forward contracts 2,167 (185) (527) (205) Net gain recognized 8,699 2,218 13,504 3,478 Loan servicing income 707 609 1,382 1,210 Amortization of mortgage servicing rights (1,008) (411) (1,593) (733) Change in mortgage servicing rights valuation allowance — — (100) — Net servicing income recognized (301) 198 (311) 477 Total Mortgage Banking income $ 8,398 $ 2,416 $ 13,193 $ 3,955 Activity for capitalized mortgage servicing rights was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance, beginning of period $ 5,994 $ 4,935 $ 5,888 $ 4,919 Additions 1,725 634 2,516 972 Amortized to expense (1,008) (411) (1,593) (733) Change in valuation allowance — — (100) — Balance, end of period $ 6,711 $ 5,158 $ 6,711 $ 5,158 Activity in the valuation allowance for capitalized mortgage servicing rights follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Beginning valuation allowance $ — $ — $ — $ — Charge (credit) during the period — — 100 — Ending valuation allowance $ — $ — $ 100 $ — Other information relating to mortgage servicing rights follows: (in thousands) June 30, 2020 December 31, 2019 Fair value of mortgage servicing rights portfolio $ 6,892 $ 9,068 Monthly weighted average prepayment rate of unpaid principal balance* 330 % 202 % Discount rate 10.00 % 10.00 % Weighted average foreclosure rate 0.13 % 0.14 % Weighted average life in years 4.12 5.76 * 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 lock loan commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before expiration; and the time period required to close and sell loans. The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives as of the period ends presented: June 30, 2020 December 31, 2019 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 $ 38,238 $ 40,028 $ 18,690 $ 19,224 Included in other assets: Rate lock loan commitments $ 110,176 $ 4,436 $ 32,776 $ 789 Included in other liabilities: Mandatory forward contracts $ 128,040 $ 659 $ 44,919 $ 131 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 6 Months Ended |
Jun. 30, 2020 | |
INTEREST RATE SWAPS | |
INTEREST RATE SWAPS | 12. INTEREST RATE SWAPS Interest rate swap derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a cash flow hedging relationship. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss is recorded as a component of OCI. For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Interest Rate Swaps Used as Cash Flow Hedges The Bank entered into two interest rate swap agreements (“swaps”) during 2013 as part of its interest rate risk management strategy. The Bank designated the swaps as cash flow hedges intended to reduce the variability in cash flows attributable to either FHLB advances tied to the 3-month LIBOR or the overall changes in cash flows on certain money market deposit accounts tied to 1-month LIBOR. The counterparty for both swaps met the Bank’s credit standards and the Bank believes that the credit risk inherent in the swap contracts is not significant. The swaps were determined to be fully effective during all periods presented; therefore, no amount of ineffectiveness was included in net income. The aggregate fair value of the swaps is recorded in other liabilities with changes in fair value recorded in OCI. The amount included in AOCI would be reclassified to current earnings should the hedge no longer be considered effective. The Bank expects the hedges to remain fully effective during the remaining term of the swaps. The following table reflects information about swaps designated as cash flow hedges: June 30, 2020 December 31, 2019 Unrealized Unrealized Notional Pay Receive Assets / Gain (Loss) Assets / Gain (Loss) (dollars in thousands) Amount Rate Rate Term (Liabilities) in AOCI (Liabilities) in AOCI Interest rate swap on money market deposits $ 10,000 2.17 % 1M LIBOR 12/2013 - 12/2020 $ (68) $ (51) $ (46) $ (34) Interest rate swap on FHLB advance 10,000 2.33 % 3M LIBOR 12/2013 - 12/2020 (99) (74) (58) (43) Total $ 20,000 $ (167) $ (125) $ (104) $ (77) The following table reflects the total interest expense recorded on these swap transactions in the consolidated statements of income: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Interest rate swap on money market deposits $ 38 $ (8) $ 55 $ (16) Interest rate swap on FHLB advance 41 (5) 53 (16) Total interest (benefit) expense on swap transactions $ 79 $ (13) $ 108 $ (32) The following table presents the net gains (losses) recorded in OCI and the consolidated statements of income relating to the swaps designated as cash flow hedges: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Gains (losses) recognized in OCI on derivative (effective portion) $ (10) $ (146) $ (171) $ (215) Gains (losses) reclassified from OCI on derivative (effective portion) (79) 13 (108) 32 Gains (losses) recognized in income on derivative (ineffective portion) — — — — The estimated net amount of the existing losses reported in AOCI at June 30, 2020 expected to be reclassified into earnings within the next 12 months is considered immaterial. Non-hedge Interest Rate Swaps The Bank enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Bank enters into offsetting positions in order to minimize the Bank’s interest rate risk. These swaps are derivatives, but are not designated as hedging instruments, and therefore changes in fair value are reported in current year earnings. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or client owes the Bank, and results in credit risk to the Bank. When the fair value of a derivative instrument contract is negative, the Bank owes the client or counterparty, and therefore, has no credit risk. A summary of the Bank’s interest rate swaps related to clients is included in the following table: June 30, 2020 December 31, 2019 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 141,474 $ 15,324 $ 95,411 $ 5,062 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed — — 6,640 (55) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 141,474 $ 15,324 $ 102,051 $ 5,007 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 141,474 (15,324) 102,051 (5,007) Total $ 282,948 $ — $ 204,102 $ — The Bank is required to pledge securities as collateral when the Bank is in a net loss position for all swaps with dealer counterparties when such net loss positions exceed $250,000. The fair value of cash or investment securities pledged as collateral by the Bank to cover such net loss positions totaled $15.7 million and $7.5 million at June 30, 2020 and December 31, 2019. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The Company calculates earnings per share under the two-class method. Under the two-class method, earnings available to common shareholders for the period are allocated between Class A Common Stock and Class B Common Stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. The difference in earnings per share between the two classes of common stock results from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock. A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2020 2019 2020 2019 Net income $ 15,804 $ 18,007 $ 42,501 $ 47,523 Dividends declared on Common Stock: Class A Shares (5,347) (4,932) (10,705) (9,865) Class B Shares (572) (530) (1,144) (1,061) Undistributed net income for basic earnings per share 9,885 12,545 30,652 36,597 Weighted average potential dividends on Class A shares upon exercise of dilutive options (7) (32) (24) (68) Undistributed net income for diluted earnings per share $ 9,878 $ 12,513 $ 30,628 $ 36,529 Weighted average shares outstanding: Class A Shares 18,804 18,804 18,821 18,785 Class B Shares 2,200 2,212 2,202 2,212 Effect of dilutive securities on Class A Shares outstanding 25 122 42 128 Weighted average shares outstanding including dilutive securities 21,029 21,138 21,065 21,125 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.29 $ 0.26 $ 0.57 $ 0.53 Undistributed earnings per share* 0.48 0.60 1.47 1.76 Total basic earnings per share - Class A Common Stock $ 0.77 $ 0.86 $ 2.04 $ 2.29 Class B Common Stock: Per share dividends distributed $ 0.26 $ 0.24 $ 0.52 $ 0.48 Undistributed earnings per share* 0.43 0.55 1.34 1.60 Total basic earnings per share - Class B Common Stock $ 0.69 $ 0.79 $ 1.86 $ 2.08 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.29 $ 0.26 $ 0.57 $ 0.53 Undistributed earnings per share* 0.47 0.60 1.47 1.75 Total diluted earnings per share - Class A Common Stock $ 0.76 $ 0.86 $ 2.04 $ 2.28 Class B Common Stock: Per share dividends distributed $ 0.26 $ 0.24 $ 0.52 $ 0.48 Undistributed earnings per share* 0.43 0.54 1.33 1.59 Total diluted earnings per share - Class B Common Stock $ 0.69 $ 0.78 $ 1.85 $ 2.07 * To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Antidilutive stock options 427,000 160,000 247,000 165,000 Average antidilutive stock options 365,000 156,000 172,000 159,000 |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2020 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 14. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Available-for-Sale Debt Securities: Change in unrealized gain on AFS debt securities $ 1,099 $ 2,014 $ 8,876 $ 5,673 Change in unrealized gain of AFS debt security for which a portion of OTTI has been recognized in earnings (108) (1) (107) (34) Net unrealized (losses) gains 991 2,013 8,769 5,639 Tax effect (248) (422) (2,193) (1,186) Net of tax 743 1,591 6,576 4,453 Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges (10) (146) (171) (215) Reclassification amount for net derivative losses (gains) realized in income 79 (13) 108 (32) Net unrealized gains 69 (159) (63) (247) Tax effect (17) 33 15 53 Net of tax 52 (126) (48) (194) Total other comprehensive (loss) income components, net of tax $ 795 $ 1,465 $ 6,528 $ 4,259 The table below presents the significant amounts reclassified out of each component of AOCI: Amounts Reclassified from AOCI Affected Line Items Three Months Ended Six Months Ended in the Consolidated June 30, June 30, (in thousands) Statements of Income 2020 2019 2020 2019 Cash Flow Hedges: Interest rate swap on money market deposits Interest benefit (expense) on deposits $ (38) $ 8 $ (55) $ 16 Interest rate swap on FHLB advance Interest benefit (expense) on FHLB advances (41) 5 (53) 16 Total derivative gains (losses) on cash flow hedges Total interest benefit (expense) (79) 13 (108) 32 Tax effect Income tax (benefit) expense 20 (3) 27 (7) Net of tax Net income $ (59) $ 10 $ (81) $ 25 The following is a summary of the AOCI balances, net of tax: 2020 (in thousands) December 31, 2019 Change June 30, 2020 Unrealized gain on AFS debt securities $ 2,211 $ 6,657 $ 8,868 Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 964 (81) 883 Unrealized loss on cash flow hedges (77) (48) (125) Total unrealized gain $ 3,098 $ 6,528 $ 9,626 2019 (in thousands) December 31, 2018 Change June 30, 2019 Unrealized loss on AFS debt securities $ (2,165) $ 4,480 $ 2,315 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 1,078 (27) 1,051 Unrealized gain (loss) on cash flow hedges 90 (194) (104) Total unrealized gain (loss) $ (997) $ 4,259 $ 3,262 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 15. REVENUE FROM CONTRACTS WITH CUSTOMERS The following tables present the Company’s net revenue by reportable segment: Three Months Ended June 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 39,035 $ 6,063 $ 419 $ 45,517 $ 1,081 $ 5,607 $ 6,688 $ 52,205 Noninterest income: Service charges on deposit accounts 2,438 17 — 2,455 (4) — (4) 2,451 Net refund transfer fees — — — — 2,913 — 2,913 2,913 Mortgage banking income(1) — — 8,398 8,398 — — — 8,398 Interchange fee income 2,724 — — 2,724 84 — 84 2,808 Program fees(1) — — — — 618 520 1,138 1,138 Increase in cash surrender value of BOLI(1) 395 — — 395 — — — 395 Net gains (losses) on OREO 1 — — 1 — — — 1 Other 568 — 8 576 71 — 71 647 Total noninterest income 6,126 17 8,406 14,549 3,682 520 4,202 18,751 Total net revenue $ 45,161 $ 6,080 $ 8,825 $ 60,066 $ 4,763 $ 6,127 $ 10,890 $ 70,956 Net-revenue concentration(2) 63 % 9 % 12 % 84 % 7 % 9 % 16 % 100 % Three Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 41,877 $ 3,957 $ 170 $ 46,004 $ 710 $ 7,232 $ 7,942 $ 53,946 Noninterest income: Service charges on deposit accounts 3,585 13 — 3,598 — — — 3,598 Net refund transfer fees — — — — 3,629 — 3,629 3,629 Mortgage banking income(1) — — 2,416 2,416 — — — 2,416 Interchange fee income 3,168 — — 3,168 89 — 89 3,257 Program fees(1) — — — — 50 987 1,037 1,037 Increase in cash surrender value of BOLI(1) 377 — — 377 — — — 377 Net gains (losses) on OREO 90 — — 90 — — — 90 Other 633 — 56 689 — 32 32 721 Total noninterest income 7,853 13 2,472 10,338 3,768 1,019 4,787 15,125 Total net revenue $ 49,730 $ 3,970 $ 2,642 $ 56,342 $ 4,478 $ 8,251 $ 12,729 $ 69,071 Net-revenue concentration(2) 72 % 6 % 4 % 82 % 6 % 12 % 18 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 79,656 $ 10,370 $ 632 $ 90,658 $ 21,606 $ 12,679 $ 34,285 $ 124,943 Noninterest income: Service charges on deposit accounts 5,576 28 — 5,604 (17) — (17) 5,587 Net refund transfer fees — — — — 18,736 — 18,736 18,736 Mortgage banking income(1) — — 13,193 13,193 — — — 13,193 Interchange fee income 5,217 — — 5,217 143 — 143 5,360 Program fees(1) — — — — 930 2,832 3,762 3,762 Increase in cash surrender value of BOLI(1) 784 — — 784 — — — 784 Net gains (losses) on OREO 4 — — 4 — — — 4 Other 1,780 — 32 1,812 82 — 82 1,894 Total noninterest income 13,361 28 13,225 26,614 19,874 2,832 22,706 49,320 Total net revenue $ 93,017 $ 10,398 $ 13,857 $ 117,272 $ 41,480 $ 15,511 $ 56,991 $ 174,263 Net-revenue concentration(2) 53 % 6 % 8 % 67 % 24 % 9 % 33 % 100 % Six Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 83,224 $ 6,852 $ 272 $ 90,348 $ 21,148 $ 14,749 $ 35,897 $ 126,245 Noninterest income: Service charges on deposit accounts 6,878 23 — 6,901 — — — 6,901 Net refund transfer fees — — — — 20,729 — 20,729 20,729 Mortgage banking income(1) — — 3,955 3,955 — — — 3,955 Interchange fee income 5,794 — — 5,794 220 — 220 6,014 Program fees(1) — — — — 196 1,915 2,111 2,111 Increase in cash surrender value of BOLI(1) 759 — — 759 — — — 759 Net gains (losses) on OREO 220 — — 220 — — — 220 Other 1,098 — 96 1,194 — 659 659 1,853 Total noninterest income 14,749 23 4,051 18,823 21,145 2,574 23,719 42,542 Total net revenue $ 97,973 $ 6,875 $ 4,323 $ 109,171 $ 42,293 $ 17,323 $ 59,616 $ 168,787 Net-revenue concentration(2) 58 % 4 % 3 % 65 % 25 % 10 % 35 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. The following represents information for significant revenue streams subject to ASC 606: Service charges on deposits Net refund transfer fees – An RT is a fee-based product offered by the Bank through third-party tax preparers located throughout the U.S., as well as tax-preparation software providers (collectively, the “Tax Providers”), with the Bank acting as an independent contractor of the Tax Providers. An RT allows a taxpayer to pay any applicable tax preparation and filing related fees directly from his federal or state government tax refund, with the remainder of the tax refund disbursed directly to the taxpayer. RT fees and all applicable tax preparation, transmitter, audit, and any other taxpayer authorized amounts are deducted from the tax refund by either the Bank or the Bank’s service provider and automatically forwarded to the appropriate party as authorized by the taxpayer. RT fees generally receive first priority when applying fees against the taxpayer’s refund, with the Bank’s share of RT fees generally superior to the claims of other third-party service providers, including the Tax Providers. The remainder of the refund is disbursed to the taxpayer by a Bank check printed at a tax office, direct deposited to the taxpayer’s personal bank account, loaded to a Prepaid Card or Walmart Direct2Cash ® . The Company executes contracts with individual Tax Providers to offer RTs to their taxpayers. RT revenue is recognized by the Bank immediately after the taxpayer’s refund is disbursed in accordance with the RT contract with the taxpayer . The fee paid by the taxpayer for the RT is shared between the Bank and the Tax Providers based on contracts executed between the parties. The Company presents RT revenue net of any amounts shared with the Tax Providers. The Bank’s share of RT revenue is generally based on the obligations undertaken by the Tax Provider for each individual RT program with more obligations generally corresponding to higher RT revenue share. The significant majority of net RT revenue is recognized and obligations under RT contracts fulfilled by the Bank during the first half of each year. Incremental expenses associated with the fulfillment of RT contracts are generally expensed during the first half of the year. Interchange fee income The Company compensates its cardholders by way of cash or other “rewards” for generating card transactions. These rewards are disclosed in cardholder agreements between the Company and its cardholders. Reward costs are accrued over time based on card transactions generated by the cardholder. Interchange fee income is presented net of reward costs within noninterest income. Net gains/(losses) on other real estate – The Company routinely sells OREO it has acquired through loan foreclosure. Net gains/(losses) on OREO reflect both 1) the gain or loss recognized upon an executed deed and 2) mark-to-market writedowns the Company takes on its OREO inventory. The Company generally recognizes gains or losses on OREO at the time of an executed deed, although gains may be recognized over a financing period if the Company finances the sale. For financed OREO sales, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. Mark-to-market writedowns taken by the Company during the property’s holding period are generally at least 10% per year, but may be higher based on updated real estate appraisals or BPOs. Incremental expenditures to bring OREO to salable condition are generally expensed as-incurred. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020, the Company was divided into five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute RPG operations. MemoryBank®, the Company’s national branchless banking platform, is part of the Traditional Banking segment. The nature of segment operations and the primary drivers of net revenue by reportable segment are provided below: Reportable Segment: Nature of Operations: Primary Drivers of Net Revenue: Core Banking: Traditional Banking Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels. Loans, investments, and deposits. Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the United States. Mortgage warehouse lines of credit. Mortgage Banking Primarily originates, sells and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint. Loan sales and servicing. Republic Processing Group: Tax Refund Solutions TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint. Loans, refund transfers, and prepaid cards. Republic Credit Solutions Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers. Unsecured, consumer loans. The accounting policies used for Republic’s reportable segments are generally the same as those described in the summary of significant accounting policies in the Company’s 2019 Annual Report on Form 10-K. The Company did update its accounting policies during the first quarter of 2020 upon adoption of the CECL standard. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value. Segment information follows: Three Months Ended June 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 39,035 $ 6,063 $ 419 $ 45,517 $ 1,081 $ 5,607 $ 6,688 $ 52,205 Provision for expected credit loss expense 3,080 449 — 3,529 4,448 (1,443) 3,005 6,534 Net refund transfer fees — — — — 2,913 — 2,913 2,913 Mortgage banking income — — 8,398 8,398 — — — 8,398 Program fees — — — — 618 520 1,138 1,138 Other noninterest income 6,126 17 8 6,151 151 — 151 6,302 Total noninterest income 6,126 17 8,406 14,549 3,682 520 4,202 18,751 Total noninterest expense 36,688 811 2,689 40,188 3,734 903 4,637 44,825 Income (loss) before income tax expense 5,393 4,820 6,136 16,349 (3,419) 6,667 3,248 19,597 Income tax expense (benefit) 729 1,085 1,288 3,102 (853) 1,544 691 3,793 Net income (loss) $ 4,664 $ 3,735 $ 4,848 $ 13,247 $ (2,566) $ 5,123 $ 2,557 $ 15,804 Period-end assets $ 4,967,759 $ 1,028,400 $ 54,518 $ 6,050,677 $ 306,583 $ 103,315 $ 409,898 $ 6,460,575 Net interest margin 3.26 % 3.01 % NM 3.23 % NM NM NM 3.62 % Net-revenue concentration* 63 % 9 % 12 % 84 % 7 % 9 % 16 % 100 % Three Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 41,877 $ 3,957 $ 170 $ 46,004 $ 710 $ 7,232 $ 7,942 $ 53,946 Provision for expected credit loss expense 1,427 417 — 1,844 392 2,224 2,616 4,460 Net refund transfer fees — — — — 3,629 — 3,629 3,629 Mortgage banking income — — 2,416 2,416 — — — 2,416 Program fees — — — — 50 987 1,037 1,037 Other noninterest income 7,853 13 56 7,922 89 32 121 8,043 Total noninterest income 7,853 13 2,472 10,338 3,768 1,019 4,787 15,125 Total noninterest expense 37,764 792 1,354 39,910 2,849 669 3,518 43,428 Income before income tax expense 10,539 2,761 1,288 14,588 1,237 5,358 6,595 21,183 Income tax expense 744 621 270 1,635 288 1,253 1,541 3,176 Net income $ 9,795 $ 2,140 $ 1,018 $ 12,953 $ 949 $ 4,105 $ 5,054 $ 18,007 Period-end assets $ 4,805,449 $ 738,300 $ 20,568 $ 5,564,317 $ 36,834 $ 121,983 $ 158,817 $ 5,723,134 Net interest margin 3.75 % 2.49 % NM 3.62 % NM NM NM 4.12 % Net-revenue concentration* 72 % 6 % 4 % 82 % 6 % 12 % 18 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 79,656 $ 10,370 $ 632 $ 90,658 $ 21,606 $ 12,679 $ 34,285 $ 124,943 Provision for expected credit loss expense 8,669 781 — 9,450 19,581 263 19,844 29,294 Net refund transfer fees — — — — 18,736 — 18,736 18,736 Mortgage banking income — — 13,193 13,193 — — — 13,193 Program fees — — — — 930 2,832 3,762 3,762 Net gain on branch divestiture — — — — — — — — Other noninterest income 13,361 28 32 13,421 208 — 208 13,629 Total noninterest income 13,361 28 13,225 26,614 19,874 2,832 22,706 49,320 Total noninterest expense 73,335 1,614 4,685 79,634 10,363 1,797 12,160 91,794 Income before income tax expense 11,013 8,003 9,172 28,188 11,536 13,451 24,987 53,175 Income tax expense 1,189 1,801 1,926 4,916 2,644 3,114 5,758 10,674 Net income $ 9,824 $ 6,202 $ 7,246 $ 23,272 $ 8,892 $ 10,337 $ 19,229 $ 42,501 Period-end assets $ 4,967,759 $ 1,028,400 $ 54,518 $ 6,050,677 $ 306,583 $ 103,315 $ 409,898 $ 6,460,575 Net interest margin 3.52 % 2.86 % NM 3.43 % NM NM NM 4.55 % Net-revenue concentration* 53 % 6 % 8 % 67 % 24 % 9 % 33 % 100 % Six Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 83,224 $ 6,852 $ 272 $ 90,348 $ 21,148 $ 14,749 $ 35,897 $ 126,245 Provision for expected credit loss expense 1,616 642 — 2,258 13,826 5,607 19,433 21,691 Net refund transfer fees — — — — 20,729 — 20,729 20,729 Mortgage banking income — — 3,955 3,955 — — — 3,955 Program fees — — — — 196 1,915 2,111 2,111 Other noninterest income 14,749 23 96 14,868 220 659 879 15,747 Total noninterest income 14,749 23 4,051 18,823 21,145 2,574 23,719 42,542 Total noninterest expense 73,314 1,550 2,674 77,538 9,963 1,436 11,399 88,937 Income before income tax expense 23,043 4,683 1,649 29,375 18,504 10,280 28,784 58,159 Income tax expense 2,509 1,054 346 3,909 4,318 2,409 6,727 10,636 Net income $ 20,534 $ 3,629 $ 1,303 $ 25,466 $ 14,186 $ 7,871 $ 22,057 $ 47,523 Period-end assets $ 4,805,449 $ 738,300 $ 20,568 $ 5,564,317 $ 36,834 $ 121,983 $ 158,817 $ 5,723,134 Net interest margin 3.81 % 2.63 % NM 3.69 % NM NM NM 4.88 % Net-revenue concentration* 58 % 4 % 3 % 65 % 25 % 10 % 35 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
INCOME TAXES | |
INCOME TAXES | 17. INCOME TAXES The following table illustrates the difference between the Company’s effective tax rate and the federal rates for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Federal corporate tax rate 21.00 % 21.00 % 21.00 % 21.00 % Effect of: State taxes, net of federal benefit 1.66 (2.47) 1.61 (0.51) General business tax credits (1.61) (0.55) (1.47) (0.68) Nontaxable income (0.71) (1.27) (0.71) (0.89) Other, net (0.98) (1.72) (0.36) (0.63) Effective tax rate 19.36 % 14.99 % 20.07 % 18.29 % The following matters positively impacted the Company’s effective tax rate for the three and six months ended June 30, 2019: ● As a financial institution doing business in Kentucky, the Bank is subject to a capital-based Kentucky bank franchise tax and exempt from Kentucky corporate income tax. In March 2019, however, Kentucky enacted HB354, which will transition the Bank from the bank franchise tax to a corporate income tax beginning January 1, 2021. The current Kentucky corporate income tax rate is 5% . As of March 31, 2019, the Company recorded a deferred tax asset, net of the federal benefit, of $350,000 due to the enactment of HB354, with the majority of this benefit attributed to the Traditional Bank. ● In April 2019, Kentucky enacted HB458, which allows for combined filing for Republic Bancorp and the Bank. Republic Bancorp had previously filed a separate company income tax return for Kentucky and generated net operating losses, for which it had maintained a valuation allowance against the related deferred tax asset. HB458 also allows for certain net operating losses to be utilized on a combined return. Republic Bancorp expects to file a combined return beginning in 2021 and to utilize these previously generated net operating losses. The tax benefit to reverse the valuation allowance on the deferred tax asset for these losses was approximately $815,000 as of June 30, 2019. This benefit was recorded in the second quarter of 2019, with 100% of this benefit attributed to the Traditional Bank. ● In addition to the tax benefit recognized during the second quarter associated with passage of HB458, the Company also received $388,000 in income tax benefit during the second quarter of 2019 associated with equity compensation. Substantially all of this benefit was attributed to the Traditional Bank. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-member financial institution that provides both traditional and non-traditional banking products through five reportable segments using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery channels allow it to reach clients across the U.S. The Captive is a Nevada-based, wholly-owned insurance subsidiary of the Company. The Captive provides property and casualty insurance coverage to the Company and the Bank, as well as a group of third-party insurance captives for which insurance may not be available or economically feasible. Republic Bancorp Capital Trust is a Delaware statutory business trust that is a wholly-owned unconsolidated finance subsidiary of Republic Bancorp, Inc. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, 2019. As of June 30, 2020, the Company was divided into five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute RPG operations. MemoryBank®, the Company’s national branchless banking platform, is part of the Traditional Banking segment. The Company’s financial condition at June 30, 2020 and results of operation for the three and six months ended June 30, 2020 were impacted by the COVID-19 pandemic and the public’s response to it. For additional discussion regarding the COVID-19 pandemic and its impact to the Company, see the following Footnotes in this section of the filing: ● Footnote 2 “Investment Securities” ● Footnote 4 “Loans and Allowance for Credit Losses” ● Footnote 9 “Off Balance Sheet Risks, Commitments, and Contingent Liabilities” Core Bank Traditional Banking segment — ● Kentucky — 28 ● Metropolitan Louisville — 18 ● Central Kentucky — 7 ● Georgetown — 1 ● Lexington — 5 ● Shelbyville — 1 ● Northern Kentucky — 3 ● Covington — 1 ● Crestview Hills — 1 ● Florence — 1 ● Southern Indiana — 3 ● Floyds Knobs — 1 ● Jeffersonville — 1 ● New Albany — 1 ● Metropolitan Tampa, Florida — 8 * ● Metropolitan Cincinnati, Ohio — 2 ● Metropolitan Nashville, Tennessee — 3 * *Includes one LPO Republic’s headquarters are in Louisville, which is the largest city in Kentucky based on population. Traditional Banking results of operations are primarily dependent upon net interest income, which represents the difference between the interest income and fees on interest-earning assets and the interest expense on interest-bearing liabilities. Principal interest-earning Traditional Banking assets represent investment securities and commercial and consumer loans primarily secured by real estate and/or personal property. Interest-bearing liabilities primarily consist of interest-bearing deposit accounts, securities sold under agreements to repurchase, as well as short-term and long-term borrowing sources. FHLB advances have traditionally been a significant borrowing source for the Bank. Other sources of Traditional Banking income include service charges on deposit accounts, debit and credit card interchange fee income, title insurance commissions, fees charged to clients for trust services, and increases in the cash surrender value of BOLI. Traditional Banking operating expenses consist primarily of salaries and employee benefits, occupancy and equipment expenses, communication and transportation costs, data processing, interchange related expenses, marketing and development expenses, FDIC insurance expense, franchise tax expense and various other general and administrative costs. Traditional Banking results of operations are significantly impacted by general economic and competitive conditions, particularly changes in market interest rates, government laws and policies and actions of regulatory agencies. Warehouse Lending segment — Through its Warehouse segment, the Core Bank provides short-term, revolving credit facilities to mortgage bankers across the U.S. through mortgage warehouse lines of credit. These credit facilities are primarily secured by single-family, first-lien residential real estate loans. The credit facility enables the mortgage banking clients to close single-family, first-lien residential real estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days . Reverse mortgage loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client. Mortgage Banking segment — Republic Processing Group Tax Refund Solutions segment — RTs are fee-based products whereby a tax refund is issued to the taxpayer after the Bank has received the refund from the federal or state government. There is no credit risk or borrowing cost associated with these products because they are only delivered to the taxpayer upon receipt of the tax refund directly from the governmental paying authority. Fees earned by the Company on RTs, net of revenue share, are reported as noninterest income under the line item “Net refund transfer fees.” The EA tax credit product is a loan that allows a taxpayer to borrow funds as an advance of a portion of their tax refund. The EA product had the following features during 2019 and 2020: ● Offered only during the first two months of each year; ● The taxpayer was given the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $6,250 ; ● No requirement that the taxpayer pays for another bank product, such as an RT; ● Multiple funds disbursement methods, including direct deposit, prepaid card, check, or Walmart Direct2Cash ® , based on the taxpayer-customer’s election; ● Repayment of the EA to the Bank is deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the EA occurs: o there is no recourse to the taxpayer, o no negative credit reporting on the taxpayer, and o no collection efforts against the taxpayer. The Company reports fees paid for the EA product as interest income on loans. EAs are generally repaid within three weeks after the taxpayer’s tax return is submitted to the applicable taxing authority. EAs do not have a contractual due date but the Company considers an EA delinquent if it remains unpaid three weeks after the taxpayer’s tax return is submitted to the applicable taxing authority. Provision on EAs are estimated when advances are made, with Provision for all expected EA losses made in the first quarter of each year. Unpaid EAs are charged off by June 30 th of each year, with EAs collected during the second half of each year recorded as recoveries of previously charged off loans. Related to the overall credit losses on EAs, the Bank’s ability to control losses is highly dependent upon its ability to predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s EA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the EA volume occurs each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes made, credit losses during a current year could be higher than management’s predictions if tax refund payment patterns change materially between years. In response to changes in the legal, regulatory and competitive environment, management annually reviews and revises the EAs product parameters. Further changes in EA product parameters do not