Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Entity Registrant Name | REPUBLIC BANCORP, INC. | ||
Entity Central Index Key | 0000921557 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 321,802,869 | ||
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 | FY | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 18,665,370 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,198,848 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 485,587 | $ 385,303 |
Available-for-sale debt securities, at fair value (amortized cost of $512,518 in 2020 and $467,122 in 2019, allowance for credit losses of $0 in 2020 and $0 in 2019) | 523,863 | 471,355 |
Held-to-maturity debt securities (fair value of $54,190 in 2020 and $63,156 in 2019, allowance for credit losses of $178 in 2020 and $0 in 2019) | 53,324 | 62,531 |
Equity securities with readily determinable fair value | 3,083 | 3,188 |
Mortgage loans held for sale, at fair value | 46,867 | 19,224 |
Consumer loans held for sale, at fair value | 3,298 | 598 |
Consumer loans held for sale, at the lower of cost or fair value | 1,478 | 11,646 |
Loans (loans carried at fair value of $497 in 2020 and $998 in 2019) | 4,813,103 | 4,433,151 |
Allowance for credit losses | (61,067) | (43,351) |
Loans, net | 4,752,036 | 4,389,800 |
Federal Home Loan Bank stock, at cost | 17,397 | 30,831 |
Premises and equipment, net | 39,512 | 46,196 |
Right-of-use assets | 43,345 | 35,206 |
Goodwill | 16,300 | 16,300 |
Other real estate owned | 2,499 | 113 |
Bank owned life insurance | 68,018 | 66,433 |
Other assets and accrued interest receivable | 111,718 | 81,595 |
TOTAL ASSETS | 6,168,325 | 5,620,319 |
Deposits: | ||
Noninterest-bearing | 1,890,416 | 1,033,379 |
Interest-bearing | 2,842,765 | 2,752,629 |
Total deposits | 4,733,181 | 3,786,008 |
Securities sold under agreements to repurchase and other short-term borrowings | 211,026 | 167,617 |
Operating lease liabilities | 44,340 | 36,530 |
Federal Home Loan Bank advances | 235,000 | 750,000 |
Subordinated note | 41,240 | 41,240 |
Other liabilities and accrued interest payable | 80,215 | 74,680 |
Total liabilities | 5,345,002 | 4,856,075 |
Commitments and contingent liabilities (Footnote 13) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value | ||
Class A Common Stock, no par value, 30,000,000 shares authorized, 18,696,607 shares (2020) and 18,736,445 shares (2019) issued and outstanding; Class B Common Stock, no par value, 5,000,000 shares authorized, 2,199,455 shares (2020) and 2,206,412 shares (2019) issued and outstanding | 4,899 | 4,907 |
Additional paid in capital | 143,637 | 142,068 |
Retained earnings | 666,278 | 614,171 |
Accumulated other comprehensive income | 8,509 | 3,098 |
Total stockholders' equity | 823,323 | 764,244 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,168,325 | $ 5,620,319 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale debt securities | $ 512,518 | $ 467,122 |
Available-for-sale debt securities, allowance for credit losses | 0 | 0 |
Held-to-maturity debt securities | 54,190 | 63,156 |
Held-to-maturity debt securities, allowance for credit losses | 178 | 0 |
Loans held for investment fair value | $ 497 | $ 998 |
Preferred stock, no par value | $ 0 | $ 0 |
Class A Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, issued | 18,696,607 | 18,736,445 |
Common Stock, outstanding | 18,696,607 | 18,736,445 |
Class B Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
Common Stock, shares authorized | 5,000,000 | 5,000,000 |
Common Stock, issued | 2,199,455 | 2,206,412 |
Common Stock, outstanding | 2,199,455 | 2,206,412 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INTEREST INCOME: | |||
Loans, including fees | $ 241,044 | $ 260,064 | $ 237,621 |
Taxable investment securities | 9,798 | 13,546 | 11,830 |
Federal Home Loan Bank stock and other | 1,416 | 7,273 | 6,730 |
Total interest income | 252,258 | 280,883 | 256,181 |
INTEREST EXPENSE: | |||
Deposits | 15,089 | 29,135 | 17,017 |
Securities sold under agreements to repurchase and other short-term borrowings | 177 | 1,211 | 1,125 |
Federal Reserve Payment Protection Plan Liquidity Facility | 153 | ||
Federal Home Loan Bank advances | 3,524 | 12,791 | 10,473 |
Subordinated note | 1,000 | 1,620 | 1,508 |
Total interest expense | 19,943 | 44,757 | 30,123 |
NET INTEREST INCOME | 232,315 | 236,126 | 226,058 |
Provision for expected credit loss expense | 31,278 | 25,758 | 31,368 |
NET INTEREST INCOME AFTER PROVISION | 201,037 | 210,368 | 194,690 |
NONINTEREST INCOME: | |||
Mortgage banking income | 31,847 | 9,499 | 4,825 |
Program fees | 7,095 | 4,712 | 6,225 |
Increase in cash surrender value of bank owned life insurance | 1,585 | 1,550 | 1,527 |
Net gain on branch divestiture | 7,829 | ||
Total noninterest income | 87,053 | 75,008 | 63,425 |
NONINTEREST EXPENSE: | |||
Salaries and employee benefits | 106,166 | 99,181 | 91,189 |
Occupancy and equipment, net | 27,498 | 26,124 | 25,365 |
Communication and transportation | 4,942 | 4,447 | 4,785 |
Marketing and development | 4,031 | 5,023 | 4,432 |
FDIC insurance expense | 1,010 | 743 | 1,494 |
Bank franchise tax expense | 5,369 | 5,293 | 4,951 |
Data processing | 12,066 | 9,189 | 9,613 |
Interchange related expense | 4,303 | 4,870 | 4,480 |
Supplies | 1,717 | 1,693 | 1,444 |
Other real estate owned and other repossession expense | 46 | 326 | 94 |
Legal and professional fees | 4,244 | 3,357 | 3,459 |
FHLB advances early termination penalties | 2,108 | 0 | 0 |
Other | 11,957 | 11,937 | 12,546 |
Total noninterest expense | 185,457 | 172,183 | 163,852 |
INCOME BEFORE INCOME TAX EXPENSE | 102,633 | 113,193 | 94,263 |
INCOME TAX EXPENSE | 19,387 | 21,494 | 16,411 |
NET INCOME | 83,246 | 91,699 | 77,852 |
Service charges on deposit accounts | |||
NONINTEREST INCOME: | |||
Revenue under 606 | 11,615 | 14,197 | 14,273 |
Net refund transfer fees | |||
NONINTEREST INCOME: | |||
Revenue under 606 | 20,297 | 21,158 | 20,029 |
Interchange fee | |||
NONINTEREST INCOME: | |||
Revenue under 606 | 11,188 | 11,859 | 11,159 |
Net gains (losses) on OREO | |||
NONINTEREST INCOME: | |||
Revenue under 606 | (40) | 540 | 729 |
Other | |||
NONINTEREST INCOME: | |||
Revenue under 606 | $ 3,466 | $ 3,664 | $ 4,658 |
Class A Common Stock | |||
BASIC EARNINGS PER SHARE: | |||
Basic earnings per share (in dollars per share) | $ 4 | $ 4.41 | $ 3.76 |
DILUTED EARNINGS PER SHARE: | |||
Diluted earnings per share (in dollars per share) | 3.99 | 4.39 | 3.74 |
Class B Common Stock | |||
BASIC EARNINGS PER SHARE: | |||
Basic earnings per share (in dollars per share) | 3.64 | 4.01 | 3.41 |
DILUTED EARNINGS PER SHARE: | |||
Diluted earnings per share (in dollars per share) | $ 3.63 | $ 3.99 | $ 3.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 83,246 | $ 91,699 | $ 77,852 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Change in fair value of derivatives used for cash flow hedges | (177) | (199) | 178 |
Reclassification amount for net derivative losses (gains) realized in income | 281 | (20) | 28 |
Change in unrealized gain on AFS debt securities | 7,147 | 5,689 | (1,548) |
Adjustment for accounting standard update | (428) | ||
Change in unrealized gain of AFS debt security for which a portion of OTTI has been recognized in earnings | (35) | (79) | (20) |
Total other comprehensive income (loss) before income tax | 7,216 | 5,391 | (1,790) |
Tax effect | (1,805) | (1,296) | 377 |
Total other comprehensive income (loss), net of tax | 5,411 | 4,095 | (1,413) |
COMPREHENSIVE INCOME | $ 88,657 | $ 95,794 | $ 76,439 |
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 EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Class A Common Stock | Class B Common Stock | Cumulative Effect, Period of Adoption, Adjustment | Total |
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Adjustment for adoption | $ (35) | $ (338) | $ (373) | |||||||||||
Balance at beginning of period at Dec. 31, 2017 | $ 4,902 | $ 139,406 | $ 487,700 | $ 416 | $ 632,424 | |||||||||
Balance (in shares) at Dec. 31, 2017 | 18,607 | 2,243 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 77,852 | 77,852 | ||||||||||||
Net change in accumulated other comprehensive income (loss) | (1,075) | (1,075) | ||||||||||||
Dividends declared on Common Stock: | ||||||||||||||
Dividends declared on Common Stock | $ (18,076) | $ (1,955) | $ (18,076) | $ (1,955) | ||||||||||
Stock options exercised, net of shares withheld | 83 | 83 | ||||||||||||
Stock options exercised, net of shares withheld (in shares) | 3 | |||||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 30 | (30) | ||||||||||||
Repurchase of Class A Common Stock | (5) | (349) | (473) | (827) | ||||||||||
Repurchase of Class A Common Stock (in shares) | (14) | |||||||||||||
Net change in notes receivable on Class A Common Stock | 5 | 5 | ||||||||||||
Deferred director compensation expense - Class A Common Stock | 1 | 214 | 215 | |||||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 5 | |||||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 430 | 430 | ||||||||||||
Employee stock purchase plan - Class A Common Stock | 2 | 228 | 230 | |||||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 6 | |||||||||||||
Performance stock units, net of shares tendered back | 106 | 106 | ||||||||||||
Restricted stock, net of shares tendered back | 630 | 630 | ||||||||||||
Restricted stock, net of shares tendered back (in shares) | 38 | |||||||||||||
Stock options | 265 | 265 | ||||||||||||
Balance at end 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 | ||||||||||||||
Adjustment for adoption | 126 | 126 | ||||||||||||
Net income | 91,699 | 91,699 | ||||||||||||
Net change in accumulated other comprehensive income (loss) | 4,095 | 4,095 | ||||||||||||
Dividends declared on Common Stock: | ||||||||||||||
Dividends declared on Common Stock | (19,771) | (2,121) | (19,771) | (2,121) | ||||||||||
Stock options exercised, net of shares withheld | 11 | (202) | (191) | |||||||||||
Stock options exercised, net of shares withheld (in shares) | 44 | |||||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 7 | (7) | ||||||||||||
Repurchase of Class A Common Stock | (6) | (637) | (775) | (1,418) | ||||||||||
Repurchase of Class A Common Stock (in shares) | (32) | |||||||||||||
Net change in notes receivable on Class A Common Stock | (222) | (222) | ||||||||||||
Deferred director compensation expense - Class A Common Stock | 213 | 213 | ||||||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 6 | |||||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 371 | 371 | ||||||||||||
Employee stock purchase plan - Class A Common Stock | 2 | 492 | 494 | |||||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 11 | |||||||||||||
Performance stock units, net of shares tendered back | (57) | (57) | ||||||||||||
Performance stock units, net of shares tendered back (in shares) | 23 | |||||||||||||
Restricted stock, net of shares tendered back | 728 | 728 | ||||||||||||
Restricted stock, net of shares tendered back (in shares) | 3 | |||||||||||||
Stock options | 364 | 364 | ||||||||||||
Balance at end 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 | ||||||||||||||
Adjustment for adoption | $ (4,291) | $ (4,291) | ||||||||||||
Net income | 83,246 | 83,246 | ||||||||||||
Net change in accumulated other comprehensive income (loss) | 5,411 | 5,411 | ||||||||||||
Dividends declared on Common Stock: | ||||||||||||||
Dividends declared on Common Stock | $ (21,433) | $ (2,288) | $ (21,433) | $ (2,288) | ||||||||||
Stock options exercised, net of shares withheld | 13 | 197 | 210 | |||||||||||
Stock options exercised, net of shares withheld (in shares) | 25 | |||||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 7 | (7) | ||||||||||||
Repurchase of Class A Common Stock | (26) | (782) | (3,127) | (3,935) | ||||||||||
Repurchase of Class A Common Stock (in shares) | (115) | |||||||||||||
Net change in notes receivable on Class A Common Stock | (35) | (35) | ||||||||||||
Deferred director compensation expense - Class A Common Stock | 352 | 352 | ||||||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 4 | |||||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 566 | 566 | ||||||||||||
Employee stock purchase plan - Class A Common Stock | 4 | 623 | 627 | |||||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 20 | |||||||||||||
Performance stock units, net of shares tendered back | (200) | (200) | ||||||||||||
Performance stock units, net of shares tendered back (in shares) | 18 | |||||||||||||
Restricted stock, net of shares tendered back | 1 | 385 | 386 | |||||||||||
Restricted stock, net of shares tendered back (in shares) | 1 | |||||||||||||
Stock options | 463 | 463 | ||||||||||||
Balance at end of period at Dec. 31, 2020 | $ 4,899 | $ 143,637 | $ 666,278 | $ 8,509 | $ 823,323 | |||||||||
Balance (in shares) at Dec. 31, 2020 | 18,697 | 2,199 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class A Common Stock | |||||||||||
Dividend declared common stock, per share (in dollars per share) | $ 0.286 | $ 0.286 | $ 0.286 | $ 0.286 | $ 0.264 | $ 0.264 | $ 0.264 | $ 0.264 | $ 1.144 | $ 1.056 | $ 0.968 |
Class B Common Stock | |||||||||||
Dividend declared common stock, per share (in dollars per share) | $ 0.260 | $ 0.260 | $ 0.260 | $ 0.260 | $ 0.240 | $ 0.240 | $ 0.240 | $ 0.240 | $ 1.04 | $ 0.96 | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES: | |||
Net income | $ 83,246 | $ 91,699 | $ 77,852 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net (accretion) amortization on investment securities | 1,572 | (120) | 97 |
Net accretion on loans and amortization of core deposit intangible and operating lease components | (13,084) | (3,655) | (3,540) |
Unrealized (gains) losses on equity securities with readily determinable fair value | 105 | (382) | 122 |
Depreciation of premises and equipment | 9,725 | 9,230 | 9,347 |
Amortization of mortgage servicing rights | 3,756 | 1,823 | 1,432 |
Impairment of mortgage servicing rights | 500 | ||
Provision for on-balance sheet exposures | 31,278 | 25,758 | 31,368 |
Provision for off-balance sheet exposures | 533 | ||
Net gain on sale of mortgage loans held for sale | (33,179) | (8,816) | (3,839) |
Origination of mortgage loans held for sale | (782,939) | (356,097) | (176,916) |
Proceeds from sale of mortgage loans held for sale | 788,475 | 354,660 | 177,545 |
Net gain on sale of consumer loans held for sale | (4,980) | (5,102) | (5,930) |
Origination of consumer loans held for sale | (518,873) | (710,640) | (778,476) |
Proceeds from sale of consumer loans held for sale | 531,321 | 716,336 | 781,951 |
Net gain realized on sale of other real estate owned | (65) | (540) | (729) |
Writedowns of other real estate owned | 105 | ||
Impairment of premises held for sale | 256 | 482 | |
Deferred compensation expense - Class A Common Stock | 918 | 584 | 645 |
Stock-based awards and ESPP expense- Class A Common Stock | 953 | 1,035 | 1,001 |
Net gain on branch divestiture | (7,829) | ||
Net gain on sale of bank premises and equipment | (353) | (339) | 14 |
Increase in cash surrender value of bank owned life insurance | (1,585) | (1,550) | (1,527) |
FHLB advances early termination penalties | 2,108 | ||
Net change in other assets and liabilities: | |||
Accrued interest receivable | (14) | 1,031 | (1,860) |
Accrued interest payable | (2,460) | 1,718 | (16) |
Other assets | (17,759) | (8,677) | 2,822 |
Other liabilities | (10,870) | (3,138) | 7,368 |
Net cash provided by operating activities | 68,434 | 97,245 | 119,213 |
INVESTING ACTIVITIES: | |||
Net cash provided from branch divestiture | 6,071 | ||
Purchases of available-for-sale debt securities | (298,878) | (445,681) | (173,875) |
Purchases of held-to-maturity debt securities | (4,934) | ||
Proceeds from calls, maturities and paydowns of available-for-sale debt securities | 251,930 | 455,823 | 220,798 |
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities | 9,009 | 2,667 | 3,911 |
Net change in outstanding warehouse lines of credit | (245,338) | (248,763) | 56,877 |
Net change in other loans | (142,811) | (188,708) | (216,600) |
Proceeds from redemption of Federal Home Loan Bank stock | 22,434 | 3,513 | |
Purchase of Federal Home Loan Bank stock | (9,000) | (2,277) | |
Proceeds from sales of other real estate owned | 324 | 2,063 | 1,346 |
Proceeds from sale of bank premises and equipment | 894 | 909 | 764 |
Net purchases of premises and equipment | (3,582) | (12,883) | (9,822) |
Net cash used in investing activities | (415,018) | (427,266) | (121,535) |
FINANCING ACTIVITIES: | |||
Net change in deposits | 947,173 | 461,715 | 22,987 |
Net change in securities sold under agreements to repurchase and other short-term borrowings | 43,409 | (15,373) | (21,031) |
Payments of Federal Home Loan Bank advances | (1,105,000) | (820,000) | (457,500) |
Proceeds from Federal Home Loan Bank advances | 590,000 | 760,000 | 530,000 |
FHLB advances early termination penalties | (2,108) | ||
Repurchase of Class A Common Stock | (3,935) | (1,418) | (827) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 533 | 494 | 230 |
Net proceeds from option exercises and equity awards vested - Class A Common Stock | (191) | 83 | |
Cash dividends paid | (23,204) | (21,377) | (19,497) |
Net cash provided by financing activities | 446,868 | 363,850 | 54,445 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 100,284 | 33,829 | 52,123 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 385,303 | 351,474 | 299,351 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 485,587 | 385,303 | 351,474 |
Cash paid during the period for: | |||
Interest | 22,403 | 43,039 | 30,139 |
Income taxes | 24,926 | 17,383 | 11,119 |
SUPPLEMENTAL NONCASH DISCLOSURES: | |||
Transfers from loans to real estate acquired in settlement of loans | 2,750 | 1,527 | 662 |
Transfers from loans held for sale to held for investment | 2,237 | ||
Loans provided for sales of other real estate owned | 51 | ||
Transfers from loans held for investment to held for sale | 131,881 | 1,392 | |
Unfunded commitments in low-income-housing investments | 10,000 | 18,800 | $ 14,029 |
Right-of-use assets recorded | 14,144 | $ 41,726 | |
Allowance for credit losses recorded upon adoption of ASC 326 | $ 7,241 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation — Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-member financial institution that provides both traditional and non-traditional banking products through 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. As of December 31, 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 December 31, 2020 and results of operations for 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 13 “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 — 7 ● Metropolitan Cincinnati, Ohio — 2 ● Metropolitan Nashville, Tennessee — 2 Republic’s headquarters are in Louisville, which is the largest city in Kentucky based on population. Traditional Banking results of operations are primarily dependent upon net interest income, which represents the difference between the interest income and fees on interest-earning assets and the interest expense on interest-bearing liabilities. Principal interest-earning Traditional Banking assets represent investment securities and commercial and consumer loans primarily secured by real estate and/or personal property. Interest-bearing liabilities primarily consist of interest-bearing deposit accounts, securities sold under agreements to repurchase, as well as short-term and long-term borrowing sources. FHLB advances have traditionally been a significant borrowing source for the Bank. Other sources of Traditional Banking income include service charges on deposit accounts, debit and credit card interchange fee income, title insurance commissions, and increases in the cash surrender value of BOLI. Traditional Banking operating expenses consist primarily of salaries and employee benefits, 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 — 15 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 2020 and 2019: ● 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 35 days 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 35 days after the taxpayer’s tax return is submitted to the applicable taxing authority. Provision on EAs is 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 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 ● RCS installment loan product – In December 2019, through RCS, the Bank began offering 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. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these loans to 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.” Use of Estimates Concentration of Credit Risk The Bank’s warehouse lines of credit are secured by single family, first lien residential real estate loans originated by the Bank’s mortgage clients across the United States. As of December 31, 2020, 36% of collateral securing warehouse lines were located in California. Earnings Concentration For 2020, 2019, and 2018, approximately 8%, 5% and 5% of total Company net revenues (net interest income plus noninterest income) were derived from the Company’s Warehouse segment. Cash Flows Interest-Bearing Deposits in Other Financial Institutions Debt Securities Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are generally amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Equity Securities — Allowance for Credit Losses on Available-for-Sale Securities — For the Company’s AFS corporate bond, the Company uses third-party PD and LGD data to estimate an ACLS, which is limited by the amount that the bond’s fair value is less than its amortized cost basis. For all other AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written-down to fair value through income. For other AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACLS is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACLS is recognized in other comprehensive income. Changes in ACLS are recorded as a charge or credit to the Provision. Losses are charged against the ACLS when management believes the lack of collectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on AFS debt securities totaled $1 million at December 31, 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 December 31, 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 Held for Sale - Mortgage Banking Activities Commitments to fund mortgage loans (“interest rate lock commitments”) to be sold into the secondary market and non-exchange traded mandatory forward sales contracts (“forward contracts”) for the future delivery of these mortgage loans are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the Bank enters into the derivative. Generally, the Bank enters into forward contracts for the future delivery of mortgage loans when interest rate lock commitments are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these mortgage derivatives are included in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement. Mortgage loans held for sale are generally sold with the MSRs retained. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded as a component of Mortgage Banking income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into Mortgage Banking income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Amortization of MSRs are initially set at seven years and subsequently adjusted on a quarterly basis based on the weighted average remaining life of the underlying loans. MSRs are evaluated for impairment quarterly based upon the fair value of the MSRs as compared to carrying amount. Impairment is determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate, loan type, loan terms and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Bank later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance is recorded as an increase to income. Changes in valuation allowances are reported within Mortgage Banking income on the income statement. The fair value of the MSR portfolios is subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates. A primary factor influencing the fair value is the estimated life of the underlying serviced loans. The estimated life of the serviced loans is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs generally will decline due to higher expected prepayments within the portfolio. Alternatively, during a period of rising interest rates the fair value of MSRs generally will increase, as prepayments on the underlying loans would be expected to decline. See Footnote 16 “Mortgage Banking Activities” in this section of the filing for management’s determination of MSR impairment. Loan servicing income is reported on the income statement as a component of Mortgage Banking income. Loan servicing income is recorded as loan payments are collected and includes servicing fees from investors and certain charges collected from borrowers. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned. Loan servicing income totaled $2.9 million, $2.5 million and $2.4 million for the years ended December 31, 2020, 2019 and 2018. Late fees and ancillary fees related to loan servicing are considered nominal. Consumer Loans Held for Sale, at Fair Value Consumer Loans Held for Sale, at Lower of Cost or Fair Value Loans — Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. Premiums on loans held for investment are amortized into interest income on the level-yield method over the expected life of the loan. Lease financing receivables, 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 Purchased Credit Deteriorated Loans — ● Non-accretable discount assigned by the Bank ● Classified by either the acquired bank or the Bank as Special Mention or Substandard ● Nonaccrual status when purchased ● Past due 30 days or more when purchased ● Loans that have been at least one time over 30 days past due ● Past maturity date when purchased ● Select loans that are cross collateralized with any loans identified above PCD loans are recorded at the amount paid. An ACLL is determined using the same methodology as other loans held for investment. The initial ACLL determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACLL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACLL are recorded through the Provision. Allowance for Credit Losses on Loans — The ACLL is measured on a collective or pooled basis when similar risk characteristics exist. The first table of Footnote 4 illustrates the Company’s loan portfolio by ACLL risk pool. This pooling method is primarily based on the pool’s collateral type or the pool’s purpose and generally follows the Bank’s loan segmentation for regulatory reporting. For each of its loan pools, the Company uses a “static-pool” method, which analyzes historical closed pools of similar loans over their expected lives to attain a loss rate. This loss rate is then adjusted for current conditions and reasonable and supportable forecasts prior to being applied to the current balance of the analyzed pools. Adjustments to the historical loss rate for current conditions include differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, such as changes in property values or other relevant factors. A one-year forecast adjustment to the historical loss rate is based on a forecast of the U.S. national unemployment rate, which has shown a relatively strong historical correlation to the Bank’s loan losses. For the CRE loan pool, a one-year forecast of CRE vacancy rates within the Company’s footprint was introduced into the Company’s CECL model during the third quarter of 2020 due to pandemic-driven changes in culture, including increased and prolonged work-from-home practices. Subsequent to one-year forecasts, loss rates are assumed to immediately revert back to long-term historical averages. Loans that do not share risk characteristics are evaluated on an individual basis, with the Company choosing to individually evaluate all 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. See Footnote 4 “Loans and Allowance for Credit Losses” in this section of the filing for additional discussion regarding the Company’s ACLL. 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 receiving a COVID-19 accommodation are not classified as TDRs. ● For additional discussion regarding loans accommodated due to COVID-19, see Footnote 4 “Loans and Allowance for Credit Losses” in this section of the filing. Transfers of Financial Assets — Other Real Estate Owned — Assets acquired through loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. The Bank’s selling costs for OREO typically range from 10- 13% of each property’s fair value, depending on property class. Fair value is commonly based on recent real estate appraisals or broker price opinions. Operating costs after acquisition are expensed. Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g. residential real estate or commercial real estate, and may lead to additional adjustments to the value of unliquidated collateral of similar class. Premises and Equipment, Net — three three Right of Use Assets and Operating Lease Liabilities — Regarding lease terms, the Company’s assumes the remaining lease term includes the fixed noncancelable term, plus all periods for which failure to renew the lease imposes a penalty on the Company, plus all periods for which the Company is reasonably certain to exercise a lease renewal option, plus all periods for which the Company is reasonably certain not to exercise a lease termination option. In determining whether it is reasonably certain to exercise a lease renewal or termination option, the Company considers its overall strategic plan and all economic and environmental circumstances connected to the leased property. To discount its operating lease payments and guarantees, the Company employs the interest rate curve published by the FHLB of Cincinnati for the FHLB’s collateralized term borrowings; matching expected lease term to borrowing term. The Company does not place short-term leases on its balance sheet. Short-term leases have a lease term of 12 months or less and do not include a purchase option that the Company is reasonably certain to exercise. Federal Home Loan Bank Stock Bank Owned Life Insurance — Goodwill and Other Intangible Assets The Company has selected September 30 th All goodwill is attributable to the Company’s Traditional Banking segment and is not expected to be deductible for tax purposes. Based on its assessment, the Company believes its goodwill of $16 million at December 31, 2020 and 2019 was not impaired and is properly recorded in the consolidated financial. Off Balance Sheet Financial Instruments Allowance for Credit Losses on Off-Balance Sheet Credit Exposures — The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The likelihood that funding will occur is based on the historical usage rate of such commitments. For a listing of off-balance sheet credit exposures the Company generally considers for an ACLC, see Footnote 13 “Off Balance Sheet Risks, Commitments And Contingent Liabilities” in this section of the filing. The ACLC is recorded as a component of other liabilities on the Company’s balance sheet. Any provision for the ACLC is recorded on the Company’s income statement as a component of other noninterest expense. Derivatives The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss is recorded as a component of other comprehensive income (loss). For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Net cash settlements on interest rate swaps are recorded in interest expense and cash flows related to the swaps are classified in the cash flow statement the same as the interest expense and cash flows from the liabilities being hedged. The Bank formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet. The Bank also formally assesses, both at the hedge’s inception and on an ongoing basis, whether a swap is highly effective in offsetting changes in cash flows of the hedged items. The Bank discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods that the hedged transactions will affect earnings. The Bank enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Bank enters into offsetting positions with dealer counterparties in order to minimize the Bank’s interest rate risk. These swaps |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 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 December 31, 2020 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 245,204 $ 1,730 $ (25) $ — $ 246,909 Private label mortgage backed security 1,707 1,250 — — 2,957 Mortgage backed securities - residential 203,786 7,419 (3) — 211,202 Collateralized mortgage obligations 48,190 772 (10) — 48,952 Corporate bonds 10,000 43 — — 10,043 Trust preferred security 3,631 169 — — 3,800 Total available-for-sale debt securities $ 512,518 $ 11,383 $ (38) $ — $ 523,863 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 December 31, 2020 (in thousands) Value Gains Losses Value Credit Losses Mortgage backed securities - residential $ 99 $ 5 $ — $ 104 $ — Collateralized mortgage obligations 13,061 176 — 13,237 — Corporate bonds 39,986 499 — 40,485 (178) Obligations of state and political subdivisions 356 8 — 364 — Total held-to-maturity debt securities $ 53,502 $ 688 $ — $ 54,190 $ (178) 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 2020, 2019, and 2018 there were no sales of AFS debt securities. Debt Securities by Contractual Maturity The following table presents the amortized cost and fair value of debt securities by contractual maturity at December 31, 2020. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or early termination penalties. Securities not due at a single maturity date are detailed separately. Available-for-Sale Held-to-Maturity Debt Securities Debt Securities Amortized Fair Carrying Fair December 31, 2020 (in thousands) Cost Value Value Value Due in one year or less $ 14,943 $ 15,118 $ 110 $ 111 Due from one year to five years 240,261 241,834 35,277 35,708 Due from five years to ten years — — 4,955 5,030 Due beyond ten years 3,631 3,800 — — Private label mortgage backed security 1,707 2,957 — — Mortgage backed securities - residential 203,786 211,202 99 104 Collateralized mortgage obligations 48,190 48,952 13,061 13,237 Total debt securities $ 512,518 $ 523,863 $ 53,502 $ 54,190 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 December 31, 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 December 31, 2020 (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 $ 59,971 $ (25) $ — $ — $ 59,971 $ (25) Mortgage backed securities - residential 1,068 (3) — — 1,068 (3) Collateralized mortgage obligations 2,788 (10) — — 2,788 (10) Total available-for-sale debt securities $ 63,827 $ (38) $ — $ — $ 63,827 $ (38) 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 December 31, 2020, the Bank’s portfolio consisted of 173 securities, 19 of which were in an unrealized loss position. At December 31, 2019, the Bank’s portfolio consisted of 173 securities, 34 of which were in an unrealized loss position. At December 31, 2020 and 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 December 31, 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 December 31, 2020 and 2019, there were gross unrealized losses of $13,000 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 the fourth quarter of 2015, the Parent Company purchased a $3 million floating rate trust preferred security at a price of 68% of its $5 million par value. 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 December 31, 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 in this section of the filing under Footnote 15 “Fair Value.” The following table presents a rollforward of the Bank’s private label mortgage backed security credit losses recognized in earnings: Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 1,462 $ 1,613 $ 1,765 Recovery of losses previously recorded — (151) (152) Balance, end of period $ 1,462 $ 1,462 $ 1,613 Further deterioration in economic conditions could cause the Bank to record an additional impairment charge related to credit losses of up to $1.7 million, which is the current gross amortized cost of the Bank’s remaining private label mortgage backed security. Rollforward of the Allowance for Credit Losses on Debt Securities The tables below present a rollforward for 2020 of the ACLS on AFS and HTM debt securities: ACLS Rollforward Year Ended December 31, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds — 51 127 — — 178 Total $ — $ 51 $ 127 $ — $ — $ 178 The Company increased the ACLS on its HTM corporate bonds during 2020 based on increasing 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 December 31, 2020. All of the Company’s HTM corporate bonds were rated investment grade as of December 31, 2020. There were no HTM debt securities considered collateral dependent as of December 31, 2020. Pledged Debt Securities Debt securities pledged to secure public deposits, securities sold under agreements to repurchase, and securities held for other purposes, as required or permitted by law are as follows: December 31, (in thousands) 2020 2019 Carrying amount $ 303,535 $ 229,700 Fair value 303,611 229,706 Equity Securities The following tables present the carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 560 $ — $ 560 Community Reinvestment Act mutual fund 2,500 23 — 2,523 Total equity securities with readily determinable fair values $ 2,500 $ 583 $ — $ 3,083 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 Year Ended December 31, 2020 Year Ended December 31, 2019 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (154) $ (154) $ — $ 304 $ 304 Community Reinvestment Act mutual fund — 49 49 — 78 78 Total equity securities with readily determinable fair value $ — $ (105) $ (105) $ — $ 382 $ 382 |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 12 Months Ended |
Dec. 31, 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 16 “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: Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 598 $ — $ — Origination of consumer loans held for sale 58,833 598 — Proceeds from the sale of consumer loans held for sale (57,814) — — Net gain on sale of consumer loans held for sale 1,681 — — Balance, end of period $ 3,298 $ 598 $ — Consumer Loans Held for Sale, at Lower of Cost or Fair Value RCS originates for sale 90% of the balances from its line-of-credit product and a portion of its healthcare receivables product. Ordinary gains or losses on the sale of these RCS products are reported as a component of “Program fees.” Activity for consumer loans held for sale and carried at the lower of cost or market value was as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 11,646 $ 12,838 $ 8,551 Origination of consumer loans held for sale 460,040 709,768 761,491 Loans transferred to held for investment — — 1,392 Proceeds from the sale of consumer loans held for sale (473,507) (716,062) (764,929) Net gain on sale of consumer loans held for sale 3,299 5,102 6,333 Balance, end of period $ 1,478 $ 11,646 $ 12,838 |
LOANS AND ALLOWANCE FOR LOAN AN
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES | 12 Months Ended |
Dec. 31, 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: December 31, (in thousands) 2020 2019 Traditional Banking: Residential real estate: Owner occupied $ 879,800 $ 949,568 Nonowner occupied 264,780 258,803 Commercial real estate 1,349,085 1,303,000 Construction & land development 98,674 159,702 Commercial & industrial 325,596 465,674 Paycheck Protection Program 392,319 — Lease financing receivables 10,130 14,040 Aircraft 101,375 70,443 Home equity 240,640 293,186 Consumer: Credit cards 14,196 17,836 Overdrafts 587 1,522 Automobile loans 30,300 52,923 Other consumer 8,167 9,234 Total Traditional Banking 3,715,649 3,595,931 Warehouse lines of credit* 962,796 717,458 Total Core Banking 4,678,445 4,313,389 Republic Processing Group*: Tax Refund Solutions: Easy Advances — — Other TRS loans 23,765 14,365 Republic Credit Solutions 110,893 105,397 Total Republic Processing Group 134,658 119,762 Total loans** 4,813,103 4,433,151 Allowance for credit losses (61,067) (43,351) Total loans, net $ 4,752,036 $ 4,389,800 * Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. The following table reconciles the contractually receivable and carrying amounts of loans at December 31, 2020 and 2019: December 31, (in thousands) 2020 2019 Contractually receivable $ 4,821,062 $ 4,432,351 Unearned income (708) (1,139) Unamortized premiums 216 366 Unaccreted discounts (988) (2,534) PPP net unamortized deferred origination fees and costs (8,564) — Other net unamortized deferred origination fees and costs 2,085 4,107 Carrying value of loans $ 4,813,103 $ 4,433,151 Paycheck Protection Program The CARES Act was enacted in March 2020 and provided for the SBA’s PPP, which allowed the Bank to lend to its qualifying small business clients to assist them in their efforts to meet their cash-flow needs during the COVID-19 pandemic. PPP loans are fully backed by the SBA and may be entirely forgiven if the loan client uses loan funds for qualifying reasons. As of December 31, 2020, the Bank had a recorded investment in PPP loans of $392 million, which includes $401 million of originated balances less $9 million of unaccreted net deferred origination fees. To provide liquidity to banks administering the SBA’s PPP, the FRB created the PPPLF, a lending facility secured by the PPP loans of the participating banks. As of December 31, 2020, the Bank had Credit Quality Indicators Bank procedures for assessing and maintaining credit gradings differs slightly depending on whether a new or renewed loan is being underwritten, or whether an existing loan is being re-evaluated for potential credit quality concerns. The latter usually occurs upon receipt of updated financial information, or other pertinent data, that would potentially cause a change in the loan grade. Specific Bank procedures follow: ● For new and renewed C&I, CRE and C&D loans, the Bank’s CCAD assigns the credit quality grade to the loan. ● Commercial loan officers are responsible for monitoring their respective loan portfolios and reporting any adverse material changes to senior management. When circumstances warrant a review and possible change in the credit quality grade, loan officers are required to notify the Bank’s CCAD. ● A senior officer meets at least monthly with commercial loan officers to discuss the status of past due loans and possible classified loans. These meetings are designed to give loan officers an opportunity to identify existing loans that should be downgraded. ● Monthly, members of senior management along with managers of Commercial Lending, CCAD, Accounting, Special Assets and Retail Collections attend a Special Asset Committee meeting. The SAC reviews C&I and CRE loans graded Special Mention or worse or loans potentially subject to downgrade into these classifications and discusses the relative trends and current status of these assets. In addition, the SAC reviews all classified and potentially classified residential real estate and home equity loans. SAC also reviews the actions taken by management regarding credit-quality grades, foreclosure mitigation, loan extensions, deferrals or forbearance, troubled debt restructurings, and collateral repossessions. Based on the information reviewed in this meeting, the SAC approves all specific loan loss allocations to be recognized by the Bank within the ACLL analysis. ● During 2020, members of senior management performed periodic reviews, no less than monthly, of loans whose borrowers were negatively impacted by the COVID-19 pandemic. These reviews included borrowers in industries particularly harmed by pandemic-driven restrictions, such as the hospitality industry. ● All new and renewed warehouse lines of credit are approved by the Executive Loan Committee. The CCAD assigns the initial credit quality grade to warehouse facilities. Monthly, members of senior management review warehouse lending activity including data associated with the underlying collateral to the warehouse facilities, i.e., the mortgage loans associated with the balances drawn. Key performance indicators monitored include average days outstanding for each draw, average FICO credit report score for the underlying collateral, average LTV for the underlying collateral and other factors deemed relevant. On at least an annual basis, the Bank’s internal loan review department analyzes all aggregate lending relationships with outstanding balances greater than $1 million that are internally classified as “Special Mention,” “ Substandard ,” “ Doubtful ” or “Loss.” In addition, on an annual basis, the Bank analyzes a sample of “Pass” rated loans. The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, public information, and current economic trends. The Bank also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). The Bank analyzes loans individually, and based on this analysis, establishes a credit risk rating. The Bank uses the following definitions for risk ratings: Risk Grade 1 — Excellent (Pass): Risk Grade 2 — Good (Pass): financial statements containing strong balance sheets, five consecutive years of profits, a five-year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans that are guaranteed or otherwise backed by the full faith and credit of the U.S. government or an agency thereof, such as the Small Business Administration; or loans to publicly held companies with current long-term debt ratings of Baa or better. Risk Grade 3 — Satisfactory (Pass): Risk Grade 4 — Satisfactory/Monitored (Pass): Risk Grade 5 — Special Mention: Purchased with Credit Deterioration Loans — Group 1: Purchased with Credit Deterioration Loans — Substandard: Risk Grade 6 — Substandard: ● Loans that possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. ● Loans are inadequately protected by the current net worth and paying capacity of the obligor. ● The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. ● Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. ● Unusual courses of action are needed to maintain a high probability of repayment. ● The borrower is not generating enough cash flow to repay loan principal, however, it continues to make interest payments. ● The Bank is forced into a subordinated or unsecured position due to flaws in documentation. ● The Bank is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. ● There is significant deterioration in market conditions to which the borrower is highly vulnerable. Risk Grade 7 — Doubtful: ● Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. ● The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. ● The possibility of loss is high but because of certain important pending factors, which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. Risk Grade 8 — Loss: For all real estate and consumer loans, including small-dollar RPG loans, which do not meet the scope above, the Bank uses a grading system based on delinquency and nonaccrual status. Loans that are 90 days or more past due or on nonaccrual are graded Substandard. Occasionally, a real estate loan below scope may be graded as “Special Mention” or “Substandard” if the loan is cross-collateralized with a classified C&I or CRE loan. Amid the COVID-19 pandemic the Bank has granted loan deferral and forbearance relief to many retail mortgage loans. As loans under such relief will generally not reflect slow pay, retail mortgage clients requesting loan deferral and forbearance relief beyond six consecutive months may be scrutinized and adversely classified. Mortgage loans adversely classified following prolonged deferral or forbearance relief will be monitored for at least six consecutive months before qualifying to exit adverse classification. Purchased loans are accounted for as any other Bank-originated loan, potentially becoming nonaccrual, as well as being risk rated under the Bank’s standard practices and procedures. In addition, these loans are considered in the determination of the ACLL once day-one fair values are final. Management separately monitors PCD, formerly PCI, loans and no less than quarterly reviews them against the factors and assumptions used in determining day-one fair values. In addition to its quarterly evaluation, a PCD loan is typically reviewed when it is modified or extended, or when information becomes available to the Bank that provides additional insight regarding the loan’s performance, the status of the borrower, or the quality or value of the underlying collateral. If a troubled debt restructuring is performed on a PCD loan, the loan is transferred out of the PCD population. The loan may require an additional Provision if its restructured cash flows are less than management’s initial day-one expectations. PCD loans for which the Bank simply chooses to extend the maturity date are generally not considered TDRs and remain in the PCD population. The following tables include loans by segment and risk category. As of December 31, 2020, for non-revolving loans originated after 2017, 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 December 31, 2020 2020 2019 2018 2017 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 268,313 $ 132,018 $ 82,754 $ 67,430 $ 301,366 $ — $ — $ 851,881 Special Mention — 364 42 1,610 8,730 — — 10,746 Substandard 394 1,423 1,331 614 13,411 — — 17,173 Doubtful — — — — — — — — Total $ 268,707 $ 133,805 $ 84,127 $ 69,654 $ 323,507 $ — $ — $ 879,800 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 73,291 $ 63,102 $ 43,610 $ 45,759 $ 38,316 $ — $ 621 $ 264,699 Special Mention — — — — — — — — Substandard — — — — 81 — — 81 Doubtful — — — — — — — — Total $ 73,291 $ 63,102 $ 43,610 $ 45,759 $ 38,397 $ — $ 621 $ 264,780 Commercial real estate: Risk Rating Pass or not rated $ 315,550 $ 258,251 $ 166,542 $ 171,207 $ 315,336 $ — $ 55,949 $ 1,282,835 Special Mention 3,397 30,969 236 11,355 9,659 — — 55,616 Substandard 2,596 349 — 987 3,899 — 2,803 10,634 Doubtful — — — — — — — — Total $ 321,543 $ 289,569 $ 166,778 $ 183,549 $ 328,894 $ — $ 58,752 $ 1,349,085 Construction and land development: Risk Rating Pass or not rated $ 53,972 $ 31,756 $ 7,840 $ 701 $ 1,964 $ — $ — $ 96,233 Special Mention — 2,397 — — — — — 2,397 Substandard — 44 — — — — — 44 Doubtful — — — — — — — — Total $ 53,972 $ 34,197 $ 7,840 $ 701 $ 1,964 $ — $ — $ 98,674 Commercial and industrial: Risk Rating Pass or not rated $ 105,985 $ 84,575 $ 33,391 $ 32,303 $ 46,697 $ — $ 1,040 $ 303,991 Special Mention 18,195 800 — — 2,215 — — 21,210 Substandard 383 12 — — — — — 395 Doubtful — — — — — — — — Total $ 124,563 $ 85,387 $ 33,391 $ 32,303 $ 48,912 $ — $ 1,040 $ 325,596 Paycheck Protection Program: Risk Rating Pass or not rated $ 392,319 $ — $ — $ — $ — $ — $ — $ 392,319 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 392,319 $ — $ — $ — $ — $ — $ — $ 392,319 Lease financing receivables: Risk Rating Pass or not rated $ 1,117 $ 3,663 $ 1,814 $ 2,847 $ 689 $ — $ — $ 10,130 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 1,117 $ 3,663 $ 1,814 $ 2,847 $ 689 $ — $ — $ 10,130 Aircraft: Risk Rating Pass or not rated $ 55,823 $ 30,529 $ 13,804 $ 1,219 $ — $ — $ — $ 101,375 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 55,823 $ 30,529 $ 13,804 $ 1,219 $ — $ — $ — $ 101,375 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 237,633 $ — $ 237,633 Special Mention — — — — — 127 — 127 Substandard — — — — — 2,880 — 2,880 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 240,640 $ — $ 240,640 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2020 2020 2019 2018 2017 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 425 $ 13,636 $ 8,563 $ 7,125 $ 8,648 $ 14,321 $ — $ 52,718 Special Mention — — — — 5 — — 5 Substandard — 32 49 229 212 5 — 527 Doubtful — — — — — — — — Total $ 425 $ 13,668 $ 8,612 $ 7,354 $ 8,865 $ 14,326 $ — $ 53,250 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 962,796 $ — $ 962,796 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 962,796 $ — $ 962,796 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 23,765 $ — $ 23,765 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 23,765 $ — $ 23,765 RCS: Risk Rating Pass or not rated $ 27,683 $ 5,704 $ 2,485 $ 1,232 $ 19,095 $ 54,348 $ — $ 110,547 Special Mention — — — — — — — — Substandard — — — — — 346 — 346 Doubtful — — — — — — — — Total $ 27,683 $ 5,704 $ 2,485 $ 1,232 $ 19,095 $ 54,694 $ — $ 110,893 Grand Total: Risk Rating Pass or not rated $ 1,294,478 $ 623,234 $ 360,803 $ 329,823 $ 732,111 $ 1,292,863 $ 57,610 $ 4,690,922 Special Mention 21,592 34,530 278 12,965 20,609 127 — 90,101 Substandard 3,373 1,860 1,380 1,830 17,603 3,231 2,803 32,080 Doubtful — — — — — — — — Grand Total $ 1,319,443 $ 659,624 $ 362,461 $ 344,618 $ 770,323 $ 1,296,221 $ 60,413 $ 4,813,103 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 461,532 2,152 1,968 — 22 — 465,674 Lease financing receivables 14,040 — — — — — 14,040 Aircraft 11,562 — — — — — 11,562 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. Loans Downgraded Subsequent to December 31, 2020 The Bank downgraded an additional $15 million in CRE loans and an additional $5 million in C&I loans from Pass to Special Mention subsequent to December 31, 2020. Subprime Lending Both the Traditional Banking segment and the RCS segment of the Company have certain classes of loans that are considered to be “subprime” strictly due to the credit score of the borrower at the time of origination. Traditional Bank loans considered subprime totaled approximately $52 million and $52 million at December 31, 2020 and 2019. Approximately $27 million and $23 million of the outstanding Traditional Bank subprime loan portfolio at December 31, 2020 and 2019 were originated for CRA purposes. Management does not consider these loans to possess significantly higher credit risk due to other underwriting qualifications. The RCS segment originates a short-term line-of-credit product. The Bank has traditionally sold 90% of the balances maintained through this product within three days of loan origination and retained a 10% interest. This product is unsecured and made to borrowers with subprime or near prime credit scores. The aggregate outstanding balance held-for-investment for this portfolio totaled $18 million and $28 million at December 31, 2020 and 2019. Allowance for Credit Losses The following tables present the activity in the ACLL by portfolio class for the years ended December 31, 2020, 2019, and 2018: ACLL Rollforward Years Ended December 31, 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 $ 785 $ (169) $ 171 $ 9,715 $ 6,035 $ (1,087) $ (610) $ 391 $ 4,729 Nonowner occupied 1,737 148 570 — 11 2,466 1,662 125 (73) 23 1,737 Commercial real estate 10,486 273 13,170 (795) 472 23,606 10,030 1,859 (1,407) 4 10,486 Construction & land development 2,152 1,447 (325) — — 3,274 2,555 (403) — — 2,152 Commercial & industrial 2,882 (1,318) 1,421 (310) 122 2,797 2,873 1,505 (1,505) 9 2,882 Paycheck Protection Program — — — — — — — — — — — Lease financing receivables 147 — (41) — — 106 158 (11) — — 147 Aircraft 176 — 77 — — 253 91 85 — — 176 Home equity 2,721 1,652 516 (14) 115 4,990 3,477 (764) (64) 72 2,721 Consumer: Credit cards 1,020 33 111 (295) 60 929 1,140 226 (402) 56 1,020 Overdrafts 1,169 — 79 (886) 225 587 1,102 1,155 (1,310) 222 1,169 Automobile loans 612 (7) (176) (60) 30 399 724 (42) (79) 9 612 Other consumer 374 307 (57) (240) 193 577 500 (204) (263) 341 374 Total Traditional Banking 28,205 6,734 16,130 (2,769) 1,399 49,699 30,347 2,444 (5,713) 1,127 28,205 Warehouse lines of credit 1,794 — 613 — — 2,407 1,172 622 — — 1,794 Total Core Banking 29,999 6,734 16,743 (2,769) 1,399 52,106 31,519 3,066 (5,713) 1,127 29,999 Republic Processing Group: Tax Refund Solutions: Easy Advances — — 13,033 (19,575) 6,542 — — 10,643 (13,425) 2,782 — Other TRS loans 234 — 156 (234) 2 158 107 606 (692) 213 234 Republic Credit Solutions 13,118 — 1,219 (6,163) 629 8,803 13,049 11,443 (12,566) 1,192 13,118 Total Republic Processing Group 13,352 — 14,408 (25,972) 7,173 8,961 13,156 22,692 (26,683) 4,187 13,352 Total $ 43,351 $ 6,734 $ 31,151 $ (28,741) $ 8,572 $ 61,067 $ 44,675 $ 25,758 $ (32,396) $ 5,314 $ 43,351 ACLL Rollforward Year Ended December 31, 2018 Beginning Provision Charge- Ending (in thousands) Balance for Credit Loss offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 6,474 $ 170 $ (855) $ 246 $ 6,035 Nonowner occupied 1,396 559 (332) 39 1,662 Commercial real estate 9,043 863 (7) 131 10,030 Construction & land development 2,364 161 — 30 2,555 Commercial & industrial 2,198 824 (200) 51 2,873 Lease financing receivables 174 (16) — — 158 Aircraft 37 54 — — 91 Home equity 3,754 (473) (115) 311 3,477 Consumer: Credit cards 607 906 (416) 43 1,140 Overdrafts 974 1,082 (1,215) 261 1,102 Automobile loans 687 57 (24) 4 724 Other consumer 1,125 (477) (444) 296 500 Total Traditional Banking 28,833 3,710 (3,608) 1,412 30,347 Warehouse lines of credit 1,314 (142) — — 1,172 Total Core Banking 30,147 3,568 (3,608) 1,412 31,519 Republic Processing Group: Tax Refund Solutions: Easy Advances — 10,760 (12,478) 1,718 — Other TRS loans 12 159 (74) 10 107 Republic Credit Solutions 12,610 16,881 (17,692) 1,250 13,049 Total Republic Processing Group 12,622 27,800 (30,244) 2,978 13,156 Total $ 42,769 $ 31,368 $ (33,852) $ 4,390 $ 44,675 The cumulative loss rate used as the basis for the estimate of ACLL at December 31, 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 2020, adjusted for current and forecasted conditions that consider the economic impact of the COVID-19 pandemic and the public’s response to it. The Company’s primary forecasting tool throughout 2020 was the U.S. national employment rate. At March 31, 2020 and June 30, 2020, the Company forecasted national unemployment in the one-year horizon above 8 %, which was either at or above the levels of unemployment experienced within the Company’s historical analysis periods or considered within its current-conditions qualitative factors. These forecasted unemployment levels from March and June of 2020 led the Company to increase its ACLL through June 30, 2020. In contrast, the U.S. unemployment rate fell from 11.1% in June 2020 to 6.7% in December 2020 and was forecasted to fall below 5% in the one-year horizon. As losses consistent with unemployment above 8 % have yet to materialize since they were first forecasted back in March 2020, the Company believes its loan losses in the current environment are lagging historical correlations by as much as one year due to economic relief granted by the Company and the U.S. government thus far. As such, the Company did not relieve any forecast-based ACLL previously established during 2020 but reclassified this ACLL from a forecast-based ACLL to a current-conditions based ACLL, as the Company still expects its loan losses to rise to levels consistent with a U.S. unemployment rate above 8 %. After this expected rise, the Company assumes that its loan losses will immediately revert back to long-term historical averages. Along with its forecasted unemployment considerations, the Company made the following pandemic-related considerations within its ACLL during 2020: ● The Company accommodated deferral and forbearance requests for approximately 20% of its Traditional Bank loan portfolio due to COVID-19 hardship and increased its ACLL for the higher risk of loss on this accommodated portfolio. ● The Company increased its ACLL for the higher risk of loss for industries more directly impacted by the pandemic, such as the hospitality industry. ● For its CRE loan pool, the Company used forecasted vacancy rates on CRE within its market footprint. Vacancy rates as of December 2020 were forecasted to increase in the one-year horizon partially due to a rise in “work-from-home” culture. Nonperforming Loans and Nonperforming Assets Detail of nonperforming loans and nonperforming assets and select credit quality ratios follows: December 31, (dollars in thousands) 2020 2019 Loans on nonaccrual status* $ 23,548 $ 23,332 Loans past due 90-days-or-more and still on accrual** 47 157 Total nonperforming loans 23,595 23,489 Other real estate owned 2,499 113 Total nonperforming assets $ 26,094 $ 23,602 Credit Quality Ratios - Total Company: Nonperforming loans to total loans |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | 5. PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation of premises and equipment follows: December 31, (in thousands) 2020 2019 Land $ 4,303 $ 4,693 Buildings and improvements 33,225 33,780 Furniture, fixtures and equipment 51,467 48,782 Leasehold improvements 21,921 20,649 Construction in progress — 2,232 Total premises and equipment 110,916 110,136 Less: Accumulated depreciation and amortization 71,404 63,940 Premises and equipment, net $ 39,512 $ 46,196 Depreciation expense related to premises and equipment follows: Years Ended December 31, (in thousands) 2020 2019 2018 Depreciation expense $ 9,725 $ 9,230 $ 9,347 |
RIGHT-OF-USE ASSETS AND OPERATI
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 6. RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES Since its adoption of ASU 2016-02 on January 1, 2019, the Company has recorded 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 has recorded right-of-use assets for the underlying leased property. As of December 31, 2020, the Company was under 45 separate and distinct operating lease contracts to lease the land and/or buildings for 37 of its offices, with 14 such operating leases contracted with a related party of the Company. As of December 31, 2020, payments on 25 of the Company’s operating leases were considered variable because such payments were adjustable based on periodic changes in the Consumer Price Index. The Company executed three new third-party and one new related-party operating lease during 2020 with a total right-of-use asset value of approximately $14 million for all four leases. The largest of these four leases was a related-party lease for the Company’s Corporate Center location, which had a right-of-use asset value of approximately $12 million upon lease commencement. Additionally, the Company renewed a related-party lease on one of its Louisville, Kentucky banking centers during the fourth quarter of 2020. This renewed lease commenced in January 2021 with a right-of-use asset value of $392,000. The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within the category “Occupancy and equipment, net” for years ended December 31, 2020 and 2019: Years Ended December 31, (in thousands) 2020 2019 Operating lease expense: Related Party: Variable lease expense $ 4,885 $ 4,690 Fixed lease expense 91 37 Third Party: Variable lease expense 786 883 Fixed lease expense 1,617 1,505 Short-term lease expense — 62 Total operating lease expense $ 7,379 $ 7,177 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 7,254 $ 7,175 Short-term lease payments not included in the measurement of lease liabilities — 62 The following table presents the weighted average remaining term and weighted average discount rate for the Company’s non-short-term operating leases as of December 31, 2020 and 2019: December 31, (dollars in thousands) 2020 2019 Weighted average remaining term in years 8.37 8.02 Weighted average discount rate 3.10 % 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 December 31, 2020: Year (in thousands) Related Party Third Party Total 2021 $ 4,638 $ 2,422 $ 7,060 2022 4,639 2,418 7,057 2023 4,639 1,995 6,634 2024 4,512 1,463 5,975 2025 4,344 925 5,269 Thereafter 15,800 2,707 18,507 Total undiscounted cash flows $ 38,572 $ 11,930 $ 50,502 Discount applied to cash flows (4,781) (1,381) (6,162) Total discounted cash flows reported as operating lease liabilities $ 33,791 $ 10,549 $ 44,340 |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 7. GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS A progression of the balance for goodwill follows: Years Ended December 31, (in thousands) 2020 2019 2018 Beginning of period $ 16,300 $ 16,300 $ 16,300 Acquired goodwill — — — Impairment — — — End of period $ 16,300 $ 16,300 $ 16,300 The goodwill balance relates entirely to the Company’s Traditional Banking segment and Core Banking operations. The Company adopted ASU 2017-04 on January 1, 2020, which simplified goodwill impairment testing by eliminating Step 2 from the goodwill impairment test. The ASU also eliminated 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. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2020 and 2019, the Company’s Core Banking reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more-likely-than-not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was not more-likely-than-not that the carrying value of the reporting unit exceeded its fair value. |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 12 Months Ended |
Dec. 31, 2020 | |
INTEREST RATE SWAPS | |
INTEREST RATE SWAPS | 8. 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. Both of these interest rate swaps matured in December 2020. The following table reflects information about swaps designated as cash flow hedges as of December 31, 2020 and 2019: December 31, 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 $ — $ — $ (46) $ (34) Interest rate swap on FHLB advance 10,000 2.33 % 3M LIBOR 12/2013 - 12/2020 — — (58) (43) Total $ 20,000 $ — $ — $ (104) $ (77) The following table reflects the total interest expense recorded on these swap transactions in the consolidated statements of income during the years ended December 31, 2020, 2019, and 2018: Years Ended December 31, (in thousands) 2020 2019 2018 Interest rate swap on money market deposits $ 138 $ (10) $ 18 Interest rate swap on FHLB advance 143 (10) 10 Total interest (benefit) expense on swap transactions $ 281 $ (20) $ 28 The following table presents the net gains (losses) recorded in accumulated OCI and the consolidated statements of income relating to the swaps for the years ended December 31, 2020, 2019, and 2018: Years Ended December 31, (in thousands) 2020 2019 2018 Gains (losses) recognized in OCI on derivative (effective portion) $ (177) $ (199) $ 178 Gains (losses) reclassified from OCI on derivative (effective portion) (281) 20 (28) Gains (losses) recognized in income on derivative (ineffective portion) — — — Non-hedge Interest Rate Swaps The Bank enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Bank enters into offsetting positions in order to minimize the Bank’s interest rate risk. These swaps are derivatives, but are not designated as hedging instruments, and therefore changes in fair value are reported in current year earnings. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counter party or client owes the Bank, and results in credit risk to the Bank. When the fair value of a derivative instrument contract is negative, the Bank owes the client or counterparty and has no credit risk. A summary of the Bank’s interest rate swaps related to clients as of December 31, 2020 and 2019 is included in the following table: 2020 2019 Notional Notional December 31, (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 138,277 $ 12,545 $ 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 $ 138,277 $ 12,545 $ 102,051 $ 5,007 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 138,277 (12,545) 102,051 (5,007) Total $ 276,554 $ — $ 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 $13.3 million and $7.5 million at December 31, 2020 and 2019. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS | |
DEPOSITS | 9. DEPOSITS The composition of the deposit portfolio follows: December 31, (in thousands) 2020 2019 Core Bank: Demand $ 1,217,263 $ 922,972 Money market accounts 712,824 793,950 Savings 236,335 175,588 Individual retirement accounts (1) 47,889 51,548 Time deposits, $250 and over (1) 83,448 104,412 Other certificates of deposit (1) 199,214 248,161 Reciprocal money market and time deposits (1) 314,109 189,774 Brokered deposits (1) 25,010 200,072 Total Core Bank interest-bearing deposits 2,836,092 2,686,477 Total Core Bank noninterest-bearing deposits 1,503,662 981,164 Total Core Bank deposits 4,339,754 3,667,641 Republic Processing Group: Money market accounts 6,673 66,152 Total RPG interest-bearing deposits 6,673 66,152 Brokered prepaid card deposits 257,856 9,128 Other noninterest-bearing deposits 128,898 43,087 Total RPG noninterest-bearing deposits 386,754 52,215 Total RPG deposits 393,427 118,367 Total deposits $ 4,733,181 $ 3,786,008 (1) Includes time deposits. Time deposits at or above the FDIC insured limit of $250,000 are presented in the table below: December 31, (in thousands) 2020 2019 Time deposits of $250 or more $ 83,448 $ 104,412 At December 31, 2020, the scheduled maturities and weighted average rate of all time deposits, including brokered and reciprocal certificates of deposit, were as follows: Weighted Average Years (dollars in thousands) Principal Rate 2021 $ 272,154 1.17 % 2022 48,837 1.70 2023 62,134 2.62 2024 11,390 2.19 2025 3,829 0.59 Thereafter 60 0.48 Total $ 398,404 1.49 |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 10. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional securities. To mitigate the risk of under collateralization, the Bank typically pledges at least two percent more in securities than the associated repurchase agreements. All such securities are under the Bank’s control. At December 31, 2020 and 2019, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase follows: December 31, (dollars in thousands) 2020 2019 Outstanding balance at end of period $ 211,026 $ 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 $ 60,059 $ 70,015 Mortgage backed securities - residential 140,554 134,265 Collateralized mortgage obligations 29,656 17,030 Total securities pledged $ 230,269 $ 221,310 Additional information regarding securities sold under agreements to repurchase for the years ended December 31, 2020, 2019 and 2018 follows: Years Ended December 31, (dollars in thousands) 2020 2019 2018 Average outstanding balance during the period $ 204,797 $ 236,883 $ 225,145 Average interest rate during the period 0.09 % 0.51 % 0.50 % Maximum outstanding at any month end during the period $ 295,698 $ 276,927 $ 260,147 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended |
Dec. 31, 2020 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 11. FEDERAL HOME LOAN BANK ADVANCES At December 31, 2020 and 2019, FHLB advances were as follows: December 31, (in thousands) 2020 2019 Overnight advances $ 225,000 $ 200,000 Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% — 10,000 Fixed interest rate advances 10,000 540,000 Total FHLB advances $ 235,000 $ 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. The Company incurred $2.1 million early termination penalties on the payoff of $60 million in FHLB advances during 2020, with no similar penalty incurred in 2019 or 2018. FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At December 31, 2020 and 2019, Republic had available borrowing capacity of $683 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 December 31, 2020 and 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 2021 (Overnight) $ 225,000 0.16 % 2021 (Term) 10,000 1.89 2022 — — 2023 — — 2024 — — 2025 — — Thereafter — — Total $ 235,000 0.23 % 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: December 31, (dollars in thousands) 2020 2019 Outstanding balance at end of period $ 225,000 $ 200,000 Weighted average interest rate at end of period 0.16 % 1.63 % Years Ended December 31, (dollars in thousands) 2020 2019 2018 Average outstanding balance during the period $ 25,546 $ 270,992 $ 202,830 Average interest rate during the period 0.81 % 2.43 % 1.98 % Maximum outstanding at any month end during the period $ 250,000 $ 785,000 $ 560,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: December 31, (in thousands) 2020 2019 First lien, single family residential real estate $ 1,048,236 $ 1,099,941 Home equity lines of credit 208,944 274,990 |
SUBORDINATED NOTE
SUBORDINATED NOTE | 12 Months Ended |
Dec. 31, 2020 | |
SUBORDINATED NOTE | |
SUBORDINATED NOTE | 12. SUBORDINATED NOTE In 2005, RBCT, an unconsolidated trust subsidiary of Republic, was formed and issued $40 million in TPS. The sole asset of RBCT represents the proceeds of the offering loaned to Republic in exchange for a subordinated note with similar terms to the TPS. The TPS are treated as part of Republic’s Tier I Capital. The subordinated note and related interest expense are included in Republic’s consolidated financial statements. The subordinated note paid a fixed interest rate of 6.015% through September 30, 2015 and adjusted to 3-month LIBOR + 1.42% thereafter. The subordinated note matures on December 31, 2035 and is now redeemable at the Company’s option on a quarterly basis. The Company chose not to redeem the subordinated note on January 1, 2021, and carried the note at a cost of 3-month LIBOR + 1.42%, or 1.66%, at December 31, 2020. |
OFF BALANCE SHEET RISKS, COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 13. 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 future potential financial impact of the COVID-19 pandemic is still 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 year ended: December 31, (in thousands) 2020 2019 Unused warehouse lines of credit $ 456,004 $ 436,541 Unused home equity lines of credit 353,322 363,195 Unused loan commitments - other 775,128 757,657 Standby letters of credit 10,949 11,252 FHLB letter of credit 643 2,485 Total commitments $ 1,596,046 $ 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 year ended December 31, 2020: ACLC Rollforward Year Ended December 31, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ — $ 55 $ 24 $ — $ — $ 79 Unused home equity lines of credit — 89 84 — — 173 Unused loan commitments - other — 312 425 — — 737 Total $ — $ 456 $ 533 $ — $ — $ 989 The Company increased its ACLC during 2020 based on higher estimated usage rates on its unused lines and higher loss expectations on that usage. Current and forecasted economic concerns driven by the COVID-19 pandemic drove the Company’s higher loss expectations. |
STOCKHOLDERS' EQUITY AND REGULA
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | |
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | 14. STOCKHOLDERS’ EQUITY AND REGULATORY CAPITAL MATTERS Common Stock — Dividend Restrictions Regulatory Capital Requirements Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2020 and 2019, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. For prompt corrective action, the regulations in accordance with Basel III define “well capitalized” as a 10.0% Total Risk-Based Capital ratio, a 6.5% Common Equity Tier 1 Risk-Based Capital ratio, an 8.0% Tier 1 Risk-Based Capital ratio, and a 5.0% Tier 1 Leverage ratio. Additionally, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, the Company and Bank must hold a capital conservation buffer of 2.5% composed of Common Equity Tier 1 Risk-Based Capital above their minimum risk-based capital requirements. Minimum Requirement to be Well Capitalized Minimum Requirement Under Prompt for Capital Adequacy Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020 Total capital to risk-weighted assets Republic Bancorp, Inc. $ 896,053 18.52 % $ 387,163 8.00 % NA NA Republic Bank & Trust Company 796,114 16.46 386,842 8.00 $ 483,553 10.00 % Common equity tier 1 capital to risk-weighted assets Republic Bancorp, Inc. 803,682 16.61 217,779 4.50 NA NA Republic Bank & Trust Company 743,743 15.38 217,599 4.50 314,309 6.50 Tier 1 (core) capital to risk-weighted assets Republic Bancorp, Inc. 843,682 17.43 290,372 6.00 NA NA Republic Bank & Trust Company 743,743 15.38 290,132 6.00 386,842 8.00 Tier 1 leverage capital to average assets Republic Bancorp, Inc. 843,682 13.70 246,385 4.00 NA NA Republic Bank & Trust Company 743,743 12.11 245,723 4.00 307,154 5.00 Minimum Requirement to be Well Capitalized Minimum Requirement Under Prompt for Capital Adequacy Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Total capital to risk-weighted assets Republic Bancorp, Inc. $ 825,987 17.01 % $ 388,526 8.00 % NA NA Republic Bank & Trust Company 723,248 14.91 388,143 8.00 $ 485,179 10.00 % Common equity tier 1 capital to risk-weighted assets Republic Bancorp, Inc. 742,636 15.29 218,546 4.50 NA NA Republic Bank & Trust Company 679,897 14.01 218,331 4.50 315,366 6.50 Tier 1 (core) capital to risk-weighted assets Republic Bancorp, Inc. 782,636 16.11 291,394 6.00 NA NA Republic Bank & Trust Company 679,897 14.01 291,107 6.00 388,143 8.00 Tier 1 leverage capital to average assets Republic Bancorp, Inc. 782,636 13.93 224,799 4.00 NA NA Republic Bank & Trust Company 679,897 12.11 224,515 4.00 280,644 5.00 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE | |
FAIR VALUE | 15. 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 December 31, 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: Consumer loans held for investment, at fair value: Mortgage Banking derivatives pricing is derived from market observable inputs that can generally be verified and do not typically involve significant judgment by the Bank. Forward contracts and rate lock loan commitments are classified as Level 2 in the fair value hierarchy. Interest rate swap agreements: Collateral-dependent loans: Other real estate owned: Appraisals for collateral-dependent impaired loans, impaired premises and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g., residential real estate or commercial real estate, and may lead to additional adjustments to the value of unliquidated collateral of similar class. Mortgage servicing rights: Assets and liabilities measured at fair value on a recurring basis Fair Value Measurements at December 31, 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 $ — $ 246,909 $ — $ 246,909 Private label mortgage backed security — — 2,957 2,957 Mortgage backed securities - residential — 211,202 — 211,202 Collateralized mortgage obligations — 48,952 — 48,952 Corporate bonds — 10,043 — 10,043 Trust preferred security — — 3,800 3,800 Total available-for-sale debt securities $ — $ 517,106 $ 6,757 $ 523,863 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 560 $ — $ 560 Community Reinvestment Act mutual fund 2,523 — — 2,523 Total equity securities with readily determinable fair value $ 2,523 $ 560 $ — $ 3,083 Mortgage loans held for sale $ — $ 46,867 $ — $ 46,867 Consumer loans held for sale — — 3,298 3,298 Consumer loans held for investment — — 497 497 Rate lock loan commitments — 4,540 — 4,540 Interest rate swap agreements — 12,545 — 12,545 Financial liabilities: Mandatory forward contracts $ — $ 976 $ — $ 976 Interest rate swap agreements — 12,545 — 12,545 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 years ended December 31, 2020 and 2019. The following table presents a reconciliation of the Bank’s Private Label Mortgage Backed Security measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods ended December 31, 2020, 2019, and 2018: Private Label Mortgage Backed Security The following table presents a reconciliation of the Bank’s private label mortgage backed security measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 3,495 $ 3,712 $ 4,449 Total gains or losses included in earnings: Net change in unrealized gain (35) (79) (20) Recovery of actual losses previously recorded — 151 152 Principal paydowns (503) (289) (869) Balance, end of period $ 2,957 $ 3,495 $ 3,712 The fair value of the Bank’s single private label mortgage backed security is supported by analysis prepared by an independent third party. The third party’s approach to determining fair value involved several steps: 1) detailed collateral analysis of the underlying mortgages, including consideration of geographic location, original loan-to-value and the weighted average FICO score of the borrowers; 2) collateral performance projections for each pool of mortgages underlying the security (probability of default, severity of default, and prepayment probabilities) and 3) discounted cash flow modeling. The significant unobservable inputs in the fair value measurement of the Bank’s single private label mortgage backed security are prepayment rates, probability of default and loss severity in the event of default. Significant fluctuations in any of those inputs in isolation would result in a significantly different fair value measurement. The following tables present quantitative information about recurring Level 3 fair value measurements at December 31, 2020 and 2019: Fair Valuation December 31, 2020 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 2,957 Discounted cash flow (1) Constant prepayment rate 4.5% - 18.0% (2) Probability of default 1.8% - 9.0% (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 Company invested in its TRUP in November 2015. The following table presents a reconciliation of the Company’s TRUP measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ending December 31, 2020, 2019, and 2018: Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 4,000 $ 4,075 $ 3,600 Total gains or losses included in earnings: Discount accretion 56 42 40 Net change in unrealized gain (256) (117) 435 Balance, end of period $ 3,800 $ 4,000 $ 4,075 The fair value of the Company’s TRUP investment is based on the most recent bid price for this instrument, as provided by a third-party broker. Mortgage Loans Held for Sale The Bank has elected the fair value option for mortgage loans held for sale. These loans are intended for sale and the Bank believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more nor on nonaccrual as of December 31, 2020 and 2019. As of December 31, 2020 and 2019, the aggregate fair value, contractual balance (including accrued interest), and unrealized gain was as follows: December 31, (in thousands) 2020 2019 Aggregate fair value $ 46,867 $ 19,224 Contractual balance 44,781 18,690 Unrealized gain 2,086 534 The total amount of gains and losses from changes in fair value of mortgage loans held for sale included in earnings for 2020, 2019, and 2018 are presented in the following table: Years Ended December 31, (in thousands) 2020 2019 2018 Interest income $ 1,362 $ 697 $ 402 Change in fair value 1,552 239 203 Total included in earnings $ 2,914 $ 936 $ 605 Consumer Loans Held for Sale RCS carries loans originated through its installment loan program at fair value. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of December 31, 2020 and 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 December 31, 2020 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 3,298 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: December 31, (in thousands) 2020 2019 Aggregate fair value $ 3,298 $ 598 Contractual balance 3,284 593 Unrealized gain 14 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: Years Ended December 31, (in thousands) 2020 2019 2018 Interest income $ 1,808 $ 13 $ — Change in fair value 9 5 — Total included in earnings $ 1,817 $ 18 $ — Assets measured at fair value on a non-recurring basis Fair Value Measurements at December 31, 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 $ — $ — $ 3,860 $ 3,860 Commercial real estate — — 4,107 4,107 Home equity — — 395 395 Total collateral-dependent loans* $ — $ — $ 8,362 $ 8,362 Other real estate owned: Commercial real estate $ — $ — $ 2,003 $ 2,003 Total other real estate owned $ — $ — $ 2,003 $ 2,003 Mortgage servicing rights $ — $ 3,233 $ — $ 3,233 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 or impaired loans measured at fair value is reconciled in a subsequent table of this Footnote. The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis Range Fair Valuation Unobservable (Weighted December 31, 2020 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 3,860 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 51% ( 8% ) Collateral-dependent loans - commercial real estate $ 4,107 Sales comparison approach Adjustments determined for differences between comparable sales 7% - 31% ( 26% ) Collateral-dependent loans - home equity $ 395 Sales comparison approach Adjustments determined for differences between comparable sales 2% - 6% ( 5% ) Other real estate owned - commercial real estate $ 2,003 Sales comparison approach Adjustments determined for differences between comparable sales 26% ( 26% ) 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: December 31, (in thousands) 2020 2019 Carrying amount of loans measured at fair value $ 7,110 $ 7,729 Estimated selling costs considered in carrying amount 1,252 1,193 Valuation allowance — (2) Total fair value $ 8,362 $ 8,920 Years Ended December 31, (in thousands) 2020 2019 2018 Provision on collateral-dependent, impaired loans $ 559 $ 3,039 $ 1,629 Other Real Estate Owned Other real estate owned, which is carried at the lower of cost or fair value, is periodically assessed for impairment based on fair value at the reporting date. Fair value is determined from external appraisals or BPOs using judgments and estimates of external professionals. Many of these inputs are not observable and, accordingly, these measurements are classified as Level 3. Details of other real estate owned carrying value and write downs follow: December 31, (in thousands) 2020 2019 2018 Other real estate owned carried at fair value $ 2,003 $ — $ — Other real estate owned carried at cost 496 113 160 Total carrying value of other real estate owned $ 2,499 $ 113 $ 160 Other real estate owned write-downs during the years ended $ 105 $ — $ — The carrying amounts and estimated exit price fair values of financial instruments, at December 31, 2020 and 2019 follow: Fair Value Measurements at December 31, 2020: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 485,587 $ 485,587 $ — $ — $ 485,587 Available-for-sale debt securities 523,863 — 517,106 6,757 523,863 Held-to-maturity debt securities 53,324 — 54,190 — 54,190 Equity securities with readily determinable fair values 3,083 2,523 560 — 3,083 Mortgage loans held for sale, at fair value 46,867 — 46,867 — 46,867 Consumer loans held for sale, at fair value 3,298 — — 3,298 3,298 Consumer loans held for sale, at the lower of cost or fair value 1,478 — — 1,478 1,478 Loans, net 4,752,036 — — 4,749,831 4,749,831 Federal Home Loan Bank stock 17,397 — — — NA Accrued interest receivable 12,925 — 12,925 — 12,925 Mortgage servicing rights 7,095 — 8,318 — 8,318 Rate lock loan commitments 4,540 — 4,540 — 4,540 Interest rate swap agreements 12,545 — 12,545 — 12,545 Liabilities: Noninterest-bearing deposits $ 1,890,416 — $ 1,890,416 — $ 1,890,416 Transaction deposits 2,444,361 — 2,444,361 — 2,444,361 Time deposits 398,404 — 404,773 — 404,773 Securities sold under agreements to repurchase and other short-term borrowings 211,026 — 211,026 — 211,026 Federal Home Loan Bank advances 235,000 — 235,009 — 235,009 Subordinated note 41,240 — 31,071 — 31,071 Accrued interest payable 342 — 342 — 342 Mandatory forward contracts 976 — 976 — 976 Interest rate swap agreements 12,545 — 12,545 — 12,545 NA - Not applicable 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 Mortgage servicing rights 5,888 — 9,068 — 9,068 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 NA - Not applicable |
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
MORTGAGE BANKING ACTIVITIES | |
MORTGAGE BANKING ACTIVITIES | 16. MORTGAGE BANKING ACTIVITIES Mortgage Banking activities primarily include residential mortgage originations and servicing. Activity for mortgage loans held for sale was as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 19,224 $ 8,971 $ 5,761 Origination of mortgage loans held for sale 782,939 356,097 176,916 Proceeds from the sale of mortgage loans held for sale (788,475) (354,660) (177,545) Net gain on sale of mortgage loans held for sale 33,179 8,816 3,839 Balance, end of period $ 46,867 $ 19,224 $ 8,971 Mortgage loans serviced for others are not reported as assets. The Bank serviced loans for others, primarily the FHLMC, totaling $1.3 billion and $1.1 billion at December 31, 2020 and 2019. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and processing foreclosures. Custodial escrow account balances maintained in connection with serviced loans were approximately $20 million and $11 million at December 31, 2020 and 2019. The following table presents the components of Mortgage Banking income: Years Ended December 31, (in thousands) 2020 2019 2018 Net gain realized on sale of mortgage loans held for sale $ 28,721 $ 8,013 $ 3,843 Net change in fair value recognized on loans held for sale 1,552 239 203 Net change in fair value recognized on rate lock loan commitments 3,751 433 46 Net change in fair value recognized on forward contracts (845) 131 (253) Net gain recognized 33,179 8,816 3,839 Loan servicing income 2,924 2,506 2,418 Amortization of mortgage servicing rights (3,756) (1,823) (1,432) Change in mortgage servicing rights valuation allowance (500) — — Net servicing income recognized (1,332) 683 986 Total Mortgage Banking income $ 31,847 $ 9,499 $ 4,825 Activity for capitalized mortgage servicing rights was as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 5,888 $ 4,919 $ 5,044 Additions 5,463 2,792 1,307 Amortized to expense (3,756) (1,823) (1,432) Change in valuation allowance (500) — — Balance, end of period $ 7,095 $ 5,888 $ 4,919 Activity in the valuation allowance for capitalized mortgage servicing rights follows: Years Ended December 31, (in thousands) 2020 2019 2018 Beginning valuation allowance $ — $ — $ — Charge during the period 500 — — Ending valuation allowance $ 500 $ — $ — Other information relating to mortgage servicing rights follows: December 31, (in thousands) 2020 2019 Fair value of mortgage servicing rights portfolio $ 8,318 $ 9,068 Monthly weighted average prepayment rate of unpaid principal balance* 308 % 202 % Discount rate 10.00 % 10.00 % Weighted average foreclosure rate 0.44 % 0.14 % Weighted average life in years 4.85 5.76 * Rates are applied to individual tranches with similar characteristics. Estimated future amortization expense of the MSR portfolio (net of any applicable impairment charge) follows; however, actual amortization expense will be impacted by loan payoffs and changes in estimated lives that occur during each respective year: Year (in thousands) 2021 $ 1,486 2022 1,474 2023 1,386 2024 1,003 2025 656 2026 448 2027 642 Total $ 7,095 Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts and interest rate lock loan commitments. Mandatory forward contracts represent future commitments to deliver loans at a specified price and date and are used to manage interest rate risk on loan commitments and mortgage loans held for sale. Interest rate lock loan commitments represent commitments to fund loans at a specific rate. These derivatives involve underlying items, such as interest rates, and are designed to transfer risk. Substantially all of these instruments expire within 90 days from the date of issuance. Notional amounts are amounts on which calculations and payments are based, but which do not represent credit exposure, as credit exposure is limited to the amounts required to be received or paid. Mandatory forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the counterparties fail to deliver commitments or are unable to fulfill their obligations, the Bank could potentially incur significant additional costs by replacing the positions at then current market rates. The Bank manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management and the Board of Directors. The Bank does not expect any counterparty to default on their obligations and therefore, the Bank does not expect to incur any cost related to counterparty default. The Bank is exposed to interest rate risk on loans held for sale and rate lock loan commitments. As market interest rates fluctuate, the fair value of mortgage loans held for sale and rate lock commitments will decline or increase. To offset this interest rate risk the Bank enters into derivatives, such as mandatory forward contracts to sell loans. The fair value of these mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate loan lock commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before expiration; and the time period required to close and sell loans. The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives as of the period ends presented: 2020 2019 Notional Notional December 31, (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 44,781 $ 46,867 $ 18,690 $ 19,224 Included in other assets: Rate lock loan commitments $ 105,395 $ 4,540 $ 32,776 $ 789 Included in other liabilities: Mandatory forward contracts $ 136,236 $ 976 $ 44,919 $ 131 |
STOCK PLANS AND STOCK BASED COM
STOCK PLANS AND STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
STOCK PLANS AND STOCK BASED COMPENSATION | 17. STOCK PLANS AND STOCK BASED COMPENSATION In January 2015, the Company’s Board of Directors adopted the Republic Bancorp, Inc. 2015 Stock Incentive Plan (the “2015 Plan”), which replaced the 2005 Stock Incentive Plan. The number of authorized shares under the 2015 Plan is fixed at 3,000,000, with such number subject to adjustment in the event of certain events, such as stock dividends, stock splits, or the like. There is a minimum three-year vesting period for awards granted to employees under the 2015 Plan that vest based solely on the completion of a specified period of service, with options generally exercisable five All shares issued under the 2015 Plan were from authorized and reserved unissued shares. The Company has a sufficient number of authorized and reserved unissued shares to satisfy all anticipated option exercises. There are no Class B stock options outstanding or available for exercise under the Company’s plans. Stock Options The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes based stock option valuation model. This model requires the input of subjective assumptions that will usually have a significant impact on the fair value estimate. Expected volatilities are based on historical volatility of Republic’s stock and other factors. Expected dividends are based on dividend trends and the market price of Republic’s stock price at grant. Republic uses historical data to estimate option exercises and employee terminations within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. All share-based payments to employees, including grants of employee stock options, are recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values. The fair value of stock options granted was determined using the following weighted average assumptions as of grant date: Years Ended December 31, 2020 2019 2018 Risk-free interest rate 0.44 % 1.85 % 3.00 % Expected dividend yield 3.53 % 2.25 % 2.01 % Expected stock price volatility 23.71 % 20.11 % 18.59 % Expected life of options (in years) 5 5 5 Estimated fair value per share $ 4.06 $ 7.12 $ 8.09 The following table summarizes stock option activity from January 1, 2019 through December 31, 2020: Weighted Weighted Average Options Average Remaining Aggregate Class A Exercise Contractual Intrinsic Shares Price Term Value Outstanding, January 1, 2019 433,200 $ 33.50 Granted 5,500 47.02 Exercised (100,600) 24.50 Forfeited or expired (26,650) 36.00 Outstanding, December 31, 2019 311,450 $ 36.43 2.73 $ 3,449,454 Outstanding, January 1, 2020 311,450 $ 36.43 Granted 285,995 32.37 Exercised (64,850) 24.44 Forfeited or expired (26,650) 35.95 Outstanding, December 31, 2020 505,945 $ 35.70 3.48 $ 1,925,343 Unvested 427,245 $ 37.75 4.06 $ 1,022,143 Exercisable (vested) at December 31, 2020 78,700 $ 24.59 0.34 $ 903,200 Information related to the stock options during each year follows: Years Ended December 31, 2020 2019 2018 Intrinsic value of options exercised $ 634 $ 2,249 $ 79 Cash received from options exercised, net of shares redeemed 210 (191) 83 Loan balances of non-executive officer employees that were originated solely to fund stock option exercises were as follows: December 31, (in thousands) 2020 2019 Outstanding loans $ 390 $ 355 Restricted Stock Awards Restricted stock awards generally vest within six years after issue, with accelerated vesting due to “change in control” or “death or disability of a participant” as defined and outlined in the 2015 Plan. The following table summarizes restricted stock activity from January 1, 2019 through December 31, 2020: Restricted Stock Awards Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2019 51,110 $ 39.06 Granted 2,336 49.34 Forfeited — — Earned and issued (12,336) 46.63 Outstanding, December 31, 2019 41,110 $ 37.37 Outstanding, January 1, 2020 41,110 $ 37.37 Granted 1,218 34.02 Forfeited — — Earned and issued (2,828) 30.77 Outstanding, December 31, 2020 39,500 $ 38.56 Unvested 39,500 $ 38.56 The fair value of the restricted stock awards is based on the closing stock price on the date of grant with the associated expense amortized to compensation expense over the vesting period, generally five Performance Stock Units The Company first granted PSUs under the 2015 Plan in January 2016. Half of these PSUs were awarded in the first quarter of 2019 after the Company’s Compensation Committee determined that the Company had achieved an ROA of greater than 1.25% for fiscal year 2018. The remaining PSUs were awarded during the first quarter of 2020 after the Company’s Compensation Committee determined that the Company had achieved an ROA of greater than 1.25% for fiscal year 2019. The following table summarizes PSU activity from January 1, 2019 through December 31, 2020: Performance Stock Units Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2019 46,000 $ 23.08 Granted — — Forfeited — — Earned and issued (23,000) 23.08 Outstanding, December 31, 2019 23,000 $ 23.08 Outstanding, January 1, 2020 23,000 $ 23.08 Granted — — Forfeited — — Earned and issued (23,000) 23.08 Outstanding, December 31, 2020 — $ — Expense Related to Stock Incentive Plans The Company recorded expense related to stock incentive plans for the years ended December 31, 2020, 2019, and 2018 as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Stock option expense $ 463 $ 364 $ 265 Restricted stock award expense 396 728 630 Performance stock unit expense — (57) 106 Total expense $ 859 $ 1,035 $ 1,001 Unrecognized expenses related to unvested awards under stock incentive plans are estimated as follows: Stock Restricted Year (in thousands) Options Stock Awards Total 2021 $ 538 $ 277 $ 815 2022 501 253 754 2023 376 135 511 2024 97 40 137 2025 15 — 15 2026 and beyond — — — Total $ 1,527 $ 705 $ 2,232 Deferred Compensation On April 19, 2019, the shareholders of Republic approved an amendment and restatement of the Non-Employee Director and Key Employee Deferred Compensation Plan (the “Plan”). Prior to the Plan’s 2019 amendment and restatement, only directors participated in the plan, with the 2019 amendment and restatement initiating key-employee participation. The Plan provides non-employee directors and designated key employees the ability to defer compensation and have those deferred amounts paid later in the form of Company Class A Common shares based on the shares that could have been acquired as the deferrals were made. The Company maintains a bookkeeping account for each director or key-employee participant, and at the end of each fiscal quarter, deferred compensation is converted to “stock units” equal to the amount of compensation deferred during the quarter divided by the quarter-end fair market value of the Company’s Class A Common stock. Stock units for each participant’s account are also credited with an amount equal to the cash dividends that would have been paid on the number of stock units in the account if the stock units were deemed to be outstanding shares of stock. Any dividends credited are converted into additional stock units at the end of the fiscal quarter in which the dividends were paid. DIRECTORS Members of the Board of Directors may defer board and committee fees from two The following table presents information on director deferred compensation under the Plan for the periods presented: Outstanding Weighted-Average Stock Market Price Units at Date of Deferral Outstanding, January 1, 2019 66,144 $ 25.45 Deferred fees and dividend equivalents converted to stock units 6,397 46.76 Stock units converted to Class A Common Shares (5,178) 23.18 Outstanding, December 31, 2019 67,363 $ 27.65 Outstanding, January 1, 2020 67,363 $ 27.65 Deferred fees and dividend equivalents converted to stock units 13,930 32.20 Stock units converted to Class A Common Shares (4,967) 44.58 Outstanding, December 31, 2020 76,326 $ 27.38 Vested 76,326 $ 27.38 Director deferred compensation has been expensed as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Director deferred compensation expense $ 352 $ 213 $ 214 KEY EMPLOYEES Designated key employees may defer a portion of their base salaries on a pre-tax basis under the Plan, with the Company matching employee deferrals up to a prescribed limit. With limited exception, the Company match amount remains unvested until December 31 st The following table presents information on key-employee deferred compensation under the Plan for the periods presented: Outstanding Weighted-Average Stock Market Price Units at Date of Deferral Outstanding, January 1, 2019 9,260 $ 43.09 Deferred base salaries and dividend equivalents converted to stock units 7,059 45.84 Matching stock units credited 7,059 45.84 Matching stock units forfeited — — Stock units converted to Class A Common Shares — — Outstanding, December 31, 2019 23,378 $ 41.75 Outstanding, January 1, 2020 23,378 $ 41.75 Deferred base salaries and dividend equivalents converted to stock units 12,754 32.17 Matching stock units credited 12,754 32.17 Matching stock units forfeited — — Stock units converted to Class A Common Shares — — Outstanding, December 31, 2020 48,886 $ 37.37 Vested 32,595 $ 37.37 Unvested 16,291 $ 37.37 The following presents key-employee deferred compensation expense for the period presented: Years Ended December 31, (in thousands) 2020 2019 2018 Key-employee - base salary $ 408 $ 319 $ 215 Key-employee - employer match 158 49 215 Total $ 566 $ 368 $ 430 Employee Stock Purchase Plan On April 19, 2019, the shareholders of Republic approved the ESPP. Under the ESPP, participating employees may purchase shares of the Company Class A Common Stock through payroll withholdings at a purchase price that cannot be less than 85% of the lower of the fair market value of the Company’s Class A Common Stock on the first trading day of each offering period or on the last trading day of each offering period. Participating employees were able purchase the Company’s Class A Common Stock through the ESPP at: ● 90% of its fair market value on the last day of the three-month offering periods ended March 31, 2019, June 30, 2019, September 30, 2019, and December 31, 2019; and ● 85% of fair market value on the last day of the three-month offering periods ended March 31, 2020, June 30, 2020, September 30, 2020, and December 31, 2020. The following presents expense under the ESPP for the period presented: Years Ended December 31, (in thousands) 2020 2019 2018 ESPP expense $ 94 $ 49 $ 23 |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