ensure positive results and could have an overall material negative impact on the performance of the EA product offering and therefore on the Company’s financial condition and results of operations. Republic Payment Solutions — RPS is managed and operated within the TRS segment. The RPS division is an issuing bank offering general-purpose reloadable prepaid cards through third-party service providers. For the projected near-term, as the prepaid card program matures, the operating results of the RPS division are expected to be immaterial to the Company’s overall results of operations and will be reported as part of the TRS segment. The RPS division will not be considered a separate reportable segment until such time, if any, that it meets quantitative reporting thresholds. The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.” Republic Credit Solutions segment — ● RCS line-of-credit product – The Bank originates a line-of-credit product to generally subprime borrowers in multiple states. Elevate Credit, Inc., a third-party service provider subject to the Bank’s oversight and supervision, provides the Bank with certain marketing, servicing, technology, and support services for the RCS line-of-credit program, while a separate third-party also provides customer support, servicing, and other services for the RCS line-of-credit product on the Bank’s behalf. The Bank is the lender for the RCS line-of-credit product and is marketed as such. Further, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of the RCS line-of-credit product. The Bank sells participation interests in the RCS line-of-credit product. These participation interests are a 90% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three business days following the Bank’s funding of the associated advances. Although the Bank retains a 10% participation interest in each advance, it maintains 100% ownership of the underlying RCS line-of-credit account with each borrower. The RCS line-of-credit product represents the substantial majority of RCS activity. Loan balances held for sale through this program are carried at the lower of cost or fair value. ● RCS installment loan products – From the first quarter of 2016 through the first quarter of 2018, the Bank piloted a consumer installment loan product across the U.S. using a third-party service provider. As part of the program, the Bank sold 100% of the balances generated through the program back to its third-party service provider approximately 21 days after origination. During the second quarter of 2018, the Bank and its third-party service provider suspended the origination of new loans and the sale of unsold loans through this program. Since program suspension in 2018, the Bank has carried all unsold loans under this program as “held for investment” on its balance sheet and has continued to wind down those balances. Additionally, loans under this program are carried at fair value under a fair value option on the Bank’s balance sheet with the portfolio marked to market monthly. Approximately $667,000 of balances remained held for investment under this program as of June 30, 2020. Through a new program launched in December 2019, the Bank began offering RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. A third-party service provider subject to the Bank’s oversight and supervision provides the Bank with marketing services and loan servicing for these RCS installment loans. The Bank is the lender for these RCS installment loans, and is marketed as such. Further, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these loans to its third-party service provider generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. ● RCS healthcare receivables products – The Bank originates healthcare-receivables products across the U.S. through two different third-party service providers. In one program, the Bank retains 100% of the receivables originated. In the other program, the Bank retains 100% of the receivables originated in some instances, and in other instances, sells 100% of the receivables within one month of origination. Loan balances held for sale through this program are carried at the lower of cost or fair value. The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains or losses on sale and mark-to-market adjustments of RCS loans are reported as noninterest income under “Program fees.” |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Effective January 1, 2020, the Company adopted ASC 326 Financial Instruments – Credit Losses, The Company adopted ASC 326 primarily using the modified retrospective method for its financial instruments and off-balance sheet credit exposures. Results for periods beginning after December 31, 2019 will be presented under CECL while prior-period amounts will continue to be reported under previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which OTTI had been recognized prior to January 1, 2020. As a result, the amortized cost basis will remain the same before and after the effective date of CECL. The effective interest rate on these debt securities was not changed. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 will be recorded in earnings when received. The Company adopted ASC 326 using the prospective transition approach for PCD assets that were previously classified as PCI assets under ASC 310-30. As allowed by ASC 326, the Company did not reassess whether PCI assets met the PCD criteria as of the date of adoption. On January 1, 2020, the amortized cost basis of PCD assets was adjusted to reflect the addition of million of ACLL formerly classified under previous GAAP as a non-accretable credit discount within gross loans. The remaining noncredit discount on PCD assets will be accreted into interest income at the effective interest rate as of January 1, 2020. The Company elected the fair value option for its RCS installment loan product in 2016. This product will continue to be accounted for at fair value under CECL. When measuring an ACL, CECL primarily differs from the probable-incurred method by: a) incorporating a lower “expected” threshold for loss recognition versus a higher “probable” threshold; b) requiring life-of-loan considerations; and c) requiring reasonable and supportable forecasts. In accordance with the adoption of ASC 326 and CECL, the Company recorded on January 1, 2020 a $6.7 million, or 16%, increase in the ACLL for its loans, a $51,000 ACLS for its investment debt securities, and a $456,000 ACLC for its off-balance sheet credit exposures. Of the $6.7 million increase in ACLL, approximately $1.4 million was a gross-up reclassification of non-accretable discount on previously-PCI, now-PCD, loans as mentioned above, and the remaining $5.3 million was a difference in ACL between CECL and the probable-incurred method. The Company also made a cumulative effect entry of $4.3 million to reduce its opening balance of retained earnings upon adoption of ASC 326, with no impact on 2020 earnings for these adoption entries. The adoption date increase in ACLL for the Company’s loans primarily reflects additional ACLL for longer duration loan portfolios, such as the Company's residential real estate and consumer loan portfolios. No additional segmentation of the Bank's loan portfolios was deemed necessary upon adoption. The following table illustrates the impact of ASC 326 adoption: Allowance for Credit Losses as of January 1, 2020 As Reported Impact Under Pre-ASC 326 of ASC 326 (in thousands) ASC 326 Adoption Adoption Assets: Allowance for credit losses on debt securities: AFS debt securities - Corporate bonds $ — $ — $ — HTM debt securities - Corporate bond 51 — 51 Allowance for credit losses on debt securities $ 51 $ — $ 51 Allowance for credit losses on loans: Traditional Banking: Residential real estate: Owner occupied $ 8,928 $ 4,729 $ 4,199 Nonowner occupied 1,885 1,737 148 Commercial real estate 10,759 10,486 273 Construction & land development 3,599 2,152 1,447 Commercial & industrial 1,564 2,882 (1,318) Lease financing receivables 147 147 — Home equity 4,373 2,721 1,652 Consumer: Credit cards 1,053 1,020 33 Overdrafts 1,169 1,169 — Automobile loans 605 612 (7) Other consumer 857 550 307 Total Traditional Banking 34,939 28,205 6,734 Warehouse lines of credit 1,794 1,794 — Total Core Banking 36,733 29,999 6,734 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — Other TRS loans 234 234 — Republic Credit Solutions 13,118 13,118 — Total Republic Processing Group 13,352 13,352 — Allowance for credit losses on loans $ 50,085 $ 43,351 $ 6,734 Liabilities: Allowance for credit losses on OBS credit exposures $ 456 $ — $ 456 The following ASUs were also adopted by the Company during the six months ended June 30, 2020: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2017-04 Intangibles - Goodwill and Other (Topic 350) This ASU simplifies goodwill impairment testing by eliminating Step 2 from the goodwill impairment test. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. January 1, 2020 Prospectively Immaterial 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help during the global market-wide reference rate transition period; therefore, it will be in effect for a limited time through December 31, 2022. March 12, 2020 Prospectively This ASU is expected to assist in the Company's transition away from LIBOR as a reference rate. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedules of Accounting Standards Updates | The following table illustrates the impact of ASC 326 adoption: Allowance for Credit Losses as of January 1, 2020 As Reported Impact Under Pre-ASC 326 of ASC 326 (in thousands) ASC 326 Adoption Adoption Assets: Allowance for credit losses on debt securities: AFS debt securities - Corporate bonds $ — $ — $ — HTM debt securities - Corporate bond 51 — 51 Allowance for credit losses on debt securities $ 51 $ — $ 51 Allowance for credit losses on loans: Traditional Banking: Residential real estate: Owner occupied $ 8,928 $ 4,729 $ 4,199 Nonowner occupied 1,885 1,737 148 Commercial real estate 10,759 10,486 273 Construction & land development 3,599 2,152 1,447 Commercial & industrial 1,564 2,882 (1,318) Lease financing receivables 147 147 — Home equity 4,373 2,721 1,652 Consumer: Credit cards 1,053 1,020 33 Overdrafts 1,169 1,169 — Automobile loans 605 612 (7) Other consumer 857 550 307 Total Traditional Banking 34,939 28,205 6,734 Warehouse lines of credit 1,794 1,794 — Total Core Banking 36,733 29,999 6,734 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — Other TRS loans 234 234 — Republic Credit Solutions 13,118 13,118 — Total Republic Processing Group 13,352 13,352 — Allowance for credit losses on loans $ 50,085 $ 43,351 $ 6,734 Liabilities: Allowance for credit losses on OBS credit exposures $ 456 $ — $ 456 The following ASUs were also adopted by the Company during the six months ended June 30, 2020: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2017-04 Intangibles - Goodwill and Other (Topic 350) This ASU simplifies goodwill impairment testing by eliminating Step 2 from the goodwill impairment test. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. January 1, 2020 Prospectively Immaterial 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help during the global market-wide reference rate transition period; therefore, it will be in effect for a limited time through December 31, 2022. March 12, 2020 Prospectively This ASU is expected to assist in the Company's transition away from LIBOR as a reference rate. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
INVESTMENT SECURITIES | |
Schedule of gross amortized cost and fair value of available-for-sale debt securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income | Gross Gross Allowance Amortized Unrealized Unrealized for Fair June 30, 2020 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 137,739 $ 2,057 $ — $ — $ 139,796 Private label mortgage backed security 1,845 1,178 — — 3,023 Mortgage backed securities - residential 263,760 9,521 — — 273,281 Collateralized mortgage obligations 57,030 678 (110) — 57,598 Corporate bonds 10,000 — (225) (126) 9,649 Trust preferred security 3,597 — (97) — 3,500 Total available-for-sale debt securities $ 473,971 $ 13,434 $ (432) $ (126) $ 486,847 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2019 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 134,765 $ 59 $ (184) NA $ 134,640 Private label mortgage backed security 2,210 1,285 — NA 3,495 Mortgage backed securities - residential 253,288 2,916 (357) NA 255,847 Collateralized mortgage obligations 63,284 258 (171) NA 63,371 Corporate bonds 10,000 2 — NA 10,002 Trust preferred security 3,575 425 — NA 4,000 Total available-for-sale debt securities $ 467,122 $ 4,945 $ (712) NA $ 471,355 |
Schedule of carrying value, gross unrecognized gains and losses, and fair value of held-to-maturity debt securities | Gross Gross Allowance Carrying Unrecognized Unrecognized Fair for June 30, 2020 (in thousands) Value Gains Losses Value Credit Losses Mortgage backed securities - residential $ 102 $ 5 $ — $ 107 $ — Collateralized mortgage obligations 15,338 132 (1) 15,469 — Corporate bonds 39,991 250 (21) 40,220 (147) Obligations of state and political subdivisions 461 9 — 470 — Total held-to-maturity debt securities $ 55,892 $ 396 $ (22) $ 56,266 $ (147) Gross Gross Allowance Carrying Unrecognized Unrecognized Fair for December 31, 2019 (in thousands) Value Gains Losses Value Credit Losses Mortgage backed securities - residential $ 104 $ 6 $ — $ 110 NA Collateralized mortgage obligations 16,970 94 (21) 17,043 NA Corporate bonds 44,995 544 — 45,539 NA Obligations of state and political subdivisions 462 2 — 464 NA Total held-to-maturity debt securities $ 62,531 $ 646 $ (21) $ 63,156 NA |
Schedule of amortized cost and fair value of debt securities by contractual maturity | Available-for-Sale Held-to-Maturity Debt Securities Debt Securities Amortized Fair Carrying Fair June 30, 2020 (in thousands) Cost Value Value Value Due in one year or less $ — $ — $ 105 $ 105 Due from one year to five years 147,739 149,445 35,395 35,654 Due from five years to ten years — — 4,952 4,931 Due beyond ten years 3,597 3,500 — — Private label mortgage backed security 1,845 3,023 — — Mortgage backed securities - residential 263,760 273,281 102 107 Collateralized mortgage obligations 57,030 57,598 15,338 15,469 Total debt securities $ 473,971 $ 486,847 $ 55,892 $ 56,266 |
Schedule of debt securities with unrealized losses | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2020 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: Collateralized mortgage obligations $ 8,258 $ (101) $ 2,971 $ (9) $ 11,229 (110) Trust preferred security 3,500 (97) — — 3,500 (97) Total available-for-sale debt securities $ 11,758 $ (198) $ 2,971 $ (9) $ 14,729 $ (207) Debt securities with unrealized losses at December 31, 2019, aggregated by investment category and length of time in a continuous unrealized loss position, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2019 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ 40,165 $ (176) $ 14,992 $ (8) $ 55,157 $ (184) Mortgage backed securities - residential 65,630 (269) 16,633 (88) 82,263 (357) Collateralized mortgage obligations 12,444 (36) 10,738 (135) 23,182 (171) Total available-for-sale debt securities $ 118,239 $ (481) $ 42,363 $ (231) $ 160,602 $ (712) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2019 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Held-to-maturity debt securities: Collateralized mortgage obligations $ 4 $ (2) $ 4,827 $ (19) $ 4,831 $ (21) Total held-to-maturity debt securities: $ 4 $ (2) $ 4,827 $ (19) $ 4,831 $ (21) |
Schedule of allowance for credit losses on investment | ACLS Rollforward Three Months Ended June 30, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ 126 $ — $ — $ — $ — $ 126 Held-to-Maturity Securities: Corporate Bonds 171 — (24) — — 147 Total $ 297 $ — $ (24) $ — $ — $ 273 ACLS Rollforward Six Months Ended June 30, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ 126 $ — $ — $ 126 Held-to-Maturity Securities: Corporate Bonds — 51 96 — — 147 Total $ — $ 51 $ 222 $ — $ — $ 273 |
Schedule of pledged investment securities | (in thousands) June 30, 2020 December 31, 2019 Carrying amount $ 259,808 $ 229,700 Fair value 259,812 229,706 |
Schedule of carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values | Gross Gross Amortized Unrealized Unrealized Fair June 30, 2020 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 485 $ — $ 485 Community Reinvestment Act mutual fund 2,500 30 — 2,530 Total equity securities with readily determinable fair values $ 2,500 $ 515 $ — $ 3,015 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 714 $ — $ 714 Community Reinvestment Act mutual fund 2,500 — (26) 2,474 Total equity securities with readily determinable fair values $ 2,500 $ 714 $ (26) $ 3,188 |
Schedule of equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company's consolidated statements of income | Gains (Losses) Recognized on Equity Securities Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 191 $ 191 $ — $ 126 $ 126 Community Reinvestment Act mutual fund — 16 16 — 33 33 Total equity securities with readily determinable fair value $ — $ 207 $ 207 $ — $ 159 $ 159 Gains (Losses) Recognized on Equity Securities Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (229) $ (229) $ — $ 378 $ 378 Community Reinvestment Act mutual fund — 56 56 — 70 70 Total equity securities with readily determinable fair value $ — $ (173) $ (173) $ — $ 448 $ 448 |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 Balance, beginning of period $ 3,431 $ — $ 598 $ — Origination of consumer loans held for sale 555 — 47,741 — Proceeds from the sale of consumer loans held for sale (3,963) — (49,691) — Net gain (loss) recognized on consumer loans held for sale 141 — 1,516 — Balance, end of period $ 164 $ — $ 164 $ — |
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) 2020 2019 2020 2019 Balance, beginning of period $ 12,089 $ 12,864 $ 11,646 $ 12,838 Origination of consumer loans held for sale 86,936 200,327 234,871 346,413 Proceeds from the sale of consumer loans held for sale (86,796) (176,759) (235,207) (324,260) Net gain on sale of consumer loans held for sale 571 1,177 1,490 2,618 Balance, end of period $ 12,800 $ 37,609 $ 12,800 $ 37,609 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loans and allowance for loan and losses | |
Schedule of composition of loan portfolio | (in thousands) June 30, 2020 December 31, 2019 Traditional Banking: Residential real estate: Owner occupied $ 885,325 $ 949,568 Nonowner occupied 254,700 258,803 Commercial real estate 1,322,290 1,303,000 Construction & land development 157,254 159,702 Commercial & industrial* 904,727 477,236 Lease financing receivables 11,864 14,040 Home equity 265,266 293,186 Consumer: Credit cards 14,265 17,836 Overdrafts 488 1,522 Automobile loans 41,059 52,923 Other consumer 78,585 68,115 Total Traditional Banking 3,935,823 3,595,931 Warehouse lines of credit** 1,029,779 717,458 Total Core Banking 4,965,602 4,313,389 Republic Processing Group**: Tax Refund Solutions: Easy Advances — — Other TRS loans 289 14,365 Republic Credit Solutions 99,201 105,397 Total Republic Processing Group 99,490 119,762 Total loans*** 5,065,092 4,433,151 Allowance for credit losses (55,097) (43,351) Total loans, net $ 5,009,995 $ 4,389,800 *Includes $511 million of PPP loans at June 30, 2020. **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, 2020 December 31, 2019 Contractually receivable $ 5,063,496 $ 4,432,351 Unearned income (944) (1,139) Unamortized premiums 279 366 Unaccreted discounts (1,157) (2,534) Net unamortized deferred origination fees and costs 3,418 4,107 Carrying value of loans $ 5,065,092 $ 4,433,151 |
Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed | Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of June 30, 2020 2020 2019 2018 2017 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 90,354 $ 166,133 $ 108,759 $ 87,604 $ 404,104 $ — $ — $ 856,954 Special Mention — — 46 1,627 9,826 — — 11,499 Substandard — 1,543 822 691 13,816 — — 16,872 Doubtful — — — — — — — — Total $ 90,354 $ 167,676 $ 109,627 $ 89,922 $ 427,746 $ — $ — $ 885,325 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 23,599 $ 74,957 $ 52,683 $ 50,441 $ 51,297 $ — $ — $ 252,977 Special Mention 300 — — — 158 — — 458 Substandard — 539 — — 726 — — 1,265 Doubtful — — — — — — — — Total $ 23,899 $ 75,496 $ 52,683 $ 50,441 $ 52,181 $ — $ — $ 254,700 Commercial real estate: Risk Rating Pass or not rated $ 116,710 $ 328,746 $ 209,251 $ 217,425 $ 398,039 $ — $ 36,887 $ 1,307,058 Special Mention 878 — — — 2,883 — 2,846 6,607 Substandard 2,964 — — 1,222 4,439 — — 8,625 Doubtful — — — — — — — — Total $ 120,552 $ 328,746 $ 209,251 $ 218,647 $ 405,361 $ — $ 39,733 $ 1,322,290 Construction and land development: Risk Rating Pass or not rated $ 55,961 $ 55,460 $ 16,050 $ 11,719 $ 15,455 $ — $ — $ 154,645 Special Mention — 2,421 — — — — — 2,421 Substandard — 188 — — — — — 188 Doubtful — — — — — — — — Total $ 55,961 $ 58,069 $ 16,050 $ 11,719 $ 15,455 $ — $ — $ 157,254 Commercial and industrial: Risk Rating Pass or not rated $ 594,084 $ 149,970 $ 50,438 $ 49,358 $ 56,571 $ 2,087 $ — $ 902,508 Special Mention 450 — 150 — 35 — — 635 Substandard 21 490 118 — 201 754 — 1,584 Doubtful — — — — — — — — Total $ 594,555 $ 150,460 $ 50,706 $ 49,358 $ 56,807 $ 2,841 $ — $ 904,727 Lease financing receivables: Risk Rating Pass or not rated $ 711 $ 4,602 $ 2,510 $ 3,232 $ 809 $ — $ — $ 11,864 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 711 $ 4,602 $ 2,510 $ 3,232 $ 809 $ — $ — $ 11,864 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 262,318 $ — $ 262,318 Special Mention — — — — — 128 — 128 Substandard — — — — — 2,820 — 2,820 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 265,266 $ — $ 265,266 Consumer: Risk Rating Pass or not rated $ 17,151 $ 48,923 $ 29,201 $ 11,644 $ 12,524 $ 14,402 $ — $ 133,845 Special Mention — — — — — 11 — 11 Substandard — 38 64 199 240 — — 541 Doubtful — — — — — — — — Total $ 17,151 $ 48,961 $ 29,265 $ 11,843 $ 12,764 $ 14,413 $ — $ 134,397 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of June 30, 2020 2020 2019 2018 2017 Prior Cost Basis to Term Total Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 1,029,779 $ — $ 1,029,779 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 1,029,779 $ — $ 1,029,779 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 77 $ — $ 77 Special Mention — — — — — — — — Substandard — — — — — 212 — 212 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 289 $ — $ 289 RCS: Risk Rating Pass or not rated $ 7,098 $ 8,596 $ 3,622 $ 1,677 $ 2,779 $ 74,734 $ — $ 98,506 Special Mention — — — — — — — — Substandard — — — — — 695 — 695 Doubtful — — — — — — — — Total $ 7,098 $ 8,596 $ 3,622 $ 1,677 $ 2,779 $ 75,429 $ — $ 99,201 Grand Total: Risk Rating Pass or not rated $ 905,668 $ 837,387 $ 472,514 $ 433,100 $ 941,578 $ 1,383,397 $ 36,887 $ 5,010,531 Special Mention 1,628 2,421 196 1,627 12,902 139 2,846 21,759 Substandard 2,985 2,798 1,004 2,112 19,422 4,481 — 32,802 Doubtful — — — — — — — — Grand Total $ 910,281 $ 842,606 $ 473,714 $ 436,839 $ 973,902 $ 1,388,017 $ 39,733 $ 5,065,092 December 31, 2019 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 12,153 $ 14,441 $ — $ 140 $ 1,281 $ 28,015 Nonowner occupied — 487 1,285 — — — 1,772 Commercial real estate 1,286,623 4,623 11,123 — 631 — 1,303,000 Construction & land development 157,165 2,339 198 — — — 159,702 Commercial & industrial 473,094 2,152 1,968 — 22 — 477,236 Lease financing receivables 14,040 — — — — — 14,040 Home equity — — 3,276 — 4 6 3,286 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — 247 — — — 247 Other consumer — — 351 — — 2 353 Total Traditional Banking 1,930,922 21,754 32,889 — 797 1,289 1,987,651 Warehouse lines of credit 717,458 — — — — — 717,458 Total Core Banking 2,648,380 21,754 32,889 — 797 1,289 2,705,109 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — Other TRS loans — — 53 — — — 53 Republic Credit Solutions — — 355 — — — 355 Total Republic Processing Group — — 408 — — — 408 Total rated loans $ 2,648,380 $ 21,754 $ 33,297 $ — $ 797 $ 1,289 $ 2,705,517 *The above table excludes all non-classified residential real estate, home equity and consumer loans . |
Schedule of activity in the allowance for loan and lease losses | ACLL Rollforward Three Months Ended June 30, 2020 2019 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 $ 9,387 $ (127) $ — $ 43 $ 9,303 $ 5,801 $ (442) $ (367) $ 221 $ 5,213 Nonowner occupied 2,165 107 — 2 2,274 1,720 48 (1) 8 1,775 Commercial real estate 13,381 3,187 (270) 2 16,300 10,235 329 — 2 10,566 Construction & land development 4,536 404 — — 4,940 2,443 467 — — 2,910 Commercial & industrial 2,541 15 (192) 41 2,405 3,235 983 — 3 4,221 Lease financing receivables 133 (8) — — 125 150 31 — — 181 Home equity 5,290 (178) — 12 5,124 3,337 (221) — 8 3,124 Consumer: Credit cards 978 16 (71) 5 928 1,079 14 (76) 11 1,028 Overdrafts 758 (189) (159) 78 488 892 250 (299) 51 894 Automobile loans 546 (74) — 1 473 768 (61) — 1 708 Other consumer 839 (49) (8) 35 817 512 29 (48) 56 549 Total Traditional Banking 40,554 3,104 (700) 219 43,177 30,172 1,427 (791) 361 31,169 Warehouse lines of credit 2,126 449 — — 2,575 1,397 417 — — 1,814 Total Core Banking 42,680 3,553 (700) 219 45,752 31,569 1,844 (791) 361 32,983 Republic Processing Group: Tax Refund Solutions: Easy Advances 15,270 4,305 (19,575) — — 13,381 39 (13,425) 5 — Other TRS loans 95 143 (28) 1 211 149 353 (264) (6) 232 Republic Credit Solutions 12,386 (1,443) (2,008) 199 9,134 12,862 2,224 (2,683) 365 12,768 Total Republic Processing Group 27,751 3,005 (21,611) 200 9,345 26,392 2,616 (16,372) 364 13,000 Total $ 70,431 $ 6,558 $ (22,311) $ 419 $ 55,097 $ 57,961 $ 4,460 $ (17,163) $ 725 $ 45,983 ACLL Rollforward Six Months Ended June 30, 2020 2019 Beginning ASC 326 Charge- Ending Beginning Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 4,729 $ 4,199 $ 320 $ (27) $ 82 $ 9,303 $ 6,035 $ (697) $ (384) $ 259 $ 5,213 Nonowner occupied 1,737 148 385 — 4 2,274 1,662 178 (73) 8 1,775 Commercial real estate 10,486 273 5,338 (270) 473 16,300 10,030 532 — 4 10,566 Construction & land development 2,152 1,447 1,341 — — 4,940 2,555 355 — — 2,910 Commercial & industrial 2,882 (1,318) 989 (192) 44 2,405 2,873 1,343 — 5 4,221 Lease financing receivables 147 — (22) — — 125 158 23 — — 181 Home equity 2,721 1,652 664 — 87 5,124 3,477 (378) (13) 38 3,124 Consumer: Credit cards 1,020 33 38 (177) 14 928 1,140 79 (226) 35 1,028 Overdrafts 1,169 — (311) (503) 133 488 1,102 269 (593) 116 894 Automobile loans 612 (7) (153) (8) 29 473 724 (23) — 7 708 Other consumer 550 307 (142) (45) 147 817 591 (65) (114) 137 549 Total Traditional Banking 28,205 6,734 8,447 (1,222) 1,013 43,177 30,347 1,616 (1,403) 609 31,169 Warehouse lines of credit 1,794 — 781 — — 2,575 1,172 642 — — 1,814 Total Core Banking 29,999 6,734 9,228 (1,222) 1,013 45,752 31,519 2,258 (1,403) 609 32,983 Republic Processing Group: Tax Refund Solutions: Easy Advances — — 19,533 (19,575) 42 — — 13,420 (13,425) 5 — Other TRS loans 234 — 48 (72) 1 211 107 406 (281) — 232 Republic Credit Solutions 13,118 — 263 (4,717) 470 9,134 13,049 5,607 (6,507) 619 12,768 Total Republic Processing Group 13,352 — 19,844 (24,364) 513 9,345 13,156 19,433 (20,213) 624 13,000 Total $ 43,351 $ 6,734 $ 29,072 $ (25,586) $ 1,526 $ 55,097 $ 44,675 $ 21,691 $ (21,616) $ 1,233 $ 45,983 |
Schedule of non-performing loans and non-performing assets and select credit quality ratios | (dollars in thousands) June 30, 2020 December 31, 2019 Loans on nonaccrual status* $ 19,884 $ 23,332 Loans past due 90-days-or-more and still on accrual** 535 157 Total nonperforming loans 20,419 23,489 Other real estate owned 2,194 113 Total nonperforming assets $ 22,613 $ 23,602 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.40 % 0.53 % Nonperforming assets to total loans (including OREO) 0.45 0.53 Nonperforming assets to total assets 0.35 0.42 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.40 % 0.54 % Nonperforming assets to total loans (including OREO) 0.44 0.54 Nonperforming assets to total assets 0.36 0.43 * Loans on nonaccrual status include collateral-dependent loans. ** Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. |
Schedule of recorded investment in non-accrual loans | Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Traditional Banking: Residential real estate: Owner occupied $ 14,106 $ 12,220 $ — $ — Nonowner occupied 952 623 — — Commercial real estate 881 6,865 — — Construction & land development — 143 — — Commercial & industrial 1,563 1,424 — — Lease financing receivables — — — — Home equity 2,209 1,865 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 152 179 — — Other consumer 21 13 — — Total Traditional Banking 19,884 23,332 — — Warehouse lines of credit — — — — Total Core Banking 19,884 23,332 — — Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — 182 53 Republic Credit Solutions — — 353 104 Total Republic Processing Group — — 535 157 Total $ 19,884 $ 23,332 $ 535 $ 157 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended Six Months Ended As of June 30, 2020 June 30, 2020 June 30, 2020 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 2,999 $ 11,107 $ 14,106 $ 169 $ 380 Nonowner occupied — 952 952 2 4 Commercial real estate 611 270 881 13 686 Construction & land development — — — — — Commercial & industrial — 1,563 1,563 3 9 Lease financing receivables — — — — — Home equity 133 2,076 2,209 14 14 Consumer 107 66 173 2 2 Total $ 3,850 $ 16,034 $ 19,884 $ 203 $ 1,095 * Includes interest income for loans on nonaccrual loans as of the beginning of the period that were paid off during the period. |
Schedule of aging of the recorded investment in loans by class of loans | 30 - 59 60 - 89 90 or More June 30, 2020 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,527 $ 576 $ 2,111 $ 4,214 $ 881,111 $ 885,325 Nonowner occupied — — 539 539 254,161 254,700 Commercial real estate — — 543 543 1,321,747 1,322,290 Construction & land development — — — — 157,254 157,254 Commercial & industrial — 490 872 1,362 903,365 904,727 Lease financing receivables — — — — 11,864 11,864 Home equity 397 23 633 1,053 264,213 265,266 Consumer: Credit cards 2 5 — 7 14,258 14,265 Overdrafts 91 3 — 94 394 488 Automobile loans — 12 15 27 41,032 41,059 Other consumer 3 19 — 22 78,563 78,585 Total Traditional Banking 2,020 1,128 4,713 7,861 3,927,962 3,935,823 Warehouse lines of credit — — — — 1,029,779 1,029,779 Total Core Banking 2,020 1,128 4,713 7,861 4,957,741 4,965,602 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans — 77 182 259 30 289 Republic Credit Solutions 4,371 1,202 353 5,926 93,275 99,201 Total Republic Processing Group 4,371 1,279 535 6,185 93,305 99,490 Total $ 6,391 $ 2,407 $ 5,248 $ 14,046 $ 5,051,046 $ 5,065,092 Delinquency ratio*** 0.13 % 0.05 % 0.10 % 0.28 % * All loans past due 90-days-or-more, excluding small balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. 30 - 59 60 - 89 90 or More December 31, 2019 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,460 $ 1,153 $ 1,821 $ 4,434 $ 945,134 $ 949,568 Nonowner occupied — — 539 539 258,264 258,803 Commercial real estate 155 — 3,145 3,300 1,299,700 1,303,000 Construction & land development — — — — 159,702 159,702 Commercial & industrial 200 128 1,027 1,355 475,881 477,236 Lease financing receivables — — — — 14,040 14,040 Home equity 1,810 166 942 2,918 290,268 293,186 Consumer: Credit cards 80 75 — 155 17,681 17,836 Overdrafts 278 4 1 283 1,239 1,522 Automobile loans 16 15 18 49 52,874 52,923 Other consumer 2 6 1 9 68,106 68,115 Total Traditional Banking 4,001 1,547 7,494 13,042 3,582,889 3,595,931 Warehouse lines of credit — — — — 717,458 717,458 Total Core Banking 4,001 1,547 7,494 13,042 4,300,347 4,313,389 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans 35 31 53 119 14,246 14,365 Republic Credit Solutions 6,054 1,485 104 7,643 97,754 105,397 Total Republic Processing Group 6,089 1,516 157 7,762 112,000 119,762 Total $ 10,090 $ 3,063 $ 7,651 $ 20,804 $ 4,412,347 $ 4,433,151 Delinquency ratio*** 0.23 % 0.07 % 0.17 % 0.47 % * All loans past due 90-days-or-more, excluding smaller balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. |
Schedule of amortized cost basis of collateral-dependent loans | Secured Secured June 30, 2020 by Real by Personal (dollars in thousands) Estate Property Traditional Banking: Residential real estate: Owner occupied $ 17,044 $ — Nonowner occupied 1,423 — Commercial real estate 8,571 — Construction & land development 138 — Commercial & industrial — 1,601 Lease financing receivables — — Home equity 2,841 — Consumer — 523 Total Traditional Banking $ 30,017 $ 2,124 |
Schedule of Bank's impaired loans | (in thousands) December 31, 2019 Loans with no allocated ACLL $ 33,061 Loans with allocated ACLL 17,289 Total recorded investment in impaired loans $ 50,350 Amount of ACLL allocated $ 2,512 |
Schedule of balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method | Allowance for Credit Losses on Loans Loans Individually PCI with Individually PCI with PCI without December 31, 2019 Evaluated Collectively Post-Acquisition Total Evaluated Collectively Post-Acquisition Post-Acquisition Total Allowance to (dollars in thousands) Excluding PCI Evaluated Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Total Loans Traditional Banking: Residential real estate: Owner occupied $ 1,207 $ 3,337 $ 185 $ 4,729 $ 25,384 $ 922,764 $ 1,420 $ — $ 949,568 0.50 % Nonowner occupied — 1,737 — 1,737 1,448 257,355 — — 258,803 0.67 Commercial real estate 426 10,054 6 10,486 15,144 1,287,225 631 — 1,303,000 0.80 Construction & land development — 2,152 — 2,152 198 159,504 — — 159,702 1.35 Commercial & industrial 22 2,860 — 2,882 1,989 475,225 — 22 477,236 0.60 Lease financing receivables — 147 — 147 — 14,040 — — 14,040 1.05 Home equity 174 2,547 — 2,721 3,276 289,900 10 — 293,186 0.93 Consumer: Credit cards — 1,020 — 1,020 — 17,836 — — 17,836 5.72 Overdrafts — 1,169 — 1,169 — 1,522 — — 1,522 76.81 Automobile loans 43 569 — 612 247 52,676 — — 52,923 1.16 Other consumer 333 217 — 550 350 67,762 2 1 68,115 0.81 Total Traditional Banking 2,205 25,809 191 28,205 48,036 3,545,809 2,063 23 3,595,931 0.78 Warehouse lines of credit — 1,794 — 1,794 — 717,458 — — 717,458 0.25 Total Core Banking 2,205 27,603 191 29,999 48,036 4,263,267 2,063 23 4,313,389 0.70 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — — — — Other TRS loans — 234 — 234 — 14,365 — — 14,365 1.63 Republic Credit Solutions 116 13,002 — 13,118 251 105,146 — — 105,397 12.45 Total Republic Processing Group 116 13,236 — 13,352 251 119,511 — — 119,762 11.15 Total $ 2,321 $ 40,839 $ 191 $ 43,351 $ 48,287 $ 4,382,778 $ 2,063 $ 23 $ 4,433,151 0.98 % |
Schedule of loans individually evaluated for impairment by class of loans | As of Three Months Ended Six Months Ended December 31, 2019 June 30, 2019 June 30, 2019 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allocated Recorded Income Income Recorded Income Income (in thousands) Balance Investment ACLL Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no allocated ACLL: Residential real estate: Owner occupied $ 14,768 $ 13,893 $ — $ 11,768 $ 70 $ — $ 11,540 $ 139 $ — Nonowner occupied 1,515 1,448 — 1,424 17 — 1,733 34 — Commercial real estate 15,028 12,547 — 3,573 23 — 3,917 47 — Construction & land development 198 198 — 30 1 — 20 1 — Commercial & industrial 3,308 1,792 — 622 — — 616 — — Lease financing receivables — — — — — — — — — Home equity 3,107 3,023 — 1,591 12 — 1,352 23 — Consumer 206 160 — 27 1 — 28 1 — Impaired loans with allocated ACLL: Residential real estate: Owner occupied 12,954 12,911 1,392 14,464 121 — 14,910 240 — Nonowner occupied — — — 216 41 — 162 — — Commercial real estate 3,228 3,228 432 3,951 — — 4,106 83 — Construction & land development — — — 32 — — 43 — — Commercial & industrial 197 197 22 2,662 7 — 1,913 15 — Lease financing receivables — — — — — — — — — Home equity 263 263 174 480 2 — 510 4 — Consumer 701 690 492 505 4 — 520 10 — Total impaired loans $ 55,473 $ 50,350 $ 2,512 $ 41,345 $ 299 $ — $ 41,370 $ 597 $ — |
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, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 60 $ 4,684 130 $ 12,901 190 $ 17,585 Commercial real estate 2 271 6 6,788 8 7,059 Construction & land development — — 1 50 1 50 Commercial & industrial 2 319 5 807 7 1,126 Consumer 1 9 2,132 650 2,133 659 Total troubled debt restructurings 65 $ 5,283 2,274 $ 21,196 2,339 $ 26,479 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, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 53 $ 4,402 141 $ 15,368 194 $ 19,770 Commercial real estate 4 4,040 9 4,885 13 8,925 Construction & land development — — 1 54 1 54 Commercial & industrial 4 1,424 3 22 7 1,446 Consumer — — 1,613 586 1,613 586 Total troubled debt restructurings 61 $ 9,866 1,767 $ 20,915 1,828 $ 30,781 |
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, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 1 $ 862 — $ — 1 $ 862 Rate reduction 109 11,660 6 389 115 12,049 Principal deferral 8 835 1 163 9 998 Legal modification 56 3,111 9 565 65 3,676 Total residential TDRs 174 16,468 16 1,117 190 17,585 Commercial related and construction/land development loans: Interest only payments 2 1,393 — — 2 1,393 Rate reduction 3 1,110 1 45 4 1,155 Principal deferral 6 4,589 1 225 7 4,814 Legal modification — — 3 873 3 873 Total commercial TDRs 11 7,092 5 1,143 16 8,235 Consumer loans: Principal deferral 2,130 301 1 341 2,131 642 Legal modification 2 17 — — 2 17 Total consumer TDRs 2,132 318 1 341 2,133 659 Total troubled debt restructurings 2,317 $ 23,878 22 $ 2,601 2,339 $ 26,479 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, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 1 $ 904 — $ — 1 $ 904 Rate reduction 118 13,847 5 352 123 14,199 Principal deferral 8 845 2 179 10 1,024 Legal modification 54 3,200 6 443 60 3,643 Total residential TDRs 181 18,796 13 974 194 19,770 Commercial related and construction/land development loans: Interest only payments 3 1,568 — — 3 1,568 Rate reduction 3 1,207 1 45 4 1,252 Principal deferral 11 5,981 1 597 12 6,578 Legal modification — — 2 1,027 2 1,027 Total commercial TDRs 17 8,756 4 1,669 21 10,425 Consumer loans: Principal deferral 1,612 577 — — 1,612 577 Legal modification 1 9 — — 1 9 Total consumer TDRs 1,613 586 — — 1,613 586 Total troubled debt restructurings 1,811 $ 28,138 17 $ 2,643 1,828 $ 30,781 |
Summary of categories of TDR loan modifications that occurred during the period | Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Legal modification 5 $ 161 1 $ 109 6 $ 270 Total residential TDRs 5 161 1 109 6 270 Consumer loans: Principal deferral 884 141 — — 884 141 Legal modification — — 1 118 1 118 Total consumer TDRs 884 141 1 118 885 259 Total troubled debt restructurings 889 $ 302 2 $ 227 891 $ 529 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral — $ — — $ — — $ — Legal modification 7 804 2 161 9 965 Total residential TDRs 7 804 2 161 9 965 Commercial related and construction/land development loans: Principal deferral — — 2 4,426 2 4,426 Total commercial TDRs — — 2 4,426 2 4,426 Total troubled debt restructurings 7 $ 804 4 $ 4,587 11 $ 5,391 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Legal modification 8 $ 283 2 $ 113 10 $ 396 Total residential TDRs 8 283 2 113 10 396 Commercial related and construction/land development loans: Principal deferral 1 21 — — 1 21 Legal modification — — 1 118 1 118 Total commercial TDRs 1 21 1 118 2 139 Consumer loans: Principal deferral 884 141 — — 884 141 Legal modification 1 9 — — 1 9 Total consumer TDRs 885 150 — — 885 150 Total troubled debt restructurings 894 $ 454 3 $ 231 897 $ 685 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral 1 $ 6 — $ — 1 $ 6 Legal modification 11 901 3 211 14 1,112 Total residential TDRs 12 907 3 211 15 1,118 Commercial related and construction/land development loans: Interest only payments 1 566 — — 1 566 Principal deferral 2 26 — — 2 26 Legal modification — — 2 4,426 2 4,426 Total commercial TDRs 3 592 2 4,426 5 5,018 Total troubled debt restructurings 15 $ 1,499 5 $ 4,637 20 $ 6,136 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. |
Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 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 $ 109 3 $ 211 3 $ 218 3 $ 211 Commercial real estate — — — — — — 1 566 Commercial & industrial 1 118 2 4,426 1 118 2 4,426 Home equity — — — — 1 13 1 6 Consumer — — — — 1 9 — — Total 2 $ 227 5 $ 4,637 6 $ 358 7 $ 5,209 |
Schedule of carrying amount of foreclosed properties held | (in thousands) June 30, 2020 December 31, 2019 Residential real estate $ 2,194 $ 113 Total other real estate owned $ 2,194 $ 113 |
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties | (in thousands) June 30, 2020 December 31, 2019 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure $ 3,595 $ 2,201 |
Schedule of Easy Advances | Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2020 2019 2020 2019 Easy Advances originated $ — $ — $ 387,762 $ 388,970 Net charge to the Provision for Easy Advances 4,305 39 19,533 13,420 Provision to total Easy Advances originated NA NA 5.04 % 3.45 % Easy Advances net charge-offs $ 19,575 $ 13,420 $ 19,533 $ 13,420 Easy Advances net charge-offs to total Easy Advances originated NA NA 5.04 % 3.45 % |
Traditional Banking | |
Loans and allowance for loan and losses | |
Schedule of composition of loan portfolio | The following table presents the balances of loans in COVID-19 accommodations, the balance of PPP loans, and the remainder of the Traditional Bank’s loan portfolio by loan class as of June 30, 2020: COVID-19 Total June 30, 2020 (dollars in thousands) Accommodations PPP Loans Other Loans Traditional Banking Traditional Banking: Residential real estate: Owner occupied $ 51,570 $ — $ 833,755 $ 885,325 Nonowner occupied 58,754 — 195,946 254,700 Commercial real estate 491,314 — 830,976 1,322,290 Commercial & industrial 141,720 511,065 251,942 904,727 Construction & land development 28,927 — 128,327 157,254 Lease financing receivables 2,443 — 9,421 11,864 Home equity 13,776 — 251,490 265,266 Consumer 4,678 — 129,719 134,397 Total Traditional Banking $ 793,182 $ 511,065 $ 2,631,576 $ 3,935,823 Percent of Total Traditional Banking 20 % 13 % 67 % 100 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
DEPOSITS | |
Ending deposit balances | (in thousands) June 30, 2020 December 31, 2019 Core Bank: Demand $ 1,124,321 $ 922,972 Money market accounts 748,832 793,950 Savings 207,729 175,588 Individual retirement accounts (1) 51,715 51,548 Time deposits, $250 and over (1) 111,725 104,412 Other certificates of deposit (1) 258,884 248,161 Reciprocal money market and time deposits (1) 290,441 189,774 Brokered deposits (1) 400,000 200,072 Total Core Bank interest-bearing deposits 3,193,647 2,686,477 Total Core Bank noninterest-bearing deposits 1,431,866 981,164 Total Core Bank deposits 4,625,513 3,667,641 Republic Processing Group: Money market accounts 3,038 66,152 Total RPG interest-bearing deposits 3,038 66,152 Brokered prepaid card deposits 256,703 9,128 Other noninterest-bearing deposits 132,831 43,087 Total RPG noninterest-bearing deposits 389,534 52,215 Total RPG deposits 392,572 118,367 Total deposits $ 5,018,085 $ 3,786,008 (1) Includes time deposits. |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |
Schedule of securities sold under agreements to repurchase | (dollars in thousands) June 30, 2020 December 31, 2019 Outstanding balance at end of period $ 177,397 $ 167,617 Weighted average interest rate at end of period 0.04 % 0.32 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 7,515 $ 70,015 Mortgage backed securities - residential 167,945 134,265 Collateralized mortgage obligations 12,915 17,030 Total securities pledged $ 188,375 $ 221,310 Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2020 2019 2020 2019 Average outstanding balance during the period $ 176,541 $ 220,189 $ 192,755 $ 225,864 Average interest rate during the period 0.04 % 0.60 % 0.14 % 0.67 % Maximum outstanding at any month end during the period $ 177,397 $ 226,002 $ 177,397 $ 226,002 |
RIGHT-OF-USE ASSETS AND OPERA_2
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Summary of operating lease expense | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Operating lease expense: Related Party: Variable lease expense $ 1,183 $ 1,156 $ 2,371 $ 2,314 Fixed lease expense 23 10 47 18 Third Party: Variable lease expense 180 211 361 435 Fixed lease expense 368 384 738 745 Short-term lease expense — 12 4 26 Total operating lease expense $ 1,754 $ 1,773 $ 3,521 $ 3,538 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,793 $ 1,794 $ 3,630 3,577 Short-term lease payments not included in the measurement of lease liabilities — 12 4 26 |
Schedule of weighted average remaining term and weighted average discount rate for operating leases | June 30, 2020 December 31, 2019 Weighted average remaining term in years 7.99 8.02 Weighted average discount rate 3.55 % 3.46 % |
Schedule of operating lease liabilities | Year (in thousands) Related Party Third Party Total 2020 $ 2,283 $ 1,345 $ 3,628 2021 4,194 2,525 6,719 2022 3,332 2,120 5,452 2023 3,332 1,600 4,932 2024 3,205 1,173 4,378 Thereafter 12,718 3,376 16,094 Total undiscounted cash flows $ 29,064 $ 12,139 $ 41,203 Discount applied to cash flows (4,103) (1,529) (5,632) Total discounted cash flows reported as operating lease liabilities $ 24,961 $ 10,610 $ 35,571 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Federal Home Loan Bank Advances | (in thousands) June 30, 2020 December 31, 2019 Overnight advances $ — $ 200,000 Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% 10,000 10,000 Fixed interest rate advances 127,500 540,000 Total FHLB advances $ 137,500 $ 750,000 |
Aggregate Future Principal Payments on FHLB Advances | Weighted Average Year (dollars in thousands) Principal Rate 2020 (Overnight) $ — — % 2020 (Term) 67,500 1.58 2021 30,000 1.93 2022 20,000 2.12 2023 20,000 2.56 2024 — — Thereafter — — Total $ 137,500 1.87 % |
Information Regarding Overnight FHLB Advances | Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2020 2019 2020 2019 Average outstanding balance during the period $ 42,198 $ 448,077 $ 43,681 $ 331,768 Average interest rate during the period 0.22 % 2.50 % 0.92 % 2.49 % Maximum outstanding at any month end during the period $ 165,000 $ 785,000 $ 250,000 $ 785,000 |
Real Estate Loans Pledged | (in thousands) June 30, 2020 December 31, 2019 First lien, single family residential real estate $ 1,031,671 $ 1,099,941 Home equity lines of credit 250,257 274,990 |
OFF BALANCE SHEET RISKS, COMM_2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
Commitments Exclusive of Mortgage Bank Loan Commitments | (in thousands) June 30, 2020 December 31, 2019 Unused warehouse lines of credit $ 174,220 $ 436,541 Unused home equity lines of credit 362,177 363,195 Unused loan commitments - other 803,204 757,657 Standby letters of credit 10,791 11,252 FHLB letter of credit 643 2,485 Total commitments $ 1,351,035 $ 1,571,130 |
Schedule of rollforward of the Off Balance Sheet risks ACLC | ACLC Rollforward Three Months Ended June 30, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ 55 $ — $ 3 $ — $ — $ 58 Unused home equity lines of credit 112 — 12 — — 124 Unused loan commitments - other 391 — 63 — — 454 Total $ 558 $ — $ 78 $ — $ — $ 636 ACLC Rollforward Six Months Ended June 30, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ — $ 55 $ 3 $ — $ — $ 58 Unused home equity lines of credit — 89 35 — — 124 Unused loan commitments - other — 312 142 — — 454 Total $ — $ 456 $ 180 $ — $ — $ 636 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at June 30, 2020 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Financial assets: Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ 139,796 $ — $ 139,796 Private label mortgage backed security — — 3,023 3,023 Mortgage backed securities - residential — 273,281 — 273,281 Collateralized mortgage obligations — 57,598 — 57,598 Corporate bonds — 9,649 — 9,649 Trust preferred security — — 3,500 3,500 Total available-for-sale debt securities $ — $ 480,324 $ 6,523 $ 486,847 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 485 $ — $ 485 Community Reinvestment Act mutual fund 2,530 — — 2,530 Total equity securities with readily determinable fair value $ 2,530 $ 485 $ — $ 3,015 Mortgage loans held for sale $ — $ 40,028 $ — $ 40,028 Consumer loans held for sale — — 164 164 Consumer loans held for investment — — 667 667 Rate lock loan commitments — 4,436 — 4,436 Interest rate swap agreements — 15,324 — 15,324 Financial liabilities: Mandatory forward contracts $ — $ 659 $ — $ 659 Interest rate swap agreements — 15,491 — 15,491 Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Financial assets: Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ 134,640 $ — $ 134,640 Private label mortgage backed security — — 3,495 3,495 Mortgage backed securities - residential — 255,847 — 255,847 Collateralized mortgage obligations — 63,371 — 63,371 Corporate bonds — 10,002 — 10,002 Trust preferred security — — 4,000 4,000 Total available-for-sale debt securities $ — $ 463,860 $ 7,495 $ 471,355 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 714 $ — $ 714 Community Reinvestment Act mutual fund 2,474 — — 2,474 Total equity securities with readily determinable fair value $ 2,474 $ 714 $ — $ 3,188 Mortgage loans held for sale $ — $ 19,224 $ — $ 19,224 Consumer loans held for sale — 598 598 Consumer loans held for investment — — 998 998 Rate lock loan commitments — 789 — 789 Interest rate swap agreements — 5,062 — 5,062 Financial liabilities: Mandatory forward contracts $ — $ 131 $ — $ 131 Interest rate swap agreements — 5,166 — 5,166 |
Assets Measured at Fair Value on a Non-Recurring Basis | Fair Value Measurements at June 30, 2020 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Collateral-dependent loans: Residential real estate: Owner occupied $ — $ — $ 3,655 $ 3,655 Commercial real estate — — 98 98 Commercial & industrial — — 1,055 1,055 Home equity — — 323 323 Total collateral-dependent loans* $ — $ — $ 5,131 $ 5,131 Mortgage servicing rights $ — $ 4,062 $ — $ 4,062 Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Impaired loans: Residential real estate: Owner occupied $ — $ — $ 3,598 $ 3,598 Nonowner occupied — — 14 14 Commercial real estate — — 3,276 3,276 Commercial & industrial — — 1,562 1,562 Home equity — — 470 470 Total impaired loans* $ — $ — $ 8,920 $ 8,920 * The difference between the carrying value and the fair value of collateral-dependent/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, 2020 December 31, 2019 Carrying amount of loans measured at fair value $ 4,331 $ 7,729 Estimated selling costs considered in carrying amount 802 1,193 Valuation allowance (2) (2) Total fair value $ 5,131 $ 8,920 |
Provisions for loss on collateral dependent impaired loans | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Provision on collateral-dependent, impaired loans $ 98 $ 5 $ 128 $ 27 |
Carrying amount and estimated fair values of financial instruments | Fair Value Measurements at June 30, 2020: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 560,195 $ 560,195 $ — $ — $ 560,195 Available-for-sale debt securities 486,847 — 480,324 6,523 486,847 Held-to-maturity debt securities 55,745 — 56,266 — 56,266 Equity securities with readily determinable fair values 3,015 2,530 485 — 3,015 Mortgage loans held for sale, at fair value 40,028 — 40,028 — 40,028 Consumer loans held for sale, at fair value 164 — — 164 164 Consumer loans held for sale, at the lower of cost or fair value 12,800 — — 12,800 12,800 Loans, net 5,009,995 — — 4,979,895 4,979,895 Federal Home Loan Bank stock 25,629 — — — NA Accrued interest receivable 11,146 — 11,146 — 11,146 Rate lock loan commitments 4,436 — 4,436 — 4,436 Interest rate swap agreements 15,324 — 15,324 — 15,324 Liabilities: Noninterest-bearing deposits $ 1,821,400 — $ 1,821,400 — $ 1,821,400 Transaction deposits 2,305,085 — 2,305,085 — 2,305,085 Time deposits 891,600 — 901,588 — 901,588 Securities sold under agreements to repurchase and other short-term borrowings 177,397 — 177,397 — 177,397 Federal Home Loan Bank advances 137,500 — 139,831 — 139,831 Subordinated note 41,240 — 31,805 — 31,805 Accrued interest payable 1,117 — 1,117 — 1,117 Mandatory forward contracts 659 — 659 — 659 Interest rate swap agreements 15,491 — 15,491 — 15,491 Fair Value Measurements at December 31, 2019: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 385,303 $ 385,303 $ — $ — $ 385,303 Available-for-sale debt securities 471,355 — 463,860 7,495 471,355 Held-to-maturity debt securities 62,531 — 63,156 — 63,156 Equity securities with readily determinable fair values 3,188 2,474 714 — 3,188 Mortgage loans held for sale, at fair value 19,224 — 19,224 — 19,224 Consumer loans held for sale, at fair value 598 — — 598 598 Consumer loans held for sale, at the lower of cost or fair value 11,646 — — 11,646 11,646 Loans, net 4,389,800 — — 4,381,396 4,381,396 Federal Home Loan Bank stock 30,831 — — — NA Accrued interest receivable 12,937 — 12,937 — 12,937 Rate lock loan commitments 789 — 789 — 789 Interest rate swap agreements 5,062 — 5,062 — 5,062 Liabilities: Noninterest-bearing deposits $ 1,033,379 — $ 1,033,379 — $ 1,033,379 Transaction deposits 2,018,687 — 2,018,687 — 2,018,687 Time deposits 733,942 — 737,733 — 737,733 Securities sold under agreements to repurchase and other short-term borrowings 167,617 — 167,617 — 167,617 Federal Home Loan Bank advances 750,000 — 749,667 — 749,667 Subordinated note 41,240 — 32,587 — 32,587 Accrued interest payable 2,802 — 2,802 — 2,802 Mandatory forward contracts 131 — 131 — 131 Interest rate swap agreements 5,166 — 5,166 — 5,166 |
Nonrecurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Range Fair Valuation Unobservable (Weighted June 30, 2020 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 3,655 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 51% (11%) Collateral-dependent loans - commercial real estate $ 98 Sales comparison approach Adjustments determined for differences between comparable sales 7% (7%) Collateral-dependent loans - commercial & industrial $ 1,055 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 29% ( Collateral-dependent loans - home equity $ 323 Sales comparison approach Adjustments determined for differences between comparable sales 2% (2%) Range Fair Valuation Unobservable (Weighted December 31, 2019 (dollars in thousands) Value Technique Inputs Average) Impaired loans - residential real estate owner occupied $ 3,598 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 58% (12%) Impaired loans - residential real estate nonowner occupied $ 14 Sales comparison approach Adjustments determined for differences between comparable sales 5% (5%) Impaired loans - commercial real estate $ 3,276 Sales comparison approach Adjustments determined for differences between comparable sales 1% - 10% (4%) Impaired loans - commercial & industrial $ 1,562 Income approach Adjustments for differences between net operating income expectations 3% - 50% ( Impaired loans - home equity $ 470 Sales comparison approach Adjustments determined for differences between comparable sales 2% (2%) |
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) 2020 2019 2020 2019 Balance, beginning of period $ 3,249 $ 3,660 $ 3,495 $ 3,712 Total gains or losses included in earnings: Net change in unrealized gain (107) (2) (107) (34) Recovery of actual losses previously recorded — 38 — 75 Principal paydowns (119) (81) (365) (138) Balance, end of period $ 3,023 $ 3,615 $ 3,023 $ 3,615 |
Private label mortgage backed security | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation June 30, 2020 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 3,023 Discounted cash flow (1) Constant prepayment rate 3.0% - 4.5% (2) Probability of default 1.8% - 6.9% (3) Loss severity 50% - 75% Fair Valuation December 31, 2019 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 3,495 Discounted cash flow (1) Constant prepayment rate 2.3% - 5.0% (2) Probability of default 1.8% - 6.3% (3) Loss severity 50% - 75% |
Trust preferred security | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance, beginning of period $ 4,100 $ 4,100 $ 4,000 $ 4,075 Total gains or losses included in earnings: Discount accretion 11 11 22 21 Net change in unrealized gain (611) (111) (522) (96) Balance, end of period $ 3,500 $ 4,000 $ 3,500 $ 4,000 |
Mortgage loans held for sale | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) June 30, 2020 December 31, 2019 Aggregate fair value $ 40,028 $ 19,224 Contractual balance 38,238 18,690 Unrealized gain 1,790 534 |
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) 2020 2019 2020 2019 Interest income $ 419 $ 170 $ 632 $ 272 Change in fair value 614 128 1,256 46 Total included in earnings $ 1,033 $ 298 $ 1,888 $ 318 |
Consumer loans | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) June 30, 2020 December 31, 2019 Aggregate fair value $ 164 $ 598 Contractual balance 163 593 Unrealized (loss) gain 1 5 |
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) 2020 2019 2020 2019 Interest income $ 45 $ — $ 1,521 $ — Change in fair value (22) — (4) — Total included in earnings $ 23 $ — $ 1,517 $ — |
Consumer loans | Recurring basis | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Fair Valuation June 30, 2020 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 164 Contract Terms (1) Net Premium 1.4% (2) Discounted Sales 5.00% Fair Valuation December 31, 2019 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 598 Contract Terms (1) Net Premium 1.4% (2) Discounted Sales 5.00% |
MORTGAGE BANKING ACTIVITIES (Ta
MORTGAGE BANKING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 Balance, beginning of period $ 39,384 $ 11,313 $ 19,224 $ 8,971 Origination of mortgage loans held for sale 218,668 81,982 343,941 122,696 Proceeds from the sale of mortgage loans held for sale (226,723) (81,630) (336,641) (121,262) Net gain on sale of mortgage loans held for sale 8,699 2,218 13,504 3,478 Balance, end of period $ 40,028 $ 13,883 $ 40,028 $ 13,883 |
Components of Mortgage Banking Income | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Net gain realized on sale of mortgage loans held for sale $ 6,050 $ 1,896 $ 9,128 $ 2,771 Net change in fair value recognized on loans held for sale 614 128 1,256 46 Net change in fair value recognized on rate lock loan commitments (132) 379 3,647 866 Net change in fair value recognized on forward contracts 2,167 (185) (527) (205) Net gain recognized 8,699 2,218 13,504 3,478 Loan servicing income 707 609 1,382 1,210 Amortization of mortgage servicing rights (1,008) (411) (1,593) (733) Change in mortgage servicing rights valuation allowance — — (100) — Net servicing income recognized (301) 198 (311) 477 Total Mortgage Banking income $ 8,398 $ 2,416 $ 13,193 $ 3,955 |
Activity for capitalized mortgage servicing rights | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance, beginning of period $ 5,994 $ 4,935 $ 5,888 $ 4,919 Additions 1,725 634 2,516 972 Amortized to expense (1,008) (411) (1,593) (733) Change in valuation allowance — — (100) — Balance, end of period $ 6,711 $ 5,158 $ 6,711 $ 5,158 |
Schedule of activity in the valuation allowance for capitalized mortgage servicing rights | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Beginning valuation allowance $ — $ — $ — $ — Charge (credit) during the period — — 100 — Ending valuation allowance $ — $ — $ 100 $ — |
Other information relating to mortgage servicing rights | (in thousands) June 30, 2020 December 31, 2019 Fair value of mortgage servicing rights portfolio $ 6,892 $ 9,068 Monthly weighted average prepayment rate of unpaid principal balance* 330 % 202 % Discount rate 10.00 % 10.00 % Weighted average foreclosure rate 0.13 % 0.14 % Weighted average life in years 4.12 5.76 * 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, 2020 December 31, 2019 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 $ 38,238 $ 40,028 $ 18,690 $ 19,224 Included in other assets: Rate lock loan commitments $ 110,176 $ 4,436 $ 32,776 $ 789 Included in other liabilities: Mandatory forward contracts $ 128,040 $ 659 $ 44,919 $ 131 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
INTEREST RATE SWAPS | |
Summary of swaps designated as cash flow hedges | June 30, 2020 December 31, 2019 Unrealized Unrealized Notional Pay Receive Assets / Gain (Loss) Assets / Gain (Loss) (dollars in thousands) Amount Rate Rate Term (Liabilities) in AOCI (Liabilities) in AOCI Interest rate swap on money market deposits $ 10,000 2.17 % 1M LIBOR 12/2013 - 12/2020 $ (68) $ (51) $ (46) $ (34) Interest rate swap on FHLB advance 10,000 2.33 % 3M LIBOR 12/2013 - 12/2020 (99) (74) (58) (43) Total $ 20,000 $ (167) $ (125) $ (104) $ (77) |
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) 2020 2019 2020 2019 Interest rate swap on money market deposits $ 38 $ (8) $ 55 $ (16) Interest rate swap on FHLB advance 41 (5) 53 (16) Total interest (benefit) expense on swap transactions $ 79 $ (13) $ 108 $ (32) |
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) 2020 2019 2020 2019 Gains (losses) recognized in OCI on derivative (effective portion) $ (10) $ (146) $ (171) $ (215) Gains (losses) reclassified from OCI on derivative (effective portion) (79) 13 (108) 32 Gains (losses) recognized in income on derivative (ineffective portion) — — — — |
Summary of interest rate swaps related to clients | June 30, 2020 December 31, 2019 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 141,474 $ 15,324 $ 95,411 $ 5,062 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed — — 6,640 (55) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 141,474 $ 15,324 $ 102,051 $ 5,007 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 141,474 (15,324) 102,051 (5,007) Total $ 282,948 $ — $ 204,102 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 Net income $ 15,804 $ 18,007 $ 42,501 $ 47,523 Dividends declared on Common Stock: Class A Shares (5,347) (4,932) (10,705) (9,865) Class B Shares (572) (530) (1,144) (1,061) Undistributed net income for basic earnings per share 9,885 12,545 30,652 36,597 Weighted average potential dividends on Class A shares upon exercise of dilutive options (7) (32) (24) (68) Undistributed net income for diluted earnings per share $ 9,878 $ 12,513 $ 30,628 $ 36,529 Weighted average shares outstanding: Class A Shares 18,804 18,804 18,821 18,785 Class B Shares 2,200 2,212 2,202 2,212 Effect of dilutive securities on Class A Shares outstanding 25 122 42 128 Weighted average shares outstanding including dilutive securities 21,029 21,138 21,065 21,125 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.29 $ 0.26 $ 0.57 $ 0.53 Undistributed earnings per share* 0.48 0.60 1.47 1.76 Total basic earnings per share - Class A Common Stock $ 0.77 $ 0.86 $ 2.04 $ 2.29 Class B Common Stock: Per share dividends distributed $ 0.26 $ 0.24 $ 0.52 $ 0.48 Undistributed earnings per share* 0.43 0.55 1.34 1.60 Total basic earnings per share - Class B Common Stock $ 0.69 $ 0.79 $ 1.86 $ 2.08 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.29 $ 0.26 $ 0.57 $ 0.53 Undistributed earnings per share* 0.47 0.60 1.47 1.75 Total diluted earnings per share - Class A Common Stock $ 0.76 $ 0.86 $ 2.04 $ 2.28 Class B Common Stock: Per share dividends distributed $ 0.26 $ 0.24 $ 0.52 $ 0.48 Undistributed earnings per share* 0.43 0.54 1.33 1.59 Total diluted earnings per share - Class B Common Stock $ 0.69 $ 0.78 $ 1.85 $ 2.07 * To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. |
Antidilutive Stock Options | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Antidilutive stock options 427,000 160,000 247,000 165,000 Average antidilutive stock options 365,000 156,000 172,000 159,000 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
OTHER COMPREHENSIVE INCOME | |
Summary of OCI components and related tax effects | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Available-for-Sale Debt Securities: Change in unrealized gain on AFS debt securities $ 1,099 $ 2,014 $ 8,876 $ 5,673 Change in unrealized gain of AFS debt security for which a portion of OTTI has been recognized in earnings (108) (1) (107) (34) Net unrealized (losses) gains 991 2,013 8,769 5,639 Tax effect (248) (422) (2,193) (1,186) Net of tax 743 1,591 6,576 4,453 Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges (10) (146) (171) (215) Reclassification amount for net derivative losses (gains) realized in income 79 (13) 108 (32) Net unrealized gains 69 (159) (63) (247) Tax effect (17) 33 15 53 Net of tax 52 (126) (48) (194) Total other comprehensive (loss) income components, net of tax $ 795 $ 1,465 $ 6,528 $ 4,259 |
Summary of amounts reclassified out of each component of AOCI | Amounts Reclassified from AOCI Affected Line Items Three Months Ended Six Months Ended in the Consolidated June 30, June 30, (in thousands) Statements of Income 2020 2019 2020 2019 Cash Flow Hedges: Interest rate swap on money market deposits Interest benefit (expense) on deposits $ (38) $ 8 $ (55) $ 16 Interest rate swap on FHLB advance Interest benefit (expense) on FHLB advances (41) 5 (53) 16 Total derivative gains (losses) on cash flow hedges Total interest benefit (expense) (79) 13 (108) 32 Tax effect Income tax (benefit) expense 20 (3) 27 (7) Net of tax Net income $ (59) $ 10 $ (81) $ 25 |