BENEFIT PLANS | |
BENEFIT PLANS | 18. BENEFIT PLANS 401(k) Plan Republic maintains a 401(k) plan for eligible employees. All eligible employees are automatically enrolled at 6% of their eligible compensation within 30 days of their date of hire unless the eligible employee elects to enroll sooner. Participants in the plan have the option to contribute from 1% to 75% of their annual eligible compensation, up to the maximum allowed by the IRS. The Company matches 100% of participant contributions up to 1% and an additional 75% for participant contributions between 2% and 5% of each participant’s annual eligible compensation. Participants are fully vested after two years of employment. Republic may also contribute discretionary matching contributions in addition to the matching contributions if the Company achieves certain operating goals. Normal and discretionary contributions for each of the periods ended were as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Employer matching contributions $ 3,205 $ 3,185 $ 2,890 Discretionary employer bonus matching contributions 117 207 392 Supplemental Executive Retirement Plan In association with its May 17, 2016 Cornerstone acquisition, the Company inherited a SERP. The SERP requires the Company to pay monthly benefits following retirement of the SERP’s four participants. The Company accrues the present value of such benefits monthly. The SERP liability was approximately $2 million and $2 million at December 31, 2020 and 2019. Expense under the SERP was $34,000, $97,000 and $102,000 for the years ended December 31, 2020, 2019, and 2018. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 19. INCOME TAXES Allocation of federal income tax between current and deferred portion is as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Current expense: Federal $ 25,762 $ 18,906 $ 10,638 State 2,450 1,751 1,532 Deferred expense: SAB 118 related discrete items — — (2,762) Federal (7,249) 1,880 6,815 State (1,576) (1,043) 188 Total $ 19,387 $ 21,494 $ 16,411 Effective tax rates differ from federal statutory rate applied to income before income taxes due to the following: 2020 2019 2018 Federal corporate tax rate 21.00 % 21.00 % 21.00 % Effect of: SAB 118 related discrete items* — — (2.93) State taxes, net of federal benefit 1.43 1.43 1.44 General business tax credits (2.01) (1.14) (1.44) Nontaxable income (0.75) (0.85) (0.99) Reversal of valuation allowance/establishment of net operating loss DTA (0.04) (0.74) — Tax benefit of vesting employee benefits (0.15) (0.42) (0.20) Deferred tax asset due to KY HB354 (0.97) (0.20) — Other, net 0.38 (0.09) 0.53 Effective tax rate 18.89 18.99 17.41 *Discrete items include the impact of a cost-segregation study, a research and development tax-credit study, and a tax-accounting-method change related to the immediate recognition of loan origination costs. The following items provided $2.8 million in federal income tax benefits during 2018 and primarily drove the Total Company’s effective tax rate for that period lower than the federal corporate tax rate of 21%: ● During the third quarter of 2018 the Company completed a cost-segregation study and assigned revised tax lives to select fixed assets resulting from a detailed engineering-based analysis. The more detailed classification of fixed assets allowed the Company a large one-time recognition of additional depreciation expense for its 2017 federal tax return at a 35% income tax rate, as opposed to the TCJA rate of 21% it previously expected to receive for these deductions in the future. The TCJA was enacted on December 22, 2017 and reduced the federal corporate tax rate from 35% to 21% , effective January 1, 2018. Tax benefits related to the cost-segregation study were primarily attributed to the Company’s Traditional Banking segment. • The Company adopted an automatic tax-accounting-method change related to loan origination costs during the third quarter of 2018, as it was preparing its 2017 federal tax return. This tax-accounting-method change related to the immediate recognition of loan origination costs for income tax purposes, as opposed to the amortization of those costs over the life of the loan. The change in tax-accounting-method resulted in a further impact from the TCJA, as it affected the Company’s 2017 federal tax return due October 15, 2018. Tax benefits related to the tax-accounting-method change were 100% attributed to the Company’s Traditional Banking segment. • The Company completed an R&D tax-credit study during the third quarter of 2018, which resulted in the recognition of R&D credits dating back to 2014. Tax benefits related to the R&D tax-credit study were attributed to the Company’s Traditional Banking, TRS, and RCS segments. The following items provided $2.8 million in federal income tax benefits during 2019 and drove the Total Company’s effective tax rate for that period lower than the federal corporate tax rate of 21%: • 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 December 31, 2019, the Company recorded a deferred tax asset, net of the federal benefit, of $224,000 due to the enactment of HB354, with the majority of this benefit attributed to the Company’s Traditional Banking segment. • In April 2019, Kentucky enacted HB458, which allows for sharing of certain tax attributes between Republic Bancorp and the Bank, including net operating losses. 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 consolidated return beginning in 2021 and to utilize these previously generated net operating losses. The tax benefit to reverse the valuation allowance and record the deferred tax asset for these losses is approximately $840,000 and is fully attributed to the Company’s Traditional Banking segment. • The Company recognized $480,000 in income tax benefits associated with equity compensation during 2019. Substantially all of this benefit was attributed to the Company’s Traditional Banking segment. • The Company recognized $1.3 million in income tax benefits for low-income-housing investments and R&D credits during 2019. The low-income-housing investments were attributable to the Company’s Traditional Banking segment, while the R&D credits were attributed to the Traditional Banking, TRS, and RCS segments. The following items provided $3.1 million in federal income tax benefits during 2020 and drove the Total Company’s effective tax rate for that period lower than the federal corporate tax rate of 21%: • 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% . In 2020, the Company recorded an additional deferred tax asset, net of the federal benefit, of $1 million due to the enactment of HB354, with the majority of this benefit attributed to the Company’s Traditional Banking segment. • The Company recognized $2.1 million in income tax benefits for low-income-housing investments and R&D credits during 2020. The low-income-housing investments were attributable to the Company’s Traditional Banking segment, while the R&D credits were attributed to the Traditional Banking, TRS, and RCS segments. Year-end DTAs and DTLs were due to the following: December 31, (in thousands) 2020 2019 Deferred tax assets: Allowance for credit losses $ 14,999 $ 9,672 Operating lease liabilities 10,911 8,186 Accrued expenses 5,062 3,332 Net operating loss carryforward(1) 2,577 2,705 Acquisition fair value adjustments 181 443 Other-than-temporary impairment 448 397 Paycheck Protection Program Fees 2,159 — Fair value of cash flow hedges — 26 Other 1,655 1,495 Total deferred tax assets 37,992 26,256 Deferred tax liabilities: Right of use assets - operating leases (10,667) (7,889) Depreciation and amortization (3,612) (4,018) Federal Home Loan Bank dividends (1,161) (2,667) Deferred loan costs (2,235) (2,068) Lease Financing Receivables (2,154) (2,245) Mortgage servicing rights (1,746) (1,319) Unrealized investment securities gains (2,836) (1,058) Bargain purchase gain (659) (648) Total deferred tax liabilities (25,070) (21,912) Less: Valuation allowance — — Net deferred tax asset $ 12,922 $ 4,344 (1) The Company has federal and state net operating loss carryforwards (acquired in its 2016 Cornerstone acquisition) of $7.3 million (federal) and $4.5 million (state). These carryforwards begin to expire in 2030 for both federal and state purposes. The use of these federal and state carryforwards is each limited under IRC Section 382 to $722,000 annually for federal and $634,000 annually for state. The Company also has a Kentucky net operating loss carryforward of $22.4 million, which the Company expects to begin utilizing in 2021 due to the passage of Kentucky HB354 and HB458. The Company expects to file a consolidated Kentucky income tax return beginning in 2021 and to utilize these previously generated net operating losses. The Company previously maintained a valuation allowance as it did not anticipate generating taxable income in Kentucky to utilize this carryforward prior to expiration. Finally, the Company has state AMT credit carryforwards of $15,000 with no expiration date. Unrecognized Tax Benefits The following table shows a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 1,707 $ 1,327 $ 912 Additions based on tax related to the current period 455 364 306 Additions for tax positions of prior periods 24 55 339 Reductions for tax positions of prior periods (72) — (34) Reductions due to the statute of limitations (82) (39) (196) Settlements (91) — — Balance, end of period $ 1,941 $ 1,707 $ 1,327 Of the 2020 total, $1.7 million represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. It is the Company’s policy to recognize interest and penalties as a component of income tax expense related to its unrecognized tax benefits. Amounts related to interest and penalties recorded in the income statements for the years ended December 31, 2020, 2019, and 2018 and accrued on the balance sheets as of December 31, 2020, 2019, and 2018 are presented below: Years Ended December 31, (in thousands) 2020 2019 2018 Interest and penalties recorded in the income statement as a component of income tax expense $ 57 $ 173 $ 42 Interest and penalties accrued on balance sheet 510 514 341 The Company files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal income tax examinations by taxing authorities for all years prior to and including 2013. Low Income Housing Tax Credits The Company is a limited partner in several low-income housing partnerships whose purpose is to invest in qualified affordable housing. The Company expects to recover its remaining investments in these partnerships through the use of tax credits that are generated by the investments. The following table summarizes information related to the Company’s qualified low-income housing investments and commitments: December 31, (in thousands) 2020 2019 Unfunded Unfunded Investment Accounting Method Investment Commitment Investment Commitment Low income housing tax credit investments - Gross Proportional amortization $ 18,909 $ 27,891 $ 11,912 $ 24,888 Life-to-date amortization (2,701) NA (1,218) NA Low income housing tax credit investments - Net $ 16,208 $ 27,891 $ 10,694 $ 24,888 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 20. EARNINGS PER SHARE The Company calculates earnings per share under the two-class method. Under the two-class method, earnings available to common shareholders for the period are allocated between Class A Common Stock and Class B Common Stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. The difference in earnings per share between the two classes of common stock results from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock. See Footnote 14, “Stockholders’ Equity and Regulatory Capital Matters” of this section of the filing. A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below: Years Ended December 31, (in thousands, except per share data) 2020 2019 2018 Net income $ 83,246 $ 91,699 $ 77,852 Dividends declared on Common Stock: Class A Shares (21,433) (19,771) (18,076) Class B Shares (2,288) (2,121) (1,955) Undistributed net income for basic earnings per share 59,525 69,807 57,821 Weighted average potential dividends on Class A shares upon exercise of dilutive options (35) (118) (102) Undistributed net income for diluted earnings per share $ 59,490 $ 69,689 $ 57,719 Weighted average shares outstanding: Class A Shares 18,838 18,813 18,736 Class B Shares 2,201 2,210 2,224 Effect of dilutive securities on Class A Shares outstanding 30 112 105 Weighted average shares outstanding including dilutive securities 21,069 21,135 21,065 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 1.14 $ 1.06 $ 0.97 Undistributed earnings per share* 2.86 3.35 2.79 Total basic earnings per share - Class A Common Stock $ 4.00 $ 4.41 $ 3.76 Class B Common Stock: Per share dividends distributed $ 1.04 $ 0.96 $ 0.88 Undistributed earnings per share* 2.60 3.05 2.53 Total basic earnings per share - Class B Common Stock $ 3.64 $ 4.01 $ 3.41 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 1.14 $ 1.06 $ 0.97 Undistributed earnings per share* 2.85 3.33 2.77 Total diluted earnings per share - Class A Common Stock $ 3.99 $ 4.39 $ 3.74 Class B Common Stock: Per share dividends distributed $ 1.04 $ 0.96 $ 0.88 Undistributed earnings per share* 2.59 3.03 2.52 Total diluted earnings per share - Class B Common Stock $ 3.63 $ 3.99 $ 3.40 *To arrive at undistributed earnings per share, undistributed net income is first pro rated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows: As of and for the Years Ended December 31, 2020 2019 2018 Antidilutive stock options 338,995 154,750 165,000 Average antidilutive stock options 282,489 151,260 47,712 |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | 12 Months Ended |
Dec. 31, 2020 | |
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | |
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | 21. TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES Republic leases office facilities under operating leases from limited liability companies in which Republic’s Chairman/Chief Executive Officer and Vice Chair are partners. Rent expense and obligations under these leases are presented in Footnote 6 in this section of the filing. Loans made to executive officers and directors of Republic and their related interests during 2020 were as follows: (in thousands) Beginning balance $ 43,398 Effect of changes in composition of related parties (26,147) New loans 11,402 Repayments (12,933) Ending balance $ 15,720 Deposits from executive officers, directors, and their affiliates totaled $124 million and $97 million at December 31, 2020 and 2019. By an agreement dated December 14, 1989, as amended August 8, 1994, the Company entered into a split-dollar insurance agreement with a trust established by the Company’s deceased former Chairman, Bernard M. Trager. Pursuant to the agreement, from 1989 through 2002 the Company paid $690,000 in total annual premiums on the insurance policies held in the trust. The policies are joint-life policies payable upon the death of Mrs. Jean Trager, as the survivor of her husband Bernard M. Trager. The cash surrender value of the policies was approximately $2 million and $2 million as of December 31, 2020 and 2019. Pursuant to the terms of the trust, the beneficiaries of the trust will each receive the proceeds of the policies after the repayment of any unreimbursed portion of the $690,000 annual premiums paid by the Company. The unreimbursed portion constitutes indebtedness from the trust to the Company and is secured by a collateral assignment of the policies. As of December 31, 2020 and 2019, the unreimbursed portion was $440,000 and $540,000, and the net death benefit under the policies was approximately $5 million. Upon the termination of the agreement, whether by the death of Mrs. Trager or earlier cancellation, the Company is entitled to be repaid by the trust the amount of indebtedness outstanding at that time. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2020 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 22. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Available-for-Sale Debt Securities: Change in unrealized gain on AFS debt securities $ 7,147 $ 5,689 $ (1,548) Adjustment for accounting standard update — — (428) Change in unrealized gain of AFS debt security for which a portion of OTTI has been recognized in earnings (35) (79) (20) Net unrealized (losses) gains 7,112 5,610 (1,996) Tax effect (1,778) (1,348) 420 Net of tax 5,334 4,262 (1,576) Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges (177) (199) 178 Reclassification amount for net derivative losses (gains) realized in income 281 (20) 28 Net unrealized (losses) gains 104 (219) 206 Tax effect (27) 52 (43) Net of tax 77 (167) 163 Total other comprehensive (loss) income components, net of tax $ 5,411 $ 4,095 $ (1,413) Amounts reclassified out of each component of accumulated OCI for the years ended December 31, 2020, 2019, and 2018: Amounts Reclassified From Affected Line Items Accumulated Other in the Consolidated Comprehensive Income (Loss) Years Ended December 31, (in thousands) Statements of Income 2020 2019 2018 Cash Flow Hedges: Interest rate swap on money market deposits Interest benefit (expense) on deposits (138) 10 (18) Interest rate swap on FHLB advance Interest benefit (expense) on FHLB advances (143) 10 (10) Total derivative gains (losses) on cash flow hedges Total interest benefit (expense) (281) 20 (28) Tax effect Income tax (benefit) expense 70 (5) 6 Net of tax Net income (loss) (211) 15 (22) The following is a summary of the accumulated OCI balances, net of tax: 2020 (in thousands) December 31, 2019 Change December 31, 2020 Unrealized gain on AFS debt securities $ 2,211 $ 5,360 $ 7,571 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 964 (26) 938 Unrealized gain (loss) on cash flow hedges (77) 77 — Total unrealized gain $ 3,098 $ 5,411 $ 8,509 2019 (in thousands) December 31, 2018 Change December 31, 2019 Unrealized gain (loss) on AFS debt securities $ (2,165) $ 4,376 $ 2,211 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 1,078 (114) 964 Unrealized gain (loss) on cash flow hedges 90 (167) (77) Total unrealized gain (loss) $ (997) $ 4,095 $ 3,098 |
PARENT COMPANY CONDENSED FINANC
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | 23. PARENT COMPANY CONDENSED FINANCIAL INFORMATION BALANCE SHEETS December 31, (in thousands) 2020 2019 Assets: Cash and cash equivalents $ 100,524 $ 101,003 Security available for sale 3,800 4,000 Investment in bank subsidiary 761,929 699,906 Investment in non-bank subsidiaries 3,518 3,631 Other assets 3,203 4,749 Total assets $ 872,974 $ 813,289 Liabilities and Stockholders’ Equity: Subordinated note $ 41,240 $ 41,240 Other liabilities 8,411 7,805 Stockholders’ equity 823,323 764,244 Total liabilities and stockholders’ equity $ 872,974 $ 813,289 STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, (in thousands) 2020 2019 2018 Income and expenses: Dividends from subsidiary $ 25,980 $ 24,249 $ 22,385 Interest income 182 250 231 Other income 57 54 45 Less: Interest expense 1,000 1,620 1,508 Less: Other expenses 691 511 469 Income before income tax benefit 24,528 22,422 20,684 Income tax benefit 344 1,213 348 Income before equity in undistributed net income of subsidiaries 24,872 23,635 21,032 Equity in undistributed net income of subsidiaries 58,374 68,064 56,820 Net income $ 83,246 $ 91,699 $ 77,852 Comprehensive income $ 88,657 $ 95,794 $ 76,439 STATEMENTS OF CASH FLOWS Years Ended December 31, (in thousands) 2020 2019 2018 Operating activities: Net income $ 83,246 $ 91,699 $ 77,852 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of investment security (56) (42) (40) Equity in undistributed net income of subsidiaries (58,374) (68,064) (56,820) Director deferred compensation - Parent Company 181 139 117 Change in other assets 1,609 (25) 605 Change in other liabilities 54 842 (976) Net cash provided by operating activities 26,660 24,549 20,738 Investing activities: Investment in subsidiary bank (533) (494) (230) Net cash used in investing activities (533) (494) (230) Financing activities: Common Stock repurchases (3,935) (1,418) (827) Net proceeds from Class A Common Stock purchased through employee stock purchase plan 533 494 230 Net proceeds from Common Stock options exercised — (191) 83 Cash dividends paid (23,204) (21,377) (19,497) Net cash used in financing activities (26,606) (22,492) (20,011) Net change in cash and cash equivalents (479) 1,563 497 Cash and cash equivalents at beginning of period 101,003 99,440 98,943 Cash and cash equivalents at end of period $ 100,524 $ 101,003 $ 99,440 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 24. REVENUE FROM CONTRACTS WITH CUSTOMERS The following tables present the Company’s net revenue by reportable segment for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 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) $ 159,381 $ 25,957 $ 1,362 $ 186,700 $ 22,972 $ 22,643 $ 45,615 $ 232,315 Noninterest income: Service charges on deposit accounts 11,571 63 — 11,634 (19) — (19) 11,615 Net refund transfer fees — — — — 20,297 — 20,297 20,297 Mortgage banking income(1) — — 31,847 31,847 — — — 31,847 Interchange fee income 10,978 — — 10,978 210 — 210 11,188 Program fees(1) — — — — 2,193 4,902 7,095 7,095 Increase in cash surrender value of BOLI(1) 1,585 — — 1,585 — — — 1,585 Net gains (losses) on OREO (40) — — (40) — — — (40) Other 3,310 (39) 103 3,374 92 — 92 3,466 Total noninterest income 27,404 24 31,950 59,378 22,773 4,902 27,675 87,053 Total net revenue $ 186,785 $ 25,981 $ 33,312 $ 246,078 $ 45,745 $ 27,545 $ 73,290 $ 319,368 Net-revenue concentration(2) 59 % 8 % 10 % 77 % 14 % 9 % 23 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Years Ended December 31, 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) $ 168,076 $ 15,801 $ 697 $ 184,574 $ 21,626 $ 29,926 $ 51,552 $ 236,126 Noninterest income: Service charges on deposit accounts 14,153 44 — 14,197 — — — 14,197 Net refund transfer fees — — — — 21,158 — 21,158 21,158 Mortgage banking income(1) — — 9,499 9,499 — — — 9,499 Interchange fee income 11,600 — — 11,600 259 — 259 11,859 Program fees(1) — — — — 437 4,275 4,712 4,712 Increase in cash surrender value of BOLI(1) 1,550 — — 1,550 — — — 1,550 Net gains (losses) on OREO 540 — — 540 — — — 540 Net gain on branch divestiture(1) 7,829 — — 7,829 — — — 7,829 Other 2,881 (90) 213 3,004 1 659 660 3,664 Total noninterest income 38,553 (46) 9,712 48,219 21,855 4,934 26,789 75,008 Total net revenue $ 206,629 $ 15,755 $ 10,409 $ 232,793 $ 43,481 $ 34,860 $ 78,341 $ 311,134 Net-revenue concentration(2) 67 % 5 % 3 % 75 % 14 % 11 % 25 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Year Ended December 31, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 160,398 $ 15,726 $ 402 $ 176,526 $ 19,203 $ 30,329 $ 49,532 $ 226,058 Noninterest income: Service charges on deposit accounts 14,233 40 — 14,273 — — — 14,273 Net refund transfer fees — — — — 20,029 — 20,029 20,029 Mortgage banking income(1) — — 4,825 4,825 — — — 4,825 Interchange fee income 10,868 — — 10,868 226 65 291 11,159 Program fees(1) — — — — 295 5,930 6,225 6,225 Increase in cash surrender value of BOLI(1) 1,527 — — 1,527 — — — 1,527 Net gains (losses) on OREO 729 — — 729 — — — 729 Other 2,608 — 550 3,158 1,003 497 1,500 4,658 Total noninterest income 29,965 40 5,375 35,380 21,553 6,492 28,045 63,425 Total net revenue $ 190,363 $ 15,766 $ 5,777 $ 211,906 $ 40,756 $ 36,821 $ 77,577 $ 289,483 Net-revenue concentration(2) 66 % 5 % 2 % 73 % 14 % 13 % 27 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. The following represents information for significant revenue streams subject to ASC 606: Service charges on deposit accounts Net refund transfer fees The Company executes contracts with individual Tax Providers to offer RTs to their taxpayer customers. RT revenue is recognized by the Bank immediately after the taxpayer’s refund is disbursed in accordance with the RT contract with the taxpayer customer. The fee paid by the taxpayer for the RT is shared between the Bank and the Tax Providers based on contracts executed between the parties. The Company presents RT revenue net of any amounts shared with the Tax Providers. The Bank’s share of RT revenue is generally based on the obligations undertaken by the Tax Provider for each individual RT program, with more obligations generally corresponding to higher RT revenue share. The significant majority of net RT revenue is recognized and obligations under RT contracts fulfilled by the Bank during the first half of each year. Incremental expenses associated with the fulfilment of RT contracts are generally expensed during the first half of the year. Interchange fee income Company for each transaction for the ability to efficiently settle the transaction and for the Company’s willingness to accept certain risks inherent in the transaction. There is no written contract between the merchant and the Company, but a contract is implied between the two parties by customary business practices. Interchange fee income is recognized almost simultaneously by the Company upon the completion of a related card transaction. The Company compensates its cardholders by way of cash or other “rewards” for generating card transactions. These rewards are disclosed in cardholder agreements between the Company and its cardholders. Reward costs are accrued over time based on card transactions generated by the cardholder. Interchange fee income is presented net of reward costs within noninterest income. Net gains/(losses) on other real estate The Company generally recognizes gains or losses on OREO at the time of an executed deed, although gains may be recognized over a financing period if the Company finances the sale. For financed OREO sales, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. Mark-to-market write-downs taken by the Company during the property’s holding period are generally at least 10% per year but may be higher based on updated real estate appraisals or BPOs. Incremental expenditures to bring OREO to salable condition are generally expensed as-incurred. Capital commitment fee (within other income) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 25. SEGMENT INFORMATION Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar. As of December 31, 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. The Company’s national branchless banking platform, MemoryBank, is considered part of the Traditional Banking segment. The nature of segment operations and the primary drivers of net revenues by reportable segment are provided below: Reportable Segment: Nature of Operations: Primary Drivers of Net Revenue: Core Banking: Traditional Banking Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels. Loans, investments, and deposits. Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the United States. Mortgage warehouse lines of credit. Mortgage Banking Primarily originates, sells and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint. Loan sales and servicing. Republic Processing Group: Tax Refund Solutions TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint. Loans, refund transfers, and prepaid cards. Republic Credit Solutions Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers. Unsecured, consumer loans. The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies. Segment performance is evaluated using operating income. Goodwill is allocated to the Traditional Banking segment. Income taxes are generally allocated based on income before income tax expense unless specific segment allocations can be reasonably made. Transactions among reportable segments are made at carrying value. Segment information for the years ended December 31, 2020, 2019, and 2018 is as follows: Year Ended December 31, 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 $ 159,381 $ 25,957 $ 1,362 $ 186,700 $ 22,972 $ 22,643 $ 45,615 $ 232,315 Provision for expected credit loss expense 16,257 613 — 16,870 13,189 1,219 14,408 31,278 Net refund transfer fees — — — — 20,297 — 20,297 20,297 Mortgage banking income — — 31,847 31,847 — — — 31,847 Program fees — — — — 2,193 4,902 7,095 7,095 Other noninterest income 27,404 24 103 27,531 283 — 283 27,814 Total noninterest income 27,404 24 31,950 59,378 22,773 4,902 27,675 87,053 Total noninterest expense 149,061 4,387 10,760 164,208 17,514 3,735 21,249 185,457 Income before income tax expense 21,467 20,981 22,552 65,000 15,042 22,591 37,633 102,633 Income tax expense 1,395 4,721 4,736 10,852 3,323 5,212 8,535 19,387 Net income $ 20,072 $ 16,260 $ 17,816 $ 54,148 $ 11,719 $ 17,379 $ 29,098 $ 83,246 Period-end assets $ 4,750,460 $ 962,692 $ 62,400 $ 5,775,552 $ 285,612 $ 107,161 $ 392,773 $ 6,168,325 Net interest margin 3.42 % 3.19 % NM 3.39 % NM NM NM 4.10 % Net-revenue concentration* 59 % 8 % 10 % 77 % 14 % 9 % 23 % 100 % Year Ended December 31, 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 $ 168,076 $ 15,801 $ 697 $ 184,574 $ 21,626 $ 29,926 $ 51,552 $ 236,126 Provision for expected credit loss expense 2,444 622 — 3,066 11,249 11,443 22,692 25,758 Net refund transfer fees — — — — 21,158 — 21,158 21,158 Mortgage banking income — — 9,499 9,499 — — — 9,499 Program fees — — — — 437 4,275 4,712 4,712 Net gain on branch divestiture 7,829 — — 7,829 — — — 7,829 Other noninterest income 30,724 (46) 213 30,891 260 659 919 31,810 Total noninterest income 38,553 (46) 9,712 48,219 21,855 4,934 26,789 75,008 Total noninterest expense 143,671 3,268 6,112 153,051 16,539 2,593 19,132 172,183 Income before income tax expense 60,514 11,865 4,297 76,676 15,693 20,824 36,517 113,193 Income tax expense 9,651 2,670 902 13,223 3,454 4,817 8,271 21,494 Net income $ 50,863 $ 9,195 $ 3,395 $ 63,453 $ 12,239 $ 16,007 $ 28,246 $ 91,699 Period-end assets $ 4,684,116 $ 717,994 $ 26,469 $ 5,428,579 $ 86,849 $ 104,891 $ 191,740 $ 5,620,319 Net interest margin 3.76 % 2.42 % NM 3.61 % NM NM NM 4.46 % Net-revenue concentration* 67 % 5 % 3 % 75 % 14 % 11 % 25 % 100 % Year Ended December 31, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 160,398 $ 15,726 $ 402 $ 176,526 $ 19,203 $ 30,329 $ 49,532 $ 226,058 Provision for expected credit loss expense 3,710 (142) — 3,568 10,919 16,881 27,800 31,368 Net refund transfer fees — — — — 20,029 — 20,029 20,029 Mortgage banking income — — 4,825 4,825 — — — 4,825 Program fees — — — — 295 5,930 6,225 6,225 Other noninterest income 29,965 40 550 30,555 1,229 562 1,791 32,346 Total noninterest income 29,965 40 5,375 35,380 21,553 6,492 28,045 63,425 Total noninterest expense 136,439 3,367 4,356 144,162 14,686 5,004 19,690 163,852 Income before income tax expense 50,214 12,541 1,421 64,176 15,151 14,936 30,087 94,263 Income tax expense 6,819 2,869 298 9,986 3,033 3,392 6,425 16,411 Net income $ 43,395 $ 9,672 $ 1,123 $ 54,190 $ 12,118 $ 11,544 $ 23,662 $ 77,852 Period-end assets $ 4,647,037 $ 470,126 $ 14,246 $ 5,131,409 $ 20,288 $ 88,707 $ 108,995 $ 5,240,404 Net interest margin 3.76 % 3.18 % NM 3.70 % NM NM NM 4.62 % Net-revenue concentration* 66 % 5 % 2 % 73 % 14 % 13 % 27 % 100 % *Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. NM - Not Meaningful |
BRANCH DIVESTITURE
BRANCH DIVESTITURE | 12 Months Ended |
Dec. 31, 2020 | |
BRANCH DIVESTITURE | |
BRANCH DIVESTITURE | 26. BRANCH DIVESTITURE In July 2019, the Bank entered into a definitive agreement to sell its four banking centers located in the Kentucky cities of Owensboro, Elizabethtown, and Frankfort to Limestone Bank (“Limestone”), a subsidiary of Limestone Bancorp, Inc. The agreement provided that Limestone acquire loans with balances of approximately $128 million as of November 15, 2019 (the “Closing Date”) and assume deposits with balances of approximately $132 million as of the Closing Date, associated with the four banking centers. In addition to the sale of loans and assumption of deposits, Limestone also acquired substantially all of the fixed assets of these locations, which had a book value of $1.3 million as of the Closing Date. Based on the Closing Date deposits, the all-in blended premium for the transaction was of the total deposits transferred. The final calculated premium was based on the trailing The Company operated its divested branches for 10.5 and 12 months, respectively during 2019 and 2018. |
SUMMARY OF QUARTERLY FINANCIAL
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | |
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | 27. SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) Presented below is a summary of the consolidated quarterly financial data for the years ended December 31, 2020 and 2019. 2020 Fourth Third Second First (dollars in thousands, except per share data) Quarter Quarter Quarter Quarter (1) Interest income $ 57,970 $ 56,038 $ 57,091 $ 81,159 Interest expense 2,850 3,786 4,886 8,421 Net interest income 55,120 52,252 52,205 72,738 Provision for loan and lease losses (2) 484 1,500 6,534 22,760 Net interest income after provision 54,636 50,752 45,671 49,978 Noninterest income 17,136 20,597 18,751 30,569 Noninterest expense (4) 48,140 45,523 44,825 46,969 Income before income taxes 23,632 25,826 19,597 33,578 Income tax expense (5) 3,276 5,437 3,793 6,881 Net income $ 20,356 $ 20,389 $ 15,804 $ 26,697 Basic earnings per share: Class A Common Stock $ 0.98 $ 0.98 $ 0.77 $ 1.29 Class B Common Stock 0.89 0.89 0.69 1.17 Diluted earnings per share: Class A Common Stock $ 0.98 $ 0.98 $ 0.76 $ 1.28 Class B Common Stock 0.89 0.89 0.69 1.16 Dividends declared per common share: Class A Common Stock $ 0.286 $ 0.286 $ 0.286 $ 0.286 Class B Common Stock 0.260 0.260 0.260 0.260 2019 Fourth Third Second First (dollars in thousands, except per share data) Quarter Quarter Quarter Quarter(1) Interest income $ 64,527 $ 68,059 $ 65,664 $ 82,633 Interest expense 10,132 12,573 11,718 10,334 Net interest income 54,395 55,486 53,946 72,299 Provision for loan and lease losses(2) 914 3,153 4,460 17,231 Net interest income after provision 53,481 52,333 49,486 55,068 Noninterest income (3) 19,655 12,811 15,125 27,417 Noninterest expense (4) 40,835 42,411 43,428 45,509 Income before income taxes 32,301 22,733 21,183 36,976 Income tax expense (5) 6,533 4,325 3,176 7,460 Net income $ 25,768 $ 18,408 $ 18,007 $ 29,516 Basic earnings per share: Class A Common Stock $ 1.23 $ 0.88 $ 0.86 $ 1.42 Class B Common Stock 1.13 0.80 0.79 1.29 Diluted earnings per share: Class A Common Stock $ 1.23 $ 0.88 $ 0.86 $ 1.41 Class B Common Stock 1.12 0.80 0.78 1.28 Dividends declared per common share: Class A Common Stock $ 0.264 $ 0.264 $ 0.264 $ 0.264 Class B Common Stock 0.240 0.240 0.240 0.240 (1) The first quarters of 2020 and 2019 were significantly impacted by the TRS segment of RPG. (2) Provision expense: The relatively higher levels of Provision expense during the first quarters of 2020 and 2019 were driven by the TRS segment’s EA product. Provision expense for EAs during the first quarters of 2020 and 2019 was $15.2 million and $13.4 million. Provision expense during 2020 was negatively impacted by economic conditions created by the COVID-19 pandemic. The relatively low Provision expense during the fourth quarter of 2019 is partially attributable to the release of $900,000 in reserves associated with divested loans upon final settlement of the Bank’s branch divestiture. See Footnote 26 in this section of the filing for additional information on the Company’s branch divestiture. (3) Noninterest income: The fourth quarter of 2019 included a $7.9 million net gain on the final settlement of the Bank’s branch divestiture. See Footnote 26 in this section of the filing for additional information on the Company’s branch divestiture. (4) Noninterest expense: During the fourth quarters of 2020 and 2019, the Company reversed $600,000 and $1.2 million of incentive compensation accruals based on revised payout estimates. The fourth quarter of 2020 included $2.1 million of non-recurring FHLB advance early termination penalties. (5) See Footnote 19 in this section of the filing for more information on the Company’s income taxes for 2020 and 2019 . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation — Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-member financial institution that provides both traditional and non-traditional banking products through 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. As of December 31, 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 December 31, 2020 and results of operations for 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 13 “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 — 7 ● Metropolitan Cincinnati, Ohio — 2 ● Metropolitan Nashville, Tennessee — 2 Republic’s headquarters are in Louisville, which is the largest city in Kentucky based on population. Traditional Banking results of operations are primarily dependent upon net interest income, which represents the difference between the interest income and fees on interest-earning assets and the interest expense on interest-bearing liabilities. Principal interest-earning Traditional Banking assets represent investment securities and commercial and consumer loans primarily secured by real estate and/or personal property. Interest-bearing liabilities primarily consist of interest-bearing deposit accounts, securities sold under agreements to repurchase, as well as short-term and long-term borrowing sources. FHLB advances have traditionally been a significant borrowing source for the Bank. Other sources of Traditional Banking income include service charges on deposit accounts, debit and credit card interchange fee income, title insurance commissions, and increases in the cash surrender value of BOLI. Traditional Banking operating expenses consist primarily of salaries and employee benefits, 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 — 15 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 2020 and 2019: ● 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 35 days 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 35 days after the taxpayer’s tax return is submitted to the applicable taxing authority. Provision on EAs is 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 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 ● RCS installment loan product – In December 2019, through RCS, the Bank began offering 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. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these loans to 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.” |
Use of Estimates | Use of Estimates |
Concentration of Credit Risk | Concentration of Credit Risk The Bank’s warehouse lines of credit are secured by single family, first lien residential real estate loans originated by the Bank’s mortgage clients across the United States. As of December 31, 2020, 36% of collateral securing warehouse lines were located in California. |
Earnings Concentration | Earnings Concentration For 2020, 2019, and 2018, approximately 8%, 5% and 5% of total Company net revenues (net interest income plus noninterest income) were derived from the Company’s Warehouse segment. |
Cash Flows | Cash Flows |
Interest-Bearing Deposits in Other Financial Institutions | Interest-Bearing Deposits in Other Financial Institutions |
Debt and Equity Securities | Debt Securities Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are generally amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Equity Securities — Allowance for Credit Losses on Available-for-Sale Securities — For the Company’s AFS corporate bond, the Company uses third-party PD and LGD data to estimate an ACLS, which is limited by the amount that the bond’s fair value is less than its amortized cost basis. For all other AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written-down to fair value through income. For other AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACLS is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACLS is recognized in other comprehensive income. Changes in ACLS are recorded as a charge or credit to the Provision. Losses are charged against the ACLS when management believes the lack of collectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on AFS debt securities totaled $1 million at December 31, 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 December 31, 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 Held for Sale | Loans Held for Sale - Mortgage Banking Activities Commitments to fund mortgage loans (“interest rate lock commitments”) to be sold into the secondary market and non-exchange traded mandatory forward sales contracts (“forward contracts”) for the future delivery of these mortgage loans are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the Bank enters into the derivative. Generally, the Bank enters into forward contracts for the future delivery of mortgage loans when interest rate lock commitments are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these mortgage derivatives are included in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement. Mortgage loans held for sale are generally sold with the MSRs retained. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded as a component of Mortgage Banking income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into Mortgage Banking income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Amortization of MSRs are initially set at seven years and subsequently adjusted on a quarterly basis based on the weighted average remaining life of the underlying loans. MSRs are evaluated for impairment quarterly based upon the fair value of the MSRs as compared to carrying amount. Impairment is determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate, loan type, loan terms and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Bank later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance is recorded as an increase to income. Changes in valuation allowances are reported within Mortgage Banking income on the income statement. The fair value of the MSR portfolios is subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates. A primary factor influencing the fair value is the estimated life of the underlying serviced loans. The estimated life of the serviced loans is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs generally will decline due to higher expected prepayments within the portfolio. Alternatively, during a period of rising interest rates the fair value of MSRs generally will increase, as prepayments on the underlying loans would be expected to decline. See Footnote 16 “Mortgage Banking Activities” in this section of the filing for management’s determination of MSR impairment. Loan servicing income is reported on the income statement as a component of Mortgage Banking income. Loan servicing income is recorded as loan payments are collected and includes servicing fees from investors and certain charges collected from borrowers. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned. Loan servicing income totaled $2.9 million, $2.5 million and $2.4 million for the years ended December 31, 2020, 2019 and 2018. Late fees and ancillary fees related to loan servicing are considered nominal. Consumer Loans Held for Sale, at Fair Value Consumer Loans Held for Sale, at Lower of Cost or Fair Value |
Loans | Loans — Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. Premiums on loans held for investment are amortized into interest income on the level-yield method over the expected life of the loan. Lease financing receivables, 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 |
Purchased Credit Deteriorated Loans | Purchased Credit Deteriorated Loans — ● Non-accretable discount assigned by the Bank ● Classified by either the acquired bank or the Bank as Special Mention or Substandard ● Nonaccrual status when purchased ● Past due 30 days or more when purchased ● Loans that have been at least one time over 30 days past due ● Past maturity date when purchased ● Select loans that are cross collateralized with any loans identified above PCD loans are recorded at the amount paid. An ACLL is determined using the same methodology as other loans held for investment. The initial ACLL determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACLL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACLL are recorded through the Provision. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans — The ACLL is measured on a collective or pooled basis when similar risk characteristics exist. The first table of Footnote 4 illustrates the Company’s loan portfolio by ACLL risk pool. This pooling method is primarily based on the pool’s collateral type or the pool’s purpose and generally follows the Bank’s loan segmentation for regulatory reporting. For each of its loan pools, the Company uses a “static-pool” method, which analyzes historical closed pools of similar loans over their expected lives to attain a loss rate. This loss rate is then adjusted for current conditions and reasonable and supportable forecasts prior to being applied to the current balance of the analyzed pools. Adjustments to the historical loss rate for current conditions include differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, such as changes in property values or other relevant factors. A one-year forecast adjustment to the historical loss rate is based on a forecast of the U.S. national unemployment rate, which has shown a relatively strong historical correlation to the Bank’s loan losses. For the CRE loan pool, a one-year forecast of CRE vacancy rates within the Company’s footprint was introduced into the Company’s CECL model during the third quarter of 2020 due to pandemic-driven changes in culture, including increased and prolonged work-from-home practices. Subsequent to one-year forecasts, loss rates are assumed to immediately revert back to long-term historical averages. Loans that do not share risk characteristics are evaluated on an individual basis, with the Company choosing to individually evaluate all 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. See Footnote 4 “Loans and Allowance for Credit Losses” in this section of the filing for additional discussion regarding the Company’s ACLL. |
Troubled Debt Restructurings | 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 receiving a COVID-19 accommodation are not classified as TDRs. ● For additional discussion regarding loans accommodated due to COVID-19, see Footnote 4 “Loans and Allowance for Credit Losses” in this section of the filing. |
Transfers of Financial Assets | Transfers of Financial Assets — |