Summary of the AOCI balances, net of tax | 2020 (in thousands) December 31, 2019 Change June 30, 2020 Unrealized gain on AFS debt securities $ 2,211 $ 6,657 $ 8,868 Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 964 (81) 883 Unrealized loss on cash flow hedges (77) (48) (125) Total unrealized gain $ 3,098 $ 6,528 $ 9,626 2019 (in thousands) December 31, 2018 Change June 30, 2019 Unrealized loss on AFS debt securities $ (2,165) $ 4,480 $ 2,315 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 1,078 (27) 1,051 Unrealized gain (loss) on cash flow hedges 90 (194) (104) Total unrealized gain (loss) $ (997) $ 4,259 $ 3,262 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of net revenues by reportable segments | Three Months Ended June 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 39,035 $ 6,063 $ 419 $ 45,517 $ 1,081 $ 5,607 $ 6,688 $ 52,205 Noninterest income: Service charges on deposit accounts 2,438 17 — 2,455 (4) — (4) 2,451 Net refund transfer fees — — — — 2,913 — 2,913 2,913 Mortgage banking income(1) — — 8,398 8,398 — — — 8,398 Interchange fee income 2,724 — — 2,724 84 — 84 2,808 Program fees(1) — — — — 618 520 1,138 1,138 Increase in cash surrender value of BOLI(1) 395 — — 395 — — — 395 Net gains (losses) on OREO 1 — — 1 — — — 1 Other 568 — 8 576 71 — 71 647 Total noninterest income 6,126 17 8,406 14,549 3,682 520 4,202 18,751 Total net revenue $ 45,161 $ 6,080 $ 8,825 $ 60,066 $ 4,763 $ 6,127 $ 10,890 $ 70,956 Net-revenue concentration(2) 63 % 9 % 12 % 84 % 7 % 9 % 16 % 100 % Three Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 41,877 $ 3,957 $ 170 $ 46,004 $ 710 $ 7,232 $ 7,942 $ 53,946 Noninterest income: Service charges on deposit accounts 3,585 13 — 3,598 — — — 3,598 Net refund transfer fees — — — — 3,629 — 3,629 3,629 Mortgage banking income(1) — — 2,416 2,416 — — — 2,416 Interchange fee income 3,168 — — 3,168 89 — 89 3,257 Program fees(1) — — — — 50 987 1,037 1,037 Increase in cash surrender value of BOLI(1) 377 — — 377 — — — 377 Net gains (losses) on OREO 90 — — 90 — — — 90 Other 633 — 56 689 — 32 32 721 Total noninterest income 7,853 13 2,472 10,338 3,768 1,019 4,787 15,125 Total net revenue $ 49,730 $ 3,970 $ 2,642 $ 56,342 $ 4,478 $ 8,251 $ 12,729 $ 69,071 Net-revenue concentration(2) 72 % 6 % 4 % 82 % 6 % 12 % 18 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 79,656 $ 10,370 $ 632 $ 90,658 $ 21,606 $ 12,679 $ 34,285 $ 124,943 Noninterest income: Service charges on deposit accounts 5,576 28 — 5,604 (17) — (17) 5,587 Net refund transfer fees — — — — 18,736 — 18,736 18,736 Mortgage banking income(1) — — 13,193 13,193 — — — 13,193 Interchange fee income 5,217 — — 5,217 143 — 143 5,360 Program fees(1) — — — — 930 2,832 3,762 3,762 Increase in cash surrender value of BOLI(1) 784 — — 784 — — — 784 Net gains (losses) on OREO 4 — — 4 — — — 4 Other 1,780 — 32 1,812 82 — 82 1,894 Total noninterest income 13,361 28 13,225 26,614 19,874 2,832 22,706 49,320 Total net revenue $ 93,017 $ 10,398 $ 13,857 $ 117,272 $ 41,480 $ 15,511 $ 56,991 $ 174,263 Net-revenue concentration(2) 53 % 6 % 8 % 67 % 24 % 9 % 33 % 100 % Six Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 83,224 $ 6,852 $ 272 $ 90,348 $ 21,148 $ 14,749 $ 35,897 $ 126,245 Noninterest income: Service charges on deposit accounts 6,878 23 — 6,901 — — — 6,901 Net refund transfer fees — — — — 20,729 — 20,729 20,729 Mortgage banking income(1) — — 3,955 3,955 — — — 3,955 Interchange fee income 5,794 — — 5,794 220 — 220 6,014 Program fees(1) — — — — 196 1,915 2,111 2,111 Increase in cash surrender value of BOLI(1) 759 — — 759 — — — 759 Net gains (losses) on OREO 220 — — 220 — — — 220 Other 1,098 — 96 1,194 — 659 659 1,853 Total noninterest income 14,749 23 4,051 18,823 21,145 2,574 23,719 42,542 Total net revenue $ 97,973 $ 6,875 $ 4,323 $ 109,171 $ 42,293 $ 17,323 $ 59,616 $ 168,787 Net-revenue concentration(2) 58 % 4 % 3 % 65 % 25 % 10 % 35 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SEGMENT INFORMATION | |
Segment Information | Three Months Ended June 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 39,035 $ 6,063 $ 419 $ 45,517 $ 1,081 $ 5,607 $ 6,688 $ 52,205 Provision for expected credit loss expense 3,080 449 — 3,529 4,448 (1,443) 3,005 6,534 Net refund transfer fees — — — — 2,913 — 2,913 2,913 Mortgage banking income — — 8,398 8,398 — — — 8,398 Program fees — — — — 618 520 1,138 1,138 Other noninterest income 6,126 17 8 6,151 151 — 151 6,302 Total noninterest income 6,126 17 8,406 14,549 3,682 520 4,202 18,751 Total noninterest expense 36,688 811 2,689 40,188 3,734 903 4,637 44,825 Income (loss) before income tax expense 5,393 4,820 6,136 16,349 (3,419) 6,667 3,248 19,597 Income tax expense (benefit) 729 1,085 1,288 3,102 (853) 1,544 691 3,793 Net income (loss) $ 4,664 $ 3,735 $ 4,848 $ 13,247 $ (2,566) $ 5,123 $ 2,557 $ 15,804 Period-end assets $ 4,967,759 $ 1,028,400 $ 54,518 $ 6,050,677 $ 306,583 $ 103,315 $ 409,898 $ 6,460,575 Net interest margin 3.26 % 3.01 % NM 3.23 % NM NM NM 3.62 % Net-revenue concentration* 63 % 9 % 12 % 84 % 7 % 9 % 16 % 100 % Three Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 41,877 $ 3,957 $ 170 $ 46,004 $ 710 $ 7,232 $ 7,942 $ 53,946 Provision for expected credit loss expense 1,427 417 — 1,844 392 2,224 2,616 4,460 Net refund transfer fees — — — — 3,629 — 3,629 3,629 Mortgage banking income — — 2,416 2,416 — — — 2,416 Program fees — — — — 50 987 1,037 1,037 Other noninterest income 7,853 13 56 7,922 89 32 121 8,043 Total noninterest income 7,853 13 2,472 10,338 3,768 1,019 4,787 15,125 Total noninterest expense 37,764 792 1,354 39,910 2,849 669 3,518 43,428 Income before income tax expense 10,539 2,761 1,288 14,588 1,237 5,358 6,595 21,183 Income tax expense 744 621 270 1,635 288 1,253 1,541 3,176 Net income $ 9,795 $ 2,140 $ 1,018 $ 12,953 $ 949 $ 4,105 $ 5,054 $ 18,007 Period-end assets $ 4,805,449 $ 738,300 $ 20,568 $ 5,564,317 $ 36,834 $ 121,983 $ 158,817 $ 5,723,134 Net interest margin 3.75 % 2.49 % NM 3.62 % NM NM NM 4.12 % Net-revenue concentration* 72 % 6 % 4 % 82 % 6 % 12 % 18 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 79,656 $ 10,370 $ 632 $ 90,658 $ 21,606 $ 12,679 $ 34,285 $ 124,943 Provision for expected credit loss expense 8,669 781 — 9,450 19,581 263 19,844 29,294 Net refund transfer fees — — — — 18,736 — 18,736 18,736 Mortgage banking income — — 13,193 13,193 — — — 13,193 Program fees — — — — 930 2,832 3,762 3,762 Net gain on branch divestiture — — — — — — — — Other noninterest income 13,361 28 32 13,421 208 — 208 13,629 Total noninterest income 13,361 28 13,225 26,614 19,874 2,832 22,706 49,320 Total noninterest expense 73,335 1,614 4,685 79,634 10,363 1,797 12,160 91,794 Income before income tax expense 11,013 8,003 9,172 28,188 11,536 13,451 24,987 53,175 Income tax expense 1,189 1,801 1,926 4,916 2,644 3,114 5,758 10,674 Net income $ 9,824 $ 6,202 $ 7,246 $ 23,272 $ 8,892 $ 10,337 $ 19,229 $ 42,501 Period-end assets $ 4,967,759 $ 1,028,400 $ 54,518 $ 6,050,677 $ 306,583 $ 103,315 $ 409,898 $ 6,460,575 Net interest margin 3.52 % 2.86 % NM 3.43 % NM NM NM 4.55 % Net-revenue concentration* 53 % 6 % 8 % 67 % 24 % 9 % 33 % 100 % Six Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 83,224 $ 6,852 $ 272 $ 90,348 $ 21,148 $ 14,749 $ 35,897 $ 126,245 Provision for expected credit loss expense 1,616 642 — 2,258 13,826 5,607 19,433 21,691 Net refund transfer fees — — — — 20,729 — 20,729 20,729 Mortgage banking income — — 3,955 3,955 — — — 3,955 Program fees — — — — 196 1,915 2,111 2,111 Other noninterest income 14,749 23 96 14,868 220 659 879 15,747 Total noninterest income 14,749 23 4,051 18,823 21,145 2,574 23,719 42,542 Total noninterest expense 73,314 1,550 2,674 77,538 9,963 1,436 11,399 88,937 Income before income tax expense 23,043 4,683 1,649 29,375 18,504 10,280 28,784 58,159 Income tax expense 2,509 1,054 346 3,909 4,318 2,409 6,727 10,636 Net income $ 20,534 $ 3,629 $ 1,303 $ 25,466 $ 14,186 $ 7,871 $ 22,057 $ 47,523 Period-end assets $ 4,805,449 $ 738,300 $ 20,568 $ 5,564,317 $ 36,834 $ 121,983 $ 158,817 $ 5,723,134 Net interest margin 3.81 % 2.63 % NM 3.69 % NM NM NM 4.88 % Net-revenue concentration* 58 % 4 % 3 % 65 % 25 % 10 % 35 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
INCOME TAXES | |
Schedule of effective tax rate that differs from that computed at the federal statutory rate | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Federal corporate tax rate 21.00 % 21.00 % 21.00 % 21.00 % Effect of: State taxes, net of federal benefit 1.66 (2.47) 1.61 (0.51) General business tax credits (1.61) (0.55) (1.47) (0.68) Nontaxable income (0.71) (1.27) (0.71) (0.89) Other, net (0.98) (1.72) (0.36) (0.63) Effective tax rate 19.36 % 14.99 % 20.07 % 18.29 % |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details) | 6 Months Ended |
Jun. 30, 2020segmentitem | |
Basis of Presentation | |
Number of reportable segments | segment | 5 |
Number of banking centers | 42 |
Number of loan production offices | 2 |
Kentucky | |
Basis of Presentation | |
Number of banking centers | 28 |
Metropolitan Louisville | |
Basis of Presentation | |
Number of banking centers | 18 |
Central Kentucky | |
Basis of Presentation | |
Number of banking centers | 7 |
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 |
Northern Kentucky | |
Basis of Presentation | |
Number of banking centers | 3 |
Covington | |
Basis of Presentation | |
Number of banking centers | 1 |
Crestview Hills | |
Basis of Presentation | |
Number of banking centers | 1 |
Florence | |
Basis of Presentation | |
Number of banking centers | 1 |
Southern Indiana | |
Basis of Presentation | |
Number of banking centers | 3 |
Floyds Knobs | |
Basis of Presentation | |
Number of banking centers | 1 |
Jeffersonville | |
Basis of Presentation | |
Number of banking centers | 1 |
New Albany | |
Basis of Presentation | |
Number of banking centers | 1 |
Metropolitan Tampa, Florida | |
Basis of Presentation | |
Number of banking centers | 8 |
Number of loan production offices | 1 |
Metropolitan Cincinnati, Ohio | |
Basis of Presentation | |
Number of banking centers | 2 |
Metropolitan Nashville, Tennessee | |
Basis of Presentation | |
Number of banking centers | 3 |
Number of loan production offices | 1 |
Core Banking | |
Basis of Presentation | |
Number of reportable segments | segment | 3 |
Core Banking | Minimum | |
Basis of Presentation | |
Period of loan expected to remain in warehouse line | 15 days |
Core Banking | Maximum | |
Basis of Presentation | |
Period of loan expected to remain in warehouse line | 30 days |
Republic Processing Group | |
Basis of Presentation | |
Number of reportable segments | segment | 2 |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENTS (Details) | 1 Months Ended | 2 Months Ended | 6 Months Ended | 27 Months Ended | |
Dec. 31, 2019USD ($) | Feb. 29, 2020 | Feb. 28, 2019 | Jun. 30, 2020USD ($)item | Mar. 31, 2018 | |
Basis of Presentation | |||||
Consumer loans receivable held for investment | $ 998,000 | $ 667,000 | |||
Loan held-for-sale term | 16 days | ||||
Minimum | |||||
Basis of Presentation | |||||
Term for intent to sell loans | 12 months | ||||
Maximum | |||||
Basis of Presentation | |||||
Term for intent to sell loans | 60 months | ||||
Tax Refund Solutions | 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 | |||
Advance amount per customer | 6,250 | ||||
Fee charged | $ 0 | ||||
EA's repayment term | 21 days | ||||
Maximum repayment period before Easy Advances considered delinquent | 21 days | ||||
Republic Credit Solutions | Line of credit | |||||
Basis of Presentation | |||||
Percentage of loan receivable held for sale (as a percent) | 90.00% | ||||
Percentage of ownership maintained with each borrower | 100.00% | ||||
Interest retained (as a percent) | 10.00% | ||||
Consumer loans held for sale period | 3 days | ||||
Republic Credit Solutions | Installment loan | |||||
Basis of Presentation | |||||
Consumer loans receivable held for investment | $ 667,000 | ||||
Term for intent to sell loans | 16 days | 21 days | |||
Percentage of loan originated under restarted program, held for sale | 100.00% | ||||
Republic Credit Solutions | Installment loan | Minimum | |||||
Basis of Presentation | |||||
Loan held-for-sale term | 12 months | ||||
Republic Credit Solutions | Installment loan | Maximum | |||||
Basis of Presentation | |||||
Loan held-for-sale term | 60 months | ||||
Republic Credit Solutions | Healthcare receivables | |||||
Basis of Presentation | |||||
Number of third party relationship | item | 2 | ||||
Interest retained - Third party relationship one (as a percent) | 100.00% | ||||
Interest retained - Third party relationship two (as a percent) | 100.00% | ||||
Percentage of loan receivable held for sale - Third party relationship two (as a percent) | 100.00% |
BASIS OF PRESENTATION AND SUM_6
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASUs (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounting Pronouncements | ||||||
Allowance for credit losses | $ 55,097,000 | $ 43,351,000 | $ 70,431,000 | $ 45,983,000 | $ 57,961,000 | $ 44,675,000 |
Available-for-sale debt securities, allowance for credit losses | 126,000 | 0 | ||||
Allowance for credit losses on credit exposure | 636,000 | $ 558,000 | ||||
Cumulative adjustment to retained earnings | 4,291,000 | $ (126,000) | ||||
Accrued interest on AFS debt securities excluded from ACLS | 1,000,000 | |||||
Accrued interest on HTM debt securities excluded from ACLS | 167,000 | |||||
Accrued interest on loans | $ 9,000,000 | |||||
Forecast period of management's expectation for loss rates to revert back to long-term historical averages | 1 year | |||||
ASU 2016-13 | ||||||
Accounting Pronouncements | ||||||
Allowance for credit losses | 50,085,000 | |||||
Allowance for credit losses on credit exposure | 456,000 | |||||
ASU 2016-13 | Adjustment | ||||||
Accounting Pronouncements | ||||||
Allowance for credit losses | $ 6,734,000 | |||||
Percentage of increase in ACLL | 16.00% | |||||
Available-for-sale debt securities, allowance for credit losses | $ 51,000 | |||||
Allowance for credit losses on credit exposure | 456,000 | |||||
Credit loss reclassification of non-accretable discount on PCD loans | 1,400,000 | |||||
Difference in ACL between CECL and probable-incurred method | 5,300,000 | |||||
Cumulative adjustment to retained earnings | $ 4,300,000 |
BASIS OF PRESENTATION AND SUM_7
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of ASC 326 Adoption (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for credit losses on debt securities: | ||||||
AFS debt securities - Corporate bonds | $ 126,000 | $ 0 | ||||
HTM debt securities - Corporate bond | 147,000 | 0 | ||||
Allowance for credit losses on debt securities | 273,000 | $ 297,000 | ||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 55,097,000 | 70,431,000 | 43,351,000 | $ 45,983,000 | $ 57,961,000 | $ 44,675,000 |
Liabilities: | ||||||
Allowance for credit losses on credit exposure | 636,000 | 558,000 | ||||
Corporate bonds | ||||||
Allowance for credit losses on debt securities: | ||||||
AFS debt securities - Corporate bonds | 126,000 | |||||
HTM debt securities - Corporate bond | 147,000 | |||||
Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 43,177,000 | 40,554,000 | 28,205,000 | 31,169,000 | 30,172,000 | 30,347,000 |
Core Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 45,752,000 | 42,680,000 | 29,999,000 | 32,983,000 | 31,569,000 | 31,519,000 |
Republic Processing Group | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 9,345,000 | 27,751,000 | 13,352,000 | 13,000,000 | 26,392,000 | 13,156,000 |
Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 9,303,000 | 9,387,000 | 4,729,000 | 5,213,000 | 5,801,000 | 6,035,000 |
Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 2,274,000 | 2,165,000 | 1,737,000 | 1,775,000 | 1,720,000 | 1,662,000 |
Commercial Real Estate | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 16,300,000 | 13,381,000 | 10,486,000 | 10,566,000 | 10,235,000 | 10,030,000 |
Construction & land development | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 4,940,000 | 4,536,000 | 2,152,000 | 2,910,000 | 2,443,000 | 2,555,000 |
Commercial & industrial | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 2,405,000 | 2,541,000 | 2,882,000 | 4,221,000 | 3,235,000 | 2,873,000 |
Lease Financing Receivables | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 125,000 | 133,000 | 147,000 | 181,000 | 150,000 | 158,000 |
Home equity lines of credit | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 5,124,000 | 5,290,000 | 2,721,000 | 3,124,000 | 3,337,000 | 3,477,000 |
Consumer: Credit cards | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 928,000 | 978,000 | 1,020,000 | 1,028,000 | 1,079,000 | 1,140,000 |
Consumer: Overdrafts | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 488,000 | 758,000 | 1,169,000 | 894,000 | 892,000 | 1,102,000 |
Consumer: Automobile loan | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 473,000 | 546,000 | 612,000 | 708,000 | 768,000 | 724,000 |
Other consumer | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 817,000 | 839,000 | 550,000 | 549,000 | 512,000 | 591,000 |
Warehouse lines of credit | Core Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 2,575,000 | 2,126,000 | 1,794,000 | 1,814,000 | 1,397,000 | 1,172,000 |
Easy Advances | Republic Processing Group | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 15,270,000 | 13,381,000 | ||||
Other TRS loans | Republic Processing Group | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 211,000 | 95,000 | 234,000 | 232,000 | 149,000 | 107,000 |
Republic Credit Solutions | Republic Processing Group | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | $ 9,134,000 | $ 12,386,000 | 13,118,000 | $ 12,768,000 | $ 12,862,000 | $ 13,049,000 |
ASU 2016-13 | ||||||
Allowance for credit losses on debt securities: | ||||||
Allowance for credit losses on debt securities | 51,000 | |||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 50,085,000 | |||||
Liabilities: | ||||||
Allowance for credit losses on credit exposure | 456,000 | |||||
ASU 2016-13 | Corporate bonds | ||||||
Allowance for credit losses on debt securities: | ||||||
HTM debt securities - Corporate bond | 51,000 | |||||
ASU 2016-13 | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 34,939,000 | |||||
ASU 2016-13 | Core Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 36,733,000 | |||||
ASU 2016-13 | Republic Processing Group | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 13,352,000 | |||||
ASU 2016-13 | Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 8,928,000 | |||||
ASU 2016-13 | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 1,885,000 | |||||
ASU 2016-13 | Commercial Real Estate | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 10,759,000 | |||||
ASU 2016-13 | Construction & land development | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 3,599,000 | |||||
ASU 2016-13 | Commercial & industrial | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 1,564,000 | |||||
ASU 2016-13 | Lease Financing Receivables | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 147,000 | |||||
ASU 2016-13 | Home equity lines of credit | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 4,373,000 | |||||
ASU 2016-13 | Consumer: Credit cards | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 1,053,000 | |||||
ASU 2016-13 | Consumer: Overdrafts | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 1,169,000 | |||||
ASU 2016-13 | Consumer: Automobile loan | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 605,000 | |||||
ASU 2016-13 | Other consumer | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 857,000 | |||||
ASU 2016-13 | Warehouse lines of credit | Core Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 1,794,000 | |||||
ASU 2016-13 | Other TRS loans | Republic Processing Group | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 234,000 | |||||
ASU 2016-13 | Republic Credit Solutions | Republic Processing Group | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 13,118,000 | |||||
ASU 2016-13 | Adjustment | ||||||
Allowance for credit losses on debt securities: | ||||||
AFS debt securities - Corporate bonds | 51,000 | |||||
Allowance for credit losses on debt securities | 51,000 | |||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 6,734,000 | |||||
Liabilities: | ||||||
Allowance for credit losses on credit exposure | 456,000 | |||||
ASU 2016-13 | Adjustment | Corporate bonds | ||||||
Allowance for credit losses on debt securities: | ||||||
HTM debt securities - Corporate bond | 51,000 | |||||
ASU 2016-13 | Adjustment | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 6,734,000 | |||||
ASU 2016-13 | Adjustment | Core Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 6,734,000 | |||||
ASU 2016-13 | Adjustment | Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 4,199,000 | |||||
ASU 2016-13 | Adjustment | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 148,000 | |||||
ASU 2016-13 | Adjustment | Commercial Real Estate | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 273,000 | |||||
ASU 2016-13 | Adjustment | Construction & land development | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 1,447,000 | |||||
ASU 2016-13 | Adjustment | Commercial & industrial | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | (1,318,000) | |||||
ASU 2016-13 | Adjustment | Home equity lines of credit | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 1,652,000 | |||||
ASU 2016-13 | Adjustment | Consumer: Credit cards | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | 33,000 | |||||
ASU 2016-13 | Adjustment | Consumer: Automobile loan | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | (7,000) | |||||
ASU 2016-13 | Adjustment | Other consumer | Traditional Banking | ||||||
Allowance for credit losses on loans: | ||||||
Allowance for credit losses | $ 307,000 |
INVESTMENT SECURITIES - AFS (De
INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 473,971 | $ 467,122 |
Gross Unrealized Gains | 13,434 | 4,945 |
Gross Unrealized Losses | (432) | (712) |
Allowance for credit losses | (126) | 0 |
Available-for-sale debt securities, Fair Value | 486,847 | 471,355 |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 137,739 | 134,765 |
Gross Unrealized Gains | 2,057 | 59 |
Gross Unrealized Losses | (184) | |
Available-for-sale debt securities, Fair Value | 139,796 | 134,640 |
Private label mortgage backed security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 1,845 | 2,210 |
Gross Unrealized Gains | 1,178 | 1,285 |
Available-for-sale debt securities, Fair Value | 3,023 | 3,495 |
Mortgage backed securities - residential | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 263,760 | 253,288 |
Gross Unrealized Gains | 9,521 | 2,916 |
Gross Unrealized Losses | (357) | |
Available-for-sale debt securities, Fair Value | 273,281 | 255,847 |
Collateralized mortgage obligations | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 57,030 | 63,284 |
Gross Unrealized Gains | 678 | 258 |
Gross Unrealized Losses | (110) | (171) |
Available-for-sale debt securities, Fair Value | 57,598 | 63,371 |
Corporate bonds | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 10,000 | 10,000 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (225) | |
Allowance for credit losses | (126) | |
Available-for-sale debt securities, Fair Value | 9,649 | 10,002 |
Trust preferred security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 3,597 | 3,575 |
Gross Unrealized Gains | 425 | |
Gross Unrealized Losses | (97) | |
Available-for-sale debt securities, Fair Value | $ 3,500 | $ 4,000 |
INVESTMENT SECURITIES - HTM (De
INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Held-to-Maturity Debt Securities | ||
Carrying Value | $ 55,892 | $ 62,531 |
Gross Unrecognized Gains | 396 | 646 |
Gross Unrecognized Losses | (22) | (21) |
Fair Value | 56,266 | 63,156 |
Allowance for credit losses | (147) | 0 |
Mortgage backed securities - residential | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 102 | 104 |
Gross Unrecognized Gains | 5 | 6 |
Fair Value | 107 | 110 |
Collateralized mortgage obligations | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 15,338 | 16,970 |
Gross Unrecognized Gains | 132 | 94 |
Gross Unrecognized Losses | (1) | (21) |
Fair Value | 15,469 | 17,043 |
Corporate bonds | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 39,991 | 44,995 |
Gross Unrecognized Gains | 250 | 544 |
Gross Unrecognized Losses | (21) | |
Fair Value | 40,220 | 45,539 |
Allowance for credit losses | (147) | |
Obligations of state and political subdivisions | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 461 | 462 |
Gross Unrecognized Gains | 9 | 2 |
Fair Value | $ 470 | $ 464 |
INVESTMENT SECURITIES - SALES O
INVESTMENT SECURITIES - SALES OF AFS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
INVESTMENT SECURITIES | ||
Gross loss on securities available for sale | $ 0 | $ 0 |
INVESTMENT SECURITIES - AMORTIZ
INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Securities available for Sale - Amortized Cost | ||
Due from one year to five years | $ 147,739 | |
Due beyond ten years | 3,597 | |
Amortized Cost | 473,971 | $ 467,122 |
Securities available for Sale - Fair Value | ||
Due from one year to five years | 149,445 | |
Due beyond ten years | 3,500 | |
Total securities | 486,847 | 471,355 |
Securities held to maturity - Carrying Value | ||
Due in one year or less | 105 | |
Due from one year to five years | 35,395 | |
Due from five years to ten years | 4,952 | |
Total securities | 55,892 | 62,531 |
Securities held to maturity - Fair Value | ||
Due in one year or less | 105 | |
Due from one year to five years | 35,654 | |
Due from five years to ten years | 4,931 | |
Fair Value | 56,266 | 63,156 |
Private label mortgage backed security | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 1,845 | |
Amortized Cost | 1,845 | 2,210 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 3,023 | |
Total securities | 3,023 | 3,495 |
Mortgage backed securities - residential | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 263,760 | |
Amortized Cost | 263,760 | 253,288 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 273,281 | |
Total securities | 273,281 | 255,847 |
Securities held to maturity - Carrying Value | ||
Securities not due at a single maturity date | 102 | |
Total securities | 102 | 104 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 107 | |
Fair Value | 107 | 110 |
Collateralized mortgage obligations | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 57,030 | |
Amortized Cost | 57,030 | 63,284 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 57,598 | |
Total securities | 57,598 | 63,371 |
Securities held to maturity - Carrying Value | ||
Securities not due at a single maturity date | 15,338 | |
Total securities | 15,338 | 16,970 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 15,469 | |
Fair Value | $ 15,469 | $ 17,043 |
INVESTMENT SECURITIES - INVESTM
INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 11,758 | $ 118,239 |
Less than 12 months Unrealized Losses | (198) | (481) |
12 months or more Fair Value | 2,971 | 42,363 |
12 months or more Unrealized Losses | (9) | (231) |
Total Fair Value | 14,729 | 160,602 |
Total Unrealized Losses | $ (207) | $ (712) |
Number of securities held | 171 | 173 |
Number of securities held in an unrealized loss position | 14 | 34 |
Maximum percentage of holdings of securities of any one issuer, other than the U.S. Government and its agencies | 10.00% | 10.00% |
Held-to-maturity debt securities | ||
Less than 12 months Fair Value | $ 4 | |
Less than 12 months Unrealized Losses | (2) | |
12 months or more Fair Value | 4,827 | |
12 months or more Unrealized Losses | (19) | |
Total Fair Value | 4,831 | |
Total Unrealized Losses | $ (22) | (21) |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 40,165 | |
Less than 12 months Unrealized Losses | (176) | |
12 months or more Fair Value | 14,992 | |
12 months or more Unrealized Losses | (8) | |
Total Fair Value | 55,157 | |
Total Unrealized Losses | (184) | |
Mortgage backed securities - residential | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 65,630 | |
Less than 12 months Unrealized Losses | (269) | |
12 months or more Fair Value | 16,633 | |
12 months or more Unrealized Losses | (88) | |
Total Fair Value | 82,263 | |
Total Unrealized Losses | (357) | |
Collateralized mortgage obligations | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 8,258 | 12,444 |
Less than 12 months Unrealized Losses | (101) | (36) |
12 months or more Fair Value | 2,971 | 10,738 |
12 months or more Unrealized Losses | (9) | (135) |
Total Fair Value | 11,229 | 23,182 |
Total Unrealized Losses | (110) | (171) |
Held-to-maturity debt securities | ||
Less than 12 months Fair Value | 4 | |
Less than 12 months Unrealized Losses | (2) | |
12 months or more Fair Value | 4,827 | |
12 months or more Unrealized Losses | (19) | |
Total Fair Value | 4,831 | |
Total Unrealized Losses | (1) | $ (21) |
Trust preferred security | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 3,500 | |
Less than 12 months Unrealized Losses | (97) | |
Total Fair Value | 3,500 | |
Total Unrealized Losses | $ (97) |
INVESTMENT SECURITIES - CORPORA
INVESTMENT SECURITIES - CORPORATE BONDS AND MORTGAGE BACKED SECURITIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Private label mortgage backed security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Securities | $ 3,023,000 | |
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 | $ 110,000 | $ 528,000 |
INVESTMENT SECURITIES - TRUST P
INVESTMENT SECURITIES - TRUST PREFERRED SECURITY (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2015 | |
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Amount of floating rate purchased | $ 138,894 | |
Trust preferred security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Amount of floating rate purchased | $ 3,000 | |
Price as percentage of face value | 68.00% | |
3 Month London Interbank Offered Rate (LIBOR) | Trust preferred security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Interest rate - Basis Spread | 1.59% |
INVESTMENT SECURITIES - OTHER T
INVESTMENT SECURITIES - OTHER THAN TEMPORARY IMPAIRMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Bank's private label mortgage backed security credit losses recognized in earnings | ||
Number of securities held | 171 | 173 |
Available-for-sale debt securities, at fair value (amortized cost of $473,971 in 2020 and $467,122 in 2019, allowance for credit losses of $126 in 2020 and $0 in 2019) | $ 486,847 | $ 471,355 |
Private label mortgage backed security | ||
Bank's private label mortgage backed security credit losses recognized in earnings | ||
Number of securities held | 1 | |
Available-for-sale debt securities, at fair value (amortized cost of $473,971 in 2020 and $467,122 in 2019, allowance for credit losses of $126 in 2020 and $0 in 2019) | $ 3,023 | $ 3,495 |
INVESTMENT SECURITIES - ACLS RO
INVESTMENT SECURITIES - ACLS ROLLFORWARD (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Debt Securities | ||
Balance | $ 297 | |
Provision | (24) | $ 222 |
Balance | 273 | 273 |
Debt Securities, Held-to-maturity, Nonaccrual | 0 | 0 |
Bond maturity during the period | 5,000 | |
Debt Securities,Held To Maturity, Collateral Dependent | 0 | 0 |
Corporate bonds | Available-for-Sale Securities | ||
Debt Securities | ||
Balance | 126 | |
Provision | 126 | |
Balance | 126 | 126 |
Corporate bonds | Held-to-Maturity Securities | ||
Debt Securities | ||
Balance | 171 | |
Provision | (24) | 96 |
Balance | $ 147 | 147 |
ASU 2016-13 | ||
Debt Securities | ||
Balance | 51 | |
ASU 2016-13 | Adjustment | ||
Debt Securities | ||
Balance | 51 | |
ASU 2016-13 | Adjustment | Corporate bonds | Held-to-Maturity Securities | ||
Debt Securities | ||
Balance | $ 51 |
INVESTMENT SECURITIES - PLEDGED
INVESTMENT SECURITIES - PLEDGED DEBT SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
INVESTMENT SECURITIES | ||
Carrying amount | $ 259,808 | $ 229,700 |
Fair value | $ 259,812 | $ 229,706 |
INVESTMENT SECURITIES - EQUITY
INVESTMENT SECURITIES - EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Equity securities | |||||
Amortized Cost | $ 2,500 | $ 2,500 | $ 2,500 | ||
Gross Unrealized Gains | 515 | 714 | |||
Gross Unrealized Losses | (26) | ||||
Fair Value | 3,015 | 3,015 | 3,188 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | 207 | $ 159 | (173) | $ 448 | |
Gains (Losses) Recognized on Equity securities, Total | 207 | 159 | (173) | 448 | |
Freddie Mac preferred stock | |||||
Equity securities | |||||
Gross Unrealized Gains | 485 | 714 | |||
Fair Value | 485 | 485 | 714 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | 191 | 126 | (229) | 378 | |
Gains (Losses) Recognized on Equity securities, Total | 191 | 126 | (229) | 378 | |
Community Reinvestment Act mutual fund | |||||
Equity securities | |||||
Amortized Cost | 2,500 | 2,500 | 2,500 | ||
Gross Unrealized Gains | 30 | ||||
Gross Unrealized Losses | (26) | ||||
Fair Value | 2,530 | 2,530 | $ 2,474 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | 16 | 33 | 56 | 70 | |