Other Real Estate Owned | Other Real Estate Owned — Assets acquired through loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. The Bank’s selling costs for OREO typically range from 10- 13% of each property’s fair value, depending on property class. Fair value is commonly based on recent real estate appraisals or broker price opinions. Operating costs after acquisition are expensed. Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g. residential real estate or commercial real estate, and may lead to additional adjustments to the value of unliquidated collateral of similar class. |
Premises and Equipment, Net | Premises and Equipment, Net — three three |
Right of Use Asset and Operating Lease Liabilities | Right of Use Assets and Operating Lease Liabilities — Regarding lease terms, the Company’s assumes the remaining lease term includes the fixed noncancelable term, plus all periods for which failure to renew the lease imposes a penalty on the Company, plus all periods for which the Company is reasonably certain to exercise a lease renewal option, plus all periods for which the Company is reasonably certain not to exercise a lease termination option. In determining whether it is reasonably certain to exercise a lease renewal or termination option, the Company considers its overall strategic plan and all economic and environmental circumstances connected to the leased property. To discount its operating lease payments and guarantees, the Company employs the interest rate curve published by the FHLB of Cincinnati for the FHLB’s collateralized term borrowings; matching expected lease term to borrowing term. The Company does not place short-term leases on its balance sheet. Short-term leases have a lease term of 12 months or less and do not include a purchase option that the Company is reasonably certain to exercise. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock |
Bank Owned Life Insurance | Bank Owned Life Insurance — |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company has selected September 30 th All goodwill is attributable to the Company’s Traditional Banking segment and is not expected to be deductible for tax purposes. Based on its assessment, the Company believes its goodwill of $16 million at December 31, 2020 and 2019 was not impaired and is properly recorded in the consolidated financial. |
Off Balance Sheet Financial Instruments | Off Balance Sheet Financial Instruments |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance Sheet Credit Exposures — The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The likelihood that funding will occur is based on the historical usage rate of such commitments. For a listing of off-balance sheet credit exposures the Company generally considers for an ACLC, see Footnote 13 “Off Balance Sheet Risks, Commitments And Contingent Liabilities” in this section of the filing. The ACLC is recorded as a component of other liabilities on the Company’s balance sheet. Any provision for the ACLC is recorded on the Company’s income statement as a component of other noninterest expense. |
Derivatives | Derivatives The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss is recorded as a component of other comprehensive income (loss). For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Net cash settlements on interest rate swaps are recorded in interest expense and cash flows related to the swaps are classified in the cash flow statement the same as the interest expense and cash flows from the liabilities being hedged. The Bank formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet. The Bank also formally assesses, both at the hedge’s inception and on an ongoing basis, whether a swap is highly effective in offsetting changes in cash flows of the hedged items. The Bank discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods that the hedged transactions will affect earnings. The Bank enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Bank enters into offsetting positions with dealer counterparties in order to minimize the Bank’s interest rate risk. These swaps are derivatives but are not designated as hedging instruments; therefore, changes in fair value are reported in current year earnings. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or client owes the Bank and results in credit risk to the Bank. When the fair value of a derivative instrument contract is negative, the Bank owes the client or counterparty and does not have credit risk. |
Stock Based Compensation | Stock Based Compensation vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Forfeitures of stock-based awards are accounted for when incurred in lieu of using forfeiture estimates. |
Income Taxes | Income Taxes A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Retirement Plans | Retirement Plans |
Earnings Per Common Share | Earnings Per Common Share |
Comprehensive Income | Comprehensive Income |
Loss Contingencies | Loss Contingencies |
Restrictions on Cash and Cash Equivalents | Restrictions on Cash and Cash Equivalents The Company’s Captive maintains cash reserves to cover insurable claims. Reserves totaled $3 million and $3 million as of December 31, 2020 and 2019. |
Equity | Equity |
Dividend Restrictions | Dividend Restrictions |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value” |
Revenue from contracts with Customers | Revenue from Contracts with Customers - Revenue from Contracts with Customers |
Segment Information | Segment Information |
Reclassifications | Reclassifications |
Recently 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 are presented under CECL while prior-period amounts are presented 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 remained 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 $1.4 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 continues 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 — Aircraft 176 176 — 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 681 374 307 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 year ended December 31, 2020: Method of Financial ASU. No. Topic Nature of Update Date Adopted Adoption 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. Accounting Standards Updates The following ASUs were issued prior to December 31, 2020 and are considered relevant to the Company’s financial statements. Generally, if an issued-but-not-yet-effective ASU with an expected immaterial impact to the Company has been disclosed in prior Company financial statements, it will not be included below. Date Adoption Adoption Expected ASU. No. Topic Nature of Update Required Method Financial Impact 2020-09 Debt This ASU amends and supersedes various SEC paragraphs to reflect SEC Release No. 33-10762, which includes amendments to the financial disclosure requirements applicable to registered debt offerings that include credit enhancements, such as subsidiary guarantees. These SEC changes are intended to both improve the quality of disclosure and increase the likelihood that issuers will conduct debt offerings on a registered basis. January 4, 2021 Prospectively Immaterial 2020-10 Codification Improvements This ASU affects a wide variety of Topics in the Codification. January 1, 2021 Prospectively Immaterial 2020-11 Financial Services-Insurance (Topic 944): Effective Date and Early Application This ASU allows the delayed adoption date of ASU No. 2018-12 and allows insurance companies to restate only one previous period, rather than two, if they choose to early adopt improvements to the accounting for long duration contracts. January 1, 2021 Prospectively Immaterial 2021-01 Reference Rate Reform (Topic 848): Scope This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. January 7, 2021 Prospectively, with some retrospective elections available Immaterial |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 — Aircraft 176 176 — 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 681 374 307 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 year ended December 31, 2020: Method of Financial ASU. No. Topic Nature of Update Date Adopted Adoption 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. Accounting Standards Updates The following ASUs were issued prior to December 31, 2020 and are considered relevant to the Company’s financial statements. Generally, if an issued-but-not-yet-effective ASU with an expected immaterial impact to the Company has been disclosed in prior Company financial statements, it will not be included below. Date Adoption Adoption Expected ASU. No. Topic Nature of Update Required Method Financial Impact 2020-09 Debt This ASU amends and supersedes various SEC paragraphs to reflect SEC Release No. 33-10762, which includes amendments to the financial disclosure requirements applicable to registered debt offerings that include credit enhancements, such as subsidiary guarantees. These SEC changes are intended to both improve the quality of disclosure and increase the likelihood that issuers will conduct debt offerings on a registered basis. January 4, 2021 Prospectively Immaterial 2020-10 Codification Improvements This ASU affects a wide variety of Topics in the Codification. January 1, 2021 Prospectively Immaterial 2020-11 Financial Services-Insurance (Topic 944): Effective Date and Early Application This ASU allows the delayed adoption date of ASU No. 2018-12 and allows insurance companies to restate only one previous period, rather than two, if they choose to early adopt improvements to the accounting for long duration contracts. January 1, 2021 Prospectively Immaterial 2021-01 Reference Rate Reform (Topic 848): Scope This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. January 7, 2021 Prospectively, with some retrospective elections available Immaterial |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 245,204 $ 1,730 $ (25) $ — $ 246,909 Private label mortgage backed security 1,707 1,250 — — 2,957 Mortgage backed securities - residential 203,786 7,419 (3) — 211,202 Collateralized mortgage obligations 48,190 772 (10) — 48,952 Corporate bonds 10,000 43 — — 10,043 Trust preferred security 3,631 169 — — 3,800 Total available-for-sale debt securities $ 512,518 $ 11,383 $ (38) $ — $ 523,863 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 December 31, 2020 (in thousands) Value Gains Losses Value Credit Losses Mortgage backed securities - residential $ 99 $ 5 $ — $ 104 $ — Collateralized mortgage obligations 13,061 176 — 13,237 — Corporate bonds 39,986 499 — 40,485 (178) Obligations of state and political subdivisions 356 8 — 364 — Total held-to-maturity debt securities $ 53,502 $ 688 $ — $ 54,190 $ (178) 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 December 31, 2020 (in thousands) Cost Value Value Value Due in one year or less $ 14,943 $ 15,118 $ 110 $ 111 Due from one year to five years 240,261 241,834 35,277 35,708 Due from five years to ten years — — 4,955 5,030 Due beyond ten years 3,631 3,800 — — Private label mortgage backed security 1,707 2,957 — — Mortgage backed securities - residential 203,786 211,202 99 104 Collateralized mortgage obligations 48,190 48,952 13,061 13,237 Total debt securities $ 512,518 $ 523,863 $ 53,502 $ 54,190 |
Schedule of debt securities with unrealized losses | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2020 (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 $ 59,971 $ (25) $ — $ — $ 59,971 $ (25) Mortgage backed securities - residential 1,068 (3) — — 1,068 (3) Collateralized mortgage obligations 2,788 (10) — — 2,788 (10) Total available-for-sale debt securities $ 63,827 $ (38) $ — $ — $ 63,827 $ (38) 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) |
Rollforward of the private label mortgage backed security credit losses | Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 1,462 $ 1,613 $ 1,765 Recovery of losses previously recorded — (151) (152) Balance, end of period $ 1,462 $ 1,462 $ 1,613 |
Schedule of allowance for credit losses on investment | ACLS Rollforward Year Ended December 31, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds — 51 127 — — 178 Total $ — $ 51 $ 127 $ — $ — $ 178 |
Schedule of pledged investment securities | December 31, (in thousands) 2020 2019 Carrying amount $ 303,535 $ 229,700 Fair value 303,611 229,706 |
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 December 31, 2020 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 560 $ — $ 560 Community Reinvestment Act mutual fund 2,500 23 — 2,523 Total equity securities with readily determinable fair values $ 2,500 $ 583 $ — $ 3,083 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 Year Ended December 31, 2020 Year Ended December 31, 2019 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (154) $ (154) $ — $ 304 $ 304 Community Reinvestment Act mutual fund — 49 49 — 78 78 Total equity securities with readily determinable fair value $ — $ (105) $ (105) $ — $ 382 $ 382 |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LOANS HELD FOR SALE. | |
Schedule of activity of consumer loans held for sale and carried at fair value | Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 598 $ — $ — Origination of consumer loans held for sale 58,833 598 — Proceeds from the sale of consumer loans held for sale (57,814) — — Net gain on sale of consumer loans held for sale 1,681 — — Balance, end of period $ 3,298 $ 598 $ — |
Schedule of activity of consumer loans held for sale and carried at lower of cost or fair value | Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 11,646 $ 12,838 $ 8,551 Origination of consumer loans held for sale 460,040 709,768 761,491 Loans transferred to held for investment — — 1,392 Proceeds from the sale of consumer loans held for sale (473,507) (716,062) (764,929) Net gain on sale of consumer loans held for sale 3,299 5,102 6,333 Balance, end of period $ 1,478 $ 11,646 $ 12,838 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Schedule of composition of loan portfolio | December 31, (in thousands) 2020 2019 Traditional Banking: Residential real estate: Owner occupied $ 879,800 $ 949,568 Nonowner occupied 264,780 258,803 Commercial real estate 1,349,085 1,303,000 Construction & land development 98,674 159,702 Commercial & industrial 325,596 465,674 Paycheck Protection Program 392,319 — Lease financing receivables 10,130 14,040 Aircraft 101,375 70,443 Home equity 240,640 293,186 Consumer: Credit cards 14,196 17,836 Overdrafts 587 1,522 Automobile loans 30,300 52,923 Other consumer 8,167 9,234 Total Traditional Banking 3,715,649 3,595,931 Warehouse lines of credit* 962,796 717,458 Total Core Banking 4,678,445 4,313,389 Republic Processing Group*: Tax Refund Solutions: Easy Advances — — Other TRS loans 23,765 14,365 Republic Credit Solutions 110,893 105,397 Total Republic Processing Group 134,658 119,762 Total loans** 4,813,103 4,433,151 Allowance for credit losses (61,067) (43,351) Total loans, net $ 4,752,036 $ 4,389,800 * Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. |
Schedule that reconciles the contractually receivable and carrying amounts of loans | December 31, (in thousands) 2020 2019 Contractually receivable $ 4,821,062 $ 4,432,351 Unearned income (708) (1,139) Unamortized premiums 216 366 Unaccreted discounts (988) (2,534) PPP net unamortized deferred origination fees and costs (8,564) — Other net unamortized deferred origination fees and costs 2,085 4,107 Carrying value of loans $ 4,813,103 $ 4,433,151 |
Schedule of activity in the ACLL for loan and lease losses | ACLL Rollforward Years Ended December 31, 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 $ 785 $ (169) $ 171 $ 9,715 $ 6,035 $ (1,087) $ (610) $ 391 $ 4,729 Nonowner occupied 1,737 148 570 — 11 2,466 1,662 125 (73) 23 1,737 Commercial real estate 10,486 273 13,170 (795) 472 23,606 10,030 1,859 (1,407) 4 10,486 Construction & land development 2,152 1,447 (325) — — 3,274 2,555 (403) — — 2,152 Commercial & industrial 2,882 (1,318) 1,421 (310) 122 2,797 2,873 1,505 (1,505) 9 2,882 Paycheck Protection Program — — — — — — — — — — — Lease financing receivables 147 — (41) — — 106 158 (11) — — 147 Aircraft 176 — 77 — — 253 91 85 — — 176 Home equity 2,721 1,652 516 (14) 115 4,990 3,477 (764) (64) 72 2,721 Consumer: Credit cards 1,020 33 111 (295) 60 929 1,140 226 (402) 56 1,020 Overdrafts 1,169 — 79 (886) 225 587 1,102 1,155 (1,310) 222 1,169 Automobile loans 612 (7) (176) (60) 30 399 724 (42) (79) 9 612 Other consumer 374 307 (57) (240) 193 577 500 (204) (263) 341 374 Total Traditional Banking 28,205 6,734 16,130 (2,769) 1,399 49,699 30,347 2,444 (5,713) 1,127 28,205 Warehouse lines of credit 1,794 — 613 — — 2,407 1,172 622 — — 1,794 Total Core Banking 29,999 6,734 16,743 (2,769) 1,399 52,106 31,519 3,066 (5,713) 1,127 29,999 Republic Processing Group: Tax Refund Solutions: Easy Advances — — 13,033 (19,575) 6,542 — — 10,643 (13,425) 2,782 — Other TRS loans 234 — 156 (234) 2 158 107 606 (692) 213 234 Republic Credit Solutions 13,118 — 1,219 (6,163) 629 8,803 13,049 11,443 (12,566) 1,192 13,118 Total Republic Processing Group 13,352 — 14,408 (25,972) 7,173 8,961 13,156 22,692 (26,683) 4,187 13,352 Total $ 43,351 $ 6,734 $ 31,151 $ (28,741) $ 8,572 $ 61,067 $ 44,675 $ 25,758 $ (32,396) $ 5,314 $ 43,351 ACLL Rollforward Year Ended December 31, 2018 Beginning Provision Charge- Ending (in thousands) Balance for Credit Loss offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 6,474 $ 170 $ (855) $ 246 $ 6,035 Nonowner occupied 1,396 559 (332) 39 1,662 Commercial real estate 9,043 863 (7) 131 10,030 Construction & land development 2,364 161 — 30 2,555 Commercial & industrial 2,198 824 (200) 51 2,873 Lease financing receivables 174 (16) — — 158 Aircraft 37 54 — — 91 Home equity 3,754 (473) (115) 311 3,477 Consumer: Credit cards 607 906 (416) 43 1,140 Overdrafts 974 1,082 (1,215) 261 1,102 Automobile loans 687 57 (24) 4 724 Other consumer 1,125 (477) (444) 296 500 Total Traditional Banking 28,833 3,710 (3,608) 1,412 30,347 Warehouse lines of credit 1,314 (142) — — 1,172 Total Core Banking 30,147 3,568 (3,608) 1,412 31,519 Republic Processing Group: Tax Refund Solutions: Easy Advances — 10,760 (12,478) 1,718 — Other TRS loans 12 159 (74) 10 107 Republic Credit Solutions 12,610 16,881 (17,692) 1,250 13,049 Total Republic Processing Group 12,622 27,800 (30,244) 2,978 13,156 Total $ 42,769 $ 31,368 $ (33,852) $ 4,390 $ 44,675 |
Schedule of non-performing loans and non-performing assets and select credit quality ratios | December 31, (dollars in thousands) 2020 2019 Loans on nonaccrual status* $ 23,548 $ 23,332 Loans past due 90-days-or-more and still on accrual** 47 157 Total nonperforming loans 23,595 23,489 Other real estate owned 2,499 113 Total nonperforming assets $ 26,094 $ 23,602 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.49 % 0.53 % Nonperforming assets to total loans (including OREO) 0.54 0.53 Nonperforming assets to total assets 0.42 0.42 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.50 % 0.54 % Nonperforming assets to total loans (including OREO) 0.56 0.54 Nonperforming assets to total assets 0.45 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* December 31, (in thousands) 2020 2019 2020 2019 Traditional Banking: Residential real estate: Owner occupied $ 14,328 $ 12,220 $ — $ — Nonowner occupied 81 623 — — Commercial real estate 6,762 6,865 — — Construction & land development — 143 — — Commercial & industrial 55 1,424 — — Paycheck Protection Program — — Lease financing receivables — — — — Aircraft — — Home equity 2,141 1,865 — — Consumer: Credit cards — — 5 — Overdrafts — — — — Automobile loans 170 179 — — Other consumer 11 13 — — Total Traditional Banking 23,548 23,332 5 — Warehouse lines of credit — — — — Total Core Banking 23,548 23,332 5 — Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — — 53 Republic Credit Solutions — — 42 104 Total Republic Processing Group — — 42 157 Total $ 23,548 $ 23,332 $ 47 $ 157 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Year Ended As of December 31, 2020 December 31, 2020 Nonaccrual Nonaccrual Total Interest Income Loans with Loans without Nonaccrual Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* Residential real estate: Owner occupied $ 1,995 $ 12,333 $ 14,328 $ 824 Nonowner occupied 8 73 81 11 Commercial real estate 576 6,186 6,762 857 Construction & land development — — — — Commercial & industrial — 55 55 17 Paycheck Protection Program — — — — Lease financing receivables — — — — Aircraft — — — — Home equity 91 2,050 2,141 94 Consumer 69 112 181 13 Total $ 2,739 $ 20,809 $ 23,548 $ 1,816 * 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 December 31, 2020 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,038 $ 668 $ 1,554 $ 3,260 $ 876,540 $ 879,800 Nonowner occupied — — — — 264,780 264,780 Commercial real estate — 348 5,109 5,457 1,343,628 1,349,085 Construction & land development — — — — 98,674 98,674 Commercial & industrial — — 12 12 325,584 325,596 Paycheck Protection Program — — — — 392,319 392,319 Lease financing receivables — — — — 10,130 10,130 Aircraft — — — — 101,375 101,375 Home equity 93 14 595 702 239,938 240,640 Consumer: Credit cards 33 35 5 73 14,123 14,196 Overdrafts 140 5 2 147 440 587 Automobile loans 42 — 14 56 30,244 30,300 Other consumer 6 — — 6 8,161 8,167 Total Traditional Banking 1,352 1,070 7,291 9,713 3,705,936 3,715,649 Warehouse lines of credit — — — — 962,796 962,796 Total Core Banking 1,352 1,070 7,291 9,713 4,668,732 4,678,445 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans — — — — 23,765 23,765 Republic Credit Solutions 6,572 3,620 42 10,234 100,659 110,893 Total Republic Processing Group 6,572 3,620 42 10,234 124,424 134,658 Total $ 7,924 $ 4,690 $ 7,333 $ 19,947 $ 4,793,156 $ 4,813,103 Delinquency ratio*** 0.16 % 0.10 % 0.15 % 0.41 % * 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 1,355 464,319 465,674 Lease financing receivables — — — — 14,040 14,040 Aircraft — — — — 70,443 70,443 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 9,225 9,234 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 small-dollar consumer loans, were on nonaccrual status. **Delinquent status may be determined by either the number of days past due or number of payments past due. ***Represents total loans 30-days-or-more past due divided by total loans. |
Schedule of amortized cost basis of collateral-dependent loans | Secured Secured December 31, 2020 by Real by Personal (dollars in thousands) Estate Property Traditional Banking: Residential real estate: Owner occupied $ 17,212 $ — Nonowner occupied 81 — Commercial real estate 10,205 — Construction & land development — — Commercial & industrial — 12 Paycheck Protection Program — — Lease financing receivables — — Aircraft — — Home equity 2,899 — Consumer — 237 Total Traditional Banking $ 30,397 $ 249 |
Schedule of Bank's impaired loans | Years Ended December 31, (in thousands) 2020 2019 2018 Loans with no allocated ACLL $ — $ 33,061 $ 19,555 Loans with allocated ACLL — 17,289 21,880 Total recorded investment in impaired loans $ — $ 50,350 $ 41,435 Amount of ACLL allocated $ — $ 2,512 $ 3,764 Average of individually impaired loans during the year — 45,400 45,620 Interest income recognized during impairment 2,739 1,342 1,245 Cash basis interest income recognized — — — |
Schedule of balance in the ACLL 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 ACLL to (dollars in thousands) Excluding PCI Evaluated Impairment ACLL 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 1,989 463,663 — 22 465,674 0.62 Lease financing receivables — 147 — 147 — 14,040 — — 14,040 1.05 Aircraft — 176 — 176 — 70,443 — — 70,443 0.25 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 41 — 374 350 8,881 2 1 9,234 4.05 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 Year Ended December 31, 2019 December 31, 2019 Cash Basis Unpaid Average Interest Interest Principal Recorded Allocated Recorded Income Income (in thousands) Balance Investment ACLL Investment Recognized Recognized Impaired loans with no allocated ACLL: Residential real estate: Owner occupied $ 14,768 $ 13,893 $ — $ 12,655 $ 191 $ — Nonowner occupied 1,515 1,448 — 1,425 57 — Commercial real estate 15,028 12,547 — 7,514 298 — Construction & land development 198 198 — 65 2 — Commercial & industrial 3,308 1,792 — 913 35 — Lease financing receivables — — — — — — Aircraft — — — — — — Home equity 3,107 3,023 — 2,140 75 — Consumer 206 160 — 76 4 — Impaired loans with allocated ACLL: Residential real estate: Owner occupied 12,954 12,911 1,392 13,824 502 — Nonowner occupied — — — 108 — — Commercial real estate 3,228 3,228 432 3,624 151 — Construction & land development — — — 30 — — Commercial & industrial 197 197 22 2,054 3 — Lease financing receivables — — — — — — Aircraft — — — — — — Home equity 263 263 174 417 8 — Consumer 701 690 492 555 16 — Total impaired loans $ 55,473 $ 50,350 $ 2,512 $ 45,400 $ 1,342 $ — As of Year Ended December 31, 2018 December 31, 2018 Cash Basis Unpaid Average Interest Interest Principal Recorded Allocated Recorded Income Income (in thousands) Balance Investment ACLL Investment Recognized Recognized Impaired loans with no allocated ACLL: Residential real estate: Owner occupied $ 12,058 $ 11,085 $ — $ 11,202 $ 198 $ — Non owner occupied 2,729 2,350 — 2,561 87 — Commercial real estate 5,688 4,607 — 5,040 151 — Construction & land development — — — 119 — — Commercial & industrial 712 604 — 755 3 — Lease financing receivables — — — — — — Aircraft — — — — — — Home equity 919 876 — 682 17 — Consumer 33 33 — 49 2 — Impaired loans with allocated ACLL: Residential real estate: Owner occupied 16,215 15,802 2,433 17,754 528 — Non owner occupied 78 56 4 136 — — Commercial real estate 4,416 4,416 303 5,495 206 — Construction & land development 65 65 4 113 3 — Commercial & industrial 416 416 130 158 19 — Lease financing receivables — — — — — — Aircraft — — — — — — Home equity 572 571 360 925 9 — Consumer 554 554 530 631 22 — Total impaired loans $ 44,455 $ 41,435 $ 3,764 $ 45,620 $ 1,245 $ — |
Schedule of TDRs differentiated by loan type and accrual status | Troubled Debt Troubled Debt Total Restructurings on Restructurings on Troubled Debt Nonaccrual Status Accrual Status Restructurings Number of Recorded Number of Recorded Number of Recorded December 31, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 61 $ 4,189 123 $ 11,041 184 $ 15,230 Commercial real estate 2 2,509 5 2,395 7 4,904 Construction & land development — — 1 44 1 44 Commercial & industrial — — 1 1 1 1 Consumer 1 14 2,194 585 2,195 599 Total troubled debt restructurings 64 $ 6,712 2,324 $ 14,066 2,388 $ 20,778 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 December 31, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 1 $ 826 — $ — 1 $ 826 Rate reduction 101 9,526 6 370 107 9,896 Principal deferral 9 858 2 166 11 1,024 Legal modification 58 3,068 7 416 65 3,484 Total residential TDRs 169 14,278 15 952 184 15,230 Commercial related and construction/land development loans: Interest only payments 1 488 — — 1 488 Rate reduction 2 1,046 1 45 3 1,091 Principal deferral 4 906 1 2,464 5 3,370 Total commercial TDRs 7 2,440 2 2,509 9 4,949 Consumer loans: Principal deferral 2,193 578 — — 2,193 578 Legal modification 2 21 — — 2 21 Total consumer TDRs 2,195 599 — — 2,195 599 Total troubled debt restructurings 2,371 $ 17,317 17 $ 3,461 2,388 $ 20,778 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 December 31, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral 2 $ 53 1 $ 3 3 $ 56 Legal modification 15 701 3 131 18 $ 832 Total residential TDRs 17 754 4 134 21 888 Commercial related and construction/land development loans: Principal deferral 2 133 — — 2 133 Total commercial TDRs 2 133 — — 2 133 Consumer loans: Principal deferral 486 71 — — 486 71 Legal modification 1 14 — — 1 14 Total consumer TDRs 487 85 — — 487 85 Total troubled debt restructurings 506 $ 972 4 $ 134 510 $ 1,106 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): Rate reduction 1 $ 365 — $ — 1 $ 365 Principal deferral — — — — — — Legal modification 26 1,958 5 417 31 2,375 Total residential TDRs 27 2,323 5 417 32 2,740 Commercial related and construction/land development loans: Interest only payments 2 1,423 — — 2 1,423 Principal deferral 4 3,199 — — 4 3,199 Legal modification — — 2 1,027 2 1,027 Total commercial TDRs 6 4,622 2 1,027 8 5,649 Consumer loans: Principal deferral 1,279 201 — — 1,279 201 Legal modification 1 9 — — 1 9 Total consumer TDRs 1,280 210 — — 1,280 210 Total troubled debt restructurings 1,313 $ 7,155 7 $ 1,444 1,320 $ 8,599 The tables above are inclusive of loans that were TDRs at the end of previous years and were re-modified, e.g., a maturity date extension during the current year. Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded December 31, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — 1 $ 970 1 $ 970 Rate reduction 2 465 — — 2 465 Principal deferral 3 43 3 1,849 6 1,892 Legal modification 7 121 1 18 8 139 Total residential TDRs 12 629 5 2,837 17 3,466 Commercial related and construction/land development loans: Principal deferral 6 1,402 — — 6 1,402 Legal modification — — 1 28 1 28 Total commercial TDRs 6 1,402 1 28 7 1,430 Consumer loans: Principal deferral 1 52 — — 1 52 Total consumer TDRs 1 52 — — 1 52 Total troubled debt restructurings 19 $ 2,083 6 $ 2,865 25 $ 4,948 The table above is inclusive of loans that were TDRs at the end of previous years and were re-modified, e.g., a maturity date extension during the current year. |
Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default | Years Ended December 31, 2020 2019 2018 Number of Recorded Number of Recorded Number of Recorded (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate: Owner occupied 5 $ 218 4 $ 248 6 $ 2,920 Commercial real estate — — 1 541 1 28 Commercial & industrial — — 2 1,027 — — Home equity 2 32 — — — — Consumer — — 1,279 201 — — Total 7 $ 250 1,286 $ 2,017 7 $ 2,948 |
Schedule of carrying amount of foreclosed properties held | December 31, (in thousands) 2020 2019 Residential real estate $ 496 $ 113 Commercial real estate 2,003 — Total other real estate owned $ 2,499 $ 113 |
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties | December 31, (in thousands) 2020 2019 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure $ 981 $ 2,201 |
Schedule of Easy Advances | Years Ended December 31, (dollars in thousands) 2020 2019 2018 Easy Advances originated $ 387,762 $ 388,970 $ 430,210 Net charge to the Provision for Easy Advances 13,033 10,643 10,760 Provision to total Easy Advances originated 3.36 % 2.74 % 2.50 % Easy Advances net charge-offs $ 13,033 $ 10,643 $ 10,760 Easy Advances net charge-offs to total Easy Advances originated 3.36 % 2.74 % 2.50 % |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |
Summary of the cost and accumulated depreciation of premises and equipment | December 31, (in thousands) 2020 2019 Land $ 4,303 $ 4,693 Buildings and improvements 33,225 33,780 Furniture, fixtures and equipment 51,467 48,782 Leasehold improvements 21,921 20,649 Construction in progress — 2,232 Total premises and equipment 110,916 110,136 Less: Accumulated depreciation and amortization 71,404 63,940 Premises and equipment, net $ 39,512 $ 46,196 |
Schedule of depreciation expense related to premises and equipment | Years Ended December 31, (in thousands) 2020 2019 2018 Depreciation expense $ 9,725 $ 9,230 $ 9,347 |
RIGHT-OF-USE ASSETS AND OPERA_2
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Summary of operating lease expense | Years Ended December 31, (in thousands) 2020 2019 Operating lease expense: Related Party: Variable lease expense $ 4,885 $ 4,690 Fixed lease expense 91 37 Third Party: Variable lease expense 786 883 Fixed lease expense 1,617 1,505 Short-term lease expense — 62 Total operating lease expense $ 7,379 $ 7,177 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 7,254 $ 7,175 Short-term lease payments not included in the measurement of lease liabilities — 62 |
Schedule of weighted average remaining term and weighted average discount rate for operating leases | December 31, (dollars in thousands) 2020 2019 Weighted average remaining term in years 8.37 8.02 Weighted average discount rate 3.10 % 3.46 % |
Schedule of operating lease liabilities | Year (in thousands) Related Party Third Party Total 2021 $ 4,638 $ 2,422 $ 7,060 2022 4,639 2,418 7,057 2023 4,639 1,995 6,634 2024 4,512 1,463 5,975 2025 4,344 925 5,269 Thereafter 15,800 2,707 18,507 Total undiscounted cash flows $ 38,572 $ 11,930 $ 50,502 Discount applied to cash flows (4,781) (1,381) (6,162) Total discounted cash flows reported as operating lease liabilities $ 33,791 $ 10,549 $ 44,340 |
GOODWILL AND CORE DEPOSIT INT_2
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | |
Schedule of progression of the balance for goodwill | Years Ended December 31, (in thousands) 2020 2019 2018 Beginning of period $ 16,300 $ 16,300 $ 16,300 Acquired goodwill — — — Impairment — — — End of period $ 16,300 $ 16,300 $ 16,300 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INTEREST RATE SWAPS | |
Summary of swaps designated as cash flow hedges | December 31, 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 $ — $ — $ (46) $ (34) Interest rate swap on FHLB advance 10,000 2.33 % 3M LIBOR 12/2013 - 12/2020 — — (58) (43) Total $ 20,000 $ — $ — $ (104) $ (77) |
Schedule of interest expense recorded on swap transactions in the consolidated statements of income | Years Ended December 31, (in thousands) 2020 2019 2018 Interest rate swap on money market deposits $ 138 $ (10) $ 18 Interest rate swap on FHLB advance 143 (10) 10 Total interest (benefit) expense on swap transactions $ 281 $ (20) $ 28 |
Summary of net gains recorded in AOCI and the consolidated statements of income relating to the swaps | Years Ended December 31, (in thousands) 2020 2019 2018 Gains (losses) recognized in OCI on derivative (effective portion) $ (177) $ (199) $ 178 Gains (losses) reclassified from OCI on derivative (effective portion) (281) 20 (28) Gains (losses) recognized in income on derivative (ineffective portion) — — — |
Summary of interest rate swaps related to clients | 2020 2019 Notional Notional December 31, (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 138,277 $ 12,545 $ 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 $ 138,277 $ 12,545 $ 102,051 $ 5,007 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 138,277 (12,545) 102,051 (5,007) Total $ 276,554 $ — $ 204,102 $ — |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS | |
Ending deposit balances | December 31, (in thousands) 2020 2019 Core Bank: Demand $ 1,217,263 $ 922,972 Money market accounts 712,824 793,950 Savings 236,335 175,588 Individual retirement accounts (1) 47,889 51,548 Time deposits, $250 and over (1) 83,448 104,412 Other certificates of deposit (1) 199,214 248,161 Reciprocal money market and time deposits (1) 314,109 189,774 Brokered deposits (1) 25,010 200,072 Total Core Bank interest-bearing deposits 2,836,092 2,686,477 Total Core Bank noninterest-bearing deposits 1,503,662 981,164 Total Core Bank deposits 4,339,754 3,667,641 Republic Processing Group: Money market accounts 6,673 66,152 Total RPG interest-bearing deposits 6,673 66,152 Brokered prepaid card deposits 257,856 9,128 Other noninterest-bearing deposits 128,898 43,087 Total RPG noninterest-bearing deposits 386,754 52,215 Total RPG deposits 393,427 118,367 Total deposits $ 4,733,181 $ 3,786,008 (1) Includes time deposits. |
Schedule of time deposits of $250,000 or more | December 31, (in thousands) 2020 2019 Time deposits of $250 or more $ 83,448 $ 104,412 |
Schedule of maturities of all time deposits, including brokered certificates of deposit | Weighted Average Years (dollars in thousands) Principal Rate 2021 $ 272,154 1.17 % 2022 48,837 1.70 2023 62,134 2.62 2024 11,390 2.19 2025 3,829 0.59 Thereafter 60 0.48 Total $ 398,404 1.49 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |
Schedule of securities sold under agreements to repurchase | December 31, (dollars in thousands) 2020 2019 Outstanding balance at end of period $ 211,026 $ 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 $ 60,059 $ 70,015 Mortgage backed securities - residential 140,554 134,265 Collateralized mortgage obligations 29,656 17,030 Total securities pledged $ 230,269 $ 221,310 Years Ended December 31, (dollars in thousands) 2020 2019 2018 Average outstanding balance during the period $ 204,797 $ 236,883 $ 225,145 Average interest rate during the period 0.09 % 0.51 % 0.50 % Maximum outstanding at any month end during the period $ 295,698 $ 276,927 $ 260,147 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Federal Home Loan Bank Advances | December 31, (in thousands) 2020 2019 Overnight advances $ 225,000 $ 200,000 Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% — 10,000 Fixed interest rate advances 10,000 540,000 Total FHLB advances $ 235,000 $ 750,000 |
Aggregate Future Principal Payments on FHLB Advances | Weighted Average Year (dollars in thousands) Principal Rate 2021 (Overnight) $ 225,000 0.16 % 2021 (Term) 10,000 1.89 2022 — — 2023 — — 2024 — — 2025 — — Thereafter — — Total $ 235,000 0.23 % |
Information Regarding Overnight FHLB Advances | December 31, (dollars in thousands) 2020 2019 Outstanding balance at end of period $ 225,000 $ 200,000 Weighted average interest rate at end of period 0.16 % 1.63 % Years Ended December 31, (dollars in thousands) 2020 2019 2018 Average outstanding balance during the period $ 25,546 $ 270,992 $ 202,830 Average interest rate during the period 0.81 % 2.43 % 1.98 % Maximum outstanding at any month end during the period $ 250,000 $ 785,000 $ 560,000 |
Real Estate Loans Pledged | December 31, (in thousands) 2020 2019 First lien, single family residential real estate $ 1,048,236 $ 1,099,941 Home equity lines of credit 208,944 274,990 |
OFF BALANCE SHEET RISKS, COMM_2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
Commitments Exclusive of Mortgage Bank Loan Commitments | December 31, (in thousands) 2020 2019 Unused warehouse lines of credit $ 456,004 $ 436,541 Unused home equity lines of credit 353,322 363,195 Unused loan commitments - other 775,128 757,657 Standby letters of credit 10,949 11,252 FHLB letter of credit 643 2,485 Total commitments $ 1,596,046 $ 1,571,130 |
Schedule of rollforward of the Off Balance Sheet risks ACLC | ACLC Rollforward Year Ended December 31, 2020 Beginning ASC 326 Charge- Ending (in thousands) Balance Adoption Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ — $ 55 $ 24 $ — $ — $ 79 Unused home equity lines of credit — 89 84 — — 173 Unused loan commitments - other — 312 425 — — 737 Total $ — $ 456 $ 533 $ — $ — $ 989 |
STOCKHOLDERS' EQUITY AND REGU_2
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | |
Schedule of compliance with regulatory capital requirements | Minimum Requirement to be Well Capitalized Minimum Requirement Under Prompt for Capital Adequacy Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020 Total capital to risk-weighted assets Republic Bancorp, Inc. $ 896,053 18.52 % $ 387,163 8.00 % NA NA Republic Bank & Trust Company 796,114 16.46 386,842 8.00 $ 483,553 10.00 % Common equity tier 1 capital to risk-weighted assets Republic Bancorp, Inc. 803,682 16.61 217,779 4.50 NA NA Republic Bank & Trust Company 743,743 15.38 217,599 4.50 314,309 6.50 Tier 1 (core) capital to risk-weighted assets Republic Bancorp, Inc. 843,682 17.43 290,372 6.00 NA NA Republic Bank & Trust Company 743,743 15.38 290,132 6.00 386,842 8.00 Tier 1 leverage capital to average assets Republic Bancorp, Inc. 843,682 13.70 246,385 4.00 NA NA Republic Bank & Trust Company 743,743 12.11 245,723 4.00 307,154 5.00 Minimum Requirement to be Well Capitalized Minimum Requirement Under Prompt for Capital Adequacy Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Total capital to risk-weighted assets Republic Bancorp, Inc. $ 825,987 17.01 % $ 388,526 8.00 % NA NA Republic Bank & Trust Company 723,248 14.91 388,143 8.00 $ 485,179 10.00 % Common equity tier 1 capital to risk-weighted assets Republic Bancorp, Inc. 742,636 15.29 218,546 4.50 NA NA Republic Bank & Trust Company 679,897 14.01 218,331 4.50 315,366 6.50 Tier 1 (core) capital to risk-weighted assets Republic Bancorp, Inc. 782,636 16.11 291,394 6.00 NA NA Republic Bank & Trust Company 679,897 14.01 291,107 6.00 388,143 8.00 Tier 1 leverage capital to average assets Republic Bancorp, Inc. 782,636 13.93 224,799 4.00 NA NA Republic Bank & Trust Company 679,897 12.11 224,515 4.00 280,644 5.00 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at December 31, 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 $ — $ 246,909 $ — $ 246,909 Private label mortgage backed security — — 2,957 2,957 Mortgage backed securities - residential — 211,202 — 211,202 Collateralized mortgage obligations — 48,952 — 48,952 Corporate bonds — 10,043 — 10,043 Trust preferred security — — 3,800 3,800 Total available-for-sale debt securities $ — $ 517,106 $ 6,757 $ 523,863 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 560 $ — $ 560 Community Reinvestment Act mutual fund 2,523 — — 2,523 Total equity securities with readily determinable fair value $ 2,523 $ 560 $ — $ 3,083 Mortgage loans held for sale $ — $ 46,867 $ — $ 46,867 Consumer loans held for sale — — 3,298 3,298 Consumer loans held for investment — — 497 497 Rate lock loan commitments — 4,540 — 4,540 Interest rate swap agreements — 12,545 — 12,545 Financial liabilities: Mandatory forward contracts $ — $ 976 $ — $ 976 Interest rate swap agreements — 12,545 — 12,545 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 December 31, 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 $ — $ — $ 3,860 $ 3,860 Commercial real estate — — 4,107 4,107 Home equity — — 395 395 Total collateral-dependent loans* $ — $ — $ 8,362 $ 8,362 Other real estate owned: Commercial real estate $ — $ — $ 2,003 $ 2,003 Total other real estate owned $ — $ — $ 2,003 $ 2,003 Mortgage servicing rights $ — $ 3,233 $ — $ 3,233 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 or 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 | December 31, (in thousands) 2020 2019 Carrying amount of loans measured at fair value $ 7,110 $ 7,729 Estimated selling costs considered in carrying amount 1,252 1,193 Valuation allowance — (2) Total fair value $ 8,362 $ 8,920 |
Provisions for loss on collateral dependent impaired loans | Years Ended December 31, (in thousands) 2020 2019 2018 Provision on collateral-dependent, impaired loans $ 559 $ 3,039 $ 1,629 |
Other Real Estate Owned | December 31, (in thousands) 2020 2019 2018 Other real estate owned carried at fair value $ 2,003 $ — $ — Other real estate owned carried at cost 496 113 160 Total carrying value of other real estate owned $ 2,499 $ 113 $ 160 Other real estate owned write-downs during the years ended $ 105 $ — $ — |
Carrying amount and estimated fair values of financial instruments | Fair Value Measurements at December 31, 2020: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 485,587 $ 485,587 $ — $ — $ 485,587 Available-for-sale debt securities 523,863 — 517,106 6,757 523,863 Held-to-maturity debt securities 53,324 — 54,190 — 54,190 Equity securities with readily determinable fair values 3,083 2,523 560 — 3,083 Mortgage loans held for sale, at fair value 46,867 — 46,867 — 46,867 Consumer loans held for sale, at fair value 3,298 — — 3,298 3,298 Consumer loans held for sale, at the lower of cost or fair value 1,478 — — 1,478 1,478 Loans, net 4,752,036 — — 4,749,831 4,749,831 Federal Home Loan Bank stock 17,397 — — — NA Accrued interest receivable 12,925 — 12,925 — 12,925 Mortgage servicing rights 7,095 — 8,318 — 8,318 Rate lock loan commitments 4,540 — 4,540 — 4,540 Interest rate swap agreements 12,545 — 12,545 — 12,545 Liabilities: Noninterest-bearing deposits $ 1,890,416 — $ 1,890,416 — $ 1,890,416 Transaction deposits 2,444,361 — 2,444,361 — 2,444,361 Time deposits 398,404 — 404,773 — 404,773 Securities sold under agreements to repurchase and other short-term borrowings 211,026 — 211,026 — 211,026 Federal Home Loan Bank advances 235,000 — 235,009 — 235,009 Subordinated note 41,240 — 31,071 — 31,071 Accrued interest payable 342 — 342 — 342 Mandatory forward contracts 976 — 976 — 976 Interest rate swap agreements 12,545 — 12,545 — 12,545 NA - Not applicable 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 Mortgage servicing rights 5,888 — 9,068 — 9,068 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 NA - Not applicable |
Nonrecurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Range Fair Valuation Unobservable (Weighted December 31, 2020 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 3,860 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 51% ( 8% ) Collateral-dependent loans - commercial real estate $ 4,107 Sales comparison approach Adjustments determined for differences between comparable sales 7% - 31% ( 26% ) Collateral-dependent loans - home equity $ 395 Sales comparison approach Adjustments determined for differences between comparable sales 2% - 6% ( 5% ) Other real estate owned - commercial real estate $ 2,003 Sales comparison approach Adjustments determined for differences between comparable sales 26% ( 26% ) 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 | Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 3,495 $ 3,712 $ 4,449 Total gains or losses included in earnings: Net change in unrealized gain (35) (79) (20) Recovery of actual losses previously recorded — 151 152 Principal paydowns (503) (289) (869) Balance, end of period $ 2,957 $ 3,495 $ 3,712 |
Private label mortgage backed security | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation December 31, 2020 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 2,957 Discounted cash flow (1) Constant prepayment rate 4.5% - 18.0% (2) Probability of default 1.8% - 9.0% (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 | Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 4,000 $ 4,075 $ 3,600 Total gains or losses included in earnings: Discount accretion 56 42 40 Net change in unrealized gain (256) (117) 435 Balance, end of period $ 3,800 $ 4,000 $ 4,075 |
Mortgage loans held for sale | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | December 31, (in thousands) 2020 2019 Aggregate fair value $ 46,867 $ 19,224 Contractual balance 44,781 18,690 Unrealized gain 2,086 534 |
Schedule of gains and losses from changes in fair value included in earnings | Years Ended December 31, (in thousands) 2020 2019 2018 Interest income $ 1,362 $ 697 $ 402 Change in fair value 1,552 239 203 Total included in earnings $ 2,914 $ 936 $ 605 |
Consumer loans | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | December 31, (in thousands) 2020 2019 Aggregate fair value $ 3,298 $ 598 Contractual balance 3,284 593 Unrealized gain 14 5 |
Schedule of gains and losses from changes in fair value included in earnings | Years Ended December 31, (in thousands) 2020 2019 2018 Interest income $ 1,808 $ 13 $ — Change in fair value 9 5 — Total included in earnings $ 1,817 $ 18 $ — |
Consumer loans | Nonrecurring basis | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Fair Valuation December 31, 2020 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 3,298 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) | 12 Months Ended |
Dec. 31, 2020 | |
MORTGAGE BANKING ACTIVITIES | |
Activity for Mortgage Loans Held for Sale, at fair value | Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 19,224 $ 8,971 $ 5,761 Origination of mortgage loans held for sale 782,939 356,097 176,916 Proceeds from the sale of mortgage loans held for sale (788,475) (354,660) (177,545) Net gain on sale of mortgage loans held for sale 33,179 8,816 3,839 Balance, end of period $ 46,867 $ 19,224 $ 8,971 |
Components of Mortgage Banking Income | Years Ended December 31, (in thousands) 2020 2019 2018 Net gain realized on sale of mortgage loans held for sale $ 28,721 $ 8,013 $ 3,843 Net change in fair value recognized on loans held for sale 1,552 239 203 Net change in fair value recognized on rate lock loan commitments 3,751 433 46 Net change in fair value recognized on forward contracts (845) 131 (253) Net gain recognized 33,179 8,816 3,839 Loan servicing income 2,924 2,506 2,418 Amortization of mortgage servicing rights (3,756) (1,823) (1,432) Change in mortgage servicing rights valuation allowance (500) — — Net servicing income recognized (1,332) 683 986 Total Mortgage Banking income $ 31,847 $ 9,499 $ 4,825 |
Activity for capitalized mortgage servicing rights | Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 5,888 $ 4,919 $ 5,044 Additions 5,463 2,792 1,307 Amortized to expense (3,756) (1,823) (1,432) Change in valuation allowance (500) — — Balance, end of period $ 7,095 $ 5,888 $ 4,919 |
Schedule of activity in the valuation allowance for capitalized mortgage servicing rights | Years Ended December 31, (in thousands) 2020 2019 2018 Beginning valuation allowance $ — $ — $ — Charge during the period 500 — — Ending valuation allowance $ 500 $ — $ — |
Other information relating to mortgage servicing rights | December 31, (in thousands) 2020 2019 Fair value of mortgage servicing rights portfolio $ 8,318 $ 9,068 Monthly weighted average prepayment rate of unpaid principal balance* 308 % 202 % Discount rate 10.00 % 10.00 % Weighted average foreclosure rate 0.44 % 0.14 % Weighted average life in years 4.85 5.76 * Rates are applied to individual tranches with similar characteristics. |
Schedule of estimated future amortization expense of the MSR portfolio (net of the impairment charge) | Year (in thousands) 2021 $ 1,486 2022 1,474 2023 1,386 2024 1,003 2025 656 2026 448 2027 642 Total $ 7,095 |
Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives | 2020 2019 Notional Notional December 31, (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 44,781 $ 46,867 $ 18,690 $ 19,224 Included in other assets: Rate lock loan commitments $ 105,395 $ 4,540 $ 32,776 $ 789 Included in other liabilities: Mandatory forward contracts $ 136,236 $ 976 $ 44,919 $ 131 |
STOCK PLANS AND STOCK BASED C_2