Gains (Losses) Recognized on Equity securities, Total | $ 16 | $ 33 | $ 56 | $ 70 |
LOANS HELD FOR SALE - CONSUMER
LOANS HELD FOR SALE - CONSUMER LOANS - HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Consumer Loans Held For Sale At Fair Value [RollForward] | ||
Balance, beginning of period | $ 3,431 | $ 598 |
Origination of consumer loans held for sale | 555 | 47,741 |
Proceeds from the sale of consumer loans held for sale | (3,963) | (49,691) |
Net gain (loss) recognized on consumer loans held for sale | 141 | 1,516 |
Balance, end of period | $ 164 | $ 164 |
LOANS HELD FOR SALE - CONSUME_2
LOANS HELD FOR SALE - CONSUMER LOANS - LOWER COST (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 27 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2018 | |
Loans held for sale | ||||||
Loan held-for-sale term | 16 days | |||||
Carried at lower of cost or fair value | ||||||
Balance, beginning of period | $ 12,089 | $ 12,864 | $ 11,646 | $ 12,838 | ||
Origination of consumer loans held for sale | 86,936 | 200,327 | 234,871 | 346,413 | ||
Proceeds from the sale of consumer loans held for sale | (86,796) | (176,759) | (235,207) | (324,260) | ||
Net gain on sale of consumer loans held for sale | 571 | 1,177 | 1,490 | 2,618 | ||
Balance, end of period | $ 11,646 | $ 12,800 | $ 37,609 | $ 12,800 | $ 37,609 | |
Minimum | ||||||
Loans held for sale | ||||||
Term for intent to sell loans | 12 months | |||||
Maximum | ||||||
Loans held for sale | ||||||
Term for intent to sell loans | 60 months | |||||
Republic Credit Solutions | Line of Credit and Healthcare Receivables | ||||||
Loans held for sale | ||||||
Percentage of loan receivable held for sale (as a percent) | 90.00% | |||||
Republic Credit Solutions | Installment loan | ||||||
Loans held for sale | ||||||
Term for intent to sell loans | 16 days | 21 days | ||||
Republic Credit Solutions | Installment loan | Minimum | ||||||
Loans held for sale | ||||||
Loan held-for-sale term | 12 months | |||||
Republic Credit Solutions | Installment loan | Maximum | ||||||
Loans held for sale | ||||||
Loan held-for-sale term | 60 months |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COMPOSITION OF LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans disclosures | ||||||
Total loans | $ 5,065,092 | $ 4,433,151 | ||||
Allowance for loan and lease losses | (55,097) | $ (70,431) | (43,351) | $ (45,983) | $ (57,961) | $ (44,675) |
Loans, net | 5,009,995 | 4,389,800 | ||||
Core Banking | ||||||
Loans disclosures | ||||||
Total loans | 4,965,602 | 4,313,389 | ||||
Allowance for loan and lease losses | (45,752) | (42,680) | (29,999) | (32,983) | (31,569) | (31,519) |
Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 3,935,823 | 3,595,931 | ||||
Allowance for loan and lease losses | (43,177) | (40,554) | (28,205) | (31,169) | (30,172) | (30,347) |
Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 99,490 | 119,762 | ||||
Allowance for loan and lease losses | (9,345) | (27,751) | (13,352) | (13,000) | (26,392) | (13,156) |
PPP Loans | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 511,065 | |||||
Residential Real Estate - Owner Occupied | ||||||
Loans disclosures | ||||||
Total loans | 885,325 | |||||
Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 885,325 | 949,568 | ||||
Allowance for loan and lease losses | (9,303) | (9,387) | (4,729) | (5,213) | (5,801) | (6,035) |
Residential Real Estate - Non Owner Occupied | ||||||
Loans disclosures | ||||||
Total loans | 254,700 | |||||
Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 254,700 | 258,803 | ||||
Allowance for loan and lease losses | (2,274) | (2,165) | (1,737) | (1,775) | (1,720) | (1,662) |
Commercial Real Estate | ||||||
Loans disclosures | ||||||
Total loans | 1,322,290 | |||||
Commercial Real Estate | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 1,322,290 | 1,303,000 | ||||
Allowance for loan and lease losses | (16,300) | (13,381) | (10,486) | (10,566) | (10,235) | (10,030) |
Construction & land development | ||||||
Loans disclosures | ||||||
Total loans | 157,254 | |||||
Construction & land development | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 157,254 | 159,702 | ||||
Allowance for loan and lease losses | (4,940) | (4,536) | (2,152) | (2,910) | (2,443) | (2,555) |
Commercial & industrial | ||||||
Loans disclosures | ||||||
Total loans | 904,727 | |||||
Commercial & industrial | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 904,727 | 477,236 | ||||
Allowance for loan and lease losses | (2,405) | (2,541) | (2,882) | (4,221) | (3,235) | (2,873) |
Commercial & industrial | PPP Loans | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 511,065 | |||||
Lease Financing Receivables | ||||||
Loans disclosures | ||||||
Total loans | 11,864 | |||||
Lease Financing Receivables | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 11,864 | 14,040 | ||||
Allowance for loan and lease losses | (125) | (133) | (147) | (181) | (150) | (158) |
Home equity lines of credit | ||||||
Loans disclosures | ||||||
Total loans | 265,266 | |||||
Home equity lines of credit | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 265,266 | 293,186 | ||||
Allowance for loan and lease losses | (5,124) | (5,290) | (2,721) | (3,124) | (3,337) | (3,477) |
Consumer: Credit cards | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 14,265 | 17,836 | ||||
Allowance for loan and lease losses | (928) | (978) | (1,020) | (1,028) | (1,079) | (1,140) |
Consumer: Overdrafts | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 488 | 1,522 | ||||
Allowance for loan and lease losses | (488) | (758) | (1,169) | (894) | (892) | (1,102) |
Consumer: Automobile loan | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 41,059 | 52,923 | ||||
Allowance for loan and lease losses | (473) | (546) | (612) | (708) | (768) | (724) |
Consumer | ||||||
Loans disclosures | ||||||
Total loans | 134,397 | |||||
Consumer | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 134,397 | |||||
Other consumer | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 78,585 | 68,115 | ||||
Allowance for loan and lease losses | (817) | (839) | (550) | (549) | (512) | (591) |
Warehouse lines of credit | ||||||
Loans disclosures | ||||||
Total loans | 1,029,779 | |||||
Warehouse lines of credit | Core Banking | ||||||
Loans disclosures | ||||||
Total loans | 1,029,779 | 717,458 | ||||
Allowance for loan and lease losses | (2,575) | (2,126) | (1,794) | (1,814) | (1,397) | (1,172) |
Easy Advances | Republic Processing Group | ||||||
Loans disclosures | ||||||
Allowance for loan and lease losses | (15,270) | (13,381) | ||||
Other TRS loans | ||||||
Loans disclosures | ||||||
Total loans | 289 | |||||
Other TRS loans | Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 289 | 14,365 | ||||
Allowance for loan and lease losses | (211) | (95) | (234) | (232) | (149) | (107) |
Republic Credit Solutions | ||||||
Loans disclosures | ||||||
Total loans | 99,201 | |||||
Republic Credit Solutions | Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 99,201 | 105,397 | ||||
Allowance for loan and lease losses | $ (9,134) | $ (12,386) | $ (13,118) | $ (12,768) | $ (12,862) | $ (13,049) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Contractually receivable | $ 5,063,496 | $ 4,432,351 |
Unearned income | (944) | (1,139) |
Unamortized premiums | 279 | 366 |
Unaccreted discounts | (1,157) | (2,534) |
Net unamortized deferred origination fees and costs | 3,418 | 4,107 |
Carrying value of loans | $ 5,065,092 | $ 4,433,151 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RISK CATEGORY (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Risk category of rated loans | ||
2020 | $ 910,281 | |
2019 | 842,606 | |
2018 | 473,714 | |
2017 | 436,839 | |
Prior | 973,902 | |
Revolving Loans Amortized Cost Basis | 1,388,017 | |
Revolving Loans Converted To Term Loans | 39,733 | |
Loans | 5,065,092 | $ 4,433,151 |
Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
2020 | 90,354 | |
2019 | 167,676 | |
2018 | 109,627 | |
2017 | 89,922 | |
Prior | 427,746 | |
Loans | 885,325 | |
Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
2020 | 23,899 | |
2019 | 75,496 | |
2018 | 52,683 | |
2017 | 50,441 | |
Prior | 52,181 | |
Loans | 254,700 | |
Commercial Real Estate | ||
Risk category of rated loans | ||
2020 | 120,552 | |
2019 | 328,746 | |
2018 | 209,251 | |
2017 | 218,647 | |
Prior | 405,361 | |
Revolving Loans Converted To Term Loans | 39,733 | |
Loans | 1,322,290 | |
Construction & land development | ||
Risk category of rated loans | ||
2020 | 55,961 | |
2019 | 58,069 | |
2018 | 16,050 | |
2017 | 11,719 | |
Prior | 15,455 | |
Loans | 157,254 | |
Commercial & industrial | ||
Risk category of rated loans | ||
2020 | 594,555 | |
2019 | 150,460 | |
2018 | 50,706 | |
2017 | 49,358 | |
Prior | 56,807 | |
Revolving Loans Amortized Cost Basis | 2,841 | |
Loans | 904,727 | |
Lease Financing Receivables | ||
Risk category of rated loans | ||
2020 | 711 | |
2019 | 4,602 | |
2018 | 2,510 | |
2017 | 3,232 | |
Prior | 809 | |
Loans | 11,864 | |
Warehouse lines of credit | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 1,029,779 | |
Loans | 1,029,779 | |
Home equity lines of credit | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 265,266 | |
Loans | 265,266 | |
Consumer | ||
Risk category of rated loans | ||
2020 | 17,151 | |
2019 | 48,961 | |
2018 | 29,265 | |
2017 | 11,843 | |
Prior | 12,764 | |
Revolving Loans Amortized Cost Basis | 14,413 | |
Loans | 134,397 | |
Other TRS loans | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 289 | |
Loans | 289 | |
Republic Credit Solutions | ||
Risk category of rated loans | ||
2020 | 7,098 | |
2019 | 8,596 | |
2018 | 3,622 | |
2017 | 1,677 | |
Prior | 2,779 | |
Revolving Loans Amortized Cost Basis | 75,429 | |
Loans | 99,201 | |
Pass | ||
Risk category of rated loans | ||
2020 | 905,668 | |
2019 | 837,387 | |
2018 | 472,514 | |
2017 | 433,100 | |
Prior | 941,578 | |
Revolving Loans Amortized Cost Basis | 1,383,397 | |
Revolving Loans Converted To Term Loans | 36,887 | |
Loans | 5,010,531 | 2,648,380 |
Pass | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
2020 | 90,354 | |
2019 | 166,133 | |
2018 | 108,759 | |
2017 | 87,604 | |
Prior | 404,104 | |
Loans | 856,954 | |
Pass | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
2020 | 23,599 | |
2019 | 74,957 | |
2018 | 52,683 | |
2017 | 50,441 | |
Prior | 51,297 | |
Loans | 252,977 | |
Pass | Commercial Real Estate | ||
Risk category of rated loans | ||
2020 | 116,710 | |
2019 | 328,746 | |
2018 | 209,251 | |
2017 | 217,425 | |
Prior | 398,039 | |
Revolving Loans Converted To Term Loans | 36,887 | |
Loans | 1,307,058 | |
Pass | Construction & land development | ||
Risk category of rated loans | ||
2020 | 55,961 | |
2019 | 55,460 | |
2018 | 16,050 | |
2017 | 11,719 | |
Prior | 15,455 | |
Loans | 154,645 | |
Pass | Commercial & industrial | ||
Risk category of rated loans | ||
2020 | 594,084 | |
2019 | 149,970 | |
2018 | 50,438 | |
2017 | 49,358 | |
Prior | 56,571 | |
Revolving Loans Amortized Cost Basis | 2,087 | |
Loans | 902,508 | |
Pass | Lease Financing Receivables | ||
Risk category of rated loans | ||
2020 | 711 | |
2019 | 4,602 | |
2018 | 2,510 | |
2017 | 3,232 | |
Prior | 809 | |
Loans | 11,864 | |
Pass | Warehouse lines of credit | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 1,029,779 | |
Loans | 1,029,779 | |
Pass | Home equity lines of credit | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 262,318 | |
Loans | 262,318 | |
Pass | Consumer | ||
Risk category of rated loans | ||
2020 | 17,151 | |
2019 | 48,923 | |
2018 | 29,201 | |
2017 | 11,644 | |
Prior | 12,524 | |
Revolving Loans Amortized Cost Basis | 14,402 | |
Loans | 133,845 | |
Pass | Other TRS loans | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 77 | |
Loans | 77 | |
Pass | Republic Credit Solutions | ||
Risk category of rated loans | ||
2020 | 7,098 | |
2019 | 8,596 | |
2018 | 3,622 | |
2017 | 1,677 | |
Prior | 2,779 | |
Revolving Loans Amortized Cost Basis | 74,734 | |
Loans | 98,506 | |
Special Mention | ||
Risk category of rated loans | ||
2020 | 1,628 | |
2019 | 2,421 | |
2018 | 196 | |
2017 | 1,627 | |
Prior | 12,902 | |
Revolving Loans Amortized Cost Basis | 139 | |
Revolving Loans Converted To Term Loans | 2,846 | |
Loans | 21,759 | 21,754 |
Special Mention | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
2018 | 46 | |
2017 | 1,627 | |
Prior | 9,826 | |
Loans | 11,499 | |
Special Mention | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
2020 | 300 | |
Prior | 158 | |
Loans | 458 | |
Special Mention | Commercial Real Estate | ||
Risk category of rated loans | ||
2020 | 878 | |
Prior | 2,883 | |
Revolving Loans Converted To Term Loans | 2,846 | |
Loans | 6,607 | |
Special Mention | Construction & land development | ||
Risk category of rated loans | ||
2019 | 2,421 | |
Loans | 2,421 | |
Special Mention | Commercial & industrial | ||
Risk category of rated loans | ||
2020 | 450 | |
2018 | 150 | |
Prior | 35 | |
Loans | 635 | |
Special Mention | Home equity lines of credit | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 128 | |
Loans | 128 | |
Special Mention | Consumer | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 11 | |
Loans | 11 | |
Substandard | ||
Risk category of rated loans | ||
2020 | 2,985 | |
2019 | 2,798 | |
2018 | 1,004 | |
2017 | 2,112 | |
Prior | 19,422 | |
Revolving Loans Amortized Cost Basis | 4,481 | |
Loans | 32,802 | 33,297 |
Substandard | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
2019 | 1,543 | |
2018 | 822 | |
2017 | 691 | |
Prior | 13,816 | |
Loans | 16,872 | |
Substandard | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
2019 | 539 | |
Prior | 726 | |
Loans | 1,265 | |
Substandard | Commercial Real Estate | ||
Risk category of rated loans | ||
2020 | 2,964 | |
2017 | 1,222 | |
Prior | 4,439 | |
Loans | 8,625 | |
Substandard | Construction & land development | ||
Risk category of rated loans | ||
2019 | 188 | |
Loans | 188 | |
Substandard | Commercial & industrial | ||
Risk category of rated loans | ||
2020 | 21 | |
2019 | 490 | |
2018 | 118 | |
Prior | 201 | |
Revolving Loans Amortized Cost Basis | 754 | |
Loans | 1,584 | |
Substandard | Home equity lines of credit | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 2,820 | |
Loans | 2,820 | |
Substandard | Consumer | ||
Risk category of rated loans | ||
2019 | 38 | |
2018 | 64 | |
2017 | 199 | |
Prior | 240 | |
Loans | 541 | |
Substandard | Other TRS loans | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 212 | |
Loans | 212 | |
Substandard | Republic Credit Solutions | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 695 | |
Loans | 695 | |
PCI Loans - Group 1 | ||
Risk category of rated loans | ||
Loans | 797 | |
PCI Loans - Substandard | ||
Risk category of rated loans | ||
Loans | 1,289 | |
Rated Loans | ||
Risk category of rated loans | ||
Loans | 2,705,517 | |
Core Banking | ||
Risk category of rated loans | ||
Loans | 4,965,602 | 4,313,389 |
Core Banking | Warehouse lines of credit | ||
Risk category of rated loans | ||
Loans | 1,029,779 | 717,458 |
Core Banking | Pass | ||
Risk category of rated loans | ||
Loans | 2,648,380 | |
Core Banking | Pass | Warehouse lines of credit | ||
Risk category of rated loans | ||
Loans | 717,458 | |
Core Banking | Special Mention | ||
Risk category of rated loans | ||
Loans | 21,754 | |
Core Banking | Substandard | ||
Risk category of rated loans | ||
Loans | 32,889 | |
Core Banking | PCI Loans - Group 1 | ||
Risk category of rated loans | ||
Loans | 797 | |
Core Banking | PCI Loans - Substandard | ||
Risk category of rated loans | ||
Loans | 1,289 | |
Core Banking | Rated Loans | ||
Risk category of rated loans | ||
Loans | 2,705,109 | |
Core Banking | Rated Loans | Warehouse lines of credit | ||
Risk category of rated loans | ||
Loans | 717,458 | |
Traditional Banking | ||
Risk category of rated loans | ||
Loans | 3,935,823 | 3,595,931 |
Traditional Banking | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 885,325 | 949,568 |
Traditional Banking | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Loans | 254,700 | 258,803 |
Traditional Banking | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 1,322,290 | 1,303,000 |
Traditional Banking | Construction & land development | ||
Risk category of rated loans | ||
Loans | 157,254 | 159,702 |
Traditional Banking | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 904,727 | 477,236 |
Traditional Banking | Lease Financing Receivables | ||
Risk category of rated loans | ||
Loans | 11,864 | 14,040 |
Traditional Banking | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 265,266 | 293,186 |
Traditional Banking | Consumer: Credit cards | ||
Risk category of rated loans | ||
Loans | 14,265 | 17,836 |
Traditional Banking | Consumer: Overdrafts | ||
Risk category of rated loans | ||
Loans | 488 | 1,522 |
Traditional Banking | Consumer | ||
Risk category of rated loans | ||
Loans | 134,397 | |
Traditional Banking | Consumer: Automobile loan | ||
Risk category of rated loans | ||
Loans | 41,059 | 52,923 |
Traditional Banking | Other consumer | ||
Risk category of rated loans | ||
Loans | 78,585 | 68,115 |
Traditional Banking | Pass | ||
Risk category of rated loans | ||
Loans | 1,930,922 | |
Traditional Banking | Pass | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 1,286,623 | |
Traditional Banking | Pass | Construction & land development | ||
Risk category of rated loans | ||
Loans | 157,165 | |
Traditional Banking | Pass | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 473,094 | |
Traditional Banking | Pass | Lease Financing Receivables | ||
Risk category of rated loans | ||
Loans | 14,040 | |
Traditional Banking | Special Mention | ||
Risk category of rated loans | ||
Loans | 21,754 | |
Traditional Banking | Special Mention | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 12,153 | |
Traditional Banking | Special Mention | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Loans | 487 | |
Traditional Banking | Special Mention | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 4,623 | |
Traditional Banking | Special Mention | Construction & land development | ||
Risk category of rated loans | ||
Loans | 2,339 | |
Traditional Banking | Special Mention | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 2,152 | |
Traditional Banking | Substandard | ||
Risk category of rated loans | ||
Loans | 32,889 | |
Traditional Banking | Substandard | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 14,441 | |
Traditional Banking | Substandard | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Loans | 1,285 | |
Traditional Banking | Substandard | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 11,123 | |
Traditional Banking | Substandard | Construction & land development | ||
Risk category of rated loans | ||
Loans | 198 | |
Traditional Banking | Substandard | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 1,968 | |
Traditional Banking | Substandard | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 3,276 | |
Traditional Banking | Substandard | Consumer: Automobile loan | ||
Risk category of rated loans | ||
Loans | 247 | |
Traditional Banking | Substandard | Other consumer | ||
Risk category of rated loans | ||
Loans | 351 | |
Traditional Banking | PCI Loans - Group 1 | ||
Risk category of rated loans | ||
Loans | 797 | |
Traditional Banking | PCI Loans - Group 1 | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 140 | |
Traditional Banking | PCI Loans - Group 1 | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 631 | |
Traditional Banking | PCI Loans - Group 1 | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 22 | |
Traditional Banking | PCI Loans - Group 1 | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 4 | |
Traditional Banking | PCI Loans - Substandard | ||
Risk category of rated loans | ||
Loans | 1,289 | |
Traditional Banking | PCI Loans - Substandard | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 1,281 | |
Traditional Banking | PCI Loans - Substandard | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 6 | |
Traditional Banking | PCI Loans - Substandard | Other consumer | ||
Risk category of rated loans | ||
Loans | 2 | |
Traditional Banking | Rated Loans | ||
Risk category of rated loans | ||
Loans | 1,987,651 | |
Traditional Banking | Rated Loans | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 28,015 | |
Traditional Banking | Rated Loans | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Loans | 1,772 | |
Traditional Banking | Rated Loans | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 1,303,000 | |
Traditional Banking | Rated Loans | Construction & land development | ||
Risk category of rated loans | ||
Loans | 159,702 | |
Traditional Banking | Rated Loans | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 477,236 | |
Traditional Banking | Rated Loans | Lease Financing Receivables | ||
Risk category of rated loans | ||
Loans | 14,040 | |
Traditional Banking | Rated Loans | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 3,286 | |
Traditional Banking | Rated Loans | Consumer: Automobile loan | ||
Risk category of rated loans | ||
Loans | 247 | |
Traditional Banking | Rated Loans | Other consumer | ||
Risk category of rated loans | ||
Loans | 353 | |
Republic Processing Group | ||
Risk category of rated loans | ||
Loans | 99,490 | 119,762 |
Republic Processing Group | Other TRS loans | ||
Risk category of rated loans | ||
Loans | 289 | 14,365 |
Republic Processing Group | Republic Credit Solutions | ||
Risk category of rated loans | ||
Loans | $ 99,201 | 105,397 |
Republic Processing Group | Substandard | ||
Risk category of rated loans | ||
Loans | 408 | |
Republic Processing Group | Substandard | Other TRS loans | ||
Risk category of rated loans | ||
Loans | 53 | |
Republic Processing Group | Substandard | Republic Credit Solutions | ||
Risk category of rated loans | ||
Loans | 355 | |
Republic Processing Group | Rated Loans | ||
Risk category of rated loans | ||
Loans | 408 | |
Republic Processing Group | Rated Loans | Other TRS loans | ||
Risk category of rated loans | ||
Loans | 53 | |
Republic Processing Group | Rated Loans | Republic Credit Solutions | ||
Risk category of rated loans | ||
Loans | $ 355 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for loan losses rollforward | ||||||
Beginning Balance | $ 70,431 | $ 57,961 | $ 43,351 | $ 44,675 | ||
Provision | 6,558 | 4,460 | 29,072 | 21,691 | ||
Charged-off | (22,311) | (17,163) | (25,586) | (21,616) | ||
Recoveries | 419 | 725 | 1,526 | 1,233 | ||
Ending Balance | $ 55,097 | $ 70,431 | 55,097 | 45,983 | $ 55,097 | 45,983 |
U.S. unemployment rate | 11.10% | 4.40% | ||||
Forecast period of management's expectation for loss rates to revert back to long-term historical averages | 1 year | |||||
Minimum | ||||||
Allowance for loan losses rollforward | ||||||
Forecasted unemployment rate | 8.00% | |||||
Core Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 42,680 | 31,569 | $ 29,999 | 31,519 | ||
Provision | 3,553 | 1,844 | 9,228 | 2,258 | ||
Charged-off | (700) | (791) | (1,222) | (1,403) | ||
Recoveries | 219 | 361 | 1,013 | 609 | ||
Ending Balance | $ 45,752 | $ 42,680 | 45,752 | 32,983 | 45,752 | 32,983 |
Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 40,554 | 30,172 | 28,205 | 30,347 | ||
Provision | 3,104 | 1,427 | 8,447 | 1,616 | ||
Charged-off | (700) | (791) | (1,222) | (1,403) | ||
Recoveries | 219 | 361 | 1,013 | 609 | ||
Ending Balance | 43,177 | 40,554 | 43,177 | 31,169 | 43,177 | 31,169 |
Republic Processing Group | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 27,751 | 26,392 | 13,352 | 13,156 | ||
Provision | 3,005 | 2,616 | 19,844 | 19,433 | ||
Charged-off | (21,611) | (16,372) | (24,364) | (20,213) | ||
Recoveries | 200 | 364 | 513 | 624 | ||
Ending Balance | 9,345 | 27,751 | 9,345 | 13,000 | 9,345 | 13,000 |
Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 9,387 | 5,801 | 4,729 | 6,035 | ||
Provision | (127) | (442) | 320 | (697) | ||
Charged-off | (367) | (27) | (384) | |||
Recoveries | 43 | 221 | 82 | 259 | ||
Ending Balance | 9,303 | 9,387 | 9,303 | 5,213 | 9,303 | 5,213 |
Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 2,165 | 1,720 | 1,737 | 1,662 | ||
Provision | 107 | 48 | 385 | 178 | ||
Charged-off | (1) | (73) | ||||
Recoveries | 2 | 8 | 4 | 8 | ||
Ending Balance | 2,274 | 2,165 | 2,274 | 1,775 | 2,274 | 1,775 |
Commercial Real Estate | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 13,381 | 10,235 | 10,486 | 10,030 | ||
Provision | 3,187 | 329 | 5,338 | 532 | ||
Charged-off | (270) | (270) | ||||
Recoveries | 2 | 2 | 473 | 4 | ||
Ending Balance | 16,300 | 13,381 | 16,300 | 10,566 | 16,300 | 10,566 |
Construction & land development | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 4,536 | 2,443 | 2,152 | 2,555 | ||
Provision | 404 | 467 | 1,341 | 355 | ||
Ending Balance | 4,940 | 4,536 | 4,940 | 2,910 | 4,940 | 2,910 |
Commercial & industrial | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 2,541 | 3,235 | 2,882 | 2,873 | ||
Provision | 15 | 983 | 989 | 1,343 | ||
Charged-off | (192) | (192) | ||||
Recoveries | 41 | 3 | 44 | 5 | ||
Ending Balance | 2,405 | 2,541 | 2,405 | 4,221 | 2,405 | 4,221 |
Lease Financing Receivables | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 133 | 150 | 147 | 158 | ||
Provision | (8) | 31 | (22) | 23 | ||
Ending Balance | 125 | 133 | 125 | 181 | 125 | 181 |
Home equity lines of credit | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 5,290 | 3,337 | 2,721 | 3,477 | ||
Provision | (178) | (221) | 664 | (378) | ||
Charged-off | (13) | |||||
Recoveries | 12 | 8 | 87 | 38 | ||
Ending Balance | 5,124 | 5,290 | 5,124 | 3,124 | 5,124 | 3,124 |
Consumer: Credit cards | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 978 | 1,079 | 1,020 | 1,140 | ||
Provision | 16 | 14 | 38 | 79 | ||
Charged-off | (71) | (76) | (177) | (226) | ||
Recoveries | 5 | 11 | 14 | 35 | ||
Ending Balance | 928 | 978 | 928 | 1,028 | 928 | 1,028 |
Consumer: Overdrafts | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 758 | 892 | 1,169 | 1,102 | ||
Provision | (189) | 250 | (311) | 269 | ||
Charged-off | (159) | (299) | (503) | (593) | ||
Recoveries | 78 | 51 | 133 | 116 | ||
Ending Balance | 488 | 758 | 488 | 894 | 488 | 894 |
Consumer: Automobile loan | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 546 | 768 | 612 | 724 | ||
Provision | (74) | (61) | (153) | (23) | ||
Charged-off | (8) | |||||
Recoveries | 1 | 1 | 29 | 7 | ||
Ending Balance | 473 | 546 | 473 | 708 | 473 | 708 |
Other consumer | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 839 | 512 | 550 | 591 | ||
Provision | (49) | 29 | (142) | (65) | ||
Charged-off | (8) | (48) | (45) | (114) | ||
Recoveries | 35 | 56 | 147 | 137 | ||
Ending Balance | 817 | 839 | 817 | 549 | 817 | 549 |
Warehouse lines of credit | Core Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 2,126 | 1,397 | 1,794 | 1,172 | ||
Provision | 449 | 417 | 781 | 642 | ||
Ending Balance | 2,575 | 2,126 | 2,575 | 1,814 | 2,575 | 1,814 |
Easy Advances | Republic Processing Group | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 15,270 | 13,381 | ||||
Provision | 4,305 | 39 | 19,533 | 13,420 | ||
Charged-off | (19,575) | (13,425) | (19,575) | (13,425) | ||
Recoveries | 5 | 42 | 5 | |||
Ending Balance | 15,270 | |||||
Other TRS loans | Republic Processing Group | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 95 | 149 | 234 | 107 | ||
Provision | 143 | 353 | 48 | 406 | ||
Charged-off | (28) | (264) | (72) | (281) | ||
Recoveries | 1 | (6) | 1 | |||
Ending Balance | 211 | 95 | 211 | 232 | 211 | 232 |
Republic Credit Solutions | Republic Processing Group | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 12,386 | 12,862 | 13,118 | 13,049 | ||
Provision | (1,443) | 2,224 | 263 | 5,607 | ||
Charged-off | (2,008) | (2,683) | (4,717) | (6,507) | ||
Recoveries | 199 | 365 | 470 | 619 | ||
Ending Balance | $ 9,134 | $ 12,386 | $ 9,134 | $ 12,768 | 9,134 | $ 12,768 |
ASU 2016-13 | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 50,085 | |||||
ASU 2016-13 | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 6,734 | |||||
ASU 2016-13 | Core Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 36,733 | |||||
ASU 2016-13 | Core Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 6,734 | |||||
ASU 2016-13 | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 34,939 | |||||
ASU 2016-13 | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 6,734 | |||||
ASU 2016-13 | Republic Processing Group | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 13,352 | |||||
ASU 2016-13 | Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 8,928 | |||||
ASU 2016-13 | Residential Real Estate - Owner Occupied | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 4,199 | |||||
ASU 2016-13 | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 1,885 | |||||
ASU 2016-13 | Residential Real Estate - Non Owner Occupied | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 148 | |||||
ASU 2016-13 | Commercial Real Estate | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 10,759 | |||||
ASU 2016-13 | Commercial Real Estate | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 273 | |||||
ASU 2016-13 | Construction & land development | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 3,599 | |||||
ASU 2016-13 | Construction & land development | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 1,447 | |||||
ASU 2016-13 | Commercial & industrial | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 1,564 | |||||
ASU 2016-13 | Commercial & industrial | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | (1,318) | |||||
ASU 2016-13 | Lease Financing Receivables | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 147 | |||||
ASU 2016-13 | Home equity lines of credit | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 4,373 | |||||
ASU 2016-13 | Home equity lines of credit | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 1,652 | |||||
ASU 2016-13 | Consumer: Credit cards | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 1,053 | |||||
ASU 2016-13 | Consumer: Credit cards | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 33 | |||||
ASU 2016-13 | Consumer: Overdrafts | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 1,169 | |||||
ASU 2016-13 | Consumer: Automobile loan | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 605 | |||||
ASU 2016-13 | Consumer: Automobile loan | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | (7) | |||||
ASU 2016-13 | Other consumer | Traditional Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 857 | |||||
ASU 2016-13 | Other consumer | Traditional Banking | Adjustment | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 307 | |||||
ASU 2016-13 | Warehouse lines of credit | Core Banking | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 1,794 | |||||
ASU 2016-13 | Other TRS loans | Republic Processing Group | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | 234 | |||||
ASU 2016-13 | Republic Credit Solutions | Republic Processing Group | ||||||
Allowance for loan losses rollforward | ||||||
Beginning Balance | $ 13,118 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 19,884 | $ 23,332 |
Loans past due 90 days or more and still on accrual | 535 | 157 |
Total nonperforming loans | 20,419 | 23,489 |
Other real estate owned | 2,194 | 113 |
Total nonperforming assets | $ 22,613 | $ 23,602 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.40% | 0.53% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.45% | 0.53% |
Nonperforming assets to total assets (as percent) | 0.35% | 0.42% |
Core Banking | ||
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 19,884 | $ 23,332 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.40% | 0.54% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.44% | 0.54% |
Nonperforming assets to total assets (as percent) | 0.36% | 0.43% |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Aging or recorded investments in loans | |||
Nonaccrual with ACLL | $ 3,850 | $ 3,850 | |
Nonaccrual with no ACLL | 16,034 | 16,034 | |
Nonaccrual | 19,884 | 19,884 | $ 23,332 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 535 | 535 | 157 |
Interest Income Recognized on Nonaccrual Loans | 203 | $ 1,095 | |
Number of consecutive months payments received before non-accrual loans returned to accrual status (in months) | item | 6 | ||
Residential Real Estate - Owner Occupied | |||
Aging or recorded investments in loans | |||
Nonaccrual with ACLL | 2,999 | $ 2,999 | |
Nonaccrual with no ACLL | 11,107 | 11,107 | |
Nonaccrual | 14,106 | 14,106 | |
Interest Income Recognized on Nonaccrual Loans | 169 | 380 | |
Residential Real Estate - Non Owner Occupied | |||
Aging or recorded investments in loans | |||
Nonaccrual with no ACLL | 952 | 952 | |
Nonaccrual | 952 | 952 | |
Interest Income Recognized on Nonaccrual Loans | 2 | 4 | |
Commercial Real Estate | |||