STOCK PLANS AND STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Schedule of weighted average assumptions used to determine the fair value of stock options granted | Years Ended December 31, 2020 2019 2018 Risk-free interest rate 0.44 % 1.85 % 3.00 % Expected dividend yield 3.53 % 2.25 % 2.01 % Expected stock price volatility 23.71 % 20.11 % 18.59 % Expected life of options (in years) 5 5 5 Estimated fair value per share $ 4.06 $ 7.12 $ 8.09 |
Summary of stock option activity | Weighted Weighted Average Options Average Remaining Aggregate Class A Exercise Contractual Intrinsic Shares Price Term Value Outstanding, January 1, 2019 433,200 $ 33.50 Granted 5,500 47.02 Exercised (100,600) 24.50 Forfeited or expired (26,650) 36.00 Outstanding, December 31, 2019 311,450 $ 36.43 2.73 $ 3,449,454 Outstanding, January 1, 2020 311,450 $ 36.43 Granted 285,995 32.37 Exercised (64,850) 24.44 Forfeited or expired (26,650) 35.95 Outstanding, December 31, 2020 505,945 $ 35.70 3.48 $ 1,925,343 Unvested 427,245 $ 37.75 4.06 $ 1,022,143 Exercisable (vested) at December 31, 2020 78,700 $ 24.59 0.34 $ 903,200 |
Schedule of intrinsic value and cash received from options exercised and weighted average fair value of options granted | Years Ended December 31, 2020 2019 2018 Intrinsic value of options exercised $ 634 $ 2,249 $ 79 Cash received from options exercised, net of shares redeemed 210 (191) 83 |
Schedule of loan balances of non-executive officer employees that were originated to fund stock option exercises | December 31, (in thousands) 2020 2019 Outstanding loans $ 390 $ 355 |
Summary of activity for non-vested restricted stock awards | Restricted Stock Awards Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2019 51,110 $ 39.06 Granted 2,336 49.34 Forfeited — — Earned and issued (12,336) 46.63 Outstanding, December 31, 2019 41,110 $ 37.37 Outstanding, January 1, 2020 41,110 $ 37.37 Granted 1,218 34.02 Forfeited — — Earned and issued (2,828) 30.77 Outstanding, December 31, 2020 39,500 $ 38.56 Unvested 39,500 $ 38.56 |
Summary of PSU activity | Performance Stock Units Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2019 46,000 $ 23.08 Granted — — Forfeited — — Earned and issued (23,000) 23.08 Outstanding, December 31, 2019 23,000 $ 23.08 Outstanding, January 1, 2020 23,000 $ 23.08 Granted — — Forfeited — — Earned and issued (23,000) 23.08 Outstanding, December 31, 2020 — $ — |
Schedule of expenses recorded related to stock options and restricted stock awards | Years Ended December 31, (in thousands) 2020 2019 2018 Stock option expense $ 463 $ 364 $ 265 Restricted stock award expense 396 728 630 Performance stock unit expense — (57) 106 Total expense $ 859 $ 1,035 $ 1,001 |
Schedule of estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | Stock Restricted Year (in thousands) Options Stock Awards Total 2021 $ 538 $ 277 $ 815 2022 501 253 754 2023 376 135 511 2024 97 40 137 2025 15 — 15 2026 and beyond — — — Total $ 1,527 $ 705 $ 2,232 |
Schedule of employee stock purchase plan | Years Ended December 31, (in thousands) 2020 2019 2018 ESPP expense $ 94 $ 49 $ 23 |
Director | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Schedule of information on deferred compensation shares reserved for the periods | Outstanding Weighted-Average Stock Market Price Units at Date of Deferral Outstanding, January 1, 2019 66,144 $ 25.45 Deferred fees and dividend equivalents converted to stock units 6,397 46.76 Stock units converted to Class A Common Shares (5,178) 23.18 Outstanding, December 31, 2019 67,363 $ 27.65 Outstanding, January 1, 2020 67,363 $ 27.65 Deferred fees and dividend equivalents converted to stock units 13,930 32.20 Stock units converted to Class A Common Shares (4,967) 44.58 Outstanding, December 31, 2020 76,326 $ 27.38 Vested 76,326 $ 27.38 |
Schedule of deferred compensation expenses | Years Ended December 31, (in thousands) 2020 2019 2018 Director deferred compensation expense $ 352 $ 213 $ 214 |
Key Employees | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Schedule of information on deferred compensation shares reserved for the periods | Outstanding Weighted-Average Stock Market Price Units at Date of Deferral Outstanding, January 1, 2019 9,260 $ 43.09 Deferred base salaries and dividend equivalents converted to stock units 7,059 45.84 Matching stock units credited 7,059 45.84 Matching stock units forfeited — — Stock units converted to Class A Common Shares — — Outstanding, December 31, 2019 23,378 $ 41.75 Outstanding, January 1, 2020 23,378 $ 41.75 Deferred base salaries and dividend equivalents converted to stock units 12,754 32.17 Matching stock units credited 12,754 32.17 Matching stock units forfeited — — Stock units converted to Class A Common Shares — — Outstanding, December 31, 2020 48,886 $ 37.37 Vested 32,595 $ 37.37 Unvested 16,291 $ 37.37 |
Schedule of deferred compensation expenses | Years Ended December 31, (in thousands) 2020 2019 2018 Key-employee - base salary $ 408 $ 319 $ 215 Key-employee - employer match 158 49 215 Total $ 566 $ 368 $ 430 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
BENEFIT PLANS | |
Schedule of normal and bonus contributions | Years Ended December 31, (in thousands) 2020 2019 2018 Employer matching contributions $ 3,205 $ 3,185 $ 2,890 Discretionary employer bonus matching contributions 117 207 392 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of allocation of federal income tax between current and deferred portion | Years Ended December 31, (in thousands) 2020 2019 2018 Current expense: Federal $ 25,762 $ 18,906 $ 10,638 State 2,450 1,751 1,532 Deferred expense: SAB 118 related discrete items — — (2,762) Federal (7,249) 1,880 6,815 State (1,576) (1,043) 188 Total $ 19,387 $ 21,494 $ 16,411 |
Schedule of effective tax rate that differs from that computed at the federal statutory rate | 2020 2019 2018 Federal corporate tax rate 21.00 % 21.00 % 21.00 % Effect of: SAB 118 related discrete items* — — (2.93) State taxes, net of federal benefit 1.43 1.43 1.44 General business tax credits (2.01) (1.14) (1.44) Nontaxable income (0.75) (0.85) (0.99) Reversal of valuation allowance/establishment of net operating loss DTA (0.04) (0.74) — Tax benefit of vesting employee benefits (0.15) (0.42) (0.20) Deferred tax asset due to KY HB354 (0.97) (0.20) — Other, net 0.38 (0.09) 0.53 Effective tax rate 18.89 18.99 17.41 *Discrete items include the impact of a cost-segregation study, a research and development tax-credit study, and a tax-accounting-method change related to the immediate recognition of loan origination costs. |
Schedule of deferred tax assets and liabilities | December 31, (in thousands) 2020 2019 Deferred tax assets: Allowance for credit losses $ 14,999 $ 9,672 Operating lease liabilities 10,911 8,186 Accrued expenses 5,062 3,332 Net operating loss carryforward(1) 2,577 2,705 Acquisition fair value adjustments 181 443 Other-than-temporary impairment 448 397 Paycheck Protection Program Fees 2,159 — Fair value of cash flow hedges — 26 Other 1,655 1,495 Total deferred tax assets 37,992 26,256 Deferred tax liabilities: Right of use assets - operating leases (10,667) (7,889) Depreciation and amortization (3,612) (4,018) Federal Home Loan Bank dividends (1,161) (2,667) Deferred loan costs (2,235) (2,068) Lease Financing Receivables (2,154) (2,245) Mortgage servicing rights (1,746) (1,319) Unrealized investment securities gains (2,836) (1,058) Bargain purchase gain (659) (648) Total deferred tax liabilities (25,070) (21,912) Less: Valuation allowance — — Net deferred tax asset $ 12,922 $ 4,344 (1) The Company has federal and state net operating loss carryforwards (acquired in its 2016 Cornerstone acquisition) of $7.3 million (federal) and $4.5 million (state). These carryforwards begin to expire in 2030 for both federal and state purposes. The use of these federal and state carryforwards is each limited under IRC Section 382 to $722,000 annually for federal and $634,000 annually for state. The Company also has a Kentucky net operating loss carryforward of $22.4 million, which the Company expects to begin utilizing in 2021 due to the passage of Kentucky HB354 and HB458. The Company expects to file a consolidated Kentucky income tax return beginning in 2021 and to utilize these previously generated net operating losses. The Company previously maintained a valuation allowance as it did not anticipate generating taxable income in Kentucky to utilize this carryforward prior to expiration. Finally, the Company has state AMT credit carryforwards of $15,000 with no expiration date. |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | Years Ended December 31, (in thousands) 2020 2019 2018 Balance, beginning of period $ 1,707 $ 1,327 $ 912 Additions based on tax related to the current period 455 364 306 Additions for tax positions of prior periods 24 55 339 Reductions for tax positions of prior periods (72) — (34) Reductions due to the statute of limitations (82) (39) (196) Settlements (91) — — Balance, end of period $ 1,941 $ 1,707 $ 1,327 |
Schedule of amount of interest and penalties | Years Ended December 31, (in thousands) 2020 2019 2018 Interest and penalties recorded in the income statement as a component of income tax expense $ 57 $ 173 $ 42 Interest and penalties accrued on balance sheet 510 514 341 |
Schedule of low income housing tax credits | December 31, (in thousands) 2020 2019 Unfunded Unfunded Investment Accounting Method Investment Commitment Investment Commitment Low income housing tax credit investments - Gross Proportional amortization $ 18,909 $ 27,891 $ 11,912 $ 24,888 Life-to-date amortization (2,701) NA (1,218) NA Low income housing tax credit investments - Net $ 16,208 $ 27,891 $ 10,694 $ 24,888 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE | |
Earnings Per Share and Diluted Earnings Per Share | Years Ended December 31, (in thousands, except per share data) 2020 2019 2018 Net income $ 83,246 $ 91,699 $ 77,852 Dividends declared on Common Stock: Class A Shares (21,433) (19,771) (18,076) Class B Shares (2,288) (2,121) (1,955) Undistributed net income for basic earnings per share 59,525 69,807 57,821 Weighted average potential dividends on Class A shares upon exercise of dilutive options (35) (118) (102) Undistributed net income for diluted earnings per share $ 59,490 $ 69,689 $ 57,719 Weighted average shares outstanding: Class A Shares 18,838 18,813 18,736 Class B Shares 2,201 2,210 2,224 Effect of dilutive securities on Class A Shares outstanding 30 112 105 Weighted average shares outstanding including dilutive securities 21,069 21,135 21,065 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 1.14 $ 1.06 $ 0.97 Undistributed earnings per share* 2.86 3.35 2.79 Total basic earnings per share - Class A Common Stock $ 4.00 $ 4.41 $ 3.76 Class B Common Stock: Per share dividends distributed $ 1.04 $ 0.96 $ 0.88 Undistributed earnings per share* 2.60 3.05 2.53 Total basic earnings per share - Class B Common Stock $ 3.64 $ 4.01 $ 3.41 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 1.14 $ 1.06 $ 0.97 Undistributed earnings per share* 2.85 3.33 2.77 Total diluted earnings per share - Class A Common Stock $ 3.99 $ 4.39 $ 3.74 Class B Common Stock: Per share dividends distributed $ 1.04 $ 0.96 $ 0.88 Undistributed earnings per share* 2.59 3.03 2.52 Total diluted earnings per share - Class B Common Stock $ 3.63 $ 3.99 $ 3.40 *To arrive at undistributed earnings per share, undistributed net income is first pro rated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. |
Antidilutive Stock Options | As of and for the Years Ended December 31, 2020 2019 2018 Antidilutive stock options 338,995 154,750 165,000 Average antidilutive stock options 282,489 151,260 47,712 |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | |
Schedule of loans made to executive officers and directors of the company and their related interests | (in thousands) Beginning balance $ 43,398 Effect of changes in composition of related parties (26,147) New loans 11,402 Repayments (12,933) Ending balance $ 15,720 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER COMPREHENSIVE INCOME | |
Summary of OCI components and related tax effects | Years Ended December 31, (in thousands) 2020 2019 2018 Available-for-Sale Debt Securities: Change in unrealized gain on AFS debt securities $ 7,147 $ 5,689 $ (1,548) Adjustment for accounting standard update — — (428) Change in unrealized gain of AFS debt security for which a portion of OTTI has been recognized in earnings (35) (79) (20) Net unrealized (losses) gains 7,112 5,610 (1,996) Tax effect (1,778) (1,348) 420 Net of tax 5,334 4,262 (1,576) Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges (177) (199) 178 Reclassification amount for net derivative losses (gains) realized in income 281 (20) 28 Net unrealized (losses) gains 104 (219) 206 Tax effect (27) 52 (43) Net of tax 77 (167) 163 Total other comprehensive (loss) income components, net of tax $ 5,411 $ 4,095 $ (1,413) |
Summary of amounts reclassified out of each component of AOCI | Amounts Reclassified From Affected Line Items Accumulated Other in the Consolidated Comprehensive Income (Loss) Years Ended December 31, (in thousands) Statements of Income 2020 2019 2018 Cash Flow Hedges: Interest rate swap on money market deposits Interest benefit (expense) on deposits (138) 10 (18) Interest rate swap on FHLB advance Interest benefit (expense) on FHLB advances (143) 10 (10) Total derivative gains (losses) on cash flow hedges Total interest benefit (expense) (281) 20 (28) Tax effect Income tax (benefit) expense 70 (5) 6 Net of tax Net income (loss) (211) 15 (22) |
Summary of the AOCI balances, net of tax | 2020 (in thousands) December 31, 2019 Change December 31, 2020 Unrealized gain on AFS debt securities $ 2,211 $ 5,360 $ 7,571 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 964 (26) 938 Unrealized gain (loss) on cash flow hedges (77) 77 — Total unrealized gain $ 3,098 $ 5,411 $ 8,509 2019 (in thousands) December 31, 2018 Change December 31, 2019 Unrealized gain (loss) on AFS debt securities $ (2,165) $ 4,376 $ 2,211 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 1,078 (114) 964 Unrealized gain (loss) on cash flow hedges 90 (167) (77) Total unrealized gain (loss) $ (997) $ 4,095 $ 3,098 |
PARENT COMPANY CONDENSED FINA_2
PARENT COMPANY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |
Schedule of balance sheets | December 31, (in thousands) 2020 2019 Assets: Cash and cash equivalents $ 100,524 $ 101,003 Security available for sale 3,800 4,000 Investment in bank subsidiary 761,929 699,906 Investment in non-bank subsidiaries 3,518 3,631 Other assets 3,203 4,749 Total assets $ 872,974 $ 813,289 Liabilities and Stockholders’ Equity: Subordinated note $ 41,240 $ 41,240 Other liabilities 8,411 7,805 Stockholders’ equity 823,323 764,244 Total liabilities and stockholders’ equity $ 872,974 $ 813,289 |
Schedule of statements of income | Years Ended December 31, (in thousands) 2020 2019 2018 Income and expenses: Dividends from subsidiary $ 25,980 $ 24,249 $ 22,385 Interest income 182 250 231 Other income 57 54 45 Less: Interest expense 1,000 1,620 1,508 Less: Other expenses 691 511 469 Income before income tax benefit 24,528 22,422 20,684 Income tax benefit 344 1,213 348 Income before equity in undistributed net income of subsidiaries 24,872 23,635 21,032 Equity in undistributed net income of subsidiaries 58,374 68,064 56,820 Net income $ 83,246 $ 91,699 $ 77,852 Comprehensive income $ 88,657 $ 95,794 $ 76,439 |
Schedule of statements of cash flows | Years Ended December 31, (in thousands) 2020 2019 2018 Operating activities: Net income $ 83,246 $ 91,699 $ 77,852 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of investment security (56) (42) (40) Equity in undistributed net income of subsidiaries (58,374) (68,064) (56,820) Director deferred compensation - Parent Company 181 139 117 Change in other assets 1,609 (25) 605 Change in other liabilities 54 842 (976) Net cash provided by operating activities 26,660 24,549 20,738 Investing activities: Investment in subsidiary bank (533) (494) (230) Net cash used in investing activities (533) (494) (230) Financing activities: Common Stock repurchases (3,935) (1,418) (827) Net proceeds from Class A Common Stock purchased through employee stock purchase plan 533 494 230 Net proceeds from Common Stock options exercised — (191) 83 Cash dividends paid (23,204) (21,377) (19,497) Net cash used in financing activities (26,606) (22,492) (20,011) Net change in cash and cash equivalents (479) 1,563 497 Cash and cash equivalents at beginning of period 101,003 99,440 98,943 Cash and cash equivalents at end of period $ 100,524 $ 101,003 $ 99,440 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of net revenues by reportable segments | Year Ended December 31, 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) $ 159,381 $ 25,957 $ 1,362 $ 186,700 $ 22,972 $ 22,643 $ 45,615 $ 232,315 Noninterest income: Service charges on deposit accounts 11,571 63 — 11,634 (19) — (19) 11,615 Net refund transfer fees — — — — 20,297 — 20,297 20,297 Mortgage banking income(1) — — 31,847 31,847 — — — 31,847 Interchange fee income 10,978 — — 10,978 210 — 210 11,188 Program fees(1) — — — — 2,193 4,902 7,095 7,095 Increase in cash surrender value of BOLI(1) 1,585 — — 1,585 — — — 1,585 Net gains (losses) on OREO (40) — — (40) — — — (40) Other 3,310 (39) 103 3,374 92 — 92 3,466 Total noninterest income 27,404 24 31,950 59,378 22,773 4,902 27,675 87,053 Total net revenue $ 186,785 $ 25,981 $ 33,312 $ 246,078 $ 45,745 $ 27,545 $ 73,290 $ 319,368 Net-revenue concentration(2) 59 % 8 % 10 % 77 % 14 % 9 % 23 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Years Ended December 31, 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) $ 168,076 $ 15,801 $ 697 $ 184,574 $ 21,626 $ 29,926 $ 51,552 $ 236,126 Noninterest income: Service charges on deposit accounts 14,153 44 — 14,197 — — — 14,197 Net refund transfer fees — — — — 21,158 — 21,158 21,158 Mortgage banking income(1) — — 9,499 9,499 — — — 9,499 Interchange fee income 11,600 — — 11,600 259 — 259 11,859 Program fees(1) — — — — 437 4,275 4,712 4,712 Increase in cash surrender value of BOLI(1) 1,550 — — 1,550 — — — 1,550 Net gains (losses) on OREO 540 — — 540 — — — 540 Net gain on branch divestiture(1) 7,829 — — 7,829 — — — 7,829 Other 2,881 (90) 213 3,004 1 659 660 3,664 Total noninterest income 38,553 (46) 9,712 48,219 21,855 4,934 26,789 75,008 Total net revenue $ 206,629 $ 15,755 $ 10,409 $ 232,793 $ 43,481 $ 34,860 $ 78,341 $ 311,134 Net-revenue concentration(2) 67 % 5 % 3 % 75 % 14 % 11 % 25 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Year Ended December 31, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 160,398 $ 15,726 $ 402 $ 176,526 $ 19,203 $ 30,329 $ 49,532 $ 226,058 Noninterest income: Service charges on deposit accounts 14,233 40 — 14,273 — — — 14,273 Net refund transfer fees — — — — 20,029 — 20,029 20,029 Mortgage banking income(1) — — 4,825 4,825 — — — 4,825 Interchange fee income 10,868 — — 10,868 226 65 291 11,159 Program fees(1) — — — — 295 5,930 6,225 6,225 Increase in cash surrender value of BOLI(1) 1,527 — — 1,527 — — — 1,527 Net gains (losses) on OREO 729 — — 729 — — — 729 Other 2,608 — 550 3,158 1,003 497 1,500 4,658 Total noninterest income 29,965 40 5,375 35,380 21,553 6,492 28,045 63,425 Total net revenue $ 190,363 $ 15,766 $ 5,777 $ 211,906 $ 40,756 $ 36,821 $ 77,577 $ 289,483 Net-revenue concentration(2) 66 % 5 % 2 % 73 % 14 % 13 % 27 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
Segment Information | Year Ended December 31, 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 $ 159,381 $ 25,957 $ 1,362 $ 186,700 $ 22,972 $ 22,643 $ 45,615 $ 232,315 Provision for expected credit loss expense 16,257 613 — 16,870 13,189 1,219 14,408 31,278 Net refund transfer fees — — — — 20,297 — 20,297 20,297 Mortgage banking income — — 31,847 31,847 — — — 31,847 Program fees — — — — 2,193 4,902 7,095 7,095 Other noninterest income 27,404 24 103 27,531 283 — 283 27,814 Total noninterest income 27,404 24 31,950 59,378 22,773 4,902 27,675 87,053 Total noninterest expense 149,061 4,387 10,760 164,208 17,514 3,735 21,249 185,457 Income before income tax expense 21,467 20,981 22,552 65,000 15,042 22,591 37,633 102,633 Income tax expense 1,395 4,721 4,736 10,852 3,323 5,212 8,535 19,387 Net income $ 20,072 $ 16,260 $ 17,816 $ 54,148 $ 11,719 $ 17,379 $ 29,098 $ 83,246 Period-end assets $ 4,750,460 $ 962,692 $ 62,400 $ 5,775,552 $ 285,612 $ 107,161 $ 392,773 $ 6,168,325 Net interest margin 3.42 % 3.19 % NM 3.39 % NM NM NM 4.10 % Net-revenue concentration* 59 % 8 % 10 % 77 % 14 % 9 % 23 % 100 % Year Ended December 31, 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 $ 168,076 $ 15,801 $ 697 $ 184,574 $ 21,626 $ 29,926 $ 51,552 $ 236,126 Provision for expected credit loss expense 2,444 622 — 3,066 11,249 11,443 22,692 25,758 Net refund transfer fees — — — — 21,158 — 21,158 21,158 Mortgage banking income — — 9,499 9,499 — — — 9,499 Program fees — — — — 437 4,275 4,712 4,712 Net gain on branch divestiture 7,829 — — 7,829 — — — 7,829 Other noninterest income 30,724 (46) 213 30,891 260 659 919 31,810 Total noninterest income 38,553 (46) 9,712 48,219 21,855 4,934 26,789 75,008 Total noninterest expense 143,671 3,268 6,112 153,051 16,539 2,593 19,132 172,183 Income before income tax expense 60,514 11,865 4,297 76,676 15,693 20,824 36,517 113,193 Income tax expense 9,651 2,670 902 13,223 3,454 4,817 8,271 21,494 Net income $ 50,863 $ 9,195 $ 3,395 $ 63,453 $ 12,239 $ 16,007 $ 28,246 $ 91,699 Period-end assets $ 4,684,116 $ 717,994 $ 26,469 $ 5,428,579 $ 86,849 $ 104,891 $ 191,740 $ 5,620,319 Net interest margin 3.76 % 2.42 % NM 3.61 % NM NM NM 4.46 % Net-revenue concentration* 67 % 5 % 3 % 75 % 14 % 11 % 25 % 100 % Year Ended December 31, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 160,398 $ 15,726 $ 402 $ 176,526 $ 19,203 $ 30,329 $ 49,532 $ 226,058 Provision for expected credit loss expense 3,710 (142) — 3,568 10,919 16,881 27,800 31,368 Net refund transfer fees — — — — 20,029 — 20,029 20,029 Mortgage banking income — — 4,825 4,825 — — — 4,825 Program fees — — — — 295 5,930 6,225 6,225 Other noninterest income 29,965 40 550 30,555 1,229 562 1,791 32,346 Total noninterest income 29,965 40 5,375 35,380 21,553 6,492 28,045 63,425 Total noninterest expense 136,439 3,367 4,356 144,162 14,686 5,004 19,690 163,852 Income before income tax expense 50,214 12,541 1,421 64,176 15,151 14,936 30,087 94,263 Income tax expense 6,819 2,869 298 9,986 3,033 3,392 6,425 16,411 Net income $ 43,395 $ 9,672 $ 1,123 $ 54,190 $ 12,118 $ 11,544 $ 23,662 $ 77,852 Period-end assets $ 4,647,037 $ 470,126 $ 14,246 $ 5,131,409 $ 20,288 $ 88,707 $ 108,995 $ 5,240,404 Net interest margin 3.76 % 3.18 % NM 3.70 % NM NM NM 4.62 % Net-revenue concentration* 66 % 5 % 2 % 73 % 14 % 13 % 27 % 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. |
SUMMARY OF QUARTERLY FINANCIA_2
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Summary of consolidated quarterly financial data | 2020 Fourth Third Second First (dollars in thousands, except per share data) Quarter Quarter Quarter Quarter (1) Interest income $ 57,970 $ 56,038 $ 57,091 $ 81,159 Interest expense 2,850 3,786 4,886 8,421 Net interest income 55,120 52,252 52,205 72,738 Provision for loan and lease losses (2) 484 1,500 6,534 22,760 Net interest income after provision 54,636 50,752 45,671 49,978 Noninterest income 17,136 20,597 18,751 30,569 Noninterest expense (4) 48,140 45,523 44,825 46,969 Income before income taxes 23,632 25,826 19,597 33,578 Income tax expense (5) 3,276 5,437 3,793 6,881 Net income $ 20,356 $ 20,389 $ 15,804 $ 26,697 Basic earnings per share: Class A Common Stock $ 0.98 $ 0.98 $ 0.77 $ 1.29 Class B Common Stock 0.89 0.89 0.69 1.17 Diluted earnings per share: Class A Common Stock $ 0.98 $ 0.98 $ 0.76 $ 1.28 Class B Common Stock 0.89 0.89 0.69 1.16 Dividends declared per common share: Class A Common Stock $ 0.286 $ 0.286 $ 0.286 $ 0.286 Class B Common Stock 0.260 0.260 0.260 0.260 2019 Fourth Third Second First (dollars in thousands, except per share data) Quarter Quarter Quarter Quarter(1) Interest income $ 64,527 $ 68,059 $ 65,664 $ 82,633 Interest expense 10,132 12,573 11,718 10,334 Net interest income 54,395 55,486 53,946 72,299 Provision for loan and lease losses(2) 914 3,153 4,460 17,231 Net interest income after provision 53,481 52,333 49,486 55,068 Noninterest income (3) 19,655 12,811 15,125 27,417 Noninterest expense (4) 40,835 42,411 43,428 45,509 Income before income taxes 32,301 22,733 21,183 36,976 Income tax expense (5) 6,533 4,325 3,176 7,460 Net income $ 25,768 $ 18,408 $ 18,007 $ 29,516 Basic earnings per share: Class A Common Stock $ 1.23 $ 0.88 $ 0.86 $ 1.42 Class B Common Stock 1.13 0.80 0.79 1.29 Diluted earnings per share: Class A Common Stock $ 1.23 $ 0.88 $ 0.86 $ 1.41 Class B Common Stock 1.12 0.80 0.78 1.28 Dividends declared per common share: Class A Common Stock $ 0.264 $ 0.264 $ 0.264 $ 0.264 Class B Common Stock 0.240 0.240 0.240 0.240 (1) The first quarters of 2020 and 2019 were significantly impacted by the TRS segment of RPG. (2) Provision expense: The relatively higher levels of Provision expense during the first quarters of 2020 and 2019 were driven by the TRS segment’s EA product. Provision expense for EAs during the first quarters of 2020 and 2019 was $15.2 million and $13.4 million. Provision expense during 2020 was negatively impacted by economic conditions created by the COVID-19 pandemic. The relatively low Provision expense during the fourth quarter of 2019 is partially attributable to the release of $900,000 in reserves associated with divested loans upon final settlement of the Bank’s branch divestiture. See Footnote 26 in this section of the filing for additional information on the Company’s branch divestiture. (3) Noninterest income: The fourth quarter of 2019 included a $7.9 million net gain on the final settlement of the Bank’s branch divestiture. See Footnote 26 in this section of the filing for additional information on the Company’s branch divestiture. (4) Noninterest expense: During the fourth quarters of 2020 and 2019, the Company reversed $600,000 and $1.2 million of incentive compensation accruals based on revised payout estimates. The fourth quarter of 2020 included $2.1 million of non-recurring FHLB advance early termination penalties. (5) See Footnote 19 in this section of the filing for more information on the Company’s income taxes for 2020 and 2019 . |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2020itemsegment | |
Basis of Presentation | |
Number of reportable segments | segment | 5 |
Number of banking centers | 42 |
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 | 7 |
Metropolitan Cincinnati, Ohio | |
Basis of Presentation | |
Number of banking centers | 2 |
Metropolitan Nashville, Tennessee | |
Basis of Presentation | |
Number of banking centers | 2 |
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 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENTS (Details) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2020USD ($)item | |
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 | |
Advance amount per customer | $ 6,250 | |
Fee charged | $ 0 | |
EA's repayment term | 35 days | |
Maximum repayment period before Easy Advances considered delinquent | 35 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 | ||
Term for intent to sell loans | 16 days | |
Republic Credit Solutions | Installment loan | Minimum | ||
Basis of Presentation | ||
Loan held-for-sale term | 12 months | |
Republic Credit Solutions | Installment loan | Maximum | ||
Basis of Presentation | ||
Loan held-for-sale term | 60 months | |
Republic Credit Solutions | Healthcare receivables | ||
Basis of Presentation | ||
Number of third party relationship | item | 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% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONCENTRATION (Details) - Geographic concentration risk | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Warehouse lines of credit | California | |||
Mortgage Banking Activities | |||
Concentration Risk, Percentage | 36.00% | ||
Net income | Republic Processing Group | |||
Mortgage Banking Activities | |||
Concentration Risk, Percentage | 23.00% | 25.00% | 27.00% |
Net income | Tax Refund Solutions | |||
Mortgage Banking Activities | |||
Concentration Risk, Percentage | 14.00% | 14.00% | 14.00% |
Net income | Republic Credit Solutions | |||
Mortgage Banking Activities | |||
Concentration Risk, Percentage | 9.00% | 11.00% | 13.00% |
Net income | Warehouse Lending | |||
Mortgage Banking Activities | |||
Concentration Risk, Percentage | 8.00% | 5.00% | 5.00% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Policies (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Pronouncements | ||||
Initial amortization period of MSRs | 7 years | |||
Loan Servicing Income | $ 2,924,000 | $ 2,506,000 | $ 2,418,000 | |
Other Assets. | ||||
Accounting Pronouncements | ||||
Accrued interest on AFS debt securities excluded from ACLS | 1,000,000 | |||
Accrued interest on HTM debt securities excluded from ACLS | 110,000 | |||
Accrued interest on loans | $ 11,000,000 | |||
Republic Credit Solutions | Installment loan | ||||
Accounting Pronouncements | ||||
Term for intent to sell loans | 16 days | |||
Republic Credit Solutions | Installment loan | Minimum | ||||
Accounting Pronouncements | ||||
Loan held-for-sale term | 12 months | 12 months | ||
Republic Credit Solutions | Installment loan | Maximum | ||||
Accounting Pronouncements | ||||
Loan held-for-sale term | 60 months | 60 months | ||
Republic Credit Solutions | Line of Credit and Healthcare Receivables | ||||
Accounting Pronouncements | ||||
Percentage of loan receivable held for sale (as a percent) | 90.00% |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LOANS (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Loans disclosures | |
Delinquency period for interest income on mortgage and commercial loans to be discontinued | 80 days |
Period for non-accrual loans and loans past due still on accrual evaluated for impairment | 80 days |
Minimum performance period for loans to be returned to accrual status | 6 months |
Maximum | |
Loans disclosures | |
Period for past due loans for updating collateral values | 120 days |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CREDIT SOLUTIONS AND OREO (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Other Real Estate Owned | |
Selling cost for OREO expressed as a percentage of each property's fair value | 10.00% |
Maximum | |
Other Real Estate Owned | |
Selling cost for OREO expressed as a percentage of each property's fair value | 13.00% |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PREMISES AND EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings and improvements | Minimum | |
Premises and equipment, net | |
Estimated useful lives | 25 years |
Buildings and improvements | Maximum | |
Premises and equipment, net | |
Estimated useful lives | 39 years |
Furniture, fixtures and equipment | Minimum | |
Premises and equipment, net | |
Estimated useful lives | 3 years |
Furniture, fixtures and equipment | Maximum | |
Premises and equipment, net | |
Estimated useful lives | 10 years |
Leasehold improvements | Minimum | |
Premises and equipment, net | |
Estimated useful lives | 3 years |
Leasehold improvements | Maximum | |
Premises and equipment, net | |
Estimated useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INTANGIBLES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Goodwill | $ 16,300 | $ 16,300 | $ 16,300 | $ 16,300 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL DISCLOSURES (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Restrictions on Cash and Cash Equivalents | ||
Required reserve balances by the Federal Reserve Bank | $ 0 | $ 0 |
Cash reserve to cover insurable claims | $ 3,000,000 | $ 3,000,000 |
Equity | ||
Percentage of stock dividend in excess of which are reported by transferring the par value of the stock issued from retained earnings to common stock | 20.00% | |
Minimum percentage of stock dividend which are reported by transferring the par value of the stock issued from retained earnings to common stock and additional paid in capital | 20.00% | |
Segment Information | ||
Number of reportable segments | segment | 5 | |
Revenue, Practical Expedient | ||
Practical expedient allows incremental costs of obtaining contract when amortization period less than one year | true |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASUs (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Pronouncements | ||||
Allowance for credit losses | $ 43,351,000 | $ 61,067,000 | $ 44,675,000 | $ 42,769,000 |
Held-to-maturity debt securities, allowance for credit losses | 0 | 178,000 | ||
Allowance for credit losses on credit exposure | 989,000 | |||
Retained earnings | 614,171,000 | $ 666,278,000 | ||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accounting Pronouncements | ||||
Allowance for credit losses | $ 6,734,000 | |||
Percentage of increase in ACLL | 16.00% | |||
Held-to-maturity 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 | |||
Retained earnings | $ (4,300,000) |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of ASC 326 Adoption (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for credit losses on debt securities: | ||||
AFS debt securities - Corporate bonds | $ 0 | $ 0 | ||
HTM debt securities - Corporate bond | 178,000 | 0 | ||
Allowance for credit losses on debt securities | 178,000 | |||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 61,067,000 | 43,351,000 | $ 44,675,000 | $ 42,769,000 |
Liabilities: | ||||
Allowance for credit losses on credit exposure | 989,000 | |||
Corporate bonds | ||||
Allowance for credit losses on debt securities: | ||||
HTM debt securities - Corporate bond | 178,000 | |||
Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 49,699,000 | 28,205,000 | 30,347,000 | 28,833,000 |
Core Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 52,106,000 | 29,999,000 | 31,519,000 | 30,147,000 |
Republic Processing Group | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 8,961,000 | 13,352,000 | 13,156,000 | 12,622,000 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 9,715,000 | 4,729,000 | 6,035,000 | 6,474,000 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 2,466,000 | 1,737,000 | 1,662,000 | 1,396,000 |
Residential Real Estate | Home equity lines of credit | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 4,990,000 | 2,721,000 | 3,477,000 | 3,754,000 |
Commercial Real Estate | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 23,606,000 | 10,486,000 | 10,030,000 | 9,043,000 |
Construction & land development | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 3,274,000 | 2,152,000 | 2,555,000 | 2,364,000 |
Commercial | Commercial and Industrial | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 2,797,000 | 2,882,000 | 2,873,000 | 2,198,000 |
Lease Financing Receivables | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 106,000 | 147,000 | 158,000 | 174,000 |
Aircraft | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 253,000 | 176,000 | 91,000 | 37,000 |
Consumer | Credit Cards | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 929,000 | 1,020,000 | 1,140,000 | 607,000 |
Consumer | Overdrafts | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 587,000 | 1,169,000 | 1,102,000 | 974,000 |
Consumer | Automobile loan | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 399,000 | 612,000 | 724,000 | 687,000 |
Consumer | Other consumer | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 577,000 | 374,000 | 500,000 | 1,125,000 |
Warehouse lines of credit | Warehouse Lending | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 2,407,000 | 1,794,000 | 1,172,000 | |
Tax Refund Solutions | Other TRS loans | Republic Processing Group | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 158,000 | 234,000 | 107,000 | 12,000 |
Republic Credit Solutions | Republic Processing Group | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | $ 8,803,000 | 13,118,000 | $ 13,049,000 | $ 12,610,000 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for credit losses on debt securities: | ||||
HTM debt securities - Corporate bond | 51,000 | |||
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 | Cumulative Effect, Period of Adoption, Adjusted Balance | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 34,939,000 | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | Core Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 36,733,000 | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | Republic Processing Group | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 13,352,000 | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses on debt securities: | ||||
HTM debt securities - Corporate bond | 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 | Cumulative Effect, Period of Adoption, Adjustment | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 6,734,000 | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Core Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 6,734,000 | |||
ASU 2016-13 | Residential Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance | 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 | Cumulative Effect, Period of Adoption, Adjusted Balance | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 1,885,000 | |||
ASU 2016-13 | Residential Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance | Home equity lines of credit | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 4,373,000 | |||
ASU 2016-13 | Residential Real Estate | Cumulative Effect, Period of Adoption, Adjustment | Residential Real Estate - Owner Occupied | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 4,199,000 | |||
ASU 2016-13 | Residential Real Estate | Cumulative Effect, Period of Adoption, Adjustment | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 148,000 | |||
ASU 2016-13 | Residential Real Estate | Cumulative Effect, Period of Adoption, Adjustment | Home equity lines of credit | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 1,652,000 | |||
ASU 2016-13 | Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 10,759,000 | |||
ASU 2016-13 | Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 273,000 | |||
ASU 2016-13 | Construction & land development | Cumulative Effect, Period of Adoption, Adjusted Balance | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 3,599,000 | |||
ASU 2016-13 | Construction & land development | Cumulative Effect, Period of Adoption, Adjustment | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 1,447,000 | |||
ASU 2016-13 | Commercial | Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial and Industrial | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 1,564,000 | |||
ASU 2016-13 | Commercial | Cumulative Effect, Period of Adoption, Adjustment | Commercial and Industrial | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | (1,318,000) | |||
ASU 2016-13 | Lease Financing Receivables | Cumulative Effect, Period of Adoption, Adjusted Balance | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 147,000 | |||
ASU 2016-13 | Aircraft | Cumulative Effect, Period of Adoption, Adjusted Balance | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 176,000 | |||
ASU 2016-13 | Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | Credit Cards | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 1,053,000 | |||
ASU 2016-13 | Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | Overdrafts | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 1,169,000 | |||
ASU 2016-13 | Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | Automobile loan | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 605,000 | |||
ASU 2016-13 | Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | Other consumer | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 681,000 | |||
ASU 2016-13 | Consumer | Cumulative Effect, Period of Adoption, Adjustment | Credit Cards | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 33,000 | |||
ASU 2016-13 | Consumer | Cumulative Effect, Period of Adoption, Adjustment | Automobile loan | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | (7,000) | |||
ASU 2016-13 | Consumer | Cumulative Effect, Period of Adoption, Adjustment | Other consumer | Traditional Banking | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 307,000 | |||
ASU 2016-13 | Warehouse lines of credit | Cumulative Effect, Period of Adoption, Adjusted Balance | Warehouse Lending | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 1,794,000 | |||
ASU 2016-13 | Tax Refund Solutions | Cumulative Effect, Period of Adoption, Adjusted Balance | Other TRS loans | Republic Processing Group | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | 234,000 | |||
ASU 2016-13 | Republic Credit Solutions | Cumulative Effect, Period of Adoption, Adjusted Balance | Republic Processing Group | ||||
Allowance for credit losses on loans: | ||||
Allowance for credit losses | $ 13,118,000 |
INVESTMENT SECURITIES - AFS (De
INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 512,518 | $ 467,122 |
Gross Unrealized Gains | 11,383 | 4,945 |
Gross Unrealized Losses | (38) | (712) |
Allowance for credit losses | 0 | 0 |
Available-for-sale debt securities, Fair Value | 523,863 | 471,355 |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 245,204 | 134,765 |
Gross Unrealized Gains | 1,730 | 59 |
Gross Unrealized Losses | (25) | (184) |
Available-for-sale debt securities, Fair Value | 246,909 | 134,640 |
Private label mortgage backed security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 1,707 | 2,210 |
Gross Unrealized Gains | 1,250 | 1,285 |
Available-for-sale debt securities, Fair Value | 2,957 | 3,495 |
Mortgage backed securities - residential | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 203,786 | 253,288 |
Gross Unrealized Gains | 7,419 | 2,916 |
Gross Unrealized Losses | (3) | (357) |
Available-for-sale debt securities, Fair Value | 211,202 | 255,847 |
Collateralized mortgage obligations | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 48,190 | 63,284 |
Gross Unrealized Gains | 772 | 258 |
Gross Unrealized Losses | (10) | (171) |
Available-for-sale debt securities, Fair Value | 48,952 | 63,371 |
Corporate bonds | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 10,000 | 10,000 |
Gross Unrealized Gains | 43 | 2 |
Available-for-sale debt securities, Fair Value | 10,043 | 10,002 |
Trust preferred security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 3,631 | 3,575 |
Gross Unrealized Gains | 169 | 425 |
Available-for-sale debt securities, Fair Value | $ 3,800 | $ 4,000 |
INVESTMENT SECURITIES - HTM (De
INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Held-to-Maturity Debt Securities | ||
Carrying Value | $ 53,502 | $ 62,531 |
Gross Unrecognized Gains | 688 | 646 |
Gross Unrecognized Losses | (21) | |
Fair Value | 54,190 | 63,156 |
Allowance for credit losses | (178) | 0 |
Mortgage backed securities - residential | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 99 | 104 |
Gross Unrecognized Gains | 5 | 6 |
Fair Value | 104 | 110 |
Collateralized mortgage obligations | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 13,061 | 16,970 |
Gross Unrecognized Gains | 176 | 94 |
Gross Unrecognized Losses | (21) | |
Fair Value | 13,237 | 17,043 |
Corporate bonds | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 39,986 | 44,995 |
Gross Unrecognized Gains | 499 | 544 |
Fair Value | 40,485 | 45,539 |
Allowance for credit losses | (178) | |
Obligations of state and political subdivisions | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 356 | 462 |
Gross Unrecognized Gains | 8 | 2 |
Fair Value | $ 364 | $ 464 |
INVESTMENT SECURITIES - SALES O
INVESTMENT SECURITIES - SALES OF AFS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INVESTMENT SECURITIES | |||
Sales of available for sale | $ 0 | $ 0 | $ 0 |
INVESTMENT SECURITIES - AMORTIZ
INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities available for Sale - Amortized Cost | ||
Due in one year or less | $ 14,943 | |
Due from one year to five years | 240,261 | |
Due beyond ten years | 3,631 | |
Amortized Cost | 512,518 | $ 467,122 |
Securities available for Sale - Fair Value | ||
Due in one year or less | 15,118 | |
Due from one year to five years | 241,834 | |
Due beyond ten years | 3,800 | |
Total securities | 523,863 | 471,355 |
Securities held to maturity - Carrying Value | ||
Due in one year or less | 110 | |
Due from one year to five years | 35,277 | |
Due from five years to ten years | 4,955 | |
Total securities | 53,502 | 62,531 |
Securities held to maturity - Fair Value | ||
Due in one year or less | 111 | |
Due from one year to five years | 35,708 | |
Due from five years to ten years | 5,030 | |
Fair Value | 54,190 | 63,156 |
Private label mortgage backed security | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 1,707 | |
Amortized Cost | 1,707 | 2,210 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 2,957 | |
Total securities | 2,957 | 3,495 |
Mortgage backed securities - residential | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 203,786 | |
Amortized Cost | 203,786 | 253,288 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 211,202 | |
Total securities | 211,202 | 255,847 |
Securities held to maturity - Carrying Value | ||
Securities not due at a single maturity date | 99 | |
Total securities | 99 | 104 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 104 | |
Fair Value | 104 | 110 |
Collateralized mortgage obligations | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 48,190 | |
Amortized Cost | 48,190 | 63,284 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 48,952 | |
Total securities | 48,952 | 63,371 |
Securities held to maturity - Carrying Value | ||
Securities not due at a single maturity date | 13,061 | |
Total securities | 13,061 | 16,970 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 13,237 | |
Fair Value | $ 13,237 | $ 17,043 |
INVESTMENT SECURITIES - INVESTM
INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 63,827 | $ 118,239 |
Less than 12 months Unrealized Losses | (38) | (481) |
12 months or more Fair Value | 42,363 | |
12 months or more Unrealized Losses | (231) | |
Total Fair Value | 63,827 | 160,602 |
Total Unrealized Losses | $ (38) | $ (712) |
Number of securities held | 173 | 173 |
Number of securities held in an unrealized loss position | 19 | 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 | (21) | |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 59,971 | 40,165 |
Less than 12 months Unrealized Losses | (25) | (176) |
12 months or more Fair Value | 14,992 | |
12 months or more Unrealized Losses | (8) | |
Total Fair Value | 59,971 | 55,157 |
Total Unrealized Losses | (25) | (184) |
Mortgage backed securities - residential | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 1,068 | 65,630 |
Less than 12 months Unrealized Losses | (3) | (269) |
12 months or more Fair Value | 16,633 | |
12 months or more Unrealized Losses | (88) | |
Total Fair Value | 1,068 | 82,263 |
Total Unrealized Losses | (3) | (357) |
Collateralized mortgage obligations | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 2,788 | 12,444 |
Less than 12 months Unrealized Losses | (10) | (36) |
12 months or more Fair Value | 10,738 | |
12 months or more Unrealized Losses | (135) | |
Total Fair Value | 2,788 | 23,182 |
Total Unrealized Losses | $ (10) | (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 | $ (21) |
INVESTMENT SECURITIES - CORPORA
INVESTMENT SECURITIES - CORPORATE BONDS AND MORTGAGE BACKED SECURITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Private label mortgage backed security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Securities | $ 2,957,000 | |
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 | $ 13,000 | $ 528,000 |
INVESTMENT SECURITIES - TRUST P
INVESTMENT SECURITIES - TRUST PREFERRED SECURITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||||
Amount of floating rate purchased | $ 298,878 | $ 445,681 | $ 173,875 | |
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% | |||
Par value of trust preferred security | $ 5,000 | |||
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Bank's private label mortgage backed security credit losses recognized in earnings | |||
Number of securities held | 173 | 173 | |
Available-for-sale debt securities, at fair value (amortized cost of $512,518 in 2020 and $467,122 in 2019, allowance for credit losses of $0 in 2020 and $0 in 2019) | $ 523,863 | $ 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 $512,518 in 2020 and $467,122 in 2019, allowance for credit losses of $0 in 2020 and $0 in 2019) | $ 2,957 | 3,495 | |
Rollforward of the Bank's private label mortgage backed security credit losses recognized in earnings | |||
Balance, beginning of period | 1,462 | 1,613 | $ 1,765 |
Recovery of losses previously recorded | 0 | (151) | (152) |
Balance, end of period | 1,462 | $ 1,462 | $ 1,613 |
Additional impairment charge that may be recognized | $ 1,700 |
INVESTMENT SECURITIES - ACLS RO
INVESTMENT SECURITIES - ACLS ROLLFORWARD (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Securities | |
Provision | $ 127 |
Balance | 178 |
Debt Securities, Held-to-maturity, Nonaccrual | 0 |
Debt Securities, Held To Maturity, Collateral Dependent | 0 |
Corporate bonds | Held-to-Maturity Securities | |
Debt Securities | |
Provision | 127 |
Balance | 178 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |
Debt Securities | |
Balance | 51 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Corporate bonds | Held-to-Maturity Securities | |
Debt Securities | |
Balance | $ 51 |
INVESTMENT SECURITIES - PLEDGED
INVESTMENT SECURITIES - PLEDGED DEBT SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
INVESTMENT SECURITIES | ||
Carrying amount | $ 303,535 | $ 229,700 |
Fair value | $ 303,611 | $ 229,706 |
INVESTMENT SECURITIES - EQUITY
INVESTMENT SECURITIES - EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity securities | ||
Amortized Cost | $ 2,500 | $ 2,500 |