Aging or recorded investments in loans | |||
Nonaccrual with ACLL | 611 | 611 | |
Nonaccrual with no ACLL | 270 | 270 | |
Nonaccrual | 881 | 881 | |
Interest Income Recognized on Nonaccrual Loans | 13 | 686 | |
Commercial & industrial | |||
Aging or recorded investments in loans | |||
Nonaccrual with no ACLL | 1,563 | 1,563 | |
Nonaccrual | 1,563 | 1,563 | |
Interest Income Recognized on Nonaccrual Loans | 3 | 9 | |
Home equity lines of credit | |||
Aging or recorded investments in loans | |||
Nonaccrual with ACLL | 133 | 133 | |
Nonaccrual with no ACLL | 2,076 | 2,076 | |
Nonaccrual | 2,209 | 2,209 | |
Interest Income Recognized on Nonaccrual Loans | 14 | 14 | |
Consumer | |||
Aging or recorded investments in loans | |||
Nonaccrual with ACLL | 107 | 107 | |
Nonaccrual with no ACLL | 66 | 66 | |
Nonaccrual | 173 | 173 | |
Interest Income Recognized on Nonaccrual Loans | 2 | 2 | |
Core Banking | |||
Aging or recorded investments in loans | |||
Nonaccrual | 19,884 | 19,884 | 23,332 |
Traditional Banking | |||
Aging or recorded investments in loans | |||
Nonaccrual | 19,884 | 19,884 | 23,332 |
Traditional Banking | Residential Real Estate - Owner Occupied | |||
Aging or recorded investments in loans | |||
Nonaccrual | 14,106 | 14,106 | 12,220 |
Traditional Banking | Residential Real Estate - Non Owner Occupied | |||
Aging or recorded investments in loans | |||
Nonaccrual | 952 | 952 | 623 |
Traditional Banking | Commercial Real Estate | |||
Aging or recorded investments in loans | |||
Nonaccrual | 881 | 881 | 6,865 |
Traditional Banking | Construction & land development | |||
Aging or recorded investments in loans | |||
Nonaccrual | 143 | ||
Traditional Banking | Commercial & industrial | |||
Aging or recorded investments in loans | |||
Nonaccrual | 1,563 | 1,563 | 1,424 |
Traditional Banking | Home equity lines of credit | |||
Aging or recorded investments in loans | |||
Nonaccrual | 2,209 | 2,209 | 1,865 |
Traditional Banking | Consumer: Automobile loan | |||
Aging or recorded investments in loans | |||
Nonaccrual | 152 | 152 | 179 |
Traditional Banking | Other consumer | |||
Aging or recorded investments in loans | |||
Nonaccrual | 21 | 21 | 13 |
Republic Processing Group | |||
Aging or recorded investments in loans | |||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 535 | 535 | 157 |
Republic Processing Group | Other TRS loans | |||
Aging or recorded investments in loans | |||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 182 | 182 | 53 |
Republic Processing Group | Republic Credit Solutions | |||
Aging or recorded investments in loans | |||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 353 | $ 353 | $ 104 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 14,046 | $ 20,804 |
Total Loans Not Delinquent | 5,051,046 | 4,412,347 |
Carrying value of loans | $ 5,065,092 | $ 4,433,151 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.28% | 0.47% |
30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 6,391 | $ 10,090 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.13% | 0.23% |
60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 2,407 | $ 3,063 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.05% | 0.07% |
90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 5,248 | $ 7,651 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.10% | 0.17% |
Core Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 7,861 | $ 13,042 |
Total Loans Not Delinquent | 4,957,741 | 4,300,347 |
Carrying value of loans | 4,965,602 | 4,313,389 |
Core Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 2,020 | 4,001 |
Core Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,128 | 1,547 |
Core Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 4,713 | 7,494 |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 7,861 | 13,042 |
Total Loans Not Delinquent | 3,927,962 | 3,582,889 |
Carrying value of loans | 3,935,823 | 3,595,931 |
Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 2,020 | 4,001 |
Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,128 | 1,547 |
Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 4,713 | 7,494 |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6,185 | 7,762 |
Total Loans Not Delinquent | 93,305 | 112,000 |
Carrying value of loans | 99,490 | 119,762 |
Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 4,371 | 6,089 |
Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,279 | 1,516 |
Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 535 | 157 |
Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 885,325 | |
Residential Real Estate - Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 4,214 | 4,434 |
Total Loans Not Delinquent | 881,111 | 945,134 |
Carrying value of loans | 885,325 | 949,568 |
Residential Real Estate - Owner Occupied | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,527 | 1,460 |
Residential Real Estate - Owner Occupied | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 576 | 1,153 |
Residential Real Estate - Owner Occupied | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 2,111 | 1,821 |
Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 254,700 | |
Residential Real Estate - Non Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 539 | 539 |
Total Loans Not Delinquent | 254,161 | 258,264 |
Carrying value of loans | 254,700 | 258,803 |
Residential Real Estate - Non Owner Occupied | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 539 | 539 |
Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,322,290 | |
Commercial Real Estate | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 543 | 3,300 |
Total Loans Not Delinquent | 1,321,747 | 1,299,700 |
Carrying value of loans | 1,322,290 | 1,303,000 |
Commercial Real Estate | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 155 | |
Commercial Real Estate | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 543 | 3,145 |
Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 157,254 | |
Construction & land development | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 157,254 | 159,702 |
Carrying value of loans | 157,254 | 159,702 |
Commercial & industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 904,727 | |
Commercial & industrial | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,362 | 1,355 |
Total Loans Not Delinquent | 903,365 | 475,881 |
Carrying value of loans | 904,727 | 477,236 |
Commercial & industrial | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 200 | |
Commercial & industrial | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 490 | 128 |
Commercial & industrial | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 872 | 1,027 |
Lease Financing Receivables | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 11,864 | |
Lease Financing Receivables | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 11,864 | 14,040 |
Carrying value of loans | 11,864 | 14,040 |
Home equity lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 265,266 | |
Home equity lines of credit | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,053 | 2,918 |
Total Loans Not Delinquent | 264,213 | 290,268 |
Carrying value of loans | 265,266 | 293,186 |
Home equity lines of credit | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 397 | 1,810 |
Home equity lines of credit | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 23 | 166 |
Home equity lines of credit | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 633 | 942 |
Consumer: Credit cards | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 7 | 155 |
Total Loans Not Delinquent | 14,258 | 17,681 |
Carrying value of loans | 14,265 | 17,836 |
Consumer: Credit cards | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 2 | 80 |
Consumer: Credit cards | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 5 | 75 |
Consumer: Overdrafts | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 94 | 283 |
Total Loans Not Delinquent | 394 | 1,239 |
Carrying value of loans | 488 | 1,522 |
Consumer: Overdrafts | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 91 | 278 |
Consumer: Overdrafts | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 3 | 4 |
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 | 27 | 49 |
Total Loans Not Delinquent | 41,032 | 52,874 |
Carrying value of loans | 41,059 | 52,923 |
Consumer: Automobile loan | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 16 | |
Consumer: Automobile loan | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 12 | 15 |
Consumer: Automobile loan | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 15 | 18 |
Consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 134,397 | |
Consumer | Traditional Banking | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 134,397 | |
Other consumer | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 22 | 9 |
Total Loans Not Delinquent | 78,563 | 68,106 |
Carrying value of loans | 78,585 | 68,115 |
Other consumer | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 3 | 2 |
Other consumer | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 19 | 6 |
Other consumer | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1 | |
Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,029,779 | |
Warehouse lines of credit | Core Banking | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 1,029,779 | 717,458 |
Carrying value of loans | 1,029,779 | 717,458 |
Other TRS loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 289 | |
Other TRS loans | Republic Processing Group | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 259 | 119 |
Total Loans Not Delinquent | 30 | 14,246 |
Carrying value of loans | 289 | 14,365 |
Other TRS loans | Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 35 | |
Other TRS loans | Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 77 | 31 |
Other TRS loans | Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 182 | 53 |
Republic Credit Solutions | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 99,201 | |
Republic Credit Solutions | Republic Processing Group | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 5,926 | 7,643 |
Total Loans Not Delinquent | 93,275 | 97,754 |
Carrying value of loans | 99,201 | 105,397 |
Republic Credit Solutions | Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 4,371 | 6,054 |
Republic Credit Solutions | Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,202 | 1,485 |
Republic Credit Solutions | Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 353 | $ 104 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COLLATERAL DEPENDENT LOANS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of selling cost on collateral | 10.00% |
Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of selling cost on collateral | 13.00% |
Traditional Banking | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | $ 30,017 |
Traditional Banking | Personal Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 2,124 |
Traditional Banking | Residential Real Estate - Owner Occupied | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 17,044 |
Traditional Banking | Residential Real Estate - Non Owner Occupied | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 1,423 |
Traditional Banking | Commercial Real Estate | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 8,571 |
Traditional Banking | Construction & land development | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 138 |
Traditional Banking | Commercial & industrial | Personal Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 1,601 |
Traditional Banking | Home equity lines of credit | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 2,841 |
Traditional Banking | Consumer | Personal Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | $ 523 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - IMPAIRED LOANS (Details) $ in Thousands | Dec. 31, 2019USD ($) |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Loans with no allocated ACLL | $ 33,061 |
Loans with allocated ACLL | 17,289 |
Total recorded investment in impaired loans | 50,350 |
Amount of allocated ACLL | $ 2,512 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - PORTFOLIO CLASS (Details) $ in Thousands | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 2,321 | |||||
Collectively evaluated for impairment | 40,839 | |||||
PCI loans with post acquisition impairment | 191 | |||||
Total ending allowance for loan losses | $ 55,097 | $ 70,431 | 43,351 | $ 45,983 | $ 57,961 | $ 44,675 |
Impaired loans individually evaluated, excluding PCI loans | 48,287 | |||||
Loans collectively evaluated for impairment | 4,382,778 | |||||
PCI loans with post acquisition impairment | 2,063 | |||||
PCI loans without post acquisition impairment | 23 | |||||
Carrying value of loans | 5,065,092 | $ 4,433,151 | ||||
Allowance to Total Loans | 0.98 | |||||
Residential Real Estate - Owner Occupied | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 885,325 | |||||
Residential Real Estate - Non Owner Occupied | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 254,700 | |||||
Commercial Real Estate | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 1,322,290 | |||||
Construction & land development | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 157,254 | |||||
Commercial & industrial | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 904,727 | |||||
Lease Financing Receivables | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 11,864 | |||||
Warehouse lines of credit | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 1,029,779 | |||||
Home equity lines of credit | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 265,266 | |||||
Consumer | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 134,397 | |||||
Other TRS loans | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 289 | |||||
Republic Credit Solutions | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 99,201 | |||||
Core Banking | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 2,205 | |||||
Collectively evaluated for impairment | 27,603 | |||||
PCI loans with post acquisition impairment | 191 | |||||
Total ending allowance for loan losses | 45,752 | 42,680 | 29,999 | 32,983 | 31,569 | 31,519 |
Impaired loans individually evaluated, excluding PCI loans | 48,036 | |||||
Loans collectively evaluated for impairment | 4,263,267 | |||||
PCI loans with post acquisition impairment | 2,063 | |||||
PCI loans without post acquisition impairment | 23 | |||||
Carrying value of loans | 4,965,602 | $ 4,313,389 | ||||
Allowance to Total Loans | 0.70 | |||||
Core Banking | Warehouse lines of credit | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 1,794 | |||||
Total ending allowance for loan losses | 2,575 | 2,126 | 1,794 | 1,814 | 1,397 | 1,172 |
Loans collectively evaluated for impairment | 717,458 | |||||
Carrying value of loans | 1,029,779 | $ 717,458 | ||||
Allowance to Total Loans | 0.25 | |||||
Traditional Banking | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 2,205 | |||||
Collectively evaluated for impairment | 25,809 | |||||
PCI loans with post acquisition impairment | 191 | |||||
Total ending allowance for loan losses | 43,177 | 40,554 | 28,205 | 31,169 | 30,172 | 30,347 |
Impaired loans individually evaluated, excluding PCI loans | 48,036 | |||||
Loans collectively evaluated for impairment | 3,545,809 | |||||
PCI loans with post acquisition impairment | 2,063 | |||||
PCI loans without post acquisition impairment | 23 | |||||
Carrying value of loans | 3,935,823 | $ 3,595,931 | ||||
Allowance to Total Loans | 0.78 | |||||
Traditional Banking | Residential Real Estate - Owner Occupied | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 1,207 | |||||
Collectively evaluated for impairment | 3,337 | |||||
PCI loans with post acquisition impairment | 185 | |||||
Total ending allowance for loan losses | 9,303 | 9,387 | 4,729 | 5,213 | 5,801 | 6,035 |
Impaired loans individually evaluated, excluding PCI loans | 25,384 | |||||
Loans collectively evaluated for impairment | 922,764 | |||||
PCI loans with post acquisition impairment | 1,420 | |||||
Carrying value of loans | 885,325 | $ 949,568 | ||||
Allowance to Total Loans | 0.50 | |||||
Traditional Banking | Residential Real Estate - Non Owner Occupied | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 1,737 | |||||
Total ending allowance for loan losses | 2,274 | 2,165 | 1,737 | 1,775 | 1,720 | 1,662 |
Impaired loans individually evaluated, excluding PCI loans | 1,448 | |||||
Loans collectively evaluated for impairment | 257,355 | |||||
Carrying value of loans | 254,700 | $ 258,803 | ||||
Allowance to Total Loans | 0.67 | |||||
Traditional Banking | Commercial Real Estate | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 426 | |||||
Collectively evaluated for impairment | 10,054 | |||||
PCI loans with post acquisition impairment | 6 | |||||
Total ending allowance for loan losses | 16,300 | 13,381 | 10,486 | 10,566 | 10,235 | 10,030 |
Impaired loans individually evaluated, excluding PCI loans | 15,144 | |||||
Loans collectively evaluated for impairment | 1,287,225 | |||||
PCI loans with post acquisition impairment | 631 | |||||
Carrying value of loans | 1,322,290 | $ 1,303,000 | ||||
Allowance to Total Loans | 0.80 | |||||
Traditional Banking | Construction & land development | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 2,152 | |||||
Total ending allowance for loan losses | 4,940 | 4,536 | 2,152 | 2,910 | 2,443 | 2,555 |
Impaired loans individually evaluated, excluding PCI loans | 198 | |||||
Loans collectively evaluated for impairment | 159,504 | |||||
Carrying value of loans | 157,254 | $ 159,702 | ||||
Allowance to Total Loans | 1.35 | |||||
Traditional Banking | Commercial & industrial | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 22 | |||||
Collectively evaluated for impairment | 2,860 | |||||
Total ending allowance for loan losses | 2,405 | 2,541 | 2,882 | 4,221 | 3,235 | 2,873 |
Impaired loans individually evaluated, excluding PCI loans | 1,989 | |||||
Loans collectively evaluated for impairment | 475,225 | |||||
PCI loans without post acquisition impairment | 22 | |||||
Carrying value of loans | 904,727 | $ 477,236 | ||||
Allowance to Total Loans | 0.60 | |||||
Traditional Banking | Lease Financing Receivables | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 147 | |||||
Total ending allowance for loan losses | 125 | 133 | 147 | 181 | 150 | 158 |
Loans collectively evaluated for impairment | 14,040 | |||||
Carrying value of loans | 11,864 | $ 14,040 | ||||
Allowance to Total Loans | 1.05 | |||||
Traditional Banking | Home equity lines of credit | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 174 | |||||
Collectively evaluated for impairment | 2,547 | |||||
Total ending allowance for loan losses | 5,124 | 5,290 | 2,721 | 3,124 | 3,337 | 3,477 |
Impaired loans individually evaluated, excluding PCI loans | 3,276 | |||||
Loans collectively evaluated for impairment | 289,900 | |||||
PCI loans with post acquisition impairment | 10 | |||||
Carrying value of loans | 265,266 | $ 293,186 | ||||
Allowance to Total Loans | 0.93 | |||||
Traditional Banking | Consumer: Credit cards | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 1,020 | |||||
Total ending allowance for loan losses | 928 | 978 | 1,020 | 1,028 | 1,079 | 1,140 |
Loans collectively evaluated for impairment | 17,836 | |||||
Carrying value of loans | 14,265 | $ 17,836 | ||||
Allowance to Total Loans | 5.72 | |||||
Traditional Banking | Consumer: Overdrafts | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 1,169 | |||||
Total ending allowance for loan losses | 488 | 758 | 1,169 | 894 | 892 | 1,102 |
Loans collectively evaluated for impairment | 1,522 | |||||
Carrying value of loans | 488 | $ 1,522 | ||||
Allowance to Total Loans | 76.81 | |||||
Traditional Banking | Consumer: Automobile loan | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 43 | |||||
Collectively evaluated for impairment | 569 | |||||
Total ending allowance for loan losses | 473 | 546 | 612 | 708 | 768 | 724 |
Impaired loans individually evaluated, excluding PCI loans | 247 | |||||
Loans collectively evaluated for impairment | 52,676 | |||||
Carrying value of loans | 41,059 | $ 52,923 | ||||
Allowance to Total Loans | 1.16 | |||||
Traditional Banking | Consumer | ||||||
Allowance for loans losses | ||||||
Carrying value of loans | 134,397 | |||||
Traditional Banking | Other consumer | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 333 | |||||
Collectively evaluated for impairment | 217 | |||||
Total ending allowance for loan losses | 817 | 839 | 550 | 549 | 512 | 591 |
Impaired loans individually evaluated, excluding PCI loans | 350 | |||||
Loans collectively evaluated for impairment | 67,762 | |||||
PCI loans with post acquisition impairment | 2 | |||||
PCI loans without post acquisition impairment | 1 | |||||
Carrying value of loans | 78,585 | $ 68,115 | ||||
Allowance to Total Loans | 0.81 | |||||
Republic Processing Group | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 116 | |||||
Collectively evaluated for impairment | 13,236 | |||||
Total ending allowance for loan losses | 9,345 | 27,751 | 13,352 | 13,000 | 26,392 | 13,156 |
Impaired loans individually evaluated, excluding PCI loans | 251 | |||||
Loans collectively evaluated for impairment | 119,511 | |||||
Carrying value of loans | 99,490 | $ 119,762 | ||||
Allowance to Total Loans | 11.15 | |||||
Republic Processing Group | Easy Advances | ||||||
Allowance for loans losses | ||||||
Total ending allowance for loan losses | 15,270 | 13,381 | ||||
Republic Processing Group | Other TRS loans | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 234 | |||||
Total ending allowance for loan losses | 211 | 95 | 234 | 232 | 149 | 107 |
Loans collectively evaluated for impairment | 14,365 | |||||
Carrying value of loans | 289 | $ 14,365 | ||||
Allowance to Total Loans | 1.63 | |||||
Republic Processing Group | Republic Credit Solutions | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 116 | |||||
Collectively evaluated for impairment | 13,002 | |||||
Total ending allowance for loan losses | 9,134 | $ 12,386 | 13,118 | $ 12,768 | $ 12,862 | $ 13,049 |
Impaired loans individually evaluated, excluding PCI loans | 251 | |||||
Loans collectively evaluated for impairment | 105,146 | |||||
Carrying value of loans | $ 99,201 | $ 105,397 | ||||
Allowance to Total Loans | 12.45 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - LOANS EVALUATED FOR IMPAIRMENT BY CLASS OF LOANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | |
Impaired loans with no allocated Allowance: | |||
Recorded Investment | $ 33,061 | ||
Impaired loans with allocated Allowance: | |||
Recorded Investment | 17,289 | ||
Allowance for Loan Losses Allocated | 2,512 | ||
Total impaired loans | |||
Unpaid Principal Balance | 55,473 | ||
Recorded Investment | 50,350 | ||
Allowance for Loan Losses Allocated | 2,512 | ||
Average Recorded Investment | $ 41,345 | $ 41,370 | |
Interest Income Recognized | 299 | 597 | |
Residential Real Estate - Owner Occupied | |||
Impaired loans with no allocated Allowance: | |||
Unpaid Principal Balance | 14,768 | ||
Recorded Investment | 13,893 | ||
Average Recorded Investment | 11,768 | 11,540 | |
Interest Income Recognized | 70 | 139 | |
Impaired loans with allocated Allowance: | |||
Unpaid Principal Balance | 12,954 | ||
Recorded Investment | 12,911 | ||
Allowance for Loan Losses Allocated | 1,392 | ||
Average Recorded Investment | 14,464 | 14,910 | |
Interest Income Recognized | 121 | 240 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | 1,392 | ||
Residential Real Estate - Non Owner Occupied | |||
Impaired loans with no allocated Allowance: | |||
Unpaid Principal Balance | 1,515 | ||
Recorded Investment | 1,448 | ||
Average Recorded Investment | 1,424 | 1,733 | |
Interest Income Recognized | 17 | 34 | |
Impaired loans with allocated Allowance: | |||
Average Recorded Investment | 216 | 162 | |
Interest Income Recognized | 41 | ||
Commercial Real Estate | |||
Impaired loans with no allocated Allowance: | |||
Unpaid Principal Balance | 15,028 | ||
Recorded Investment | 12,547 | ||
Average Recorded Investment | 3,573 | 3,917 | |
Interest Income Recognized | 23 | 47 | |
Impaired loans with allocated Allowance: | |||
Unpaid Principal Balance | 3,228 | ||
Recorded Investment | 3,228 | ||
Allowance for Loan Losses Allocated | 432 | ||
Average Recorded Investment | 3,951 | 4,106 | |
Interest Income Recognized | 83 | ||
Total impaired loans | |||
Allowance for Loan Losses Allocated | 432 | ||
Construction & land development | |||
Impaired loans with no allocated Allowance: | |||
Unpaid Principal Balance | 198 | ||
Recorded Investment | 198 | ||
Average Recorded Investment | 30 | 20 | |
Interest Income Recognized | 1 | 1 | |
Impaired loans with allocated Allowance: | |||
Average Recorded Investment | 32 | 43 | |
Commercial & industrial | |||
Impaired loans with no allocated Allowance: | |||
Unpaid Principal Balance | 3,308 | ||
Recorded Investment | 1,792 | ||
Average Recorded Investment | 622 | 616 | |
Impaired loans with allocated Allowance: | |||
Unpaid Principal Balance | 197 | ||
Recorded Investment | 197 | ||
Allowance for Loan Losses Allocated | 22 | ||
Average Recorded Investment | 2,662 | 1,913 | |
Interest Income Recognized | 7 | 15 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | 22 | ||
Home equity lines of credit | |||
Impaired loans with no allocated Allowance: | |||
Unpaid Principal Balance | 3,107 | ||
Recorded Investment | 3,023 | ||
Average Recorded Investment | 1,591 | 1,352 | |
Interest Income Recognized | 12 | 23 | |
Impaired loans with allocated Allowance: | |||
Unpaid Principal Balance | 263 | ||
Recorded Investment | 263 | ||
Allowance for Loan Losses Allocated | 174 | ||
Average Recorded Investment | 480 | 510 | |
Interest Income Recognized | 2 | 4 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | 174 | ||
Consumer | |||
Impaired loans with no allocated Allowance: | |||
Unpaid Principal Balance | 206 | ||
Recorded Investment | 160 | ||
Average Recorded Investment | 27 | 28 | |
Interest Income Recognized | 1 | 1 | |
Impaired loans with allocated Allowance: | |||
Unpaid Principal Balance | 701 | ||
Recorded Investment | 690 | ||
Allowance for Loan Losses Allocated | 492 | ||
Average Recorded Investment | 505 | 520 | |
Interest Income Recognized | $ 4 | $ 10 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | $ 492 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR ACCRUAL STATUS (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,339 | 1,828 |
Recorded Investment | $ | $ 26,479 | $ 30,781 |
Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 190 | 194 |
Recorded Investment | $ | $ 17,585 | $ 19,770 |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 8 | 13 |
Recorded Investment | $ | $ 7,059 | $ 8,925 |
Construction & land development | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 50 | $ 54 |
Commercial & industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 7 | 7 |
Recorded Investment | $ | $ 1,126 | $ 1,446 |
Consumer | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,133 | 1,613 |
Recorded Investment | $ | $ 659 | $ 586 |
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 | 65 | 61 |
Recorded Investment | $ | $ 5,283 | $ 9,866 |
Loans on nonaccrual status | Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 60 | 53 |
Recorded Investment | $ | $ 4,684 | $ 4,402 |
Loans on nonaccrual status | Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2 | 4 |
Recorded Investment | $ | $ 271 | $ 4,040 |
Loans on nonaccrual status | Commercial & industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2 | 4 |
Recorded Investment | $ | $ 319 | $ 1,424 |
Loans on nonaccrual status | Consumer | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 9 | |
Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,274 | 1,767 |
Recorded Investment | $ | $ 21,196 | $ 20,915 |
Accrual Loans | Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 130 | 141 |
Recorded Investment | $ | $ 12,901 | $ 15,368 |
Accrual Loans | Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 6 | 9 |
Recorded Investment | $ | $ 6,788 | $ 4,885 |
Accrual Loans | Construction & land development | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 50 | $ 54 |
Accrual Loans | Commercial & industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 5 | 3 |
Recorded Investment | $ | $ 807 | $ 22 |
Accrual Loans | Consumer | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,132 | 1,613 |
Recorded Investment | $ | $ 650 | $ 586 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFICATIONS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Dec. 31, 2019USD ($)loan | |
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,339 | 1,828 | |||
Recorded Investment | $ 26,479,000 | $ 30,781,000 | |||
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 | 190 | 194 | |||
Recorded Investment | $ 17,585,000 | $ 19,770,000 | |||
Residential Real Estate | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 862,000 | $ 904,000 | |||
Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 115 | 123 | |||
Recorded Investment | $ 12,049,000 | $ 14,199,000 | |||
Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 9 | 10 | |||
Recorded Investment | $ 998,000 | $ 1,024,000 | |||
Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 65 | 60 | |||
Recorded Investment | $ 3,676,000 | $ 3,643,000 | |||
Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 16 | 21 | |||
Recorded Investment | $ 8,235,000 | $ 10,425,000 | |||
Commercial Real Estate and Commercial Construction | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 3 | |||
Recorded Investment | $ 1,393,000 | $ 1,568,000 | |||
Commercial Real Estate and Commercial Construction | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 4 | |||
Recorded Investment | $ 1,155,000 | $ 1,252,000 | |||
Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 7 | 12 | |||
Recorded Investment | $ 4,814,000 | $ 6,578,000 | |||
Commercial Real Estate and Commercial Construction | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 2 | |||
Recorded Investment | $ 873,000 | $ 1,027,000 | |||
Consumer and other | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,133 | 1,613 | |||
Recorded Investment | $ 659,000 | $ 586,000 | |||
Consumer and other | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,131 | 1,612 | |||
Recorded Investment | $ 642,000 | $ 577,000 | |||
Consumer and other | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 9,000 | ||||
Consumer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,133 | 1,613 | |||
Recorded Investment | $ 659,000 | $ 586,000 | |||
Consumer loans | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 17,000 | ||||
Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 891 | 11 | 897 | 20 | |
Recorded Investment | $ 529,000 | $ 5,391,000 | $ 685,000 | $ 6,136,000 | |
Modified During The Period | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 6 | 9 | 10 | 15 | |
Recorded Investment | $ 270,000 | $ 965,000 | $ 396,000 | $ 1,118,000 | |
Modified During The Period | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 6,000 | ||||
Modified During The Period | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 6 | 9 | 10 | 14 | |
Recorded Investment | $ 270,000 | $ 965,000 | $ 396,000 | $ 1,112,000 | |
Modified During The Period | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 2 | 5 | ||
Recorded Investment | $ 4,426,000 | $ 139,000 | $ 5,018,000 | ||
Modified During The Period | Commercial Real Estate and Commercial Construction | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 566,000 | ||||
Modified During The Period | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 1 | 2 | ||
Recorded Investment | $ 4,426,000 | $ 21,000 | $ 26,000 | ||
Modified During The Period | Commercial Real Estate and Commercial Construction | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 118,000 | $ 4,426,000 | |||
Modified During The Period | Consumer loans | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 885 | 885 | |||
Recorded Investment | $ 259,000 | $ 150,000 | |||
Modified During The Period | Consumer loans | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 884 | 884 | |||
Recorded Investment | $ 141,000 | $ 141,000 | |||
Modified During The Period | Consumer loans | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 118,000 | $ 9,000 | |||
Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,317 | 1,811 | |||
Recorded Investment | $ 23,878,000 | $ 28,138,000 | |||
Percentage of troubled debt restructurings performing as per terms of modifications | 90.00% | 90.00% | 91.00% | ||
Specific reserve allocations made to customers | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||
Percentage of Bank's TDRs that occurred during period, which were performing according to their modified terms | 57.00% | 15.00% | 66.00% | 24.00% | |
Specific reserve allocations made to customers whose loan terms were modified in TDRs during period | $ 0 | $ 980,000 | $ 28,000 | $ 1,000,000 | |
Performing Financing Receivable | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 174 | 181 | |||
Recorded Investment | $ 16,468,000 | $ 18,796,000 | |||
Performing Financing Receivable | Residential Real Estate | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 862,000 | $ 904,000 | |||
Performing Financing Receivable | Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 109 | 118 | |||
Recorded Investment | $ 11,660,000 | $ 13,847,000 | |||
Performing Financing Receivable | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 8 | 8 | |||
Recorded Investment | $ 835,000 | $ 845,000 | |||
Performing Financing Receivable | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 56 | 54 | |||
Recorded Investment | $ 3,111,000 | $ 3,200,000 | |||
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 11 | 17 | |||
Recorded Investment | $ 7,092,000 | $ 8,756,000 | |||
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 3 | |||
Recorded Investment | $ 1,393,000 | $ 1,568,000 | |||
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 3 | |||
Recorded Investment | $ 1,110,000 | $ 1,207,000 | |||
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 6 | 11 | |||
Recorded Investment | $ 4,589,000 | $ 5,981,000 | |||
Performing Financing Receivable | Consumer and other | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,132 | 1,613 | |||
Recorded Investment | $ 318,000 | $ 586,000 | |||
Performing Financing Receivable | Consumer and other | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,130 | 1,612 | |||
Recorded Investment | $ 301,000 | $ 577,000 | |||
Performing Financing Receivable | Consumer and other | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 9,000 | ||||
Performing Financing Receivable | Consumer loans | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 17,000 | ||||
Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 889 | 7 | 894 | 15 | |
Recorded Investment | $ 302,000 | $ 804,000 | $ 454,000 | $ 1,499,000 | |
Performing Financing Receivable | Modified During The Period | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 5 | 7 | 8 | 12 | |
Recorded Investment | $ 161,000 | $ 804,000 | $ 283,000 | $ 907,000 | |
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 6,000 | ||||
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 5 | 7 | 8 | 11 | |
Recorded Investment | $ 161,000 | $ 804,000 | $ 283,000 | $ 901,000 | |
Performing Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 3 | |||
Recorded Investment | $ 21,000 | $ 592,000 | |||
Performing Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 566,000 | ||||
Performing Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 21,000 | $ 26,000 | |||
Performing Financing Receivable | Modified During The Period | Consumer loans | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 884 | 885 | |||
Recorded Investment | $ 141,000 | $ 150,000 | |||
Performing Financing Receivable | Modified During The Period | Consumer loans | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 884 | 884 | |||
Recorded Investment | $ 141,000 | $ 141,000 | |||
Performing Financing Receivable | Modified During The Period | Consumer loans | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 9,000 | ||||
Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 22 | 17 | |||
Recorded Investment | $ 2,601,000 | $ 2,643,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 16 | 13 | |||
Recorded Investment | $ 1,117,000 | $ 974,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 6 | 5 | |||
Recorded Investment | $ 389,000 | $ 352,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 163,000 | $ 179,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 9 | 6 | |||
Recorded Investment | $ 565,000 | $ 443,000 | |||
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 5 | 4 | |||
Recorded Investment | $ 1,143,000 | $ 1,669,000 | |||
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 45,000 | $ 45,000 | |||
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 225,000 | $ 597,000 | |||
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 2 | |||
Recorded Investment | $ 873,000 | $ 1,027,000 | |||
Nonperforming Financing Receivable | Consumer and other | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 341,000 | ||||
Nonperforming Financing Receivable | Consumer and other | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 341,000 | ||||
Nonperforming Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 4 | 3 | 5 | |
Recorded Investment | $ 227,000 | $ 4,587,000 | $ 231,000 | $ 4,637,000 | |
Nonperforming Financing Receivable | Modified During The Period | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | 2 | 3 | |
Recorded Investment | $ 109,000 | $ 161,000 | $ 113,000 | $ 211,000 | |
Nonperforming Financing Receivable | Modified During The Period | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | 2 | 3 | |
Recorded Investment | $ 109,000 | $ 161,000 | $ 113,000 | $ 211,000 | |
Nonperforming Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 1 | 2 | ||
Recorded Investment | $ 4,426,000 | $ 118,000 | $ 4,426,000 | ||
Nonperforming Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 4,426,000 | ||||
Nonperforming Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 118,000 | $ 4,426,000 | |||
Nonperforming Financing Receivable | Modified During The Period | Consumer loans | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 118,000 | ||||
Nonperforming Financing Receivable | Modified During The Period | Consumer loans | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 118,000 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFIED CLASS (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | |
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 2 | 5 | 6 | 7 |
Recorded Investment with payment default | $ 227,000 | $ 4,637,000 | $ 358,000 | $ 5,209,000 |
Residential Real Estate - Owner Occupied | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | 1 | 3 | 3 | 3 |
Recorded Investment with payment default | $ 109,000 | $ 211,000 | $ 218,000 | $ 211,000 |
Commercial Real Estate | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | |||
Recorded Investment with payment default | $ 566,000 | |||
Commercial & industrial | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | 1 | 2 | 1 | 2 |
Recorded Investment with payment default | $ 118,000 | $ 4,426,000 | $ 118,000 | $ 4,426,000 |
Home equity lines of credit | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | 1 | ||
Recorded Investment with payment default | $ 13,000 | $ 6,000 | ||
Consumer | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | |||
Recorded Investment with payment default | $ 9,000 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - CARES Act (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Financing Receivable, Modifications [Line Items] | ||
Period of loan deferral and forbearance on principal and interest | 3 months | |
Small Business Administration Paycheck Protection Program | Paycheck Protection Program Liquidity Facility | ||
Financing Receivable, Modifications [Line Items] | ||
Long term debt | $ 169 | $ 169 |
Stated interest rate (as a percent) | 0.35% | 0.35% |
Small Business Administration Paycheck Protection Program | Paycheck Protection Program Liquidity Facility | Minimum | ||
Financing Receivable, Modifications [Line Items] | ||
Term of borrowings | 2 years | |
Small Business Administration Paycheck Protection Program | Paycheck Protection Program Liquidity Facility | Maximum | ||
Financing Receivable, Modifications [Line Items] | ||
Term of borrowings | 5 years |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COVID-19 RELATED LOAN MODIFICATIONS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Troubled Debt Restructurings disclosures | ||
Total loans | $ 5,065,092 | $ 4,433,151 |
Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | $ 3,935,823 | 3,595,931 |
Percentage of loans | 100.00% | |
Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | $ 793,182 | |
Percentage of loans | 20.00% | |
PPP Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | $ 511,065 | |
Percentage of loans | 13.00% | |
Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | $ 2,631,576 | |
Percentage of loans | 67.00% | |
Residential Real Estate - Owner Occupied | ||
Troubled Debt Restructurings disclosures | ||
Total loans | $ 885,325 | |
Residential Real Estate - Owner Occupied | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 885,325 | 949,568 |
Residential Real Estate - Owner Occupied | Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 51,570 | |
Residential Real Estate - Owner Occupied | Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 833,755 | |
Residential Real Estate - Non Owner Occupied | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 254,700 | |
Residential Real Estate - Non Owner Occupied | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 254,700 | 258,803 |
Residential Real Estate - Non Owner Occupied | Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 58,754 | |
Residential Real Estate - Non Owner Occupied | Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 195,946 | |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 1,322,290 | |
Commercial Real Estate | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 1,322,290 | 1,303,000 |
Commercial Real Estate | Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 491,314 | |
Commercial Real Estate | Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 830,976 | |
Commercial & industrial | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 904,727 | |
Commercial & industrial | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 904,727 | 477,236 |
Commercial & industrial | Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 141,720 | |
Commercial & industrial | PPP Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 511,065 | |
Commercial & industrial | Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 251,942 | |
Construction & land development | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 157,254 | |
Construction & land development | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 157,254 | 159,702 |
Construction & land development | Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 28,927 | |
Construction & land development | Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 128,327 | |
Lease Financing Receivables | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 11,864 | |
Lease Financing Receivables | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 11,864 | 14,040 |
Lease Financing Receivables | Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 2,443 | |
Lease Financing Receivables | Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 9,421 | |
Warehouse lines of credit | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 1,029,779 | |
Home equity lines of credit | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 265,266 | |
Home equity lines of credit | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 265,266 | 293,186 |
Home equity lines of credit | Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 13,776 | |
Home equity lines of credit | Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 251,490 | |
Consumer: Credit cards | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 14,265 | 17,836 |
Consumer: Overdrafts | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 488 | 1,522 |
Consumer | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 134,397 | |
Consumer | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 134,397 | |
Consumer | Covid-19 Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 4,678 | |
Consumer | Other Loans | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 129,719 | |
Consumer: Automobile loan | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | 41,059 | 52,923 |
Other consumer | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Total loans | $ 78,585 | $ 68,115 |
LOANS AND ALLOWANCE FOR CRED_17
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 2,194 | $ 113 |
Residential Real Estate - Owner Occupied | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 2,194 | $ 113 |
LOANS AND ALLOWANCE FOR CRED_18
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable Gross Carrying Amount | $ 5,065,092 | $ 4,433,151 |
Residential Real Estate - Owner Occupied | ||
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable Gross Carrying Amount | 885,325 | |
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 | $ 3,595 | $ 2,201 |
LOANS AND ALLOWANCE FOR CRED_19
LOANS AND ALLOWANCE FOR CREDIT LOSSES - EASY ADVANCES (Details) - Tax Refund Solutions - Easy Advances - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Period Easy Advance tax credit product offered | 2 months | 2 months | ||||
Easy Advances originated | $ 387,762 | $ 388,970 | ||||
Net charge to the Provision for Easy Advances | $ 4,305 | $ 39 | $ 19,533 | $ 13,420 | ||
Provision to total Easy Advances originated | 5.04% | 3.45% | ||||
Easy Advances net charge-offs | $ 19,575 | $ 13,420 | $ 19,533 | $ 13,420 | ||
Easy Advances net charge-offs to total Easy Advances originated | 5.04% | 3.45% |
DEPOSITS - Balances (Details)
DEPOSITS - Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deposit Liabilities | ||
Loans Payable | $ 169,209 | |
Total interest-bearing deposits | 3,196,685 | $ 2,752,629 |
Total non interest-bearing deposits | 1,821,400 | 1,033,379 |
Total deposits | 5,018,085 | 3,786,008 |
Core Banking | ||
Deposit Liabilities | ||
Demand | 1,124,321 | 922,972 |
Money market accounts | 748,832 | 793,950 |
Savings | 207,729 | 175,588 |
Individual retirement accounts | 51,715 | 51,548 |
Time deposits, $250 and over | 111,725 | 104,412 |
Other certificates of deposit | 258,884 | 248,161 |
Reciprocal money market and time deposits | 290,441 | 189,774 |
Brokered deposits | 400,000 | 200,072 |
Total interest-bearing deposits | 3,193,647 | 2,686,477 |
Total non interest-bearing deposits | 1,431,866 | 981,164 |
Total deposits | 4,625,513 | 3,667,641 |
Republic Processing Group | ||
Deposit Liabilities | ||
Money market accounts | 3,038 | 66,152 |
Total interest-bearing deposits | 3,038 | 66,152 |
Brokered prepaid cards deposits | 256,703 | 9,128 |
Other noninterest-bearing deposits | 132,831 | 43,087 |
Total non interest-bearing deposits | 389,534 | 52,215 |
Total deposits | $ 392,572 | $ 118,367 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Securities sold under agreements to repurchase | |||||
Outstanding balance at end of period | $ 177,397 | $ 177,397 | $ 167,617 | ||
Average outstanding balance during the period | $ 176,541 | $ 220,189 | $ 192,755 | $ 225,864 | |
Average interest rate during the period (as a percent) | 0.04% | 0.60% | 0.14% | 0.67% | |
Maximum outstanding at any month end during the period | $ 177,397 | $ 226,002 | $ 177,397 | $ 226,002 | |
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 | $ 177,397 | $ 177,397 | $ 167,617 | ||
Weighted average interest rate at end of period (as a percent) | 0.04% | 0.04% | 0.32% | ||
Fair Value of securities pledged | $ 188,375 | $ 188,375 | $ 221,310 | ||
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 | 7,515 | 7,515 | 70,015 | ||
Securities sold under agreements to repurchase | Mortgage backed securities - residential | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | 167,945 | 167,945 | 134,265 | ||
Securities sold under agreements to repurchase | Collateralized mortgage obligations | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | $ 12,915 | $ 12,915 | $ 17,030 |
RIGHT-OF-USE ASSETS AND OPERA_3
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)itemcontract | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Number of separate and distinct operating lease contracts to lease the land and/or buildings | contract | 49 |
Number of offices where separate and distinct operating lease contracts to lease the land and/or buildings is held | item | 38 |
Number of operating leases contracted with a related party of the Company | contract | 15 |
Number of operating leases considered variable | item | 26 |
Estimated operating lease liabilities for leases not yet commenced | $ | $ 19 |
Estimated right-of-use assets for leases not yet commenced | $ | $ 19 |
RIGHT-OF-USE ASSETS AND OPERA_4
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Operating lease expense: | |||||
Total operating lease expense | $ 1,754 | $ 1,773 | $ 3,521 | $ 3,538 | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 1,793 | 1,794 | 3,630 | 3,577 | |
Short-term lease payments not included in the measurement of lease liabilities | 12 | $ 4 | 26 | ||
Weighted average remaining term in years | 7 years 11 months 26 days | 7 years 11 months 26 days | 8 years 7 days | ||
Weighted average discount rate | 3.55% | 3.55% | 3.46% | ||
Related Party | |||||
Operating lease expense: | |||||
Variable lease expense | $ 1,183 | 1,156 | $ 2,371 | 2,314 | |
Fixed lease expense | 23 | 10 | 47 | 18 | |
Third Party | |||||
Operating lease expense: | |||||
Variable lease expense | 180 | 211 | 361 | 435 | |
Fixed lease expense | $ 368 | 384 | 738 | 745 | |
Short-term lease expense | $ 12 | $ 4 | $ 26 |
RIGHT-OF-USE ASSETS AND OPERA_5
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Operating lease liabilities | ||
Remainder of 2020 | $ 3,628 | |
2021 | 6,719 | |
2022 | 5,452 | |
2023 | 4,932 | |
2024 | 4,378 | |
Thereafter | 16,094 | |
Total undiscounted cash flows | 41,203 | |
Discount applied to cash flows | (5,632) | |
Total discounted cash flows reported as operating lease liabilities | 35,571 | $ 36,530 |
Related Party | ||
Operating lease liabilities | ||
Remainder of 2020 | 2,283 | |
2021 | 4,194 | |
2022 | 3,332 | |
2023 | 3,332 | |
2024 | 3,205 | |
Thereafter | 12,718 | |
Total undiscounted cash flows | 29,064 | |
Discount applied to cash flows | (4,103) | |
Total discounted cash flows reported as operating lease liabilities | 24,961 | |
Third Party | ||
Operating lease liabilities | ||
Remainder of 2020 | 1,345 | |
2021 | 2,525 | |
2022 | 2,120 | |
2023 | 1,600 | |
2024 | 1,173 | |
Thereafter | 3,376 | |
Total undiscounted cash flows | 12,139 | |
Discount applied to cash flows | (1,529) | |
Total discounted cash flows reported as operating lease liabilities | $ 10,610 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
FHLB advances | ||
Total FHLB advances | $ 137,500 | $ 750,000 |
Additional collateralized advances available | 814,000 | 259,000 |
Overnight advance | ||
FHLB advances | ||
Total FHLB advances | 200,000 | |
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% | ||
FHLB advances | ||
Total FHLB advances | $ 10,000 | $ 10,000 |
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% | London Interbank Offered Rate (LIBOR) | ||
FHLB advances | ||
Applicable margin (as a percent) | 0.14% | 0.14% |
Fixed interest rate advances | ||
FHLB advances | ||
Total FHLB advances | $ 127,500 | $ 540,000 |
Various other unsecured lines of credit | ||
FHLB advances | ||
Unsecured lines of credit | $ 125,000 | $ 125,000 |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - MATURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
FEDERAL HOME LOAN BANK ADVANCES | ||
2020 (Term) | $ 67,500 | |
2021 | 30,000 | |
2022 | 20,000 | |
2023 | 20,000 | |
Total | $ 137,500 | $ 750,000 |
Weighted Average Rate | ||
2020 (Term) | 1.58% | |
2021 | 1.93% | |
2022 | 2.12% | |
2023 | 2.56% | |
Total | 1.87% |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES - SHORT-TERM FHLB ADVANCES (Details) - Federal Home Loan Bank overnight advances - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
FHLB advances | ||||
Average outstanding balance during the period | $ 42,198 | $ 448,077 | $ 43,681 | $ 331,768 |
Average interest rate during the period (as percent) | 0.22% | 2.50% | 0.92% | 2.49% |
Maximum outstanding at any month end during the period | $ 165,000 | $ 785,000 | $ 250,000 | $ 785,000 |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
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 | $ 1,031,671 | $ 1,099,941 |
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 | $ 250,257 | $ 274,990 |
OFF BALANCE SHEET RISKS, COMM_3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Commitments and letters of credit | |||
Loan commitment, line credit | $ 1,351,035,000 | $ 1,351,035,000 | $ 1,571,130,000 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 558,000 | ||
Provision | 78,000 | 180,000 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 636,000 | 636,000 | |
Unused warehouse lines of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 174,220,000 | 174,220,000 | 436,541,000 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 55,000 | ||
Provision | 3,000 | 3,000 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 58,000 | 58,000 | |
Unused home equity lines of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 362,177,000 | 362,177,000 | 363,195,000 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 112,000 | ||
Provision | 12,000 | 35,000 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 124,000 | 124,000 | |
Unused loan commitments - other | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 803,204,000 | 803,204,000 | 757,657,000 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 391,000 | ||
Provision | 63,000 | 142,000 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 454,000 | 454,000 | |
Standby letters of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 10,791,000 | 10,791,000 | 11,252,000 |
FHLB letters of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | $ 643,000 | 643,000 | $ 2,485,000 |
ASU 2016-13 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 456,000 | ||
ASU 2016-13 | Adjustment | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 456,000 | ||
ASU 2016-13 | Adjustment | Unused warehouse lines of credit | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 55,000 | ||
ASU 2016-13 | Adjustment | Unused home equity lines of credit | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 89,000 | ||
ASU 2016-13 | Adjustment | Unused loan commitments - other | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | $ 312,000 |
FAIR VALUE - POLICIES (Details)
FAIR VALUE - POLICIES (Details) | 1 Months Ended | 27 Months Ended |
Dec. 31, 2019 | Mar. 31, 2018 | |
Assets and Liabilities Measured on Recurring Basis | ||
Loan held-for-sale term | 16 days | |
Minimum | ||
Assets and Liabilities Measured on Recurring Basis | ||
Term for intent to sell loans | 12 months | |
Maximum | ||
Assets and Liabilities Measured on Recurring Basis | ||
Term for intent to sell loans | 60 months | |
Republic Credit Solutions | Installment loan | ||
Assets and Liabilities Measured on Recurring Basis | ||
Term for intent to sell loans | 16 days | 21 days |
Republic Credit Solutions | Installment loan | Minimum | ||
Assets and Liabilities Measured on Recurring Basis | ||
Loan held-for-sale term | 12 months | |
Republic Credit Solutions | Installment loan | Maximum | ||
Assets and Liabilities Measured on Recurring Basis | ||
Loan held-for-sale term | 60 months |
FAIR VALUE - RECURRING BASIS (D
FAIR VALUE - RECURRING BASIS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | $ 486,847 | $ 486,847 | $ 471,355 | |||||
Mortgage loans held for sale, at fair value | 40,028 | $ 13,883 | 40,028 | $ 13,883 | $ 39,384 | 19,224 | $ 11,313 | $ 8,971 |
Consumer loans held for sale | 164 | 164 | $ 3,431 | 598 | ||||
Consumer loans receivable held for investment | 667 | 667 | 998 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 3,015 | 3,015 | 3,188 | |||||
U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 139,796 | 139,796 | 134,640 | |||||
Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 3,023 | 3,023 | 3,495 | |||||
Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 273,281 | 273,281 | 255,847 | |||||
Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 57,598 | 57,598 | 63,371 | |||||
Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 9,649 | 9,649 | 10,002 | |||||
Trust preferred security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 3,500 | 3,500 | 4,000 | |||||
Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 485 | 485 | 714 | |||||
Community Reinvestment Act mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,530 | 2,530 | 2,474 | |||||
Recurring basis | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 486,847 | 486,847 | 471,355 | |||||
Mortgage loans held for sale, at fair value | 40,028 | 40,028 | 19,224 | |||||
Consumer loans held for investment | 667 | 667 | ||||||
Consumer loans held for sale | 164 | 164 | 598 | |||||
Consumer loans receivable held for investment | 998 | |||||||
Rate lock loan commitments | 4,436 | 4,436 | 789 | |||||
Mandatory forward contracts | 659 | 659 | ||||||
Interest rate swap agreements | 15,324 | 15,324 | 5,062 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 3,015 | 3,015 | 3,188 | |||||
Financial Liabilities: | ||||||||
Mandatory forward contracts | 131 | |||||||
Interest rate swap agreements | 15,491 | 15,491 | 5,166 | |||||
Transfers between Level 1, 2 or 3 | 0 | $ 0 | 0 | $ 0 | ||||
Recurring basis | U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 139,796 | 139,796 | 134,640 | |||||
Recurring basis | Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 3,023 | 3,023 | 3,495 | |||||
Recurring basis | Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 273,281 | 273,281 | 255,847 | |||||
Recurring basis | Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 57,598 | 57,598 | 63,371 | |||||
Recurring basis | Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 9,649 | 9,649 | 10,002 | |||||
Recurring basis | Trust preferred security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 3,500 | 3,500 | 4,000 | |||||
Recurring basis | Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 485 | 485 | 714 | |||||
Recurring basis | Community Reinvestment Act mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,530 | 2,530 | 2,474 | |||||
Recurring basis | Fair Value, Inputs, Level 1 | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,530 | 2,530 | 2,474 | |||||
Recurring basis | Fair Value, Inputs, Level 1 | Community Reinvestment Act mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,530 | 2,530 | 2,474 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 480,324 | 480,324 | 463,860 | |||||
Mortgage loans held for sale, at fair value | 40,028 | 40,028 | 19,224 | |||||
Rate lock loan commitments | 4,436 | 4,436 | 789 | |||||
Mandatory forward contracts | 659 | 659 | ||||||
Interest rate swap agreements | 15,324 | 15,324 | 5,062 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 485 | 485 | 714 | |||||
Financial Liabilities: | ||||||||
Mandatory forward contracts | 131 | |||||||
Interest rate swap agreements | 15,491 | 15,491 | 5,166 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 139,796 | 139,796 | 134,640 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 273,281 | 273,281 | 255,847 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 57,598 | 57,598 | 63,371 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 9,649 | 9,649 | 10,002 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 485 | 485 | 714 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 6,523 | 6,523 | 7,495 | |||||
Consumer loans held for investment | 667 | 667 | ||||||
Consumer loans held for sale | 164 | 164 | 598 | |||||
Consumer loans receivable held for investment | 998 | |||||||
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 3,023 | 3,023 | 3,495 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | Trust preferred security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | $ 3,500 | $ 3,500 | $ 4,000 |
FAIR VALUE - RECURRING LEVEL 3
FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 $ in Thousands | Jun. 30, 2020USD ($)item | Dec. 31, 2019USD ($) |
Private label mortgage backed security | Recurring basis | ||
Fair value inputs quantitative information | ||
Mortgage backed security fair value | $ 3,023 | $ 3,495 |
Valuation technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Private label mortgage backed security | Minimum | Recurring basis | Constant Prepayment Rate | ||
Fair value inputs quantitative information | ||
Measurable input | 0.030 | 0.023 |
Private label mortgage backed security | Minimum | Recurring basis | Probability of default | ||
Fair value inputs quantitative information | ||
Measurable input | 0.018 | 0.018 |
Private label mortgage backed security | Minimum | Recurring basis | Loss Severity | ||
Fair value inputs quantitative information | ||
Measurable input | 0.50 | 0.50 |
Private label mortgage backed security | Maximum | Recurring basis | Constant Prepayment Rate | ||
Fair value inputs quantitative information | ||
Measurable input | 0.045 | 0.050 |
Private label mortgage backed security | Maximum | Recurring basis | Probability of default | ||
Fair value inputs quantitative information | ||
Measurable input | 0.069 | 0.063 |
Private label mortgage backed security | Maximum | Recurring basis | Loss Severity | ||
Fair value inputs quantitative information | ||
Measurable input | 0.75 | 0.75 |
Consumer Loans Held For Sale | Nonrecurring basis | ||
Fair value inputs quantitative information | ||
Consumer Loans Held for Sale Fair Value | $ 164 | $ 598 |
Consumer Loans Held For Sale | Nonrecurring basis | Net Premium | ||
Fair value inputs quantitative information | ||
Measurable input | 0.014 | 0.014 |
Consumer Loans Held For Sale | Nonrecurring basis | Discount sales | ||
Fair value inputs quantitative information | ||
Measurable input | 0.0500 | 0.0500 |
FAIR VALUE - RECONCILIATION USI
FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Private label mortgage backed security | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | $ 3,249 | $ 3,660 | $ 3,495 | $ 3,712 |
Net change in unrealized gain | (107) | (2) | (107) | (34) |
Recovery of actual losses previously recorded | 38 | 75 | ||
Principal paydowns | (119) | (81) | (365) | (138) |
Balance, end of period | 3,023 | 3,615 | 3,023 | 3,615 |
Trust preferred security | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | 4,100 | 4,100 | 4,000 | 4,075 |
Discount accretion | 11 | 11 | 22 | 21 |
Net change in unrealized gain | (611) | (111) | (522) | (96) |
Balance, end of period | $ 3,500 | $ 4,000 | $ 3,500 | $ 4,000 |
FAIR VALUE - GAINS AND LOSSES (
FAIR VALUE - GAINS AND LOSSES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)loan | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Option | ||||||||
Aggregate fair value of mortgage loan | $ 40,028 | $ 13,883 | $ 40,028 | $ 13,883 | $ 39,384 | $ 19,224 | $ 11,313 | $ 8,971 |
Contractual balance | $ 5,063,496 | $ 5,063,496 | $ 4,432,351 | |||||
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 | $ 40,028 | $ 40,028 | $ 19,224 | |||||
Contractual balance | 38,238 | 38,238 | 18,690 | |||||
Unrealized (loss) gain | 1,790 | 1,790 | $ 534 | |||||
Gains (losses) from changes in fair value included in earnings | 1,033 | 298 | 1,888 | 318 | ||||
Mortgage loans held for sale | Interest Income | ||||||||
Fair Value, Option | ||||||||
Gains (losses) from changes in fair value included in earnings | 419 | 170 | 632 | 272 | ||||
Mortgage loans held for sale | Change In Fair Value | ||||||||
Fair Value, Option | ||||||||
Gains (losses) from changes in fair value included in earnings | $ 614 | $ 128 | $ 1,256 | $ 46 | ||||
Consumer 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 | $ 164 | $ 164 | $ 598 | |||||
Contractual balance | 163 | 163 | 593 | |||||
Unrealized (loss) gain | 1 | 1 | $ 5 | |||||
Gains (losses) from changes in fair value included in earnings | 23 | 1,517 | ||||||
Consumer Loans Held For Sale | Interest Income | ||||||||
Fair Value, Option | ||||||||
Gains (losses) from changes in fair value included in earnings | 45 | 1,521 | ||||||
Consumer Loans Held For Sale | Change In Fair Value | ||||||||
Fair Value, Option | ||||||||
Gains (losses) from changes in fair value included in earnings | $ (22) | $ (4) |
FAIR VALUE - ASSETS MEASURED ON
FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 5,131 | $ 8,920 |
Mortgage servicing rights | 4,062 | |
Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 3,655 | 3,598 |
Residential Real Estate - Non Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 14 | |
Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 98 | 3,276 |
Commercial & industrial | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,055 | 1,562 |
Home equity lines of credit | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 323 | 470 |
Fair Value, Inputs, Level 2 | ||
Fair Value Disclosures | ||
Mortgage servicing rights | 4,062 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 5,131 | 8,920 |
Fair Value, Inputs, Level 3 | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 3,655 | 3,598 |
Fair Value, Inputs, Level 3 | Residential Real Estate - Non Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 14 | |