Gross Unrealized Gains | 583 | 714 |
Gross Unrealized Losses | (26) | |
Fair Value | 3,083 | 3,188 |
Gains (Losses) Recognized on Equity securities, Unrealized | (105) | 382 |
Gains (Losses) Recognized on Equity securities, Total | (105) | 382 |
Freddie Mac preferred stock | ||
Equity securities | ||
Gross Unrealized Gains | 560 | 714 |
Fair Value | 560 | 714 |
Gains (Losses) Recognized on Equity securities, Unrealized | (154) | 304 |
Gains (Losses) Recognized on Equity securities, Total | (154) | 304 |
Community Reinvestment Act mutual fund | ||
Equity securities | ||
Amortized Cost | 2,500 | 2,500 |
Gross Unrealized Gains | 23 | |
Gross Unrealized Losses | (26) | |
Fair Value | 2,523 | 2,474 |
Gains (Losses) Recognized on Equity securities, Unrealized | 49 | 78 |
Gains (Losses) Recognized on Equity securities, Total | $ 49 | $ 78 |
LOANS HELD FOR SALE - CONSUMER
LOANS HELD FOR SALE - CONSUMER LOANS - HELD FOR SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consumer Loans Held For Sale At Fair Value [RollForward] | ||
Balance, beginning of period | $ 598 | |
Origination of consumer loans held for sale | 58,833 | $ 598 |
Proceeds from the sale of consumer loans held for sale | (57,814) | |
Net gain on sale of consumer loans held for sale | 1,681 | |
Balance, end of period | $ 3,298 | $ 598 |
LOANS HELD FOR SALE - CONSUME_2
LOANS HELD FOR SALE - CONSUMER LOANS - LOWER COST (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Carried at lower of cost or fair value | ||||
Balance, beginning of period | $ 11,646 | $ 12,838 | $ 8,551 | |
Origination of consumer loans held for sale | 460,040 | 709,768 | 761,491 | |
Loans transferred to held for investment | 1,392 | |||
Proceeds from the sale of consumer loans held for sale | (473,507) | (716,062) | (764,929) | |
Net gain on sale of consumer loans held for sale | 3,299 | 5,102 | 6,333 | |
Balance, end of period | $ 11,646 | $ 1,478 | $ 11,646 | $ 12,838 |
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 | |||
Republic Credit Solutions | Installment loan | Minimum | ||||
Loans held for sale | ||||
Loan held-for-sale term | 12 months | 12 months | ||
Republic Credit Solutions | Installment loan | Maximum | ||||
Loans held for sale | ||||
Loan held-for-sale term | 60 months | 60 months |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COMPOSITION OF LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans disclosures | ||||
Total loans | $ 4,813,103 | $ 4,433,151 | ||
Allowance for loan and lease losses | (61,067) | (43,351) | $ (44,675) | $ (42,769) |
Loans, net | 4,752,036 | 4,389,800 | ||
Core Banking | ||||
Loans disclosures | ||||
Total loans | 4,678,445 | 4,313,389 | ||
Allowance for loan and lease losses | (52,106) | (29,999) | (31,519) | (30,147) |
Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 3,715,649 | 3,595,931 | ||
Allowance for loan and lease losses | (49,699) | (28,205) | (30,347) | (28,833) |
Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | 134,658 | 119,762 | ||
Allowance for loan and lease losses | (8,961) | (13,352) | (13,156) | (12,622) |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||||
Loans disclosures | ||||
Total loans | 879,800 | |||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 879,800 | 949,568 | ||
Allowance for loan and lease losses | (9,715) | (4,729) | (6,035) | (6,474) |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||||
Loans disclosures | ||||
Total loans | 264,780 | |||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 264,780 | 258,803 | ||
Allowance for loan and lease losses | (2,466) | (1,737) | (1,662) | (1,396) |
Residential Real Estate | Home equity lines of credit | ||||
Loans disclosures | ||||
Total loans | 240,640 | |||
Residential Real Estate | Home equity lines of credit | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 240,640 | 293,186 | ||
Allowance for loan and lease losses | (4,990) | (2,721) | (3,477) | (3,754) |
Commercial Real Estate | ||||
Loans disclosures | ||||
Total loans | 1,349,085 | |||
Commercial Real Estate | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 1,349,085 | 1,303,000 | ||
Allowance for loan and lease losses | (23,606) | (10,486) | (10,030) | (9,043) |
Construction & land development | ||||
Loans disclosures | ||||
Total loans | 98,674 | |||
Construction & land development | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 98,674 | 159,702 | ||
Allowance for loan and lease losses | (3,274) | (2,152) | (2,555) | (2,364) |
Commercial | Commercial and Industrial | ||||
Loans disclosures | ||||
Total loans | 325,596 | |||
Commercial | Commercial and Industrial | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 325,596 | 465,674 | ||
Allowance for loan and lease losses | (2,797) | (2,882) | (2,873) | (2,198) |
Commercial | Paycheck Protection Program | ||||
Loans disclosures | ||||
Total loans | 392,319 | |||
Loans, net | 392,000 | |||
Commercial | Paycheck Protection Program | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 392,319 | |||
Lease Financing Receivables | ||||
Loans disclosures | ||||
Total loans | 10,130 | |||
Lease Financing Receivables | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 10,130 | 14,040 | ||
Allowance for loan and lease losses | (106) | (147) | (158) | (174) |
Aircraft | ||||
Loans disclosures | ||||
Total loans | 101,375 | 70,443 | ||
Aircraft | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 101,375 | 70,443 | ||
Allowance for loan and lease losses | (253) | (176) | (91) | (37) |
Consumer | ||||
Loans disclosures | ||||
Total loans | 53,250 | |||
Consumer | Credit Cards | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 14,196 | 17,836 | ||
Allowance for loan and lease losses | (929) | (1,020) | (1,140) | (607) |
Consumer | Overdrafts | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 587 | 1,522 | ||
Allowance for loan and lease losses | (587) | (1,169) | (1,102) | (974) |
Consumer | Automobile loan | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 30,300 | 52,923 | ||
Allowance for loan and lease losses | (399) | (612) | (724) | (687) |
Consumer | Other consumer | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 8,167 | 9,234 | ||
Allowance for loan and lease losses | (577) | (374) | (500) | (1,125) |
Warehouse lines of credit | ||||
Loans disclosures | ||||
Total loans | 962,796 | |||
Warehouse lines of credit | Warehouse Lending | ||||
Loans disclosures | ||||
Total loans | 962,796 | 717,458 | ||
Allowance for loan and lease losses | (2,407) | (1,794) | (1,172) | |
Tax Refund Solutions | ||||
Loans disclosures | ||||
Total loans | 23,765 | |||
Tax Refund Solutions | Other TRS loans | Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | 23,765 | 14,365 | ||
Allowance for loan and lease losses | (158) | (234) | (107) | (12) |
Republic Credit Solutions | ||||
Loans disclosures | ||||
Total loans | 110,893 | |||
Republic Credit Solutions | Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | 110,893 | 105,397 | ||
Allowance for loan and lease losses | $ (8,803) | $ (13,118) | $ (13,049) | $ (12,610) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Contractually receivable | $ 4,821,062 | $ 4,432,351 |
Unearned income | (708) | (1,139) |
Unamortized premiums | 216 | 366 |
Unaccreted discounts | (988) | (2,534) |
PPP net unamortized deferred origination fees and costs | (8,564) | |
Other Unamortized Net Deferred Origination Fees And Costs | 2,085 | 4,107 |
Carrying value of loans | $ 4,813,103 | $ 4,433,151 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - PAYCHECK PROTECTION PROGRAM (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded investments | $ 4,752,036 | $ 4,389,800 |
Unaccreted net deferred origination fees | (8,564) | |
Commercial | Paycheck Protection Program | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded investments | 392,000 | |
Originated balance | 401,000 | |
Unaccreted net deferred origination fees | 9,000 | |
PPPLF | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding borrowings | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RISK CATEGORY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 27, 2021 | Dec. 31, 2019 | |
Risk category of rated loans | |||
2020 | $ 1,319,443 | ||
2019 | 659,624 | ||
2018 | 362,461 | ||
2017 | 344,618 | ||
Prior | 770,323 | ||
Revolving Loans Amortized Cost Basis | 1,296,221 | ||
Revolving Loans Converted To Term Loans | 60,413 | ||
Loans | $ 4,813,103 | $ 4,433,151 | |
Maximum number of days past due for loans to be non rated | 90 days | ||
Consumer Loans Held For Investment Fair Value Disclosure | $ 497 | 998 | |
Pass | |||
Risk category of rated loans | |||
2020 | 1,294,478 | ||
2019 | 623,234 | ||
2018 | 360,803 | ||
2017 | 329,823 | ||
Prior | 732,111 | ||
Revolving Loans Amortized Cost Basis | 1,292,863 | ||
Revolving Loans Converted To Term Loans | 57,610 | ||
Loans | 4,690,922 | 2,648,380 | |
Special Mention | |||
Risk category of rated loans | |||
2020 | 21,592 | ||
2019 | 34,530 | ||
2018 | 278 | ||
2017 | 12,965 | ||
Prior | 20,609 | ||
Revolving Loans Amortized Cost Basis | 127 | ||
Loans | 90,101 | 21,754 | |
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000 | ||
Substandard | |||
Risk category of rated loans | |||
2020 | 3,373 | ||
2019 | 1,860 | ||
2018 | 1,380 | ||
2017 | 1,830 | ||
Prior | 17,603 | ||
Revolving Loans Amortized Cost Basis | 3,231 | ||
Revolving Loans Converted To Term Loans | 2,803 | ||
Loans | 32,080 | 33,297 | |
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000 | ||
Doubtful / Loss | |||
Risk category of rated loans | |||
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000 | ||
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 | 4,678,445 | 4,313,389 | |
Core Banking | Pass | |||
Risk category of rated loans | |||
Loans | 2,648,380 | ||
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 | ||
Traditional Banking | |||
Risk category of rated loans | |||
Loans | 3,715,649 | 3,595,931 | |
Traditional Banking | Pass | |||
Risk category of rated loans | |||
Loans | 1,930,922 | ||
Traditional Banking | Special Mention | |||
Risk category of rated loans | |||
Loans | 21,754 | ||
Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 32,889 | ||
Traditional Banking | PCI Loans - Group 1 | |||
Risk category of rated loans | |||
Loans | 797 | ||
Traditional Banking | PCI Loans - Substandard | |||
Risk category of rated loans | |||
Loans | 1,289 | ||
Traditional Banking | Subprime | |||
Risk category of rated loans | |||
Loans | 52,000 | 52,000 | |
Loans originated for Community Reinvestment Act ("CRA") purposes | 27,000 | 23,000 | |
Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 1,987,651 | ||
Republic Processing Group | |||
Risk category of rated loans | |||
Loans | $ 134,658 | 119,762 | |
Republic Processing Group | Substandard | |||
Risk category of rated loans | |||
Loans | 408 | ||
Republic Processing Group | Rated Loans | |||
Risk category of rated loans | |||
Loans | 408 | ||
Republic Credit Solutions | Line of credit and credit card | |||
Risk category of rated loans | |||
Percentage of loan receivable held for sale (as a percent) | 90.00% | ||
Consumer loans held for sale period | 3 days | ||
Interest retained (as a percent) | 10.00% | ||
Consumer Loans Held For Investment Fair Value Disclosure | $ 18,000 | 28,000 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | |||
Risk category of rated loans | |||
2020 | 268,707 | ||
2019 | 133,805 | ||
2018 | 84,127 | ||
2017 | 69,654 | ||
Prior | 323,507 | ||
Loans | 879,800 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Pass | |||
Risk category of rated loans | |||
2020 | 268,313 | ||
2019 | 132,018 | ||
2018 | 82,754 | ||
2017 | 67,430 | ||
Prior | 301,366 | ||
Loans | 851,881 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Special Mention | |||
Risk category of rated loans | |||
2019 | 364 | ||
2018 | 42 | ||
2017 | 1,610 | ||
Prior | 8,730 | ||
Loans | 10,746 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Substandard | |||
Risk category of rated loans | |||
2020 | 394 | ||
2019 | 1,423 | ||
2018 | 1,331 | ||
2017 | 614 | ||
Prior | 13,411 | ||
Loans | 17,173 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 879,800 | 949,568 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | Special Mention | |||
Risk category of rated loans | |||
Loans | 12,153 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 14,441 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | PCI Loans - Group 1 | |||
Risk category of rated loans | |||
Loans | 140 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | PCI Loans - Substandard | |||
Risk category of rated loans | |||
Loans | 1,281 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 28,015 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | |||
Risk category of rated loans | |||
2020 | 73,291 | ||
2019 | 63,102 | ||
2018 | 43,610 | ||
2017 | 45,759 | ||
Prior | 38,397 | ||
Revolving Loans Converted To Term Loans | 621 | ||
Loans | 264,780 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Pass | |||
Risk category of rated loans | |||
2020 | 73,291 | ||
2019 | 63,102 | ||
2018 | 43,610 | ||
2017 | 45,759 | ||
Prior | 38,316 | ||
Revolving Loans Converted To Term Loans | 621 | ||
Loans | 264,699 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Substandard | |||
Risk category of rated loans | |||
Prior | 81 | ||
Loans | 81 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 264,780 | 258,803 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | Special Mention | |||
Risk category of rated loans | |||
Loans | 487 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 1,285 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 1,772 | ||
Residential Real Estate | Home equity lines of credit | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 240,640 | ||
Loans | 240,640 | ||
Residential Real Estate | Home equity lines of credit | Pass | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 237,633 | ||
Loans | 237,633 | ||
Residential Real Estate | Home equity lines of credit | Special Mention | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 127 | ||
Loans | 127 | ||
Residential Real Estate | Home equity lines of credit | Substandard | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 2,880 | ||
Loans | 2,880 | ||
Residential Real Estate | Home equity lines of credit | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 240,640 | 293,186 | |
Residential Real Estate | Home equity lines of credit | Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 3,276 | ||
Residential Real Estate | Home equity lines of credit | Traditional Banking | PCI Loans - Group 1 | |||
Risk category of rated loans | |||
Loans | 4 | ||
Residential Real Estate | Home equity lines of credit | Traditional Banking | PCI Loans - Substandard | |||
Risk category of rated loans | |||
Loans | 6 | ||
Residential Real Estate | Home equity lines of credit | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 3,286 | ||
Commercial Real Estate | |||
Risk category of rated loans | |||
2020 | 321,543 | ||
2019 | 289,569 | ||
2018 | 166,778 | ||
2017 | 183,549 | ||
Prior | 328,894 | ||
Revolving Loans Converted To Term Loans | 58,752 | ||
Loans | 1,349,085 | ||
Commercial Real Estate | Pass | |||
Risk category of rated loans | |||
2020 | 315,550 | ||
2019 | 258,251 | ||
2018 | 166,542 | ||
2017 | 171,207 | ||
Prior | 315,336 | ||
Revolving Loans Converted To Term Loans | 55,949 | ||
Loans | 1,282,835 | ||
Commercial Real Estate | Special Mention | |||
Risk category of rated loans | |||
2020 | 3,397 | ||
2019 | 30,969 | ||
2018 | 236 | ||
2017 | 11,355 | ||
Prior | 9,659 | ||
Loans | 55,616 | ||
Additional loan downgraded | $ 15,000 | ||
Commercial Real Estate | Substandard | |||
Risk category of rated loans | |||
2020 | 2,596 | ||
2019 | 349 | ||
2017 | 987 | ||
Prior | 3,899 | ||
Revolving Loans Converted To Term Loans | 2,803 | ||
Loans | 10,634 | ||
Commercial Real Estate | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 1,349,085 | 1,303,000 | |
Commercial Real Estate | Traditional Banking | Pass | |||
Risk category of rated loans | |||
Loans | 1,286,623 | ||
Commercial Real Estate | Traditional Banking | Special Mention | |||
Risk category of rated loans | |||
Loans | 4,623 | ||
Commercial Real Estate | Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 11,123 | ||
Commercial Real Estate | Traditional Banking | PCI Loans - Group 1 | |||
Risk category of rated loans | |||
Loans | 631 | ||
Commercial Real Estate | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 1,303,000 | ||
Construction & land development | |||
Risk category of rated loans | |||
2020 | 53,972 | ||
2019 | 34,197 | ||
2018 | 7,840 | ||
2017 | 701 | ||
Prior | 1,964 | ||
Loans | 98,674 | ||
Construction & land development | Pass | |||
Risk category of rated loans | |||
2020 | 53,972 | ||
2019 | 31,756 | ||
2018 | 7,840 | ||
2017 | 701 | ||
Prior | 1,964 | ||
Loans | 96,233 | ||
Construction & land development | Special Mention | |||
Risk category of rated loans | |||
2019 | 2,397 | ||
Loans | 2,397 | ||
Construction & land development | Substandard | |||
Risk category of rated loans | |||
2019 | 44 | ||
Loans | 44 | ||
Construction & land development | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 98,674 | 159,702 | |
Construction & land development | Traditional Banking | Pass | |||
Risk category of rated loans | |||
Loans | 157,165 | ||
Construction & land development | Traditional Banking | Special Mention | |||
Risk category of rated loans | |||
Loans | 2,339 | ||
Construction & land development | Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 198 | ||
Construction & land development | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 159,702 | ||
Commercial | Commercial and Industrial | |||
Risk category of rated loans | |||
2020 | 124,563 | ||
2019 | 85,387 | ||
2018 | 33,391 | ||
2017 | 32,303 | ||
Prior | 48,912 | ||
Revolving Loans Converted To Term Loans | 1,040 | ||
Loans | 325,596 | ||
Commercial | Commercial and Industrial | Pass | |||
Risk category of rated loans | |||
2020 | 105,985 | ||
2019 | 84,575 | ||
2018 | 33,391 | ||
2017 | 32,303 | ||
Prior | 46,697 | ||
Revolving Loans Converted To Term Loans | 1,040 | ||
Loans | 303,991 | ||
Commercial | Commercial and Industrial | Special Mention | |||
Risk category of rated loans | |||
2020 | 18,195 | ||
2019 | 800 | ||
Prior | 2,215 | ||
Loans | 21,210 | ||
Additional loan downgraded | $ 5,000 | ||
Commercial | Commercial and Industrial | Substandard | |||
Risk category of rated loans | |||
2020 | 383 | ||
2019 | 12 | ||
Loans | 395 | ||
Commercial | Commercial and Industrial | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 325,596 | 465,674 | |
Commercial | Commercial and Industrial | Traditional Banking | Pass | |||
Risk category of rated loans | |||
Loans | 461,532 | ||
Commercial | Commercial and Industrial | Traditional Banking | Special Mention | |||
Risk category of rated loans | |||
Loans | 2,152 | ||
Commercial | Commercial and Industrial | Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 1,968 | ||
Commercial | Commercial and Industrial | Traditional Banking | PCI Loans - Group 1 | |||
Risk category of rated loans | |||
Loans | 22 | ||
Commercial | Commercial and Industrial | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 465,674 | ||
Commercial | Paycheck Protection Program | |||
Risk category of rated loans | |||
2020 | 392,319 | ||
Loans | 392,319 | ||
Commercial | Paycheck Protection Program | Pass | |||
Risk category of rated loans | |||
2020 | 392,319 | ||
Loans | 392,319 | ||
Commercial | Paycheck Protection Program | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 392,319 | ||
Aircraft | |||
Risk category of rated loans | |||
2020 | 55,823 | ||
2019 | 30,529 | ||
2018 | 13,804 | ||
2017 | 1,219 | ||
Loans | 101,375 | 70,443 | |
Aircraft | Pass | |||
Risk category of rated loans | |||
2020 | 55,823 | ||
2019 | 30,529 | ||
2018 | 13,804 | ||
2017 | 1,219 | ||
Loans | 101,375 | ||
Aircraft | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 101,375 | 70,443 | |
Aircraft | Traditional Banking | Pass | |||
Risk category of rated loans | |||
Loans | 11,562 | ||
Aircraft | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 11,562 | ||
Lease Financing Receivables | |||
Risk category of rated loans | |||
2020 | 1,117 | ||
2019 | 3,663 | ||
2018 | 1,814 | ||
2017 | 2,847 | ||
Prior | 689 | ||
Loans | 10,130 | ||
Lease Financing Receivables | Pass | |||
Risk category of rated loans | |||
2020 | 1,117 | ||
2019 | 3,663 | ||
2018 | 1,814 | ||
2017 | 2,847 | ||
Prior | 689 | ||
Loans | 10,130 | ||
Lease Financing Receivables | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 10,130 | 14,040 | |
Lease Financing Receivables | Traditional Banking | Pass | |||
Risk category of rated loans | |||
Loans | 14,040 | ||
Lease Financing Receivables | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 14,040 | ||
Consumer | |||
Risk category of rated loans | |||
2020 | 425 | ||
2019 | 13,668 | ||
2018 | 8,612 | ||
2017 | 7,354 | ||
Prior | 8,865 | ||
Revolving Loans Amortized Cost Basis | 14,326 | ||
Loans | 53,250 | ||
Consumer | Pass | |||
Risk category of rated loans | |||
2020 | 425 | ||
2019 | 13,636 | ||
2018 | 8,563 | ||
2017 | 7,125 | ||
Prior | 8,648 | ||
Revolving Loans Amortized Cost Basis | 14,321 | ||
Loans | 52,718 | ||
Consumer | Special Mention | |||
Risk category of rated loans | |||
Prior | 5 | ||
Loans | 5 | ||
Consumer | Substandard | |||
Risk category of rated loans | |||
2019 | 32 | ||
2018 | 49 | ||
2017 | 229 | ||
Prior | 212 | ||
Revolving Loans Amortized Cost Basis | 5 | ||
Loans | 527 | ||
Consumer | Credit Cards | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 14,196 | 17,836 | |
Consumer | Overdrafts | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 587 | 1,522 | |
Consumer | Automobile loan | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 30,300 | 52,923 | |
Consumer | Automobile loan | Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 247 | ||
Consumer | Automobile loan | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 247 | ||
Consumer | Other consumer | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 8,167 | 9,234 | |
Consumer | Other consumer | Traditional Banking | Substandard | |||
Risk category of rated loans | |||
Loans | 351 | ||
Consumer | Other consumer | Traditional Banking | PCI Loans - Substandard | |||
Risk category of rated loans | |||
Loans | 2 | ||
Consumer | Other consumer | Traditional Banking | Rated Loans | |||
Risk category of rated loans | |||
Loans | 353 | ||
Warehouse lines of credit | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 962,796 | ||
Loans | 962,796 | ||
Warehouse lines of credit | Pass | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 962,796 | ||
Loans | 962,796 | ||
Warehouse lines of credit | Warehouse Lending | |||
Risk category of rated loans | |||
Loans | 962,796 | 717,458 | |
Warehouse lines of credit | Warehouse Lending | Pass | |||
Risk category of rated loans | |||
Loans | 717,458 | ||
Warehouse lines of credit | Warehouse Lending | Rated Loans | |||
Risk category of rated loans | |||
Loans | 717,458 | ||
Tax Refund Solutions | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 23,765 | ||
Loans | 23,765 | ||
Tax Refund Solutions | Pass | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 23,765 | ||
Loans | 23,765 | ||
Tax Refund Solutions | Other TRS loans | Republic Processing Group | |||
Risk category of rated loans | |||
Loans | 23,765 | 14,365 | |
Tax Refund Solutions | Other TRS loans | Republic Processing Group | Substandard | |||
Risk category of rated loans | |||
Loans | 53 | ||
Tax Refund Solutions | Other TRS loans | Republic Processing Group | Rated Loans | |||
Risk category of rated loans | |||
Loans | 53 | ||
Republic Credit Solutions | |||
Risk category of rated loans | |||
2020 | 27,683 | ||
2019 | 5,704 | ||
2018 | 2,485 | ||
2017 | 1,232 | ||
Prior | 19,095 | ||
Revolving Loans Amortized Cost Basis | 54,694 | ||
Loans | 110,893 | ||
Republic Credit Solutions | Pass | |||
Risk category of rated loans | |||
2020 | 27,683 | ||
2019 | 5,704 | ||
2018 | 2,485 | ||
2017 | 1,232 | ||
Prior | 19,095 | ||
Revolving Loans Amortized Cost Basis | 54,348 | ||
Loans | 110,547 | ||
Republic Credit Solutions | Substandard | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 346 | ||
Loans | 346 | ||
Republic Credit Solutions | Republic Processing Group | |||
Risk category of rated loans | |||
Loans | $ 110,893 | 105,397 | |
Republic Credit Solutions | Republic Processing Group | Substandard | |||
Risk category of rated loans | |||
Loans | 355 | ||
Republic Credit Solutions | Republic Processing Group | Rated Loans | |||
Risk category of rated loans | |||
Loans | $ 355 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses rollforward | |||||
Beginning Balance | $ 43,351 | $ 44,675 | $ 42,769 | ||
Provision | 31,151 | 25,758 | 31,368 | ||
Charged-off | (28,741) | (32,396) | (33,852) | ||
Recoveries | 8,572 | 5,314 | 4,390 | ||
Ending Balance | $ 61,067 | $ 61,067 | 43,351 | 44,675 | |
Year of Horizon | 1 year | ||||
U.S. unemployment rate | 6.70% | 11.10% | |||
Forecasted unemployment rate | 5.00% | ||||
Financing receivable deferral and forbearance requests loans percentage of total loan | 20.00% | 20.00% | |||
Minimum | |||||
Allowance for loan losses rollforward | |||||
Forecasted unemployment rate | 8.00% | ||||
Core Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | $ 29,999 | 31,519 | 30,147 | ||
Provision | 16,743 | 3,066 | 3,568 | ||
Charged-off | (2,769) | (5,713) | (3,608) | ||
Recoveries | 1,399 | 1,127 | 1,412 | ||
Ending Balance | $ 52,106 | 52,106 | 29,999 | 31,519 | |
Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 28,205 | 30,347 | 28,833 | ||
Provision | 16,130 | 2,444 | 3,710 | ||
Charged-off | (2,769) | (5,713) | (3,608) | ||
Recoveries | 1,399 | 1,127 | 1,412 | ||
Ending Balance | 49,699 | 49,699 | 28,205 | 30,347 | |
Republic Processing Group | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 13,352 | 13,156 | 12,622 | ||
Provision | 14,408 | 22,692 | 27,800 | ||
Charged-off | (25,972) | (26,683) | (30,244) | ||
Recoveries | 7,173 | 4,187 | 2,978 | ||
Ending Balance | 8,961 | 8,961 | 13,352 | 13,156 | |
Warehouse lines of credit | Warehouse Lending | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 1,172 | 1,314 | |||
Provision | (142) | ||||
Ending Balance | 1,172 | ||||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 4,729 | 6,035 | 6,474 | ||
Provision | 785 | (1,087) | 170 | ||
Charged-off | (169) | (610) | (855) | ||
Recoveries | 171 | 391 | 246 | ||
Ending Balance | 9,715 | 9,715 | 4,729 | 6,035 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 1,737 | 1,662 | 1,396 | ||
Provision | 570 | 125 | 559 | ||
Charged-off | (73) | (332) | |||
Recoveries | 11 | 23 | 39 | ||
Ending Balance | 2,466 | 2,466 | 1,737 | 1,662 | |
Residential Real Estate | Home equity lines of credit | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 2,721 | 3,477 | 3,754 | ||
Provision | 516 | (764) | (473) | ||
Charged-off | (14) | (64) | (115) | ||
Recoveries | 115 | 72 | 311 | ||
Ending Balance | 4,990 | 4,990 | 2,721 | 3,477 | |
Commercial Real Estate | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 10,486 | 10,030 | 9,043 | ||
Provision | 13,170 | 1,859 | 863 | ||
Charged-off | (795) | (1,407) | (7) | ||
Recoveries | 472 | 4 | 131 | ||
Ending Balance | 23,606 | 23,606 | 10,486 | 10,030 | |
Construction & land development | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 2,152 | 2,555 | 2,364 | ||
Provision | (325) | (403) | 161 | ||
Recoveries | 30 | ||||
Ending Balance | 3,274 | 3,274 | 2,152 | 2,555 | |
Commercial | Commercial and Industrial | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 2,882 | 2,873 | 2,198 | ||
Provision | 1,421 | 1,505 | 824 | ||
Charged-off | (310) | (1,505) | (200) | ||
Recoveries | 122 | 9 | 51 | ||
Ending Balance | 2,797 | 2,797 | 2,882 | 2,873 | |
Lease Financing Receivables | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 147 | 158 | 174 | ||
Provision | (41) | (11) | (16) | ||
Ending Balance | 106 | 106 | 147 | 158 | |
Aircraft | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 176 | 91 | 37 | ||
Provision | 77 | 85 | 54 | ||
Ending Balance | 253 | 253 | 176 | 91 | |
Consumer | Credit Cards | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 1,020 | 1,140 | 607 | ||
Provision | 111 | 226 | 906 | ||
Charged-off | (295) | (402) | (416) | ||
Recoveries | 60 | 56 | 43 | ||
Ending Balance | 929 | 929 | 1,020 | 1,140 | |
Consumer | Overdrafts | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 1,169 | 1,102 | 974 | ||
Provision | 79 | 1,155 | 1,082 | ||
Charged-off | (886) | (1,310) | (1,215) | ||
Recoveries | 225 | 222 | 261 | ||
Ending Balance | 587 | 587 | 1,169 | 1,102 | |
Consumer | Automobile loan | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 612 | 724 | 687 | ||
Provision | (176) | (42) | 57 | ||
Charged-off | (60) | (79) | (24) | ||
Recoveries | 30 | 9 | 4 | ||
Ending Balance | 399 | 399 | 612 | 724 | |
Consumer | Other consumer | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 374 | 500 | 1,125 | ||
Provision | (57) | (204) | (477) | ||
Charged-off | (240) | (263) | (444) | ||
Recoveries | 193 | 341 | 296 | ||
Ending Balance | 577 | 577 | 374 | 500 | |
Warehouse lines of credit | Warehouse Lending | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 1,794 | 1,172 | |||
Provision | 613 | 622 | |||
Ending Balance | 2,407 | 2,407 | 1,794 | 1,172 | |
Tax Refund Solutions | Easy Advances | Republic Processing Group | |||||
Allowance for loan losses rollforward | |||||
Provision | 13,033 | 10,643 | 10,760 | ||
Charged-off | (19,575) | (13,425) | (12,478) | ||
Recoveries | 6,542 | 2,782 | 1,718 | ||
Tax Refund Solutions | Other TRS loans | Republic Processing Group | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 234 | 107 | 12 | ||
Provision | 156 | 606 | 159 | ||
Charged-off | (234) | (692) | (74) | ||
Recoveries | 2 | 213 | 10 | ||
Ending Balance | 158 | 158 | 234 | 107 | |
Republic Credit Solutions | Republic Processing Group | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 13,118 | 13,049 | 12,610 | ||
Provision | 1,219 | 11,443 | 16,881 | ||
Charged-off | (6,163) | (12,566) | (17,692) | ||
Recoveries | 629 | 1,192 | 1,250 | ||
Ending Balance | $ 8,803 | 8,803 | 13,118 | $ 13,049 | |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 6,734 | ||||
Ending Balance | 6,734 | ||||
ASU 2016-13 | Core Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 6,734 | ||||
Ending Balance | 6,734 | ||||
ASU 2016-13 | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 6,734 | ||||
Ending Balance | 6,734 | ||||
ASU 2016-13 | Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 4,199 | ||||
Ending Balance | 4,199 | ||||
ASU 2016-13 | Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 148 | ||||
Ending Balance | 148 | ||||
ASU 2016-13 | Residential Real Estate | Home equity lines of credit | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 1,652 | ||||
Ending Balance | 1,652 | ||||
ASU 2016-13 | Commercial Real Estate | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 273 | ||||
Ending Balance | 273 | ||||
ASU 2016-13 | Construction & land development | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 1,447 | ||||
Ending Balance | 1,447 | ||||
ASU 2016-13 | Commercial | Commercial and Industrial | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | (1,318) | ||||
Ending Balance | (1,318) | ||||
ASU 2016-13 | Consumer | Credit Cards | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 33 | ||||
Ending Balance | 33 | ||||
ASU 2016-13 | Consumer | Automobile loan | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | (7) | ||||
Ending Balance | (7) | ||||
ASU 2016-13 | Consumer | Other consumer | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | $ 307 | ||||
Ending Balance | $ 307 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 23,548 | $ 23,332 |
Loans past due 90 days or more and still on accrual | 47 | 157 |
Total nonperforming loans | 23,595 | 23,489 |
Other real estate owned | 2,499 | 113 |
Total nonperforming assets | $ 26,094 | $ 23,602 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.49% | 0.53% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.54% | 0.53% |
Nonperforming assets to total assets (as percent) | 0.42% | 0.42% |
Core Banking | ||
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 23,548 | $ 23,332 |
Loans past due 90 days or more and still on accrual | $ 5 | |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.50% | 0.54% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.56% | 0.54% |
Nonperforming assets to total assets (as percent) | 0.45% | 0.43% |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | $ 2,739 | |
Nonaccrual with no ACLL | 20,809 | |
Nonaccrual | 23,548 | $ 23,332 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 47 | 157 |
Interest Income Recognized on Nonaccrual Loans | 1,816 | |
Core Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 23,548 | 23,332 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 5 | |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 23,548 | 23,332 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 5 | |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 42 | 157 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 1,995 | |
Nonaccrual with no ACLL | 12,333 | |
Nonaccrual | 14,328 | |
Interest Income Recognized on Nonaccrual Loans | 824 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 14,328 | 12,220 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 8 | |
Nonaccrual with no ACLL | 73 | |
Nonaccrual | 81 | |
Interest Income Recognized on Nonaccrual Loans | 11 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 81 | 623 |
Residential Real Estate | Home equity lines of credit | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 91 | |
Nonaccrual with no ACLL | 2,050 | |
Nonaccrual | 2,141 | |
Interest Income Recognized on Nonaccrual Loans | 94 | |
Residential Real Estate | Home equity lines of credit | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 2,141 | 1,865 |
Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 576 | |
Nonaccrual with no ACLL | 6,186 | |
Nonaccrual | 6,762 | |
Interest Income Recognized on Nonaccrual Loans | 857 | |
Commercial Real Estate | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 6,762 | 6,865 |
Construction & land development | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 143 | |
Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Nonaccrual with no ACLL | 55 | |
Nonaccrual | 55 | |
Interest Income Recognized on Nonaccrual Loans | 17 | |
Commercial | Commercial and Industrial | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 55 | 1,424 |
Consumer | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 69 | |
Nonaccrual with no ACLL | 112 | |
Nonaccrual | 181 | |
Interest Income Recognized on Nonaccrual Loans | 13 | |
Consumer | Credit Cards | Traditional Banking | ||
Aging or recorded investments in loans | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 5 | |
Consumer | Automobile loan | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 170 | 179 |
Consumer | Other consumer | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 11 | 13 |
Tax Refund Solutions | Other TRS loans | Republic Processing Group | ||
Aging or recorded investments in loans | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 53 | |
Republic Credit Solutions | Republic Processing Group | ||
Aging or recorded investments in loans | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 42 | $ 104 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 19,947 | $ 20,804 |
Total Loans Not Delinquent | 4,793,156 | 4,412,347 |
Carrying value of loans | $ 4,813,103 | $ 4,433,151 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.41% | 0.47% |
30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 7,924 | $ 10,090 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.16% | 0.23% |
60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 4,690 | $ 3,063 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.10% | 0.07% |
90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 7,333 | $ 7,651 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.15% | 0.17% |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 879,800 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 264,780 | |
Residential Real Estate | Home equity lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 240,640 | |
Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,349,085 | |
Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 98,674 | |
Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 325,596 | |
Commercial | Paycheck Protection Program | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 392,319 | |
Lease Financing Receivables | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 10,130 | |
Aircraft | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | $ 70,443 | |
Carrying value of loans | 101,375 | 70,443 |
Consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 53,250 | |
Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 962,796 | |
Tax Refund Solutions | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 23,765 | |
Republic Credit Solutions | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 110,893 | |
Core Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 9,713 | 13,042 |
Total Loans Not Delinquent | 4,668,732 | 4,300,347 |
Carrying value of loans | 4,678,445 | 4,313,389 |
Core Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,352 | 4,001 |
Core Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,070 | 1,547 |
Core Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 7,291 | 7,494 |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 9,713 | 13,042 |
Total Loans Not Delinquent | 3,705,936 | 3,582,889 |
Carrying value of loans | 3,715,649 | 3,595,931 |
Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,352 | 4,001 |
Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,070 | 1,547 |
Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 7,291 | 7,494 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 3,260 | 4,434 |
Total Loans Not Delinquent | 876,540 | 945,134 |
Carrying value of loans | 879,800 | 949,568 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,038 | 1,460 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 668 | 1,153 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,554 | 1,821 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 539 | |
Total Loans Not Delinquent | 264,780 | 258,264 |
Carrying value of loans | 264,780 | 258,803 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 539 | |
Traditional Banking | Residential Real Estate | Home equity lines of credit | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 702 | 2,918 |
Total Loans Not Delinquent | 239,938 | 290,268 |
Carrying value of loans | 240,640 | 293,186 |
Traditional Banking | Residential Real Estate | Home equity lines of credit | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 93 | 1,810 |
Traditional Banking | Residential Real Estate | Home equity lines of credit | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 14 | 166 |
Traditional Banking | Residential Real Estate | Home equity lines of credit | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 595 | 942 |
Traditional Banking | Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 5,457 | 3,300 |
Total Loans Not Delinquent | 1,343,628 | 1,299,700 |
Carrying value of loans | 1,349,085 | 1,303,000 |
Traditional Banking | Commercial Real Estate | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 155 | |
Traditional Banking | Commercial Real Estate | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 348 | |
Traditional Banking | Commercial Real Estate | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 5,109 | 3,145 |
Traditional Banking | Construction & land development | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 98,674 | 159,702 |
Carrying value of loans | 98,674 | 159,702 |
Traditional Banking | Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 12 | 1,355 |
Total Loans Not Delinquent | 325,584 | 464,319 |
Carrying value of loans | 325,596 | 465,674 |
Traditional Banking | Commercial | Commercial and Industrial | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 200 | |
Traditional Banking | Commercial | Commercial and Industrial | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 128 | |
Traditional Banking | Commercial | Commercial and Industrial | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 12 | 1,027 |
Traditional Banking | Commercial | Paycheck Protection Program | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 392,319 | |
Carrying value of loans | 392,319 | |
Traditional Banking | Lease Financing Receivables | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 10,130 | 14,040 |
Carrying value of loans | 10,130 | 14,040 |
Traditional Banking | Aircraft | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 101,375 | |
Carrying value of loans | 101,375 | 70,443 |
Traditional Banking | Consumer | Credit Cards | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 73 | 155 |
Total Loans Not Delinquent | 14,123 | 17,681 |
Carrying value of loans | 14,196 | 17,836 |
Traditional Banking | Consumer | Credit Cards | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 33 | 80 |
Traditional Banking | Consumer | Credit Cards | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 35 | 75 |
Traditional Banking | Consumer | Credit Cards | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 5 | |
Traditional Banking | Consumer | Overdrafts | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 147 | 283 |
Total Loans Not Delinquent | 440 | 1,239 |
Carrying value of loans | 587 | 1,522 |
Traditional Banking | Consumer | Overdrafts | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 140 | 278 |
Traditional Banking | Consumer | Overdrafts | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 5 | 4 |
Traditional Banking | Consumer | Overdrafts | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 2 | 1 |
Traditional Banking | Consumer | Automobile loan | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 56 | 49 |
Total Loans Not Delinquent | 30,244 | 52,874 |
Carrying value of loans | 30,300 | 52,923 |
Traditional Banking | Consumer | Automobile loan | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 42 | 16 |
Traditional Banking | Consumer | Automobile loan | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 15 | |
Traditional Banking | Consumer | Automobile loan | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 14 | 18 |
Traditional Banking | Consumer | Other consumer | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6 | 9 |
Total Loans Not Delinquent | 8,161 | 9,225 |
Carrying value of loans | 8,167 | 9,234 |
Traditional Banking | Consumer | Other consumer | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6 | 2 |
Traditional Banking | Consumer | Other consumer | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6 | |
Traditional Banking | Consumer | Other consumer | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1 | |
Warehouse Lending | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 962,796 | 717,458 |
Carrying value of loans | 962,796 | 717,458 |
Warehouse Lending | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 962,796 | 717,458 |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 10,234 | 7,762 |
Total Loans Not Delinquent | 124,424 | 112,000 |
Carrying value of loans | 134,658 | 119,762 |
Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6,572 | 6,089 |
Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 3,620 | 1,516 |
Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 42 | 157 |
Republic Processing Group | Tax Refund Solutions | Other TRS loans | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 119 | |
Total Loans Not Delinquent | 23,765 | 14,246 |
Carrying value of loans | 23,765 | 14,365 |
Republic Processing Group | Tax Refund Solutions | Other TRS loans | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 35 | |
Republic Processing Group | Tax Refund Solutions | Other TRS loans | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 31 | |
Republic Processing Group | Tax Refund Solutions | Other TRS loans | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 53 | |
Republic Processing Group | Republic Credit Solutions | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 10,234 | 7,643 |
Total Loans Not Delinquent | 100,659 | 97,754 |
Carrying value of loans | 110,893 | 105,397 |
Republic Processing Group | Republic Credit Solutions | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6,572 | 6,054 |
Republic Processing Group | Republic Credit Solutions | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 3,620 | 1,485 |
Republic Processing Group | Republic Credit Solutions | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 42 | $ 104 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COLLATERAL DEPENDENT LOANS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 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 | $ 30,397 |
Traditional Banking | Personal Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 249 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 17,212 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 81 |
Traditional Banking | Residential Real Estate | Home equity lines of credit | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 2,899 |
Traditional Banking | Commercial Real Estate | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 10,205 |
Traditional Banking | Commercial | Commercial and Industrial | Personal Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | 12 |
Traditional Banking | Consumer | Personal Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Secured Loans | $ 237 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - IMPAIRED LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||
Loans with no allocated ACLL | $ 33,061 | $ 19,555 | |
Loans with allocated ACLL | 17,289 | 21,880 | |
Total recorded investment in impaired loans | 50,350 | 41,435 | |
Amount of allocated ACLL | 2,512 | 3,764 | |
Average Recorded Investment | 45,400 | 45,620 | |
Interest Income Recognized | $ 2,739 | $ 1,342 | $ 1,245 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - PORTFOLIO CLASS (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
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 ACLL for loan losses | $ 61,067 | 43,351 | $ 44,675 | $ 42,769 |
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 | 4,813,103 | $ 4,433,151 | ||
ACLL to Total Loans | 0.98 | |||
Residential Real Estate | Residential Real Estate - Owner Occupied | ||||
Allowance for loans losses | ||||
Carrying value of loans | 879,800 | |||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||||
Allowance for loans losses | ||||
Carrying value of loans | 264,780 | |||
Residential Real Estate | Home equity lines of credit | ||||
Allowance for loans losses | ||||
Carrying value of loans | 240,640 | |||
Commercial Real Estate | ||||
Allowance for loans losses | ||||
Carrying value of loans | 1,349,085 | |||
Construction & land development | ||||
Allowance for loans losses | ||||
Carrying value of loans | 98,674 | |||
Commercial | Commercial and Industrial | ||||
Allowance for loans losses | ||||
Carrying value of loans | 325,596 | |||
Lease Financing Receivables | ||||
Allowance for loans losses | ||||
Carrying value of loans | 10,130 | |||
Aircraft | ||||
Allowance for loans losses | ||||
Carrying value of loans | 101,375 | $ 70,443 | ||
Consumer | ||||
Allowance for loans losses | ||||
Carrying value of loans | 53,250 | |||
Warehouse lines of credit | ||||
Allowance for loans losses | ||||
Carrying value of loans | 962,796 | |||
Tax Refund Solutions | ||||
Allowance for loans losses | ||||
Carrying value of loans | 23,765 | |||
Republic Credit Solutions | ||||
Allowance for loans losses | ||||
Carrying value of loans | 110,893 | |||
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 ACLL for loan losses | 52,106 | 29,999 | 31,519 | 30,147 |
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 | 4,678,445 | $ 4,313,389 | ||
ACLL to Total Loans | 0.70 | |||
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 ACLL for loan losses | 49,699 | 28,205 | 30,347 | 28,833 |
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 | 3,715,649 | $ 3,595,931 | ||
ACLL to Total Loans | 0.78 | |||
Traditional Banking | Residential Real Estate | 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 ACLL for loan losses | 9,715 | 4,729 | 6,035 | 6,474 |
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 | 879,800 | $ 949,568 | ||
ACLL to Total Loans | 0.50 | |||
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||||
Allowance for loans losses | ||||
Collectively evaluated for impairment | $ 1,737 | |||
Total ending ACLL for loan losses | 2,466 | 1,737 | 1,662 | 1,396 |
Impaired loans individually evaluated, excluding PCI loans | 1,448 | |||
Loans collectively evaluated for impairment | 257,355 | |||
Carrying value of loans | 264,780 | $ 258,803 | ||
ACLL to Total Loans | 0.67 | |||
Traditional Banking | Residential Real Estate | 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 ACLL for loan losses | 4,990 | 2,721 | 3,477 | 3,754 |
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 | 240,640 | $ 293,186 | ||
ACLL to Total Loans | 0.93 | |||
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 ACLL for loan losses | 23,606 | 10,486 | 10,030 | 9,043 |
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 | 1,349,085 | $ 1,303,000 | ||
ACLL to Total Loans | 0.80 | |||
Traditional Banking | Construction & land development | ||||
Allowance for loans losses | ||||
Collectively evaluated for impairment | $ 2,152 | |||
Total ending ACLL for loan losses | 3,274 | 2,152 | 2,555 | 2,364 |
Impaired loans individually evaluated, excluding PCI loans | 198 | |||