Fair Value, Inputs, Level 3 | Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 98 | 3,276 |
Fair Value, Inputs, Level 3 | Commercial & industrial | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,055 | 1,562 |
Fair Value, Inputs, Level 3 | Home equity lines of credit | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 323 | $ 470 |
FAIR VALUE - NON-RECURRING LEVE
FAIR VALUE - NON-RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 - Nonrecurring basis | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Collateral Dependent Loans | Residential Real Estate - Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 3,655,000 | |
Collateral Dependent Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0 | |
Collateral Dependent Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.51 | |
Collateral Dependent Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.11 | |
Collateral Dependent Loans | Commercial Real Estate | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 98,000 | |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.07 | |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.07 | |
Collateral Dependent Loans | Commercial & industrial | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,055,000 | |
Collateral Dependent Loans | Commercial & industrial | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0 | |
Collateral Dependent Loans | Commercial & industrial | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.29 | |
Collateral Dependent Loans | Commercial & industrial | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.06 | |
Collateral Dependent Loans | Home equity lines of credit | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 323,000 | |
Collateral Dependent Loans | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.02 | |
Collateral Dependent Loans | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.02 | |
Impaired Loans | Residential Real Estate - Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 3,598,000 | |
Impaired Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0 | |
Impaired Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.58 | |
Impaired Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.12 | |
Impaired Loans | Residential Real Estate - Non Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 14,000 | |
Impaired Loans | Residential Real Estate - Non Owner Occupied | Comparability Adjustment | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.05 | |
Impaired Loans | Residential Real Estate - Non Owner Occupied | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.05 | |
Impaired Loans | Commercial Real Estate | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 3,276,000 | |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.01 | |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.10 | |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.04 | |
Impaired Loans | Commercial & industrial | Income approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,562,000 | |
Impaired Loans | Commercial & industrial | Comparability Adjustment | Income approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.03 | |
Impaired Loans | Commercial & industrial | Comparability Adjustment | Income approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.50 | |
Impaired Loans | Commercial & industrial | Comparability Adjustment | Income approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.37 | |
Impaired Loans | Home equity lines of credit | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 470,000 | |
Impaired Loans | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.02 | |
Impaired Loans | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.02 |
FAIR VALUE - IMPAIRED LOANS (De
FAIR VALUE - IMPAIRED LOANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Impaired loans | |||||
Carrying amount of loans measured at fair value | $ 17,289 | ||||
Valuation allowance | (2,512) | ||||
Nonrecurring basis | |||||
Impaired loans | |||||
Total fair value | $ 5,131 | $ 5,131 | 8,920 | ||
Fair Value, Inputs, Level 3 | Nonrecurring basis | |||||
Impaired loans | |||||
Carrying amount of loans measured at fair value | 4,331 | 4,331 | 7,729 | ||
Estimated selling costs considered in carrying amount | 802 | 802 | 1,193 | ||
Valuation allowance | (2) | (2) | (2) | ||
Total fair value | 5,131 | 5,131 | $ 8,920 | ||
Provision for impairment on loan, lease and other losses | |||||
Provisions on collateral-dependent, impaired loans | $ 98 | $ 5 | $ 128 | $ 27 |
FAIR VALUE - CARRYING AMOUNTS A
FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||||||
Available-for-sale debt securities | $ 486,847 | $ 471,355 | ||||
Held-to-maturity debt securities | 56,266 | 63,156 | ||||
Equity securities with readily determinable fair value | 3,015 | 3,188 | ||||
Mortgage loans held for sale, at fair value | 40,028 | $ 39,384 | 19,224 | $ 13,883 | $ 11,313 | $ 8,971 |
Consumer loans held for sale, at fair value | 164 | 3,431 | 598 | |||
Consumer loans held for sale, at the lower of cost or fair value | 12,800 | $ 12,089 | 11,646 | $ 37,609 | $ 12,864 | $ 12,838 |
Carrying Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 560,195 | 385,303 | ||||
Available-for-sale debt securities | 486,847 | 471,355 | ||||
Held-to-maturity debt securities | 55,745 | 62,531 | ||||
Equity securities with readily determinable fair value | 3,015 | 3,188 | ||||
Mortgage loans held for sale, at fair value | 40,028 | 19,224 | ||||
Consumer loans held for sale, at fair value | 164 | 598 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 12,800 | 11,646 | ||||
Loans, net | 5,009,995 | 4,389,800 | ||||
Federal Home Loan Bank stock | 25,629 | 30,831 | ||||
Accrued interest receivable | 11,146 | 12,937 | ||||
Rate lock loan commitments | 4,436 | 789 | ||||
Interest rate swap agreements | 15,324 | 5,062 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 177,397 | 167,617 | ||||
Federal Home Loan Bank advances | 137,500 | 750,000 | ||||
Subordinated note | 41,240 | 41,240 | ||||
Accrued interest payable | 1,117 | 2,802 | ||||
Mandatory forward contracts | 659 | 131 | ||||
Interest rate swap agreements | 15,491 | 5,166 | ||||
Carrying Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,821,400 | 1,033,379 | ||||
Carrying Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,305,085 | 2,018,687 | ||||
Carrying Value | Time deposits. | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 891,600 | 733,942 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 560,195 | 385,303 | ||||
Available-for-sale debt securities | 486,847 | 471,355 | ||||
Held-to-maturity debt securities | 56,266 | 63,156 | ||||
Equity securities with readily determinable fair value | 3,015 | 3,188 | ||||
Mortgage loans held for sale, at fair value | 40,028 | 19,224 | ||||
Consumer loans held for sale, at fair value | 164 | 598 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 12,800 | 11,646 | ||||
Loans, net | 4,979,895 | 4,381,396 | ||||
Accrued interest receivable | 11,146 | 12,937 | ||||
Rate lock loan commitments | 4,436 | 789 | ||||
Interest rate swap agreements | 15,324 | 5,062 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 177,397 | 167,617 | ||||
Federal Home Loan Bank advances | 139,831 | 749,667 | ||||
Subordinated note | 31,805 | 32,587 | ||||
Accrued interest payable | 1,117 | 2,802 | ||||
Mandatory forward contracts | 659 | 131 | ||||
Interest rate swap agreements | 15,491 | 5,166 | ||||
Total Fair Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,821,400 | 1,033,379 | ||||
Total Fair Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,305,085 | 2,018,687 | ||||
Total Fair Value | Time deposits. | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 901,588 | 737,733 | ||||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||||
Assets: | ||||||
Cash and cash equivalents | 560,195 | 385,303 | ||||
Equity securities with readily determinable fair value | 2,530 | 2,474 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 480,324 | 463,860 | ||||
Held-to-maturity debt securities | 56,266 | 63,156 | ||||
Equity securities with readily determinable fair value | 485 | 714 | ||||
Mortgage loans held for sale, at fair value | 40,028 | 19,224 | ||||
Accrued interest receivable | 11,146 | 12,937 | ||||
Rate lock loan commitments | 4,436 | 789 | ||||
Interest rate swap agreements | 15,324 | 5,062 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 177,397 | 167,617 | ||||
Federal Home Loan Bank advances | 139,831 | 749,667 | ||||
Subordinated note | 31,805 | 32,587 | ||||
Accrued interest payable | 1,117 | 2,802 | ||||
Mandatory forward contracts | 659 | 131 | ||||
Interest rate swap agreements | 15,491 | 5,166 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,821,400 | 1,033,379 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,305,085 | 2,018,687 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Time deposits. | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 901,588 | 737,733 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 6,523 | 7,495 | ||||
Consumer loans held for sale, at fair value | 164 | 598 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 12,800 | 11,646 | ||||
Loans, net | $ 4,979,895 | $ 4,381,396 |
MORTGAGE BANKING ACTIVITIES - M
MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 39,384 | $ 11,313 | $ 19,224 | $ 8,971 |
Origination of mortgage loans held for sale | 218,668 | 81,982 | 343,941 | 122,696 |
Proceeds from the sale of mortgage loans held for sale | (226,723) | (81,630) | (336,641) | (121,262) |
Net gain on sale of mortgage loans held for sale | 8,699 | 2,218 | 13,504 | 3,478 |
Balance, end of period | $ 40,028 | $ 13,883 | $ 40,028 | $ 13,883 |
MORTGAGE BANKING ACTIVITIES - C
MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Mortgage servicing rights | ||||
Net gain realized on sale of mortgage loans held for sale | $ 6,050 | $ 1,896 | $ 9,128 | $ 2,771 |
Net gain recognized | 8,699 | 2,218 | 13,504 | 3,478 |
Loan servicing income | 707 | 609 | 1,382 | 1,210 |
Amortization of mortgage servicing rights | (1,008) | (411) | (1,593) | (733) |
Change in mortgage servicing rights valuation allowance | (100) | |||
Net servicing income recognized | (301) | 198 | (311) | 477 |
Total Mortgage banking income | 8,398 | 2,416 | 13,193 | 3,955 |
Mortgage loans held for sale | ||||
Mortgage servicing rights | ||||
Net change in fair value | 614 | 128 | 1,256 | 46 |
Rate lock loan commitments | ||||
Mortgage servicing rights | ||||
Net change in fair value | (132) | 379 | 3,647 | 866 |
Mandatory forward contracts | ||||
Mortgage servicing rights | ||||
Net change in fair value | $ 2,167 | $ (185) | $ (527) | $ (205) |
MORTGAGE BANKING ACTIVITIES -_2
MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 4,935 | $ 5,994 | $ 5,888 | $ 4,919 |
Additions | 1,725 | 634 | 2,516 | 972 |
Amortized to expense | (1,008) | (411) | (1,593) | (733) |
Change in valuation allowance | (100) | |||
Balance, end of period | $ 6,711 | $ 5,158 | $ 6,711 | $ 5,158 |
MORTGAGE BANKING ACTIVITIES - V
MORTGAGE BANKING ACTIVITIES - VALUATION OF CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |
Beginning valuation allowance | $ 0 |
Charge (credit) during the period | 100 |
Ending valuation allowance | $ 100 |
MORTGAGE BANKING ACTIVITIES - O
MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
MORTGAGE BANKING ACTIVITIES | ||
Fair value of mortgage servicing rights portfolio | $ 6,892 | $ 9,068 |
Monthly weighted average prepayment rate of unpaid principle balance (as percent) | 330.00% | 202.00% |
Discount rate (as percent) | 10.00% | 10.00% |
Weighted average foreclosure rate | 0.13% | 0.14% |
Weighted average life in years | 4 years 1 month 13 days | 5 years 9 months 3 days |
MORTGAGE BANKING ACTIVITIES - N
MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Mortgage servicing rights | ||
Derivative instruments expiration period | 90 days | |
Mortgage loans held for sale | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | $ 38,238 | $ 18,690 |
Fair Value, Assets | 40,028 | 19,224 |
Rate lock loan commitments | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 110,176 | 32,776 |
Fair Value, Assets | 4,436 | 789 |
Mandatory forward contracts | ||
Information about derivatives and swaps | ||
Derivative Liabilities, Notional Amount | 128,040 | 44,919 |
Fair Value, Liabilities | $ 659 | $ 131 |
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, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2013DerivativeInstrument | |
Information about derivatives and swaps | |||
Number of derivative agreements | DerivativeInstrument | 2 | ||
Summary information about interest rate swaps | |||
Notional amount | $ 20,000 | ||
Assets / (Liabilities) | (167) | $ (104) | |
Unrealized Gain (Loss) in AOCI | (125) | (77) | |
1-month LIBOR | |||
Summary information about interest rate swaps | |||
Notional amount | $ 10,000 | ||
Pay rate (as a percent) | 2.17% | ||
Assets / (Liabilities) | $ (68) | (46) | |
Unrealized Gain (Loss) in AOCI | (51) | (34) | |
3-month LIBOR | |||
Summary information about interest rate swaps | |||
Notional amount | $ 10,000 | ||
Pay rate (as a percent) | 2.33% | ||
Assets / (Liabilities) | $ (99) | (58) | |
Unrealized Gain (Loss) in AOCI | $ (74) | $ (43) |
INTEREST RATE SWAPS - INTEREST
INTEREST RATE SWAPS - INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INTEREST RATE SWAPS | ||||
Interest expense swap on money market deposits | $ 38 | $ (8) | $ 55 | $ (16) |
Interest expense swap on FHLB Advance | 41 | (5) | 53 | (16) |
Total interest (benefit) expense on swap transactions | $ 79 | $ (13) | $ 108 | $ (32) |
INTEREST RATE SWAPS - GAINS (LO
INTEREST RATE SWAPS - GAINS (LOSSES) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INTEREST RATE SWAPS | ||||
Gains (losses) recognized in OCI on derivative (effective portion) | $ (10) | $ (146) | $ (171) | $ (215) |
Gains (losses) reclassified from OCI on derivative (effective portion) | (79) | 13 | (108) | 32 |
Gains (losses) recognized in income on derivative (ineffective portion) | $ 0 | $ 0 | $ 0 | $ 0 |
INTEREST RATE SWAPS - NON-HEDGE
INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | $ 259,812,000 | $ 229,706,000 |
Counterparty | ||
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | 15,700,000 | 7,500,000 |
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 | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 282,948,000 | 204,102,000 |
Interest rate swap | Non-Hedge | Bank Clients | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 141,474,000 | 95,411,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 6,640,000 | |
Interest rate swaps with Bank clients - Total, Notional Amount | 141,474,000 | 102,051,000 |
Interest rate swaps with Bank clients - Assets, Fair Value | 15,324,000 | 5,062,000 |
Interest rate swaps with Bank clients - Liabilities, Fair Value | (55,000) | |
Interest rate swaps with Bank clients - Total, Fair Value | 15,324,000 | 5,007,000 |
Interest rate swap | Non-Hedge | Counterparty | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 141,474,000 | 102,051,000 |
Interest rate swaps with Bank clients - Total, Fair Value | $ (15,324,000) | $ (5,007,000) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
EARNINGS PER SHARE | ||||
Net income | $ 15,804 | $ 18,007 | $ 42,501 | $ 47,523 |
Dividends declared on Common Stock: | ||||
Undistributed net income for basic earnings per share | 9,885 | 12,545 | 30,652 | 36,597 |
Weighted average potential dividends on Class A shares upon exercise of dilutive options | (7) | (32) | (24) | (68) |
Undistributed net income for diluted earnings per share | $ 9,878 | $ 12,513 | $ 30,628 | $ 36,529 |
Weighted average shares outstanding: | ||||
Effect of dilutive securities on Class A Shares outstanding | 25,000 | 122,000 | 42,000 | 128,000 |
Weighted average shares outstanding including dilutive securities | 21,029,000 | 21,138,000 | 21,065,000 | 21,125,000 |
Stock option | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 427,000 | 160,000 | 247,000 | 165,000 |
Stock option | Weighted Average | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 365,000 | 156,000 | 172,000 | 159,000 |
Class A Common Stock | ||||
EARNINGS PER SHARE | ||||
Cash dividend premium per share (as a percent) | 10.00% | |||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (5,347) | $ (4,932) | $ (10,705) | $ (9,865) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 18,804,000 | 18,804,000 | 18,821,000 | 18,785,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.29 | $ 0.26 | $ 0.57 | $ 0.53 |
Undistributed earnings per share | 0.48 | 0.60 | 1.47 | 1.76 |
Total basic earnings per share | 0.77 | 0.86 | 2.04 | 2.29 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.29 | 0.26 | 0.57 | 0.53 |
Undistributed earnings per share | 0.47 | 0.60 | 1.47 | 1.75 |
Total diluted earnings per share | $ 0.76 | $ 0.86 | $ 2.04 | $ 2.28 |
Class B Common Stock | ||||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (572) | $ (530) | $ (1,144) | $ (1,061) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 2,200,000 | 2,212,000 | 2,202,000 | 2,212,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.26 | $ 0.24 | $ 0.52 | $ 0.48 |
Undistributed earnings per share | 0.43 | 0.55 | 1.34 | 1.60 |
Total basic earnings per share | 0.69 | 0.79 | 1.86 | 2.08 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.26 | 0.24 | 0.52 | 0.48 |
Undistributed earnings per share | 0.43 | 0.54 | 1.33 | 1.59 |
Total diluted earnings per share | $ 0.69 | $ 0.78 | $ 1.85 | $ 2.07 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Available-for-Sale Debt Securities: | ||||
Change in unrealized gain on AFS debt securities | $ 1,099 | $ 2,014 | $ 8,876 | $ 5,673 |
Change in unrealized gain of AFS debt security for which a portion of OTTI has been recognized in earnings | (108) | (1) | (107) | (34) |
Net unrealized (losses) gains | 991 | 2,013 | 8,769 | 5,639 |
Tax effect | (248) | (422) | (2,193) | (1,186) |
Net of tax | 743 | 1,591 | 6,576 | 4,453 |
Cash Flow Hedges: | ||||
Change in fair value of derivatives used for cash flow hedges | (10) | (146) | (171) | (215) |
Reclassification amount for net derivative losses (gains) realized in income | 79 | (13) | 108 | (32) |
Net unrealized gains | 69 | (159) | (63) | (247) |
Tax effect | (17) | 33 | 15 | 53 |
Net of tax | 52 | (126) | (48) | (194) |
Total other comprehensive income, net of tax | $ 795 | $ 1,465 | $ 6,528 | $ 4,259 |
OTHER COMPREHENSIVE INCOME - RE
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Significant amounts reclassified out of each component of AOCI | ||||
Interest benefit (expense) on deposits | $ (3,647) | $ (6,903) | $ (9,949) | $ (13,651) |
Interest benefit (expense) on FHLB advances | (822) | (4,062) | (2,470) | (6,792) |
Total interest benefit (expense) | (4,886) | (11,718) | (13,307) | (22,052) |
Income tax (benefit) expense | (3,793) | (3,176) | (10,674) | (10,636) |
NET INCOME | 15,804 | 18,007 | 42,501 | 47,523 |
Unrealized gain (loss) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Significant amounts reclassified out of each component of AOCI | ||||
Interest benefit (expense) on deposits | (38) | 8 | (55) | 16 |
Interest benefit (expense) on FHLB advances | (41) | 5 | (53) | 16 |
Total interest benefit (expense) | (79) | 13 | (108) | 32 |
Income tax (benefit) expense | 20 | (3) | 27 | (7) |
NET INCOME | $ (59) | $ 10 | $ (81) | $ 25 |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | $ 784,046 | $ 717,091 | $ 764,244 | $ 689,934 |
Current Year Change | 795 | 1,465 | 6,528 | 4,259 |
Balance at end of period | 795,619 | 731,428 | 795,619 | 731,428 |
Accumulated Other Comprehensive Income | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 8,831 | 1,797 | 3,098 | (997) |
Current Year Change | 6,528 | 4,259 | ||
Balance at end of period | 9,626 | 3,262 | 9,626 | 3,262 |
Unrealized gain (loss) on AFS debt securities | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 2,211 | (2,165) | ||
Current Year Change | 6,657 | 4,480 | ||
Balance at end of period | 8,868 | 2,315 | 8,868 | 2,315 |
Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 964 | 1,078 | ||
Current Year Change | (81) | (27) | ||
Balance at end of period | 883 | 1,051 | 883 | 1,051 |
Unrealized gain (loss) on cash flow hedges | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | (77) | 90 | ||
Current Year Change | (48) | (194) | ||
Balance at end of period | $ (125) | $ (104) | $ (125) | $ (104) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue recognition | ||||
Net interest income | $ 52,205 | $ 53,946 | $ 124,943 | $ 126,245 |
Noninterest income: | ||||
Service charges on deposit accounts | 2,451 | 3,598 | 5,587 | 6,901 |
Net refund transfer fees | 2,913 | 3,629 | 18,736 | 20,729 |
Mortgage banking income | 8,398 | 2,416 | 13,193 | 3,955 |
Interchange fee income | 2,808 | 3,257 | 5,360 | 6,014 |
Program fees | 1,138 | 1,037 | 3,762 | 2,111 |
Increase in cash surrender value of BOLI | 395 | 377 | 784 | 759 |
Net gains (losses) on OREO | 1 | 90 | 4 | 220 |
Other | 647 | 721 | 1,894 | 1,853 |
Total noninterest income | 18,751 | 15,125 | 49,320 | 42,542 |
Total net revenue | $ 70,956 | $ 69,071 | $ 174,263 | $ 168,787 |
Net-revenue concentration (as percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Writedowns during entity's holding of property (as a percent) | 10.00% | |||
Core Banking | ||||
Revenue recognition | ||||
Net interest income | $ 45,517 | $ 46,004 | $ 90,658 | $ 90,348 |
Noninterest income: | ||||
Service charges on deposit accounts | 2,455 | 3,598 | 5,604 | 6,901 |
Mortgage banking income | 8,398 | 2,416 | 13,193 | 3,955 |
Interchange fee income | 2,724 | 3,168 | 5,217 | 5,794 |
Increase in cash surrender value of BOLI | 395 | 377 | 784 | 759 |
Net gains (losses) on OREO | 1 | 90 | 4 | 220 |
Other | 576 | 689 | 1,812 | 1,194 |
Total noninterest income | 14,549 | 10,338 | 26,614 | 18,823 |
Total net revenue | $ 60,066 | $ 56,342 | $ 117,272 | $ 109,171 |
Net-revenue concentration (as percent) | 84.00% | 82.00% | 67.00% | 65.00% |
Traditional Banking | ||||
Revenue recognition | ||||
Net interest income | $ 39,035 | $ 41,877 | $ 79,656 | $ 83,224 |
Noninterest income: | ||||
Service charges on deposit accounts | 2,438 | 3,585 | 5,576 | 6,878 |
Interchange fee income | 2,724 | 3,168 | 5,217 | 5,794 |
Increase in cash surrender value of BOLI | 395 | 377 | 784 | 759 |
Net gains (losses) on OREO | 1 | 90 | 4 | 220 |
Other | 568 | 633 | 1,780 | 1,098 |
Total noninterest income | 6,126 | 7,853 | 13,361 | 14,749 |
Total net revenue | $ 45,161 | $ 49,730 | $ 93,017 | $ 97,973 |
Net-revenue concentration (as percent) | 63.00% | 72.00% | 53.00% | 58.00% |
Warehouse Lending | ||||
Revenue recognition | ||||
Net interest income | $ 6,063 | $ 3,957 | $ 10,370 | $ 6,852 |
Noninterest income: | ||||
Service charges on deposit accounts | 17 | 13 | 28 | 23 |
Total noninterest income | 17 | 13 | 28 | 23 |
Total net revenue | $ 6,080 | $ 3,970 | $ 10,398 | $ 6,875 |
Net-revenue concentration (as percent) | 9.00% | 6.00% | 6.00% | 4.00% |
Mortgage Banking | ||||
Revenue recognition | ||||
Net interest income | $ 419 | $ 170 | $ 632 | $ 272 |
Noninterest income: | ||||
Mortgage banking income | 8,398 | 2,416 | 13,193 | 3,955 |
Other | 8 | 56 | 32 | 96 |
Total noninterest income | 8,406 | 2,472 | 13,225 | 4,051 |
Total net revenue | $ 8,825 | $ 2,642 | $ 13,857 | $ 4,323 |
Net-revenue concentration (as percent) | 12.00% | 4.00% | 8.00% | 3.00% |
Republic Processing Group | ||||
Revenue recognition | ||||
Net interest income | $ 6,688 | $ 7,942 | $ 34,285 | $ 35,897 |
Noninterest income: | ||||
Service charges on deposit accounts | (4) | (17) | ||
Net refund transfer fees | 2,913 | 3,629 | 18,736 | 20,729 |
Interchange fee income | 84 | 89 | 143 | 220 |
Program fees | 1,138 | 1,037 | 3,762 | 2,111 |
Other | 71 | 32 | 82 | 659 |
Total noninterest income | 4,202 | 4,787 | 22,706 | 23,719 |
Total net revenue | $ 10,890 | $ 12,729 | $ 56,991 | $ 59,616 |
Net-revenue concentration (as percent) | 16.00% | 18.00% | 33.00% | 35.00% |
Tax Refund Solutions | ||||
Revenue recognition | ||||
Net interest income | $ 1,081 | $ 710 | $ 21,606 | $ 21,148 |
Noninterest income: | ||||
Service charges on deposit accounts | (4) | (17) | ||
Net refund transfer fees | 2,913 | 3,629 | 18,736 | 20,729 |
Interchange fee income | 84 | 89 | 143 | 220 |
Program fees | 618 | 50 | 930 | 196 |
Other | 71 | 82 | ||
Total noninterest income | 3,682 | 3,768 | 19,874 | 21,145 |
Total net revenue | $ 4,763 | $ 4,478 | $ 41,480 | $ 42,293 |
Net-revenue concentration (as percent) | 7.00% | 6.00% | 24.00% | 25.00% |
Republic Credit Solutions | ||||
Revenue recognition | ||||
Net interest income | $ 5,607 | $ 7,232 | $ 12,679 | $ 14,749 |
Noninterest income: | ||||
Program fees | 520 | 987 | 2,832 | 1,915 |
Other | 32 | 659 | ||
Total noninterest income | 520 | 1,019 | 2,832 | 2,574 |
Total net revenue | $ 6,127 | $ 8,251 | $ 15,511 | $ 17,323 |
Net-revenue concentration (as percent) | 9.00% | 12.00% | 9.00% | 10.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Disclosure information | |||||
Number of reportable segments | segment | 5 | ||||
Segment information | |||||
Net interest income | $ 52,205 | $ 53,946 | $ 124,943 | $ 126,245 | |
Provision for expected credit loss expense | 6,534 | 4,460 | 29,294 | 21,691 | |
Net refund transfer fees | 2,913 | 3,629 | 18,736 | 20,729 | |
Mortgage banking income | 8,398 | 2,416 | 13,193 | 3,955 | |
Program fees | 1,138 | 1,037 | 3,762 | 2,111 | |
Other noninterest income | 6,302 | 8,043 | 13,629 | 15,747 | |
Total noninterest income | 18,751 | 15,125 | 49,320 | 42,542 | |
Total noninterest expenses | 44,825 | 43,428 | 91,794 | 88,937 | |
INCOME BEFORE INCOME TAX EXPENSE | 19,597 | 21,183 | 53,175 | 58,159 | |
Income tax expense (benefit) | 3,793 | 3,176 | 10,674 | 10,636 | |
NET INCOME | 15,804 | 18,007 | 42,501 | 47,523 | |
Period-end assets | $ 6,460,575 | $ 5,723,134 | $ 6,460,575 | $ 5,723,134 | $ 5,620,319 |
Net interest margin (as percent) | 3.62% | 4.12% | 4.55% | 4.88% | |
Net-revenue concentration (as percent) | 100.00% | 100.00% | 100.00% | 100.00% | |
Core Banking | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 3 | ||||
Segment information | |||||
Net interest income | $ 45,517 | $ 46,004 | $ 90,658 | $ 90,348 | |
Provision for expected credit loss expense | 3,529 | 1,844 | 9,450 | 2,258 | |
Mortgage banking income | 8,398 | 2,416 | 13,193 | 3,955 | |
Other noninterest income | 6,151 | 7,922 | 13,421 | 14,868 | |
Total noninterest income | 14,549 | 10,338 | 26,614 | 18,823 | |
Total noninterest expenses | 40,188 | 39,910 | 79,634 | 77,538 | |
INCOME BEFORE INCOME TAX EXPENSE | 16,349 | 14,588 | 28,188 | 29,375 | |
Income tax expense (benefit) | 3,102 | 1,635 | 4,916 | 3,909 | |
NET INCOME | 13,247 | 12,953 | 23,272 | 25,466 | |
Period-end assets | $ 6,050,677 | $ 5,564,317 | $ 6,050,677 | $ 5,564,317 | |
Net interest margin (as percent) | 3.23% | 3.62% | 3.43% | 3.69% | |
Net-revenue concentration (as percent) | 84.00% | 82.00% | 67.00% | 65.00% | |
Traditional Banking | |||||
Segment information | |||||
Net interest income | $ 39,035 | $ 41,877 | $ 79,656 | $ 83,224 | |
Provision for expected credit loss expense | 3,080 | 1,427 | 8,669 | 1,616 | |
Other noninterest income | 6,126 | 7,853 | 13,361 | 14,749 | |
Total noninterest income | 6,126 | 7,853 | 13,361 | 14,749 | |
Total noninterest expenses | 36,688 | 37,764 | 73,335 | 73,314 | |
INCOME BEFORE INCOME TAX EXPENSE | 5,393 | 10,539 | 11,013 | 23,043 | |
Income tax expense (benefit) | 729 | 744 | 1,189 | 2,509 | |
NET INCOME | 4,664 | 9,795 | 9,824 | 20,534 | |
Period-end assets | $ 4,967,759 | $ 4,805,449 | $ 4,967,759 | $ 4,805,449 | |
Net interest margin (as percent) | 3.26% | 3.75% | 3.52% | 3.81% | |
Net-revenue concentration (as percent) | 63.00% | 72.00% | 53.00% | 58.00% | |
Warehouse Lending | |||||
Segment information | |||||
Net interest income | $ 6,063 | $ 3,957 | $ 10,370 | $ 6,852 | |
Provision for expected credit loss expense | 449 | 417 | 781 | 642 | |
Other noninterest income | 17 | 13 | 28 | 23 | |
Total noninterest income | 17 | 13 | 28 | 23 | |
Total noninterest expenses | 811 | 792 | 1,614 | 1,550 | |
INCOME BEFORE INCOME TAX EXPENSE | 4,820 | 2,761 | 8,003 | 4,683 | |
Income tax expense (benefit) | 1,085 | 621 | 1,801 | 1,054 | |
NET INCOME | 3,735 | 2,140 | 6,202 | 3,629 | |
Period-end assets | $ 1,028,400 | $ 738,300 | $ 1,028,400 | $ 738,300 | |
Net interest margin (as percent) | 3.01% | 2.49% | 2.86% | 2.63% | |
Net-revenue concentration (as percent) | 9.00% | 6.00% | 6.00% | 4.00% | |
Mortgage Banking | |||||
Segment information | |||||
Net interest income | $ 419 | $ 170 | $ 632 | $ 272 | |
Mortgage banking income | 8,398 | 2,416 | 13,193 | 3,955 | |
Other noninterest income | 8 | 56 | 32 | 96 | |
Total noninterest income | 8,406 | 2,472 | 13,225 | 4,051 | |
Total noninterest expenses | 2,689 | 1,354 | 4,685 | 2,674 | |
INCOME BEFORE INCOME TAX EXPENSE | 6,136 | 1,288 | 9,172 | 1,649 | |
Income tax expense (benefit) | 1,288 | 270 | 1,926 | 346 | |
NET INCOME | 4,848 | 1,018 | 7,246 | 1,303 | |
Period-end assets | $ 54,518 | $ 20,568 | $ 54,518 | $ 20,568 | |
Net-revenue concentration (as percent) | 12.00% | 4.00% | 8.00% | 3.00% | |
Republic Processing Group | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 2 | ||||
Segment information | |||||
Net interest income | $ 6,688 | $ 7,942 | $ 34,285 | $ 35,897 | |
Provision for expected credit loss expense | 3,005 | 2,616 | 19,844 | 19,433 | |
Net refund transfer fees | 2,913 | 3,629 | 18,736 | 20,729 | |
Program fees | 1,138 | 1,037 | 3,762 | 2,111 | |
Other noninterest income | 151 | 121 | 208 | 879 | |
Total noninterest income | 4,202 | 4,787 | 22,706 | 23,719 | |
Total noninterest expenses | 4,637 | 3,518 | 12,160 | 11,399 | |
INCOME BEFORE INCOME TAX EXPENSE | 3,248 | 6,595 | 24,987 | 28,784 | |
Income tax expense (benefit) | 691 | 1,541 | 5,758 | 6,727 | |
NET INCOME | 2,557 | 5,054 | 19,229 | 22,057 | |
Period-end assets | $ 409,898 | $ 158,817 | $ 409,898 | $ 158,817 | |
Net-revenue concentration (as percent) | 16.00% | 18.00% | 33.00% | 35.00% | |
Tax Refund Solutions | |||||
Segment information | |||||
Net interest income | $ 1,081 | $ 710 | $ 21,606 | $ 21,148 | |
Provision for expected credit loss expense | 4,448 | 392 | 19,581 | 13,826 | |
Net refund transfer fees | 2,913 | 3,629 | 18,736 | 20,729 | |
Program fees | 618 | 50 | 930 | 196 | |
Other noninterest income | 151 | 89 | 208 | 220 | |
Total noninterest income | 3,682 | 3,768 | 19,874 | 21,145 | |
Total noninterest expenses | 3,734 | 2,849 | 10,363 | 9,963 | |
INCOME BEFORE INCOME TAX EXPENSE | (3,419) | 1,237 | 11,536 | 18,504 | |
Income tax expense (benefit) | (853) | 288 | 2,644 | 4,318 | |
NET INCOME | (2,566) | 949 | 8,892 | 14,186 | |
Period-end assets | $ 306,583 | $ 36,834 | $ 306,583 | $ 36,834 | |
Net-revenue concentration (as percent) | 7.00% | 6.00% | 24.00% | 25.00% | |
Republic Credit Solutions | |||||
Segment information | |||||
Net interest income | $ 5,607 | $ 7,232 | $ 12,679 | $ 14,749 | |
Provision for expected credit loss expense | (1,443) | 2,224 | 263 | 5,607 | |
Program fees | 520 | 987 | 2,832 | 1,915 | |
Other noninterest income | 32 | 659 | |||
Total noninterest income | 520 | 1,019 | 2,832 | 2,574 | |
Total noninterest expenses | 903 | 669 | 1,797 | 1,436 | |
INCOME BEFORE INCOME TAX EXPENSE | 6,667 | 5,358 | 13,451 | 10,280 | |
Income tax expense (benefit) | 1,544 | 1,253 | 3,114 | 2,409 | |
NET INCOME | 5,123 | 4,105 | 10,337 | 7,871 | |
Period-end assets | $ 103,315 | $ 121,983 | $ 103,315 | $ 121,983 | |
Net-revenue concentration (as percent) | 9.00% | 12.00% | 9.00% | 10.00% |
INCOME TAXES - RECONCILIATION (
INCOME TAXES - RECONCILIATION (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Effective tax rate that differs from that computed at the federal statutory rate | ||||
Federal corporate tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Effect of: | ||||
State taxes, net of federal benefit (as a percent) | 1.66% | (2.47%) | 1.61% | (0.51%) |
General business tax credits (as a percent) | (1.61%) | (0.55%) | (1.47%) | (0.68%) |
Nontaxable income (as a percent) | (0.71%) | (1.27%) | (0.71%) | (0.89%) |
Other, net (as a percent) | (0.98%) | (1.72%) | (0.36%) | (0.63%) |
Effective tax rate (as a percent) | 19.36% | 14.99% | 20.07% | 18.29% |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income taxes | |||||
Corporate income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Traditional Banking | |||||
Income taxes | |||||
Deferred tax asset due to enactment of HB354 | $ 350,000 | ||||
Reversal of valuation allowance on the deferred tax asset for losses | $ 815,000 | ||||
Percentage of income tax benefit attributed to segment | 100.00% | ||||
Income tax benefit associated with equity compensation | $ 388,000 | ||||
Kentucky | |||||
Income taxes | |||||
Corporate income tax rate | 5.00% |