Loans collectively evaluated for impairment | 159,504 | |||
Carrying value of loans | 98,674 | $ 159,702 | ||
ACLL to Total Loans | 1.35 | |||
Traditional Banking | Commercial | Commercial and Industrial | ||||
Allowance for loans losses | ||||
Individually evaluated for impairment, excluding PCI loans | $ 22 | |||
Collectively evaluated for impairment | 2,860 | |||
Total ending ACLL for loan losses | 2,797 | 2,882 | 2,873 | 2,198 |
Impaired loans individually evaluated, excluding PCI loans | 1,989 | |||
Loans collectively evaluated for impairment | 463,663 | |||
PCI loans without post acquisition impairment | 22 | |||
Carrying value of loans | 325,596 | $ 465,674 | ||
ACLL to Total Loans | 0.62 | |||
Traditional Banking | Lease Financing Receivables | ||||
Allowance for loans losses | ||||
Collectively evaluated for impairment | $ 147 | |||
Total ending ACLL for loan losses | 106 | 147 | 158 | 174 |
Loans collectively evaluated for impairment | 14,040 | |||
Carrying value of loans | 10,130 | $ 14,040 | ||
ACLL to Total Loans | 1.05 | |||
Traditional Banking | Aircraft | ||||
Allowance for loans losses | ||||
Collectively evaluated for impairment | $ 176 | |||
Total ending ACLL for loan losses | 253 | 176 | 91 | 37 |
Loans collectively evaluated for impairment | 70,443 | |||
Carrying value of loans | 101,375 | $ 70,443 | ||
ACLL to Total Loans | 0.25 | |||
Traditional Banking | Consumer | Credit Cards | ||||
Allowance for loans losses | ||||
Collectively evaluated for impairment | $ 1,020 | |||
Total ending ACLL for loan losses | 929 | 1,020 | 1,140 | 607 |
Loans collectively evaluated for impairment | 17,836 | |||
Carrying value of loans | 14,196 | $ 17,836 | ||
ACLL to Total Loans | 5.72 | |||
Traditional Banking | Consumer | Overdrafts | ||||
Allowance for loans losses | ||||
Collectively evaluated for impairment | $ 1,169 | |||
Total ending ACLL for loan losses | 587 | 1,169 | 1,102 | 974 |
Loans collectively evaluated for impairment | 1,522 | |||
Carrying value of loans | 587 | $ 1,522 | ||
ACLL 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 ACLL for loan losses | 399 | 612 | 724 | 687 |
Impaired loans individually evaluated, excluding PCI loans | 247 | |||
Loans collectively evaluated for impairment | 52,676 | |||
Carrying value of loans | 30,300 | $ 52,923 | ||
ACLL to Total Loans | 1.16 | |||
Traditional Banking | Consumer | Other consumer | ||||
Allowance for loans losses | ||||
Individually evaluated for impairment, excluding PCI loans | $ 333 | |||
Collectively evaluated for impairment | 41 | |||
Total ending ACLL for loan losses | 577 | 374 | 500 | 1,125 |
Impaired loans individually evaluated, excluding PCI loans | 350 | |||
Loans collectively evaluated for impairment | 8,881 | |||
PCI loans with post acquisition impairment | 2 | |||
PCI loans without post acquisition impairment | 1 | |||
Carrying value of loans | 8,167 | $ 9,234 | ||
ACLL to Total Loans | 4.05 | |||
Warehouse Lending | Warehouse lines of credit | ||||
Allowance for loans losses | ||||
Collectively evaluated for impairment | $ 1,794 | |||
Total ending ACLL for loan losses | 2,407 | 1,794 | 1,172 | |
Loans collectively evaluated for impairment | 717,458 | |||
Carrying value of loans | 962,796 | $ 717,458 | ||
ACLL to Total Loans | 0.25 | |||
Republic Processing Group | ||||
Allowance for loans losses | ||||
Individually evaluated for impairment, excluding PCI loans | $ 116 | |||
Collectively evaluated for impairment | 13,236 | |||
Total ending ACLL for loan losses | 8,961 | 13,352 | 13,156 | 12,622 |
Impaired loans individually evaluated, excluding PCI loans | 251 | |||
Loans collectively evaluated for impairment | 119,511 | |||
Carrying value of loans | 134,658 | $ 119,762 | ||
ACLL to Total Loans | 11.15 | |||
Republic Processing Group | Tax Refund Solutions | Other TRS loans | ||||
Allowance for loans losses | ||||
Collectively evaluated for impairment | $ 234 | |||
Total ending ACLL for loan losses | 158 | 234 | 107 | 12 |
Loans collectively evaluated for impairment | 14,365 | |||
Carrying value of loans | 23,765 | $ 14,365 | ||
ACLL 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 ACLL for loan losses | 8,803 | 13,118 | $ 13,049 | $ 12,610 |
Impaired loans individually evaluated, excluding PCI loans | 251 | |||
Loans collectively evaluated for impairment | 105,146 | |||
Carrying value of loans | $ 110,893 | $ 105,397 | ||
ACLL to Total Loans | 12.45 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - LOANS EVALUATED FOR IMPAIRMENT BY CLASS OF LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired loans with no allocated ACLL: | |||
Recorded Investment | $ 33,061 | $ 19,555 | |
Average Recorded Investment | 45,400 | 45,620 | |
Interest Income Recognized | $ 2,739 | 1,342 | 1,245 |
Impaired loans with allocated ACLL: | |||
Recorded Investment | 17,289 | 21,880 | |
Allowance for Loan Losses Allocated | 2,512 | 3,764 | |
Total impaired loans | |||
Unpaid Principal Balance | 55,473 | 44,455 | |
Recorded Investment | 50,350 | 41,435 | |
Allowance for Loan Losses Allocated | 2,512 | 3,764 | |
Average Recorded Investment | 45,400 | 45,620 | |
Interest Income Recognized | 1,342 | 1,245 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | |||
Impaired loans with no allocated ACLL: | |||
Unpaid Principal Balance | 14,768 | 12,058 | |
Recorded Investment | 13,893 | 11,085 | |
Average Recorded Investment | 12,655 | 11,202 | |
Interest Income Recognized | 191 | 198 | |
Impaired loans with allocated ACLL: | |||
Unpaid Principal Balance | 12,954 | 16,215 | |
Recorded Investment | 12,911 | 15,802 | |
Allowance for Loan Losses Allocated | 1,392 | 2,433 | |
Average Recorded Investment | 13,824 | 17,754 | |
Interest Income Recognized | 502 | 528 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | 1,392 | 2,433 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | |||
Impaired loans with no allocated ACLL: | |||
Unpaid Principal Balance | 1,515 | 2,729 | |
Recorded Investment | 1,448 | 2,350 | |
Average Recorded Investment | 1,425 | 2,561 | |
Interest Income Recognized | 57 | 87 | |
Impaired loans with allocated ACLL: | |||
Unpaid Principal Balance | 78 | ||
Recorded Investment | 56 | ||
Allowance for Loan Losses Allocated | 4 | ||
Average Recorded Investment | 108 | 136 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | 4 | ||
Residential Real Estate | Home equity lines of credit | |||
Impaired loans with no allocated ACLL: | |||
Unpaid Principal Balance | 3,107 | 919 | |
Recorded Investment | 3,023 | 876 | |
Average Recorded Investment | 2,140 | 682 | |
Interest Income Recognized | 75 | 17 | |
Impaired loans with allocated ACLL: | |||
Unpaid Principal Balance | 263 | 572 | |
Recorded Investment | 263 | 571 | |
Allowance for Loan Losses Allocated | 174 | 360 | |
Average Recorded Investment | 417 | 925 | |
Interest Income Recognized | 8 | 9 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | 174 | 360 | |
Commercial Real Estate | |||
Impaired loans with no allocated ACLL: | |||
Unpaid Principal Balance | 15,028 | 5,688 | |
Recorded Investment | 12,547 | 4,607 | |
Average Recorded Investment | 7,514 | 5,040 | |
Interest Income Recognized | 298 | 151 | |
Impaired loans with allocated ACLL: | |||
Unpaid Principal Balance | 3,228 | 4,416 | |
Recorded Investment | 3,228 | 4,416 | |
Allowance for Loan Losses Allocated | 432 | 303 | |
Average Recorded Investment | 3,624 | 5,495 | |
Interest Income Recognized | 151 | 206 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | 432 | 303 | |
Construction & land development | |||
Impaired loans with no allocated ACLL: | |||
Unpaid Principal Balance | 198 | ||
Recorded Investment | 198 | ||
Average Recorded Investment | 65 | 119 | |
Interest Income Recognized | 2 | ||
Impaired loans with allocated ACLL: | |||
Unpaid Principal Balance | 65 | ||
Recorded Investment | 65 | ||
Allowance for Loan Losses Allocated | 4 | ||
Average Recorded Investment | 30 | 113 | |
Interest Income Recognized | 3 | ||
Total impaired loans | |||
Allowance for Loan Losses Allocated | 4 | ||
Commercial | Commercial and Industrial | |||
Impaired loans with no allocated ACLL: | |||
Unpaid Principal Balance | 3,308 | 712 | |
Recorded Investment | 1,792 | 604 | |
Average Recorded Investment | 913 | 755 | |
Interest Income Recognized | 35 | 3 | |
Impaired loans with allocated ACLL: | |||
Unpaid Principal Balance | 197 | 416 | |
Recorded Investment | 197 | 416 | |
Allowance for Loan Losses Allocated | 22 | 130 | |
Average Recorded Investment | 2,054 | 158 | |
Interest Income Recognized | 3 | 19 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | 22 | 130 | |
Consumer | |||
Impaired loans with no allocated ACLL: | |||
Unpaid Principal Balance | 206 | 33 | |
Recorded Investment | 160 | 33 | |
Average Recorded Investment | 76 | 49 | |
Interest Income Recognized | 4 | 2 | |
Impaired loans with allocated ACLL: | |||
Unpaid Principal Balance | 701 | 554 | |
Recorded Investment | 690 | 554 | |
Allowance for Loan Losses Allocated | 492 | 530 | |
Average Recorded Investment | 555 | 631 | |
Interest Income Recognized | 16 | 22 | |
Total impaired loans | |||
Allowance for Loan Losses Allocated | $ 492 | $ 530 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR ACCRUAL STATUS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,388 | 1,828 |
Recorded Investment | $ | $ 20,778 | $ 30,781 |
Loans on nonaccrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 64 | 61 |
Recorded Investment | $ | $ 6,712 | $ 9,866 |
Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,324 | 1,767 |
Recorded Investment | $ | $ 14,066 | $ 20,915 |
Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 184 | 194 |
Recorded Investment | $ | $ 15,230 | $ 19,770 |
Residential Real Estate | Loans on nonaccrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 61 | 53 |
Recorded Investment | $ | $ 4,189 | $ 4,402 |
Residential Real Estate | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 123 | 141 |
Recorded Investment | $ | $ 11,041 | $ 15,368 |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 7 | 13 |
Recorded Investment | $ | $ 4,904 | $ 8,925 |
Commercial Real Estate | Loans on nonaccrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2 | 4 |
Recorded Investment | $ | $ 2,509 | $ 4,040 |
Commercial Real Estate | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 5 | 9 |
Recorded Investment | $ | $ 2,395 | $ 4,885 |
Construction & land development | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 44 | $ 54 |
Construction & land development | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 44 | $ 54 |
Commercial | Commercial and Industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 7 |
Recorded Investment | $ | $ 1 | $ 1,446 |
Commercial | Commercial and Industrial | Loans on nonaccrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 4 | |
Recorded Investment | $ | $ 1,424 | |
Commercial | Commercial and Industrial | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 3 |
Recorded Investment | $ | $ 1 | $ 22 |
Consumer | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,195 | 1,613 |
Recorded Investment | $ | $ 599 | $ 586 |
Consumer | Loans on nonaccrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 14 | |
Consumer | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,194 | 1,613 |
Recorded Investment | $ | $ 585 | $ 586 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFICATIONS (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Troubled Debt Restructurings disclosures | |||
Period of time loans are not past due in which TDR loans are performing | 30 days | ||
Number of Loans | loan | 2,388 | 1,828 | |
Recorded Investment | $ 20,778,000 | $ 30,781,000 | |
Commitments to lend any additional material amounts to existing TDR relationships | 0 | 0 | |
Change between the pre and post modification loan | $ 0 | $ 0 | $ 0 |
Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 510 | 1,320 | 25 |
Recorded Investment | $ 1,106,000 | $ 8,599,000 | $ 4,948,000 |
Performing Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,371 | 1,811 | |
Recorded Investment | $ 17,317,000 | $ 28,138,000 | |
Percentage of troubled debt restructurings performing as per terms of modifications | 83.00% | 91.00% | |
Specific reserve allocations made to customers | $ 1,000,000 | $ 2,000,000 | |
Percentage of Bank's TDRs that occurred during period, which were performing according to their modified terms | 88.00% | 83.00% | 42.00% |
Specific reserve allocations made to customers whose loan terms were modified in TDRs during period | $ 48,000 | $ 220,000 | $ 472,000 |
Performing Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 506 | 1,313 | 19 |
Recorded Investment | $ 972,000 | $ 7,155,000 | $ 2,083,000 |
Nonperforming Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 17 | 17 | |
Recorded Investment | $ 3,461,000 | $ 2,643,000 | |
Nonperforming Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | 4 | 7 | 6 |
Recorded Investment | $ 134,000 | $ 1,444,000 | $ 2,865,000 |
Residential Real Estate | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 184 | 194 | |
Recorded Investment | $ 15,230,000 | $ 19,770,000 | |
Residential Real Estate | Interest only payments | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 1 | |
Recorded Investment | $ 826,000 | $ 904,000 | |
Residential Real Estate | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 107 | 123 | |
Recorded Investment | $ 9,896,000 | $ 14,199,000 | |
Residential Real Estate | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 11 | 10 | |
Recorded Investment | $ 1,024,000 | $ 1,024,000 | |
Residential Real Estate | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 65 | 60 | |
Recorded Investment | $ 3,484,000 | $ 3,643,000 | |
Residential Real Estate | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 21 | 32 | 17 |
Recorded Investment | $ 888,000 | $ 2,740,000 | $ 3,466,000 |
Residential Real Estate | Modified During The Period | Interest only payments | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | ||
Recorded Investment | $ 970,000 | ||
Residential Real Estate | Modified During The Period | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 2 | |
Recorded Investment | $ 365,000 | $ 465,000 | |
Residential Real Estate | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 3 | 6 | |
Recorded Investment | $ 56,000 | $ 1,892,000 | |
Residential Real Estate | Modified During The Period | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 18 | 31 | 8 |
Recorded Investment | $ 832,000 | $ 2,375,000 | $ 139,000 |
Residential Real Estate | Performing Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 169 | 181 | |
Recorded Investment | $ 14,278,000 | $ 18,796,000 | |
Residential Real Estate | Performing Financing Receivable | Interest only payments | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 1 | |
Recorded Investment | $ 826,000 | $ 904,000 | |
Residential Real Estate | Performing Financing Receivable | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 101 | 118 | |
Recorded Investment | $ 9,526,000 | $ 13,847,000 | |
Residential Real Estate | Performing Financing Receivable | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 9 | 8 | |
Recorded Investment | $ 858,000 | $ 845,000 | |
Residential Real Estate | Performing Financing Receivable | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 58 | 54 | |
Recorded Investment | $ 3,068,000 | $ 3,200,000 | |
Residential Real Estate | Performing Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 17 | 27 | 12 |
Recorded Investment | $ 754,000 | $ 2,323,000 | $ 629,000 |
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 2 | |
Recorded Investment | $ 365,000 | $ 465,000 | |
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 3 | |
Recorded Investment | $ 53,000 | $ 43,000 | |
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 15 | 26 | 7 |
Recorded Investment | $ 701,000 | $ 1,958,000 | $ 121,000 |
Residential Real Estate | Nonperforming Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 15 | 13 | |
Recorded Investment | $ 952,000 | $ 974,000 | |
Residential Real Estate | Nonperforming Financing Receivable | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 6 | 5 | |
Recorded Investment | $ 370,000 | $ 352,000 | |
Residential Real Estate | Nonperforming Financing Receivable | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 2 | |
Recorded Investment | $ 166,000 | $ 179,000 | |
Residential Real Estate | Nonperforming Financing Receivable | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 7 | 6 | |
Recorded Investment | $ 416,000 | $ 443,000 | |
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | 4 | 5 | 5 |
Recorded Investment | $ 134,000 | $ 417,000 | $ 2,837,000 |
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | Interest only payments | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | ||
Recorded Investment | $ 970,000 | ||
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | 1 | 3 | |
Recorded Investment | $ 3,000 | $ 1,849,000 | |
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | 3 | 5 | 1 |
Recorded Investment | $ 131,000 | $ 417,000 | $ 18,000 |
Commercial Real Estate | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 7 | 13 | |
Recorded Investment | $ 4,904,000 | $ 8,925,000 | |
Commercial related and construction/land development | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 9 | 21 | |
Recorded Investment | $ 4,949,000 | $ 10,425,000 | |
Commercial related and construction/land development | Interest only payments | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 3 | |
Recorded Investment | $ 488,000 | $ 1,568,000 | |
Commercial related and construction/land development | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 3 | 4 | |
Recorded Investment | $ 1,091,000 | $ 1,252,000 | |
Commercial related and construction/land development | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 5 | 12 | |
Recorded Investment | $ 3,370,000 | $ 6,578,000 | |
Commercial related and construction/land development | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 1,027,000 | ||
Commercial related and construction/land development | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 8 | 7 |
Recorded Investment | $ 133,000 | $ 5,649,000 | $ 1,430,000 |
Commercial related and construction/land development | Modified During The Period | Interest only payments | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 1,423,000 | ||
Commercial related and construction/land development | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 4 | 6 |
Recorded Investment | $ 133,000 | $ 3,199,000 | $ 1,402,000 |
Commercial related and construction/land development | Modified During The Period | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 1 | |
Recorded Investment | $ 1,027,000 | $ 28,000 | |
Commercial related and construction/land development | Performing Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 7 | 17 | |
Recorded Investment | $ 2,440,000 | $ 8,756,000 | |
Commercial related and construction/land development | Performing Financing Receivable | Interest only payments | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 3 | |
Recorded Investment | $ 488,000 | $ 1,568,000 | |
Commercial related and construction/land development | Performing Financing Receivable | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 3 | |
Recorded Investment | $ 1,046,000 | $ 1,207,000 | |
Commercial related and construction/land development | Performing Financing Receivable | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 4 | 11 | |
Recorded Investment | $ 906,000 | $ 5,981,000 | |
Commercial related and construction/land development | Performing Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 6 | 6 |
Recorded Investment | $ 133,000 | $ 4,622,000 | $ 1,402,000 |
Commercial related and construction/land development | Performing Financing Receivable | Modified During The Period | Interest only payments | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 1,423,000 | ||
Commercial related and construction/land development | Performing Financing Receivable | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 4 | 6 |
Recorded Investment | $ 133,000 | $ 3,199,000 | $ 1,402,000 |
Commercial related and construction/land development | Nonperforming Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 4 | |
Recorded Investment | $ 2,509,000 | $ 1,669,000 | |
Commercial related and construction/land development | Nonperforming Financing Receivable | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 1 | |
Recorded Investment | $ 45,000 | $ 45,000 | |
Commercial related and construction/land development | Nonperforming Financing Receivable | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 1 | |
Recorded Investment | $ 2,464,000 | $ 597,000 | |
Commercial related and construction/land development | Nonperforming Financing Receivable | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 1,027,000 | ||
Commercial related and construction/land development | Nonperforming Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 1 | |
Recorded Investment | $ 1,027,000 | $ 28,000 | |
Commercial related and construction/land development | Nonperforming Financing Receivable | Modified During The Period | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | 1 | |
Recorded Investment | $ 1,027,000 | $ 28,000 | |
Consumer | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,195 | 1,613 | |
Recorded Investment | $ 599,000 | $ 586,000 | |
Consumer | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1,612 | ||
Recorded Investment | $ 577,000 | ||
Consumer | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,193 | 1 | |
Recorded Investment | $ 578,000 | $ 9,000 | |
Consumer | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 21,000 | ||
Consumer | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 487 | 1,280 | 1 |
Recorded Investment | $ 85,000 | $ 210,000 | $ 52,000 |
Consumer | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 486 | 1,279 | 1 |
Recorded Investment | $ 71,000 | $ 201,000 | $ 52,000 |
Consumer | Modified During The Period | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 1 | |
Recorded Investment | $ 14,000 | $ 9,000 | |
Consumer | Performing Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,195 | 1,613 | |
Recorded Investment | $ 599,000 | $ 586,000 | |
Consumer | Performing Financing Receivable | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1,612 | ||
Recorded Investment | $ 577,000 | ||
Consumer | Performing Financing Receivable | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,193 | 1 | |
Recorded Investment | $ 578,000 | $ 9,000 | |
Consumer | Performing Financing Receivable | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 21,000 | ||
Consumer | Performing Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 487 | 1,280 | 1 |
Recorded Investment | $ 85,000 | $ 210,000 | $ 52,000 |
Consumer | Performing Financing Receivable | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 486 | 1,279 | 1 |
Recorded Investment | $ 71,000 | $ 201,000 | $ 52,000 |
Consumer | Performing Financing Receivable | Modified During The Period | Legal modifications | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | 1 | |
Recorded Investment | $ 14,000 | $ 9,000 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFIED CLASS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Troubled Debt Restructurings disclosures | |||
Number of Loans with payment default | loan | 7 | 1,286 | 7 |
Recorded Investment with payment default | $ | $ 250 | $ 2,017 | $ 2,948 |
Residential Real Estate | Residential Real Estate - Owner Occupied | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans with payment default | loan | 5 | 4 | 6 |
Recorded Investment with payment default | $ | $ 218 | $ 248 | $ 2,920 |
Residential Real Estate | Home equity lines of credit | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans with payment default | loan | 2 | ||
Recorded Investment with payment default | $ | $ 32 | ||
Commercial Real Estate | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans with payment default | loan | 1 | 1 | |
Recorded Investment with payment default | $ | $ 541 | $ 28 | |
Commercial | Commercial and Industrial | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans with payment default | loan | 2 | ||
Recorded Investment with payment default | $ | $ 1,027 | ||
Consumer | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans with payment default | loan | 1,279 | ||
Recorded Investment with payment default | $ | $ 201 |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COVID-19 RELATED LOAN MODIFICATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Troubled Debt Restructurings disclosures | ||
Loans | $ 4,752,036 | $ 4,389,800 |
COVID-19 Loan Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Loans | $ 808,000 | |
Percentage of Loans Accommodated | 20.00% | |
Loans And Leases Receivable Remaining Available under Accommodation | $ 14,000 | |
Percentage of Previously Accommodated Loans | 2.00% |
LOANS AND ALLOWANCE FOR CRED_17
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 2,499 | $ 113 |
Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | 496 | $ 113 |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 2,003 |
LOANS AND ALLOWANCE FOR CRED_18
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable Gross Carrying Amount | $ 4,813,103 | $ 4,433,151 |
Residential Real Estate | Foreclosure Proceedings In Process | ||
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable Gross Carrying Amount | $ 981 | $ 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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Easy Advances originated | $ 387,762 | $ 388,970 | $ 430,210 |
Net (credit) charge to the Provision for Easy Advances | $ 13,033 | $ 10,643 | $ 10,760 |
Provision to total Easy Advances originated | 3.36% | 2.74% | 2.50% |
Easy Advances net charge-off (recoveries) | $ 13,033 | $ 10,643 | $ 10,760 |
Easy Advances net charge-offs to total Easy Advances originated | 3.36% | 2.74% | 2.50% |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PREMISES AND EQUIPMENT | |||
Total premises and equipment | $ 110,916 | $ 110,136 | |
Less: Accumulated depreciation and amortization | 71,404 | 63,940 | |
Premises and equipment, net | 39,512 | 46,196 | |
Depreciation expense | 9,725 | 9,230 | $ 9,347 |
Land | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | 4,303 | 4,693 | |
Buildings and improvements | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | 33,225 | 33,780 | |
Furniture, fixtures and equipment | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | 51,467 | 48,782 | |
Leasehold improvements | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | $ 21,921 | 20,649 | |
Construction in progress | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | $ 2,232 |
RIGHT-OF-USE ASSETS AND OPERA_3
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Details) | 1 Months Ended | 12 Months Ended |
Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($)leaseitem | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of separate and distinct operating lease contracts to lease the land and/or buildings | 45 | |
Number of offices where separate and distinct operating lease contracts to lease the land and/or buildings is held | item | 37 | |
Number of operating leases contracted with a related party of the Company | 14 | |
Number of operating leases considered variable | 25 | |
Number of new operating leases executed | 4 | |
Newly executed operating leases right-of-use asset value | $ | $ 392,000 | $ 14,000,000 |
Estimated right-of-use assets for leases not yet commenced | $ | $ 12,000,000 | |
Third Party | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of new operating leases executed | 3 | |
Related Party | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of new operating leases executed | 1 |
RIGHT-OF-USE ASSETS AND OPERA_4
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease expense: | ||
Total operating lease expense | $ 7,379 | $ 7,177 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 7,254 | 7,175 |
Short-term lease payments not included in the measurement of lease liabilities | $ 62 | |
Weighted average remaining term in years | 8 years 4 months 13 days | 8 years 7 days |
Weighted average discount rate | 3.10% | 3.46% |
Related Party | ||
Operating lease expense: | ||
Variable lease expense | $ 4,885 | $ 4,690 |
Fixed lease expense | 91 | 37 |
Third Party | ||
Operating lease expense: | ||
Variable lease expense | 786 | 883 |
Fixed lease expense | $ 1,617 | 1,505 |
Short-term lease expense | $ 62 |
RIGHT-OF-USE ASSETS AND OPERA_5
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating lease liabilities | ||
2021 | $ 7,060 | |
2022 | 7,057 | |
2023 | 6,634 | |
2024 | 5,975 | |
2025 | 5,269 | |
Thereafter | 18,507 | |
Total undiscounted cash flows | 50,502 | |
Discount applied to cash flows | (6,162) | |
Total discounted cash flows reported as operating lease liabilities | 44,340 | $ 36,530 |
Related Party | ||
Operating lease liabilities | ||
2021 | 4,638 | |
2022 | 4,639 | |
2023 | 4,639 | |
2024 | 4,512 | |
2025 | 4,344 | |
Thereafter | 15,800 | |
Total undiscounted cash flows | 38,572 | |
Discount applied to cash flows | (4,781) | |
Total discounted cash flows reported as operating lease liabilities | 33,791 | |
Third Party | ||
Operating lease liabilities | ||
2021 | 2,422 | |
2022 | 2,418 | |
2023 | 1,995 | |
2024 | 1,463 | |
2025 | 925 | |
Thereafter | 2,707 | |
Total undiscounted cash flows | 11,930 | |
Discount applied to cash flows | (1,381) | |
Total discounted cash flows reported as operating lease liabilities | $ 10,549 |
GOODWILL AND CORE DEPOSIT INT_3
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance for goodwill | |||
Beginning of period | $ 16,300 | $ 16,300 | $ 16,300 |
Acquired goodwill | 0 | 0 | 0 |
Impairment | 0 | 0 | 0 |
End of period | $ 16,300 | $ 16,300 | $ 16,300 |
INTEREST RATE SWAPS - CASH FLOW
INTEREST RATE SWAPS - CASH FLOW HEDGES (Details) - Interest rate swap - Cash flow hedge $ in Thousands | 12 Months Ended | |
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) | (104) | |
Unrealized Gain (Loss) in AOCI | (77) | |
1-month LIBOR | ||
Summary information about interest rate swaps | ||
Notional amount | $ 10,000 | |
Pay rate (as a percent) | 2.17% | |
Assets / (Liabilities) | $ (46) | |
Unrealized Gain (Loss) in AOCI | (34) | |
3-month LIBOR | ||
Summary information about interest rate swaps | ||
Notional amount | $ 10,000 | |
Pay rate (as a percent) | 2.33% | |
Assets / (Liabilities) | $ (58) | |
Unrealized Gain (Loss) in AOCI | $ (43) |
INTEREST RATE SWAPS - INTEREST
INTEREST RATE SWAPS - INTEREST EXPENSE (Details) - Interest rate swap - Cash flow hedge - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Information about derivatives and swaps | |||
Interest expense swap on money market deposits | $ 138 | $ (10) | $ 18 |
Interest expense swap on FHLB Advance | 143 | (10) | 10 |
Total interest (benefit) expense on swap transactions | $ 281 | $ (20) | $ 28 |
INTEREST RATE SWAPS - GAINS (LO
INTEREST RATE SWAPS - GAINS (LOSSES) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Information about derivatives and swaps | |||
Gains (losses) recognized in OCI on derivative (effective portion) | $ (177) | $ (199) | $ 178 |
Interest rate swap | Cash flow hedge | |||
Information about derivatives and swaps | |||
Gains (losses) recognized in OCI on derivative (effective portion) | (177) | (199) | 178 |
Gains (losses) reclassified from OCI on derivative (effective portion) | (281) | 20 | (28) |
Gains (losses) recognized in income on derivative (ineffective portion) | $ 0 | $ 0 | $ 0 |
INTEREST RATE SWAPS - NON-HEDGE
INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | $ 303,611 | $ 229,706 |
Counterparty | ||
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | 13,300 | 7,500 |
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 | 276,554 | 204,102 |
Interest rate swap | Non-Hedge | Bank Clients | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 138,277 | 95,411 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 6,640 | |
Interest rate swaps with Bank clients - Total, Notional Amount | 138,277 | 102,051 |
Interest rate swaps with Bank clients - Assets, Fair Value | 12,545 | 5,062 |
Interest rate swaps with Bank clients - Liabilities, Fair Value | (55) | |
Interest rate swaps with Bank clients - Total, Fair Value | 12,545 | 5,007 |
Interest rate swap | Non-Hedge | Counterparty | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 138,277 | 102,051 |
Interest rate swaps with Bank clients - Total, Fair Value | $ (12,545) | $ (5,007) |
DEPOSITS - Balances (Details)
DEPOSITS - Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposit Liabilities | ||
Time deposits, $250 and over | $ 83,448 | $ 104,412 |
Total interest-bearing deposits | 2,842,765 | 2,752,629 |
Total non interest-bearing deposits | 1,890,416 | 1,033,379 |
Total deposits | 4,733,181 | 3,786,008 |
Core Banking | ||
Deposit Liabilities | ||
Demand | 1,217,263 | 922,972 |
Money market accounts | 712,824 | 793,950 |
Savings | 236,335 | 175,588 |
Individual retirement accounts | 47,889 | 51,548 |
Time deposits, $250 and over | 83,448 | 104,412 |
Other certificates of deposit | 199,214 | 248,161 |
Reciprocal money market and time deposits | 314,109 | 189,774 |
Total interest-bearing deposits | 2,836,092 | 2,686,477 |
Total non interest-bearing deposits | 1,503,662 | 981,164 |
Total deposits | 4,339,754 | 3,667,641 |
Core Banking | Brokered Deposits | ||
Deposit Liabilities | ||
Brokered deposits | 25,010 | 200,072 |
Republic Processing Group | ||
Deposit Liabilities | ||
Money market accounts | 6,673 | 66,152 |
Total interest-bearing deposits | 6,673 | 66,152 |
Other noninterest-bearing deposits | 128,898 | 43,087 |
Total non interest-bearing deposits | 386,754 | 52,215 |
Total deposits | 393,427 | 118,367 |
Republic Processing Group | Brokered Deposits | ||
Deposit Liabilities | ||
Brokered prepaid cards deposits | $ 257,856 | $ 9,128 |
DEPOSITS - Maturities (Details)
DEPOSITS - Maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Scheduled maturities of all time deposits, including brokered certificates of deposit | |
2021 | $ 272,154 |
2022 | 48,837 |
2023 | 62,134 |
2024 | 11,390 |
2025 | 3,829 |
Thereafter | 60 |
Time Deposits, Total | $ 398,404 |
Weighted Average Rate | |
2021 | 1.17% |
2022 | 1.70% |
2023 | 2.62% |
2024 | 2.19% |
2025 | 0.59% |
Thereafter | 0.48% |
Total | 1.49% |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Securities sold under agreements to repurchase | |||
Outstanding balance at end of period | $ 211,026 | $ 167,617 | |
Securities sold under agreements to repurchase | |||
Securities sold under agreements to repurchase | |||
Securities pledged more than repurchase agreements (as a percent) | 2.00% | ||
Outstanding balance at end of period | $ 211,026 | $ 167,617 | |
Weighted average interest rate at end of period (as a percent) | 0.04% | 0.32% | |
Fair Value of securities pledged | $ 230,269 | $ 221,310 | |
Average outstanding balance during the period | $ 204,797 | $ 236,883 | $ 225,145 |
Average interest rate during the period (as a percent) | 0.09% | 0.51% | 0.50% |
Maximum outstanding at any month end during the period | $ 295,698 | $ 276,927 | $ 260,147 |
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 | 60,059 | 70,015 | |
Securities sold under agreements to repurchase | Mortgage backed securities - residential | |||
Securities sold under agreements to repurchase | |||
Fair Value of securities pledged | 140,554 | 134,265 | |
Securities sold under agreements to repurchase | Collateralized mortgage obligations | |||
Securities sold under agreements to repurchase | |||
Fair Value of securities pledged | $ 29,656 | $ 17,030 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
FHLB advances | ||||
Total FHLB advances | $ 235,000 | $ 235,000 | $ 750,000 | |
FHLB advances early termination penalties | 2,100 | 2,108 | 0 | $ 0 |
FHLB advances payoff | 60,000 | |||
Additional collateralized advances available | 683,000 | 683,000 | 259,000 | |
Overnight advance | ||||
FHLB advances | ||||
Total FHLB advances | 225,000 | $ 225,000 | 200,000 | |
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% | ||||
FHLB advances | ||||
Total FHLB advances | $ 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 | 10,000 | $ 10,000 | $ 540,000 | |
Various other unsecured lines of credit | ||||
FHLB advances | ||||
Unsecured lines of credit | $ 125,000 | $ 125,000 | $ 125,000 |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - MATURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
FEDERAL HOME LOAN BANK ADVANCES | ||
2021 (Overnight) | $ 225,000 | |
2021 (Term) | 10,000 | |
Total | $ 235,000 | $ 750,000 |
Weighted Average Rate | ||
2021 (Overnight) | 0.16% | |
2021 (Term) | 1.89% | |
Total | 0.23% |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES - SHORT-TERM FHLB ADVANCES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
FHLB advances | |||
Federal Home Loan Bank advances | $ 235,000 | $ 750,000 | |
Interest rate (as percent) | 0.23% | ||
Federal Home Loan Bank overnight advances | |||
FHLB advances | |||
Federal Home Loan Bank advances | $ 225,000 | 200,000 | |
Average outstanding balance during the period | $ 25,546 | $ 270,992 | $ 202,830 |
Average interest rate during the period (as percent) | 0.81% | 2.43% | 1.98% |
Maximum outstanding at any month end during the period | $ 250,000 | $ 785,000 | $ 560,000 |
Federal Home Loan Bank overnight advances | Weighted Average | |||
FHLB advances | |||
Interest rate (as percent) | 0.16% | 1.63% |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 1,048,236 | $ 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 | $ 208,944 | $ 274,990 |
SUBORDINATED NOTE (Details)
SUBORDINATED NOTE (Details) - Republic Bancorp Capital Trust - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2005 | Sep. 30, 2015 | |
Trust preferred security | |||
Subordinated note | |||
Proceeds from issuance of trust preferred securities | $ 40 | ||
Subordinated debentures | |||
Subordinated note | |||
Stated interest rate (as a percent) | 6.015% | ||
Interest rate on subordinate note (as a percent) | 1.66% | ||
Subordinated debentures | 3-month LIBOR | |||
Subordinated note | |||
Variable spread on debt security (as a percent) | 1.42% |
OFF BALANCE SHEET RISKS, COMM_3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and letters of credit | ||
Loan commitment, line credit | $ 1,596,046,000 | $ 1,571,130,000 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision | 533,000 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 989,000 | |
Unused warehouse lines of credit | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 456,004,000 | 436,541,000 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision | 24,000 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 79,000 | |
Unused home equity lines of credit | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 353,322,000 | 363,195,000 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision | 84,000 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 173,000 | |
Unused loan commitments - other | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 775,128,000 | 757,657,000 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Provision | 425,000 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 737,000 | |
Standby letters of credit | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 10,949,000 | 11,252,000 |
FHLB letters of credit | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 643,000 | $ 2,485,000 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 456,000 | |
ASU 2016-13 | Cumulative Effect, Period of Adoption, 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 | Cumulative Effect, Period of Adoption, 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 | Cumulative Effect, Period of Adoption, Adjustment | Unused loan commitments - other | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | $ 312,000 |
STOCKHOLDERS' EQUITY AND REGU_3
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS - EQUITY (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)item | |
Dividend Restrictions | |
Number of previous years retained profit considered for dividend payment | 2 years |
Amount of dividend that can be declared without prior approval | $ | $ 183 |
Class A Common Stock | |
Common Stock | |
Dividends common stock cash as percentage of cash dividend paid on Class B common stock | 110.00% |
Number of votes per share | 1 |
Class B Common Stock | |
Common Stock | |
Number of votes per share | 10 |
STOCKHOLDERS' EQUITY AND REGU_4
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS - REGULATORY (Details) $ in Thousands | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
REGULATORY CAPITAL MATTERS | ||
Number of classifications | item | 5 | |
Capital Conversion Buffer | 2.50% | |
Republic Bancorp, Inc. | ||
Actual Amount | ||
Total capital to risk weighted assets | $ 896,053 | $ 825,987 |
Common equity tier 1 capital to risk weighted assets | 803,682 | 742,636 |
Tier 1 (core) capital to risk weighted assets | 843,682 | 782,636 |
Tier 1 leverage capital to average assets | $ 843,682 | $ 782,636 |
Actual Ratio | ||
Total capital to risk weighted assets (as a percent) | 18.52 | 17.01 |
Common equity tier 1 capital to risk weighted assets (as a percent) | 16.61% | 15.29% |
Tier 1 (core) capital to risk weighted assets (as a percent) | 17.43 | 16.11 |
Tier 1 leverage capital to average assets (as a percent) | 13.70 | 13.93 |
Minimum Requirement for Capital Adequacy Purposes Amount | ||
Total capital to risk weighted assets | $ 387,163 | $ 388,526 |
Common equity Tier 1 capital to risk weighted assets | 217,779 | 218,546 |
Tier 1 (core) capital to risk weighted assets | 290,372 | 291,394 |
Tier 1 leverage capital to average assets | $ 246,385 | $ 224,799 |
Minimum Requirement for Capital Adequacy Purposes Ratio | ||
Total capital to risk weighted assets (as a percent) | 8 | 8 |
Common equity tier 1 capital to risk weighted assets (as a percent) | 4.50% | 4.50% |
Tier 1 (core) capital to risk weighted assets (as a percent) | 6 | 6 |
Tier 1 leverage capital to average assets (as a percent) | 4 | 4 |
Republic Bank &Trust Co | ||
Actual Amount | ||
Total capital to risk weighted assets | $ 796,114 | $ 723,248 |
Common equity tier 1 capital to risk weighted assets | 743,743 | 679,897 |
Tier 1 (core) capital to risk weighted assets | 743,743 | 679,897 |
Tier 1 leverage capital to average assets | $ 743,743 | $ 679,897 |
Actual Ratio | ||
Total capital to risk weighted assets (as a percent) | 16.46 | 14.91 |
Common equity tier 1 capital to risk weighted assets (as a percent) | 15.38% | 14.01% |
Tier 1 (core) capital to risk weighted assets (as a percent) | 15.38 | 14.01 |
Tier 1 leverage capital to average assets (as a percent) | 12.11 | 12.11 |
Minimum Requirement for Capital Adequacy Purposes Amount | ||
Total capital to risk weighted assets | $ 386,842 | $ 388,143 |
Common equity Tier 1 capital to risk weighted assets | 217,599 | 218,331 |
Tier 1 (core) capital to risk weighted assets | 290,132 | 291,107 |
Tier 1 leverage capital to average assets | $ 245,723 | $ 224,515 |
Minimum Requirement for Capital Adequacy Purposes Ratio | ||
Total capital to risk weighted assets (as a percent) | 8 | 8 |
Common equity tier 1 capital to risk weighted assets (as a percent) | 4.50% | 4.50% |
Tier 1 (core) capital to risk weighted assets (as a percent) | 6 | 6 |
Tier 1 leverage capital to average assets (as a percent) | 4 | 4 |
Minimum Requirement to be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Total capital to risk weighted assets | $ 483,553 | $ 485,179 |
Common equity Tier 1 capital to risk weighted assets | 314,309 | 315,366 |
Tier 1 (core) capital to risk weighted assets | 386,842 | 388,143 |
Tier 1 leverage capital to average assets | $ 307,154 | $ 280,644 |
Minimum Requirement to be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Total capital to risk weighted assets (as a percent) | 10 | 10 |
Common equity tier 1 capital to risk weighted assets (as a percent) | 6.50% | 6.50% |
Tier 1 (core) capital to risk weighted assets (as a percent) | 8 | 8 |
Tier 1 leverage capital to average assets (as a percent) | 5 | 5 |
Implementation of Basel III regulatory capital reforms and changes required by the Dodd-Frank Act | ||
Minimum Requirement to be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Total capital to risk weighted assets (as a percent) | 10 | |
Common equity tier 1 capital to risk weighted assets (as a percent) | 6.50% | |
Tier 1 (core) capital to risk weighted assets (as a percent) | 8 | |
Tier 1 leverage capital to average assets (as a percent) | 5 |
FAIR VALUE - POLICIES (Details)
FAIR VALUE - POLICIES (Details) - Republic Credit Solutions - Installment loan | 1 Months Ended |
Dec. 31, 2019 | |
Assets and Liabilities Measured on Recurring Basis | |
Term for intent to sell loans | 16 days |
Minimum | |
Assets and Liabilities Measured on Recurring Basis | |
Loan held-for-sale term | 12 months |
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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | $ 523,863 | $ 471,355 | ||
Mortgage loans held for sale, at fair value | 46,867 | 19,224 | $ 8,971 | $ 5,761 |
Consumer loans held for sale | 3,298 | 598 | ||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 3,083 | 3,188 | ||
U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 246,909 | 134,640 | ||
Private label mortgage backed security | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 2,957 | 3,495 | ||
Mortgage backed securities - residential | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 211,202 | 255,847 | ||
Collateralized mortgage obligations | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 48,952 | 63,371 | ||
Corporate bonds | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 10,043 | 10,002 | ||
Trust preferred security | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 3,800 | 4,000 | ||
Freddie Mac preferred stock | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 560 | 714 | ||
Community Reinvestment Act mutual fund | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 2,523 | 2,474 | ||
Recurring basis | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 523,863 | 471,355 | ||
Mortgage loans held for sale, at fair value | 46,867 | 19,224 | ||
Consumer loans held for sale | 3,298 | 598 | ||
Consumer loans held for investment | 497 | 998 | ||
Rate lock loan commitments | 4,540 | 789 | ||
Interest rate swap agreements | 12,545 | 5,062 | ||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 3,083 | 3,188 | ||
Financial Liabilities: | ||||
Mandatory forward contracts | 976 | 131 | ||
Interest rate swap agreements | 12,545 | 5,166 | ||
Transfers between Level 1, 2 or 3 | 0 | 0 | ||
Recurring basis | U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 246,909 | 134,640 | ||
Recurring basis | Private label mortgage backed security | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 2,957 | 3,495 | ||
Recurring basis | Mortgage backed securities - residential | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 211,202 | 255,847 | ||
Recurring basis | Collateralized mortgage obligations | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 48,952 | 63,371 | ||
Recurring basis | Corporate bonds | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 10,043 | 10,002 | ||
Recurring basis | Trust preferred security | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 3,800 | 4,000 | ||
Recurring basis | Freddie Mac preferred stock | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 560 | 714 | ||
Recurring basis | Community Reinvestment Act mutual fund | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 2,523 | 2,474 | ||
Recurring basis | Fair Value, Inputs, Level 1 | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 2,523 | 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 | 2,523 | 2,474 | ||
Recurring basis | Fair Value, Inputs, Level 2 | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 517,106 | 463,860 | ||
Mortgage loans held for sale, at fair value | 46,867 | 19,224 | ||
Rate lock loan commitments | 4,540 | 789 | ||
Interest rate swap agreements | 12,545 | 5,062 | ||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 560 | 714 | ||
Financial Liabilities: | ||||
Mandatory forward contracts | 976 | 131 | ||
Interest rate swap agreements | 12,545 | 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 | 246,909 | 134,640 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 211,202 | 255,847 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 48,952 | 63,371 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 10,043 | 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 | 560 | 714 | ||
Recurring basis | Fair Value, Inputs, Level 3 | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 6,757 | 7,495 | ||
Consumer loans held for sale | 3,298 | 598 | ||
Consumer loans held for investment | 497 | 998 | ||
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | 2,957 | 3,495 | ||
Recurring basis | Fair Value, Inputs, Level 3 | Trust preferred security | ||||
Financial assets: | ||||
Available-for-sale debt securities, Fair Value | $ 3,800 | $ 4,000 |
FAIR VALUE - RECONCILIATION USI
FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Private label mortgage backed security | |||
Assets measured on recurring basis, unobservable input reconciliation | |||
Balance, beginning of period | $ 3,495 | $ 3,712 | $ 4,449 |
Net change in unrealized gain | (35) | (79) | (20) |
Recovery of actual losses previously recorded | 151 | 152 | |
Principal paydowns | (503) | (289) | (869) |
Balance, end of period | 2,957 | 3,495 | 3,712 |
Trust preferred security | |||
Assets measured on recurring basis, unobservable input reconciliation | |||
Balance, beginning of period | 4,000 | 4,075 | 3,600 |
Discount accretion | 56 | 42 | 40 |
Net change in unrealized gain | (256) | (117) | 435 |
Balance, end of period | $ 3,800 | $ 4,000 | $ 4,075 |
FAIR VALUE - RECURRING LEVEL 3
FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Private label mortgage backed security | Recurring basis | ||
Fair value inputs quantitative information | ||
Mortgage backed security fair value | $ 2,957 | $ 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 | 0.045 | 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 | 0.180 | 0.050 |
Private label mortgage backed security | Maximum | Recurring basis | Probability of default | ||
Fair value inputs quantitative information | ||
Measurable input | 0.090 | 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 | $ 3,298 | $ 598 |
Consumer Loans Held For Sale | Nonrecurring basis | Net Premium | ||
Fair value inputs quantitative information | ||
Loans Held-for-sale, Measurement Input | 0.014 | 0.014 |
Consumer Loans Held For Sale | Nonrecurring basis | Discount sales | ||
Fair value inputs quantitative information | ||
Loans Held-for-sale, Measurement Input | 0.0500 | 0.0500 |
FAIR VALUE - GAINS AND LOSSES (
FAIR VALUE - GAINS AND LOSSES (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Option | ||||
Aggregate fair value | $ 46,867 | $ 19,224 | $ 8,971 | $ 5,761 |
Contractual balance | $ 4,821,062 | $ 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 | ||
Aggregate fair value | $ 46,867 | $ 19,224 | ||
Contractual balance | 44,781 | 18,690 | ||
Unrealized gain | 2,086 | 534 | ||
Gains and losses from changes in fair value included in earnings | 2,914 | 936 | 605 | |
Mortgage loans held for sale | Interest Income | ||||
Fair Value, Option | ||||
Gains and losses from changes in fair value included in earnings | 1,362 | 697 | 402 | |
Mortgage loans held for sale | Change In Fair Value | ||||
Fair Value, Option | ||||
Gains and losses from changes in fair value included in earnings | $ 1,552 | $ 239 | $ 203 | |
Consumer Loans Held For Sale | ||||
Fair Value, Option | ||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | ||
Aggregate fair value | $ 3,298 | $ 598 | ||
Contractual balance | 3,284 | 593 | ||
Unrealized gain | 14 | 5 | ||
Gains and losses from changes in fair value included in earnings | 1,817 | 18 | ||
Consumer Loans Held For Sale | Interest Income | ||||
Fair Value, Option | ||||
Gains and losses from changes in fair value included in earnings | 1,808 | 13 | ||
Consumer Loans Held For Sale | Change In Fair Value | ||||
Fair Value, Option | ||||
Gains and losses from changes in fair value included in earnings | $ 9 | $ 5 |
FAIR VALUE - ASSETS MEASURED ON
FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures | ||
Collateral dependent loans | $ 8,362 | |
Impaired loan on non-recurring basis | $ 8,920 | |
Other real estate owned | 2,003 | |
Mortgage servicing rights | 3,233 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Collateral dependent loans | 3,860 | |
Impaired loan on non-recurring basis | 3,598 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 14 | |
Residential Real Estate | Home equity lines of credit | ||
Fair Value Disclosures | ||
Collateral dependent loans | 395 | |
Impaired loan on non-recurring basis | 470 | |
Commercial Real Estate | ||
Fair Value Disclosures | ||
Collateral dependent loans | 4,107 | |
Impaired loan on non-recurring basis | 3,276 | |
Other real estate owned | 2,003 | |
Commercial | Commercial and Industrial | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,562 | |
Fair Value, Inputs, Level 2 | ||
Fair Value Disclosures | ||
Mortgage servicing rights | 3,233 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Disclosures | ||
Collateral dependent loans | 8,362 | |
Impaired loan on non-recurring basis | 8,362 | 8,920 |
Other real estate owned | 2,003 | |
Fair Value, Inputs, Level 3 | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Collateral dependent loans | 3,860 | |
Impaired loan on non-recurring basis | 3,598 | |
Fair Value, Inputs, Level 3 | Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 14 | |
Fair Value, Inputs, Level 3 | Residential Real Estate | Home equity lines of credit | ||
Fair Value Disclosures | ||
Collateral dependent loans | 395 | |
Impaired loan on non-recurring basis | 470 | |
Fair Value, Inputs, Level 3 | Commercial Real Estate | ||
Fair Value Disclosures | ||
Collateral dependent loans | 4,107 | |
Impaired loan on non-recurring basis | 3,276 | |
Other real estate owned | $ 2,003 | |
Fair Value, Inputs, Level 3 | Commercial | Commercial and Industrial | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 1,562 |
FAIR VALUE - NON-RECURRING LEVE
FAIR VALUE - NON-RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 - Nonrecurring basis $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Collateral Dependent Loans | Residential Real Estate | Residential Real Estate - Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 3,860 | |
Collateral Dependent Loans | Residential Real Estate | 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 | 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 | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.08 | |
Collateral Dependent Loans | Residential Real Estate | Home equity lines of credit | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 395 | |
Collateral Dependent Loans | Residential Real Estate | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.02 | |
Collateral Dependent Loans | Residential Real Estate | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.06 | |
Collateral Dependent Loans | Residential Real Estate | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.05 | |
Collateral Dependent Loans | Commercial Real Estate | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 4,107 | |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Minimum | ||
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 | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.31 | |
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 | 0.26 | |
Impaired Loans | Residential Real Estate | Residential Real Estate - Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 3,598 | |
Impaired Loans | Residential Real Estate | 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 | 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 | 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 | Residential Real Estate - Non Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 14 | |
Impaired Loans | Residential Real Estate | 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 | 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 | Residential Real Estate | Home equity lines of credit | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 470 | |
Impaired Loans | Residential Real Estate | 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 | Residential Real Estate | 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 | Commercial Real Estate | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 3,276 | |
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 | Commercial and Industrial | Income approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,562 | |
Impaired Loans | Commercial | Commercial and Industrial | Comparability Adjustment | Income approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.03 | |
Impaired Loans | Commercial | Commercial and Industrial | Comparability Adjustment | Income approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.50 | |
Impaired Loans | Commercial | Commercial and Industrial | Comparability Adjustment | Income approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.37 | |
Other Real Estate Owned | Commercial Real Estate | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 2,003 | |
Other Real Estate Owned | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.26 | |
Other Real Estate Owned | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.26 |
FAIR VALUE - IMPAIRED LOANS (De
FAIR VALUE - IMPAIRED LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired loans | |||
Carrying amount of loans measured at fair value | $ 17,289 | $ 21,880 | |
Valuation allowance | (2,512) | (3,764) | |
Nonrecurring basis | |||
Impaired loans | |||
Total fair value | 8,920 | ||
Fair Value, Inputs, Level 3 | Nonrecurring basis | |||
Impaired loans | |||
Carrying amount of loans measured at fair value | $ 7,110 | 7,729 | |
Estimated selling costs considered in carrying amount | 1,252 | 1,193 | |
Valuation allowance | (2) | ||
Total fair value | 8,362 | 8,920 | |
Provision for impairment on loan, lease and other losses | |||
Provisions on collateral-dependent, impaired loans | $ 559 | $ 3,039 | $ 1,629 |
FAIR VALUE - OTHER REAL ESTATE
FAIR VALUE - OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures | |||
Total Carrying value of other real estate owned | $ 2,499 | $ 113 | |
Other real estate owned write-downs during the years ended | 105 | ||
Nonrecurring basis | Fair Value, Inputs, Level 3 | Other Real Estate Owned | |||
Fair Value Disclosures | |||
Other real estate owned carried at fair value | 2,003 | ||
Other real estate owned carried at cost | 496 | 113 | $ 160 |
Total Carrying value of other real estate owned | 2,499 | $ 113 | $ 160 |
Other real estate owned write-downs during the years ended | $ 105 |
FAIR VALUE - CARRYING AMOUNTS A
FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Available-for-sale debt securities | $ 523,863 | $ 471,355 | ||
Held-to-maturity debt securities | 54,190 | 63,156 | ||
Equity securities with readily determinable fair value | 3,083 | 3,188 | ||
Mortgage loans held for sale, at fair value | 46,867 | 19,224 | $ 8,971 | $ 5,761 |
Consumer loans held for sale, at fair value | 3,298 | 598 | ||
Consumer loans held for sale, at the lower of cost or fair value | 1,478 | 11,646 | $ 12,838 | $ 8,551 |
Carrying Value | ||||
Assets: | ||||
Cash and cash equivalents | 485,587 | 385,303 | ||
Available-for-sale debt securities | 523,863 | 471,355 | ||
Held-to-maturity debt securities | 53,324 | 62,531 | ||
Equity securities with readily determinable fair value | 3,083 | 3,188 | ||
Mortgage loans held for sale, at fair value | 46,867 | 19,224 | ||
Consumer loans held for sale, at fair value | 3,298 | 598 | ||
Consumer loans held for sale, at the lower of cost or fair value | 1,478 | 11,646 | ||
Loans, net | 4,752,036 | 4,389,800 | ||
Federal Home Loan Bank stock | 17,397 | 30,831 | ||
Accrued interest receivable | 12,925 | 12,937 | ||
Mortgage servicing rights | 7,095 | 5,888 | ||
Rate lock loan commitments | 4,540 | 789 | ||
Interest rate swap agreements | 12,545 | 5,062 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 211,026 | 167,617 | ||
Federal Home Loan Bank advances | 235,000 | 750,000 | ||
Subordinated note | 41,240 | 41,240 | ||
Accrued interest payable | 342 | 2,802 | ||
Mandatory forward contracts | 976 | 131 | ||
Interest rate swap agreements | 12,545 | 5,166 | ||
Carrying Value | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 1,890,416 | 1,033,379 | ||
Carrying Value | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,444,361 | 2,018,687 | ||
Carrying Value | Time deposits. | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 398,404 | 733,942 | ||
Total Fair Value | ||||
Assets: | ||||
Cash and cash equivalents | 485,587 | 385,303 | ||
Available-for-sale debt securities | 523,863 | 471,355 | ||
Held-to-maturity debt securities | 54,190 | 63,156 | ||
Equity securities with readily determinable fair value | 3,083 | 3,188 | ||
Mortgage loans held for sale, at fair value | 46,867 | 19,224 | ||
Consumer loans held for sale, at fair value | 3,298 | 598 | ||
Consumer loans held for sale, at the lower of cost or fair value | 1,478 | 11,646 | ||
Loans, net | 4,749,831 | 4,381,396 | ||
Accrued interest receivable | 12,925 | 12,937 | ||
Mortgage servicing rights | 8,318 | 9,068 | ||
Rate lock loan commitments | 4,540 | 789 | ||
Interest rate swap agreements | 12,545 | 5,062 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 211,026 | 167,617 | ||
Federal Home Loan Bank advances | 235,009 | 749,667 | ||
Subordinated note | 31,071 | 32,587 | ||
Accrued interest payable | 342 | 2,802 | ||
Mandatory forward contracts | 976 | 131 | ||
Interest rate swap agreements | 12,545 | 5,166 | ||
Total Fair Value | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 1,890,416 | 1,033,379 | ||
Total Fair Value | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,444,361 | 2,018,687 | ||
Total Fair Value | Time deposits. | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 404,773 | 737,733 | ||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||
Assets: | ||||
Cash and cash equivalents | 485,587 | 385,303 | ||
Equity securities with readily determinable fair value | 2,523 | 2,474 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Available-for-sale debt securities | 517,106 | 463,860 | ||
Held-to-maturity debt securities | 54,190 | 63,156 | ||
Equity securities with readily determinable fair value | 560 | 714 | ||
Mortgage loans held for sale, at fair value | 46,867 | 19,224 | ||
Accrued interest receivable | 12,925 | 12,937 | ||
Mortgage servicing rights | 8,318 | 9,068 | ||
Rate lock loan commitments | 4,540 | 789 | ||
Interest rate swap agreements | 12,545 | 5,062 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 211,026 | 167,617 | ||
Federal Home Loan Bank advances | 235,009 | 749,667 | ||
Subordinated note | 31,071 | 32,587 | ||
Accrued interest payable | 342 | 2,802 | ||
Mandatory forward contracts | 976 | 131 | ||
Interest rate swap agreements | 12,545 | 5,166 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 1,890,416 | 1,033,379 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,444,361 | 2,018,687 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Time deposits. | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 404,773 | 737,733 | ||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Available-for-sale debt securities | 6,757 | 7,495 | ||
Consumer loans held for sale, at fair value | 3,298 | 598 | ||
Consumer loans held for sale, at the lower of cost or fair value | 1,478 | 11,646 | ||
Loans, net | $ 4,749,831 | $ 4,381,396 |
MORTGAGE BANKING ACTIVITIES - M
MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Activity for mortgage loans held for sale | |||
Balance, beginning of period | $ 19,224 | $ 8,971 | $ 5,761 |
Origination of mortgage loans held for sale | 782,939 | 356,097 | 176,916 |
Proceeds from the sale of mortgage loans held for sale | (788,475) | (354,660) | (177,545) |
Net gain on sale of mortgage loans held for sale | 33,179 | 8,816 | 3,839 |
Balance, end of period | 46,867 | 19,224 | $ 8,971 |
FHLMC | |||
Activity for mortgage loans held for sale | |||
Bank serviced loans | 1,300,000 | 1,100,000 | |
Custodial escrow account balances maintained in connection with serviced loans | $ 20,000 | $ 11,000 |
MORTGAGE BANKING ACTIVITIES - C
MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage servicing rights | |||
Net gain realized on sale of mortgage loans held for sale | $ 28,721 | $ 8,013 | $ 3,843 |
Net gain recognized | 33,179 | 8,816 | 3,839 |
Loan servicing income | 2,924 | 2,506 | 2,418 |
Amortization of mortgage servicing rights | (3,756) | (1,823) | (1,432) |
Change in mortgage servicing rights valuation allowance | (500) | ||
Net servicing income recognized | (1,332) | 683 | 986 |
Total Mortgage banking income | 31,847 | 9,499 | 4,825 |
Mortgage loans held for sale | |||
Mortgage servicing rights | |||
Net change in fair value | 1,552 | 239 | 203 |
Rate lock loan commitments | |||
Mortgage servicing rights | |||
Net change in fair value | 3,751 | 433 | 46 |
Mandatory forward contracts | |||
Mortgage servicing rights | |||
Net change in fair value | $ (845) | $ 131 | $ (253) |
MORTGAGE BANKING ACTIVITIES -_2
MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
MORTGAGE BANKING ACTIVITIES | |||
Balance, beginning of period | $ 5,888 | $ 4,919 | $ 5,044 |
Additions | 5,463 | 2,792 | 1,307 |
Amortized to expense | (3,756) | (1,823) | (1,432) |
Change in valuation allowance | (500) | ||
Balance, end of period | $ 7,095 | $ 5,888 | $ 4,919 |
MORTGAGE BANKING ACTIVITIES - V
MORTGAGE BANKING ACTIVITIES - VALUATION OF CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |
Charge during the period | $ 500 |
Ending valuation allowance | $ 500 |
MORTGAGE BANKING ACTIVITIES - O
MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
MORTGAGE BANKING ACTIVITIES | ||
Fair value of mortgage servicing rights portfolio | $ 8,318 | $ 9,068 |
Monthly weighted average prepayment rate of unpaid principle balance (as percent) | 308.00% | 202.00% |
Discount rate (as percent) | 10.00% | 10.00% |
Weighted average foreclosure rate | 0.44% | 0.14% |
Weighted average life in years | 4 years 10 months 6 days | 5 years 9 months 3 days |
MORTGAGE BANKING ACTIVITIES - A
MORTGAGE BANKING ACTIVITIES - AMORTIZATION EXPENSE OF MSR PORTFOLIO (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Estimated future amortization expense of the MSR portfolio (net of the impairment charge) | |
2021 | $ 1,486 |
2022 | 1,474 |
2023 | 1,386 |
2024 | 1,003 |
2025 | 656 |
2026 | 448 |
2027 | 642 |
Total | $ 7,095 |
MORTGAGE BANKING ACTIVITIES - N
MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | $ 44,781 | $ 18,690 |
Fair Value, Assets | 46,867 | 19,224 |
Rate lock loan commitments | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 105,395 | 32,776 |
Fair Value, Assets | 4,540 | 789 |
Mandatory forward contracts | ||
Information about derivatives and swaps | ||
Derivative Liabilities, Notional Amount | 136,236 | 44,919 |
Fair Value, Liabilities | $ 976 | $ 131 |
STOCK PLANS AND STOCK BASED C_3
STOCK PLANS AND STOCK BASED COMPENSATION - NARRATIVE (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Number of shares available for grant permitted by plan | 3,000,000 |
Maximum | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Vesting period | 3 years |
Stock option | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Outstanding or available for exercise | 78,700 |
Stock option | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Exercisable period | 1 year |
Stock option | 2015 Plan | Class B Common Stock | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Outstanding or available for exercise | 0 |
Stock option | Minimum | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Exercisable period | 5 years |
Stock option | Maximum | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Exercisable period | 6 years |
STOCK PLANS AND STOCK BASED C_4
STOCK PLANS AND STOCK BASED COMPENSATION - ACTIVITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Information related to the stock option plan | |||
Cash received from options exercised, net of shares redeemed | $ (191,000) | $ 83,000 | |
Information related to stock option and restricted stock awards granted | |||
Expenses | $ 859,000 | $ 1,035,000 | $ 1,001,000 |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | |||
2021 | 815,000 | ||
2022 | 754,000 | ||
2023 | 511,000 | ||
2024 | 137,000 | ||
2025 | 15,000 | ||
Total | $ 2,232,000 | ||
Stock option | |||
Weighted average assumptions used to determined fair value of stock options granted | |||
Risk-free interest rate (as a percent) | 0.44% | 1.85% | 3.00% |
Expected dividend yield (as a percent) | 3.53% | 2.25% | 2.01% |
Expected stock price volatility (as a percent) | 23.71% | 20.11% | 18.59% |
Expected life of options (in years) | 5 years | 5 years | 5 years |
Estimated fair value per share of options granted (in dollars per share) | $ 4.06 | $ 7.12 | $ 8.09 |
Options | |||
Outstanding, beginning of year (in shares) | 311,450 | 433,200 | |
Granted (in shares) | 285,995 | 5,500 | |
Exercised (in shares) | (64,850) | (100,600) | |
Forfeited or expired (in shares) | (26,650) | (26,650) | |
Outstanding, end of year (in shares) | 505,945 | 311,450 | 433,200 |
Unvested (in shares) | 427,245 | ||
Exercisable (vested) at end of year (in shares) | 78,700 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of year (in dollars per share) | $ 36.43 | $ 33.50 | |
Granted (in dollars per share) | 32.37 | 47.02 | |
Exercised (in dollars per share) | 24.44 | 24.50 | |
Forfeited or expired (in dollars per share) | 35.95 | 36 | |
Outstanding, end of year (in dollars per share) | 35.70 | $ 36.43 | $ 33.50 |
Unvested (in dollars per share) | 37.75 | ||
Exercisable (vested) at end of year (in dollars per share) | $ 24.59 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding, end of year | 3 years 5 months 23 days | 2 years 8 months 23 days | |
Unvested | 4 years 21 days | ||
Exercisable (vested) at end of year | 4 months 2 days | ||
Aggregate Intrinsic Value | |||
Outstanding, end of year | $ 1,925,343 | $ 3,449,454 | |
Unvested | 1,022,143 | ||
Exercisable (vested) at end of year | 903,200 | ||
Information related to the stock option plan | |||
Intrinsic value of options exercised | 634,000 | 2,249,000 | $ 79,000 |
Cash received from options exercised, net of shares redeemed | 210,000 | (191,000) | 83,000 |
Information related to stock option and restricted stock awards granted | |||
Expenses | 463,000 | 364,000 | $ 265,000 |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | |||
2021 | 538,000 | ||
2022 | 501,000 | ||
2023 | 376,000 | ||
2024 | 97,000 | ||
2025 | 15,000 | ||
Total | 1,527,000 | ||
Stock option | Non-executive officer employees | |||
Information related to the stock option plan | |||
Outstanding loans | $ 390,000 | $ 355,000 | |
Restricted Stock Awards | |||
Shares | |||
Outstanding, beginning of year (in shares) | 41,110 | 51,110 | |
Granted (in shares) | 1,218 | 2,336 | |
Earned and issued (in shares) | (2,828) | (12,336) | |
Outstanding, end of year (in shares) | 39,500 | 41,110 | 51,110 |
Vested (in shares) | 39,500 | ||
Weighted-average grant date fair value | |||
Outstanding, beginning of year (in dollars per share) | $ 37.37 | $ 39.06 | |
Granted (in dollars per share) | 34.02 | 49.34 | |
Earned and issued (in dollars per share) | 30.77 | 46.63 | |
Outstanding, end of year (in dollars per share) | 38.56 | $ 37.37 | $ 39.06 |
Unvested and Expected to vest (in dollars per share) | $ 38.56 | ||
Information related to stock option and restricted stock awards granted | |||
Vesting period | 6 years | ||
Expenses | $ 396,000 | $ 728,000 | $ 630,000 |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | |||
2021 | 277,000 | ||
2022 | 253,000 | ||
2023 | 135,000 | ||
2024 | 40,000 | ||
Total | $ 705,000 | ||
Restricted Stock Awards | Minimum | |||
Shares | |||
Unrecognized compensation expense recognition period | 5 years | ||
Restricted Stock Awards | Maximum | |||
Shares | |||
Unrecognized compensation expense recognition period | 6 years | ||
Performance Stock Units | |||
Shares | |||
Outstanding, beginning of year (in shares) | 23,000 | 46,000 | |
Earned and issued (in shares) | (23,000) | (23,000) | |
Outstanding, end of year (in shares) | 23,000 | 46,000 | |
Weighted-average grant date fair value | |||
Outstanding, beginning of year (in dollars per share) | $ 23.08 | $ 23.08 | |
Earned and issued (in dollars per share) | $ 23.08 | 23.08 | |
Outstanding, end of year (in dollars per share) | $ 23.08 | $ 23.08 | |
Information related to stock option and restricted stock awards granted | |||
Expenses | $ (57,000) | $ 106,000 | |
Performance Stock Units | Tranche One | |||
Information related to stock option and restricted stock awards granted | |||
Return on average assets (as a percent) | 1.25% | ||
Performance Stock Units | Tranche Two | |||
Information related to stock option and restricted stock awards granted | |||
Return on average assets (as a percent) | 1.25% |
STOCK PLANS AND STOCK BASED C_5
STOCK PLANS AND STOCK BASED COMPENSATION - DEFERRED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Director | |||
Shares Deferred | |||
Outstanding, beginning of period (in shares) | 67,363 | 66,144 | |
Deferred base salaries and dividend equivalents converted to stock units | 13,930 | 6,397 | |
Stock units converted to Class A Common Shares | (4,967) | (5,178) | |
Outstanding, end of period (in shares) | 76,326 | 67,363 | 66,144 |
Vested (in shares) | 76,326 | ||
Weighted Average Market Price at Date of Deferral | |||
Outstanding, beginning of period (in dollars per share) | $ 27.65 | $ 25.45 | |
Deferred base salaries and dividend equivalents converted to stock units (in dollars per share) | 32.20 | 46.76 | |
Stock units converted to Class A Common Shares (in dollars per share) | 44.58 | 23.18 | |
Outstanding, end of period (in dollars per share) | 27.38 | $ 27.65 | $ 25.45 |
Vested (in dollars per share) | $ 27.38 | ||
Deferred compensation expense | $ 352 | $ 213 | $ 214 |
Director | Minimum | |||
Deferred Compensation | |||
Specified period during which board and committee fees may be deferred by participants | 2 years | ||
Director | Maximum | |||
Deferred Compensation | |||
Specified period during which board and committee fees may be deferred by participants | 5 years | ||
Key Employees | |||
Deferred Compensation | |||
Vesting period after Company match | 5 years | ||
Shares Deferred | |||
Outstanding, beginning of period (in shares) | 23,378 | 9,260 | |
Deferred base salaries and dividend equivalents converted to stock units | 12,754 | 7,059 | |
Matching stock units credited (in shares) | 12,754 | 7,059 | |
Outstanding, end of period (in shares) | 48,886 | 23,378 | 9,260 |
Vested (in shares) | 32,595 | ||
Unvested (in shares) | 16,291 | ||
Weighted Average Market Price at Date of Deferral | |||
Outstanding, beginning of period (in dollars per share) | $ 41.75 | $ 43.09 | |
Deferred base salaries and dividend equivalents converted to stock units (in dollars per share) | 32.17 | 45.84 | |
Matching stock units credited (in dollars per share) | 32.17 | 45.84 | |
Outstanding, end of period (in dollars per share) | 37.37 | $ 41.75 | $ 43.09 |
Vested (in dollars per share) | 37.37 | ||
Unvested (in dollars per share) | $ 37.37 | ||
Deferred compensation expense | $ 408 | $ 319 | $ 215 |
STOCK PLANS AND STOCK BASED C_6
STOCK PLANS AND STOCK BASED COMPENSATION - KEY- EMPLOYEE DEFERRED COMPENSATION EXPENSE (Details) - Key Employees - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation | |||
Key-employee - base salary | $ 408 | $ 319 | $ 215 |
Key-employee - employer match | 158 | 49 | 215 |
Total | $ 566 | $ 368 | $ 430 |
STOCK PLANS AND STOCK BASED C_7
STOCK PLANS AND STOCK BASED COMPENSATION - EMPLOYEE STOCK PURCHASE PLAN (Details) - ESPP - USD ($) $ in Thousands | Apr. 19, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ESPP expense | $ 94 | $ 49 | $ 23 | |||||||||
Class A Common Stock | ||||||||||||
Employee Stock purchase price | 85.00% | 85.00% | 85.00% | 85.00% | 90.00% | 90.00% | 90.00% | 90.00% | ||||
Minimum | Class A Common Stock | ||||||||||||
Employee Stock purchase price | 85.00% |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
401 (k) Plan | |||
BENEFIT PLANS | |||
Eligible compensation enrolled within 30-days of their date of hire | 6.00% | ||
Period within which all the eligible employees are automatically enrolled for compensation | 30 days | ||
Minimum percentage of annual eligible compensation by the participants | 1.00% | ||
Maximum percentage of annual eligible compensation by the participants | 75.00% | ||
Percentage of employers matching contribution for participant contributions up to 1% | 100.00% | ||
Percentage of additional employers matching contribution | 75.00% | ||
Vesting period | 2 years | ||
Supplemental Executive Retirement Plan | |||
Employer matching contributions | $ 3,205,000 | $ 3,185,000 | $ 2,890,000 |
Discretionary employer bonus matching contributions | $ 117,000 | 207,000 | 392,000 |
Supplemental Employee Retirement Plan | |||
Supplemental Executive Retirement Plan | |||
Number of participants under SERP | employee | 4 | ||
SERP liability incurred | $ 2,000,000 | 2,000,000 | |
Employer matching contributions | $ 34,000 | $ 97,000 | $ 102,000 |
Minimum | 401 (k) Plan | |||
BENEFIT PLANS | |||
Percentage of participant contributions up to which employer matches additional 75% contribution | 2.00% | ||
Maximum | 401 (k) Plan | |||
BENEFIT PLANS | |||
Percentage of participant contributions up to which employer matches 100% contribution | 1.00% | ||
Percentage of participant contributions up to which employer matches additional 75% contribution | 5.00% |
INCOME TAXES - RECONCILIATION (
INCOME TAXES - RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current expense: | ||||||||||||
Federal | $ 25,762 | $ 18,906 | $ 10,638 | |||||||||
State | 2,450 | 1,751 | 1,532 | |||||||||
Deferred expense: | ||||||||||||
SAB 118 related discrete items | (2,762) | |||||||||||
Federal | (7,249) | 1,880 | 6,815 | |||||||||
State | (1,576) | (1,043) | 188 | |||||||||
Total income tax expense | $ 3,276 | $ 5,437 | $ 3,793 | $ 6,881 | $ 6,533 | $ 4,325 | $ 3,176 | $ 7,460 | $ 19,387 | $ 21,494 | $ 16,411 | |
Effective tax rate that differs from that computed at the federal statutory rate | ||||||||||||
Federal corporate tax rate | 21.00% | 21.00% | 21.00% | 35.00% | ||||||||
Effect of: | ||||||||||||
SAB 118 related discrete items | (2.93%) | |||||||||||
State taxes, net of federal benefit (as a percent) | 1.43% | 1.43% | 1.44% | |||||||||
General business tax credits (as a percent) | (2.01%) | (1.14%) | (1.44%) | |||||||||
Nontaxable income (as a percent) | (0.75%) | (0.85%) | (0.99%) | |||||||||
Reversal of valuation allowance/establishment of net operating loss DTA (as a percent) | (0.04%) | (0.74%) | ||||||||||
Tax benefit of vesting employee benefits (as a percent) | (0.15%) | (0.42%) | (0.20%) | |||||||||
Deferred tax asset due to KY HB354 (as a percent) | (0.97%) | (0.20%) | ||||||||||
Other, net (as a percent) | 0.38% | (0.09%) | 0.53% | |||||||||
Effective tax rate (as a percent) | 18.89% | 18.99% | 17.41% |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes | ||||
Corporate income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
Federal tax benefits which reduced the effective tax rate lower than the federal corporate tax rate | $ 3,100,000 | $ 2,800,000 | $ 2,800,000 | |
Traditional Banking | ||||
Income taxes | ||||
Percentage of income tax benefit attributed to segment | 100.00% | |||
Deferred tax asset due to enactment of HB354 | 1,000,000 | 224,000 | ||
Reversal of valuation allowance on the deferred tax asset for losses | 840,000 | |||
Income tax benefit associated with equity compensation | 480,000 | |||
Tax benefits for low-income-housing investments and R&D | $ 2,100,000 | $ 1,300,000 | ||
Kentucky | ||||
Income taxes | ||||
Corporate income tax rate | 5.00% | 5.00% |
INCOME TAXES - DEFERRED TAXES A
INCOME TAXES - DEFERRED TAXES AND OPERATING LOSS CARRYFORWARD (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for credit losses | $ 14,999,000 | $ 9,672,000 |
Operating lease liabilities | 10,911,000 | 8,186,000 |
Accrued expenses | 5,062,000 | 3,332,000 |
Net operating loss carryforward | 2,577,000 | 2,705,000 |
Acquisition fair value adjustments | 181,000 | 443,000 |
Other-than-temporary impairment | 448,000 | 397,000 |
Paycheck Protection Program Fees | 2,159,000 | |
Fair value of cash flow hedges | 26,000 | |
Other | 1,655,000 | 1,495,000 |
Total deferred tax assets | 37,992,000 | 26,256,000 |
Deferred tax liabilities: | ||
Right of use assets - operating leases | (10,667,000) | (7,889,000) |
Depreciation and amortization | (3,612,000) | (4,018,000) |
Federal Home Loan Bank dividends | (1,161,000) | (2,667,000) |
Deferred loan costs | (2,235,000) | (2,068,000) |
Lease Financing Receivables | (2,154,000) | (2,245,000) |
Mortgage servicing rights | (1,746,000) | (1,319,000) |
Unrealized investment securities gains | (2,836,000) | (1,058,000) |
Bargain purchase gain | (659,000) | (648,000) |
Total deferred tax liabilities | (25,070,000) | (21,912,000) |
Net deferred tax asset | 12,922,000 | $ 4,344,000 |
Federal | ||
Net operating loss carry forward | ||
Net operating loss carry forward, amount | 7,300,000 | |
Annual limit of use of operating loss carryforward | 722,000 | |
State | ||
Net operating loss carry forward | ||
Net operating loss carry forward, amount | 4,500,000 | |
Annual limit of use of operating loss carryforward | 634,000 | |
AMT credit carryforwards | 15,000 | |
Kentucky | State | ||
Net operating loss carry forward | ||
Net operating loss carry forward, amount | $ 22,400,000 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance, beginning of period | $ 1,707 | $ 1,327 | $ 912 |
Additions based on tax related to the current period | 455 | 364 | 306 |
Additions for tax positions of prior periods | 24 | 55 | 339 |
Reductions for tax positions of prior periods | (72) | (34) | |
Reductions due to the statute of limitations | (82) | (39) | (196) |
Settlements | (91) | ||
Balance, end of period | 1,941 | 1,707 | 1,327 |
Amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods | 1,700 | ||
Amount of interest and penalties | |||
Interest and penalties recorded in the income statement as a component of income tax expense | 57 | 173 | 42 |
Interest and penalties accrued on balance sheet | $ 510 | $ 514 | $ 341 |
INCOME TAXES - LOW INCOME HOUSI
INCOME TAXES - LOW INCOME HOUSING TAX CREDITS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investment | ||
Low income housing tax credit investments - Gross | $ 18,909 | $ 11,912 |
Life-to-date amortization | (2,701) | (1,218) |
Low income housing tax credit investments - Net | 16,208 | 10,694 |
Unfunded Commitment | ||
Low income housing tax credit investments - Gross | 27,891 | 24,888 |
Low income housing tax credit investments - Net | $ 27,891 | $ 24,888 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EARNINGS PER SHARE | |||||||||||
Net income | $ 20,356 | $ 20,389 | $ 15,804 | $ 26,697 | $ 25,768 | $ 18,408 | $ 18,007 | $ 29,516 | $ 83,246 | $ 91,699 | $ 77,852 |
Dividends declared on Common Stock: | |||||||||||
Undistributed net income for basic earnings per share | 59,525 | 69,807 | 57,821 | ||||||||
Weighted average potential dividends on Class A shares upon exercise of dilutive options | (35) | (118) | (102) | ||||||||
Undistributed net income for diluted earnings per share | $ 59,490 | $ 69,689 | $ 57,719 | ||||||||
Weighted average shares outstanding: | |||||||||||
Effect of dilutive securities on Class A Shares outstanding | 30,000 | 112,000 | 105,000 | ||||||||
Weighted average shares outstanding including dilutive securities | 21,069,000 | 21,135,000 | 21,065,000 | ||||||||
Stock option | |||||||||||
Diluted earnings per share: | |||||||||||
Antidilutive stock options (in shares) | 338,995 | 154,750 | 165,000 | ||||||||
Stock option | Weighted Average | |||||||||||
Diluted earnings per share: | |||||||||||
Antidilutive stock options (in shares) | 282,489 | 151,260 | 47,712 | ||||||||
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 | $ (21,433) | $ (19,771) | $ (18,076) | ||||||||
Weighted average shares outstanding: | |||||||||||
Weighted average shares outstanding | 18,838,000 | 18,813,000 | 18,736,000 | ||||||||
Basic earnings per share: | |||||||||||
Per share dividends distributed | $ 1.14 | $ 1.06 | $ 0.97 | ||||||||
Undistributed earnings per share | 2.86 | 3.35 | 2.79 | ||||||||
Total basic earnings per share | $ 0.98 | $ 0.98 | $ 0.77 | $ 1.29 | $ 1.23 | $ 0.88 | $ 0.86 | $ 1.42 | 4 | 4.41 | 3.76 |
Diluted earnings per share: | |||||||||||
Per share dividends distributed | 1.14 | 1.06 | 0.97 | ||||||||
Undistributed earnings per share | 2.85 | 3.33 | 2.77 | ||||||||
Total diluted earnings per share | 0.98 | 0.98 | 0.76 | 1.28 | 1.23 | 0.88 | 0.86 | 1.41 | $ 3.99 | $ 4.39 | $ 3.74 |
Class B Common Stock | |||||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (2,288) | $ (2,121) | $ (1,955) | ||||||||
Weighted average shares outstanding: | |||||||||||
Weighted average shares outstanding | 2,201,000 | 2,210,000 | 2,224,000 | ||||||||
Basic earnings per share: | |||||||||||
Per share dividends distributed | $ 1.04 | $ 0.96 | $ 0.88 | ||||||||
Undistributed earnings per share | 2.60 | 3.05 | 2.53 | ||||||||
Total basic earnings per share | 0.89 | 0.89 | 0.69 | 1.17 | 1.13 | 0.80 | 0.79 | 1.29 | 3.64 | 4.01 | 3.41 |
Diluted earnings per share: | |||||||||||
Per share dividends distributed | 1.04 | 0.96 | 0.88 | ||||||||
Undistributed earnings per share | 2.59 | 3.03 | 2.52 | ||||||||
Total diluted earnings per share | $ 0.89 | $ 0.89 | $ 0.69 | $ 1.16 | $ 1.12 | $ 0.80 | $ 0.78 | $ 1.28 | $ 3.63 | $ 3.99 | $ 3.40 |
TRANSACTIONS WITH RELATED PAR_3
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loans made to executive officers and directors of Republic and their related interests | ||
Beginning balance | $ 43,398,000 | |
Effect of changes in composition of related parties | (26,147,000) | |
New loans | 11,402,000 | |
Repayments | (12,933,000) | |
Ending balance | 15,720,000 | |
Executive officers, directors and affiliates | ||
Loans made to executive officers and directors of Republic and their related interests | ||
Deposits from executive officers, directors, and their affiliates | 124,000,000 | $ 97,000,000 |
Bernard M. Trager | RB&T | ||
Loans made to executive officers and directors of Republic and their related interests | ||
Total aggregate annual premiums paid to date on the insurance policies held in the trust | 690,000 | |
Cash surrender value of the policies | 2,000,000 | 2,000,000 |
Repayments of indebtedness due from beneficiaries, per terms of trust | 440,000 | 540,000 |
Net death benefit | $ 5,000,000 | $ 5,000,000 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Available-for-Sale Debt Securities: | |||
Change in unrealized gain on AFS debt securities | $ 7,147 | $ 5,689 | $ (1,548) |
Adjustment for accounting standard update | (428) | ||
Change in unrealized gain of AFS debt security for which a portion of OTTI has been recognized in earnings | (35) | (79) | (20) |
Net unrealized (losses) gains | 7,112 | 5,610 | (1,996) |
Tax effect | (1,778) | (1,348) | 420 |
Net of tax | 5,334 | 4,262 | (1,576) |
Cash Flow Hedges: | |||
Change in fair value of derivatives used for cash flow hedges | (177) | (199) | 178 |
Reclassification amount for net derivative losses (gains) realized in income | 281 | (20) | 28 |
Net unrealized (losses) gains | 104 | (219) | 206 |
Tax effect | (27) | 52 | (43) |
Net of tax | 77 | (167) | 163 |
Total other comprehensive income (loss), net of tax | $ 5,411 | $ 4,095 | $ (1,413) |
OTHER COMPREHENSIVE INCOME - RE
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant amounts reclassified out of each component of AOCI | |||||||||||
Interest benefit (expense) on deposits | $ (15,089) | $ (29,135) | $ (17,017) | ||||||||
Interest benefit (expense) on FHLB advances | (3,524) | (12,791) | (10,473) | ||||||||
Total interest benefit (expense) | $ (2,850) | $ (3,786) | $ (4,886) | $ (8,421) | $ (10,132) | $ (12,573) | $ (11,718) | $ (10,334) | (19,943) | (44,757) | (30,123) |
Income tax (benefit) expense | (3,276) | (5,437) | (3,793) | (6,881) | (6,533) | (4,325) | (3,176) | (7,460) | (19,387) | (21,494) | (16,411) |
Net income (loss) | $ 20,356 | $ 20,389 | $ 15,804 | $ 26,697 | $ 25,768 | $ 18,408 | $ 18,007 | $ 29,516 | 83,246 | 91,699 | 77,852 |
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 | (138) | 10 | (18) | ||||||||
Interest benefit (expense) on FHLB advances | (143) | 10 | (10) | ||||||||
Total interest benefit (expense) | (281) | 20 | (28) | ||||||||
Income tax (benefit) expense | 70 | (5) | 6 | ||||||||
Net income (loss) | $ (211) | $ 15 | $ (22) |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of the AOCI balances, net of tax | |||
Balance at beginning of period | $ 764,244 | $ 689,934 | $ 632,424 |
Current Year Change | 5,411 | 4,095 | (1,413) |
Balance at end of period | 823,323 | 764,244 | 689,934 |
Accumulated Other Comprehensive Income | |||
Summary of the AOCI balances, net of tax | |||
Balance at beginning of period | 3,098 | (997) | 416 |
Current Year Change | 5,411 | 4,095 | |
Balance at end of period | 8,509 | 3,098 | (997) |
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 | 5,360 | 4,376 | |
Balance at end of period | 7,571 | 2,211 | (2,165) |
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 | (26) | (114) | |
Balance at end of period | 938 | 964 | 1,078 |
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 | $ 77 | (167) | |
Balance at end of period | $ (77) | $ 90 |
PARENT COMPANY CONDENSED FINA_3
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and cash equivalents | $ 485,587 | $ 385,303 | ||
Security available for sale | 523,863 | 471,355 | ||
TOTAL ASSETS | 6,168,325 | 5,620,319 | $ 5,240,404 | |
Liabilities and Stockholders' Equity: | ||||
Subordinated note | 41,240 | 41,240 | ||
Other liabilities | 80,215 | 74,680 | ||
Stockholders' equity | 823,323 | 764,244 | $ 689,934 | $ 632,424 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 6,168,325 | 5,620,319 | ||
Republic Bancorp, Inc. | ||||
Assets: | ||||
Cash and cash equivalents | 100,524 | 101,003 | ||
Security available for sale | 3,800 | 4,000 | ||
Investment in bank subsidiary | 761,929 | 699,906 | ||
Investment in non-bank subsidiaries | 3,518 | 3,631 | ||
Other assets | 3,203 | 4,749 | ||
TOTAL ASSETS | 872,974 | 813,289 | ||
Liabilities and Stockholders' Equity: | ||||
Subordinated note | 41,240 | 41,240 | ||
Other liabilities | 8,411 | 7,805 | ||
Stockholders' equity | 823,323 | 764,244 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 872,974 | $ 813,289 |
PARENT COMPANY CONDENSED FINA_4
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income and expenses: | |||||||||||
Interest income | $ 57,970 | $ 56,038 | $ 57,091 | $ 81,159 | $ 64,527 | $ 68,059 | $ 65,664 | $ 82,633 | $ 252,258 | $ 280,883 | $ 256,181 |
Less: Interest expense | 2,850 | 3,786 | 4,886 | 8,421 | 10,132 | 12,573 | 11,718 | 10,334 | 19,943 | 44,757 | 30,123 |
Less: Other expenses | 11,957 | 11,937 | 12,546 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 23,632 | 25,826 | 19,597 | 33,578 | 32,301 | 22,733 | 21,183 | 36,976 | 102,633 | 113,193 | 94,263 |
Income tax benefit | (3,276) | (5,437) | (3,793) | (6,881) | (6,533) | (4,325) | (3,176) | (7,460) | (19,387) | (21,494) | (16,411) |
NET INCOME | $ 20,356 | $ 20,389 | $ 15,804 | $ 26,697 | $ 25,768 | $ 18,408 | $ 18,007 | $ 29,516 | 83,246 | 91,699 | 77,852 |
COMPREHENSIVE INCOME | 88,657 | 95,794 | 76,439 | ||||||||
Republic Bancorp, Inc. | |||||||||||
Income and expenses: | |||||||||||
Dividends from subsidiary | 25,980 | 24,249 | 22,385 | ||||||||
Interest income | 182 | 250 | 231 | ||||||||
Other income | 57 | 54 | 45 | ||||||||
Less: Interest expense | 1,000 | 1,620 | 1,508 | ||||||||
Less: Other expenses | 691 | 511 | 469 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 24,528 | 22,422 | 20,684 | ||||||||
Income tax benefit | 344 | 1,213 | 348 | ||||||||
Income before equity in undistributed net income of subsidiaries | 24,872 | 23,635 | 21,032 | ||||||||
Equity in undistributed net income of subsidiaries | 58,374 | 68,064 | 56,820 | ||||||||
NET INCOME | 83,246 | 91,699 | 77,852 | ||||||||
COMPREHENSIVE INCOME | $ 88,657 | $ 95,794 | $ 76,439 |
PARENT COMPANY CONDENSED FINA_5
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
STATEMENTS OF CASH FLOWS | |||
Net income | $ 83,246 | $ 91,699 | $ 77,852 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of investment security | 1,572 | (120) | 97 |
Change in other assets | (17,759) | (8,677) | 2,822 |
Change in other liabilities | (10,870) | (3,138) | 7,368 |
Net cash provided by operating activities | 68,434 | 97,245 | 119,213 |
Investing activities: | |||
Net cash used in investing activities | (415,018) | (427,266) | (121,535) |
Financing activities: | |||
Common Stock repurchases | (3,935) | (1,418) | (827) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 533 | 494 | 230 |
Net proceeds from option exercises and equity awards vested - Class A Common Stock | (191) | 83 | |
Cash dividends paid | (23,204) | (21,377) | (19,497) |
Net cash provided by financing activities | 446,868 | 363,850 | 54,445 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 100,284 | 33,829 | 52,123 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 385,303 | 351,474 | 299,351 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 485,587 | 385,303 | 351,474 |
Republic Bancorp, Inc. | |||
STATEMENTS OF CASH FLOWS | |||
Net income | 83,246 | 91,699 | 77,852 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of investment security | (56) | (42) | (40) |
Equity in undistributed net income of subsidiaries | (58,374) | (68,064) | (56,820) |
Director deferred compensation - Parent Company | 181 | 139 | 117 |
Change in other assets | 1,609 | (25) | 605 |
Change in other liabilities | 54 | 842 | (976) |
Net cash provided by operating activities | 26,660 | 24,549 | 20,738 |
Investing activities: | |||
Investment in subsidiary bank | (533) | (494) | (230) |
Net cash used in investing activities | (533) | (494) | (230) |
Financing activities: | |||
Common Stock repurchases | (3,935) | (1,418) | (827) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 533 | 494 | 230 |
Net proceeds from option exercises and equity awards vested - Class A Common Stock | (191) | 83 | |
Cash dividends paid | (23,204) | (21,377) | (19,497) |
Net cash provided by financing activities | (26,606) | (22,492) | (20,011) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (479) | 1,563 | 497 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 101,003 | 99,440 | 98,943 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 100,524 | $ 101,003 | $ 99,440 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue recognition | ||||||||||||
Net interest income | $ 55,120 | $ 52,252 | $ 52,205 | $ 72,738 | $ 54,395 | $ 55,486 | $ 53,946 | $ 72,299 | $ 232,315 | $ 236,126 | $ 226,058 | |
Noninterest income: | ||||||||||||
Mortgage banking income | 31,847 | 9,499 | 4,825 | |||||||||
Program fees | 7,095 | 4,712 | 6,225 | |||||||||
Increase in cash surrender value of BOLI | 1,585 | 1,550 | 1,527 | |||||||||
Net gain on branch divestiture | 7,900 | 7,829 | ||||||||||
Total noninterest income | $ 17,136 | $ 20,597 | $ 18,751 | $ 30,569 | $ 19,655 | $ 12,811 | $ 15,125 | $ 27,417 | 87,053 | 75,008 | 63,425 | |
Total net revenue | $ 319,368 | $ 311,134 | $ 289,483 | |||||||||
Net-revenue concentration (as percent) | 100.00% | 100.00% | 100.00% | |||||||||
Writedowns during entity's holding of property (as a percent) | 10.00% | |||||||||||
Nonrefundable capital commitment fee | $ 1,000 | |||||||||||
Core Banking | ||||||||||||
Revenue recognition | ||||||||||||
Net interest income | $ 186,700 | $ 184,574 | $ 176,526 | |||||||||
Noninterest income: | ||||||||||||
Mortgage banking income | 31,847 | 9,499 | 4,825 | |||||||||
Increase in cash surrender value of BOLI | 1,585 | 1,550 | 1,527 | |||||||||
Net gain on branch divestiture | 7,829 | |||||||||||
Total noninterest income | 59,378 | 48,219 | 35,380 | |||||||||
Total net revenue | $ 246,078 | $ 232,793 | $ 211,906 | |||||||||
Net-revenue concentration (as percent) | 77.00% | 75.00% | 73.00% | |||||||||
Traditional Banking | ||||||||||||
Revenue recognition | ||||||||||||
Net interest income | $ 159,381 | $ 168,076 | $ 160,398 | |||||||||
Noninterest income: | ||||||||||||
Increase in cash surrender value of BOLI | 1,585 | 1,550 | 1,527 | |||||||||
Net gain on branch divestiture | 7,829 | |||||||||||
Total noninterest income | 27,404 | 38,553 | 29,965 | |||||||||
Total net revenue | $ 186,785 | $ 206,629 | $ 190,363 | |||||||||
Net-revenue concentration (as percent) | 59.00% | 67.00% | 66.00% | |||||||||
Warehouse Lending | ||||||||||||
Revenue recognition | ||||||||||||
Net interest income | $ 25,957 | $ 15,801 | $ 15,726 | |||||||||
Noninterest income: | ||||||||||||
Total noninterest income | 24 | (46) | 40 | |||||||||
Total net revenue | $ 25,981 | $ 15,755 | $ 15,766 | |||||||||
Net-revenue concentration (as percent) | 8.00% | 5.00% | 5.00% | |||||||||
Mortgage Banking | ||||||||||||
Revenue recognition | ||||||||||||
Net interest income | $ 1,362 | $ 697 | $ 402 | |||||||||
Noninterest income: | ||||||||||||
Mortgage banking income | 31,847 | 9,499 | 4,825 | |||||||||
Total noninterest income | 31,950 | 9,712 | 5,375 | |||||||||
Total net revenue | $ 33,312 | $ 10,409 | $ 5,777 | |||||||||
Net-revenue concentration (as percent) | 10.00% | 3.00% | 2.00% | |||||||||
Republic Processing Group | ||||||||||||
Revenue recognition | ||||||||||||
Net interest income | $ 45,615 | $ 51,552 | $ 49,532 | |||||||||
Noninterest income: | ||||||||||||
Program fees | 7,095 | 4,712 | 6,225 | |||||||||
Total noninterest income | 27,675 | 26,789 | 28,045 | |||||||||
Total net revenue | $ 73,290 | $ 78,341 | $ 77,577 | |||||||||
Net-revenue concentration (as percent) | 23.00% | 25.00% | 27.00% | |||||||||
Tax Refund Solutions | ||||||||||||
Revenue recognition | ||||||||||||
Net interest income | $ 22,972 | $ 21,626 | $ 19,203 | |||||||||
Noninterest income: | ||||||||||||
Program fees | 2,193 | 437 | 295 | |||||||||
Total noninterest income | 22,773 | 21,855 | 21,553 | |||||||||
Total net revenue | $ 45,745 | $ 43,481 | $ 40,756 | |||||||||
Net-revenue concentration (as percent) | 14.00% | 14.00% | 14.00% | |||||||||
Republic Credit Solutions | ||||||||||||
Revenue recognition | ||||||||||||
Net interest income | $ 22,643 | $ 29,926 | $ 30,329 | |||||||||
Noninterest income: | ||||||||||||
Program fees | 4,902 | 4,275 | 5,930 | |||||||||
Total noninterest income | 4,902 | 4,934 | 6,492 | |||||||||
Total net revenue | $ 27,545 | $ 34,860 | $ 36,821 | |||||||||
Net-revenue concentration (as percent) | 9.00% | 11.00% | 13.00% | |||||||||
Service charges on deposit accounts | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | $ 11,615 | $ 14,197 | $ 14,273 | |||||||||
Service charges on deposit accounts | Core Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 11,634 | 14,197 | 14,273 | |||||||||
Service charges on deposit accounts | Traditional Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 11,571 | 14,153 | 14,233 | |||||||||
Service charges on deposit accounts | Warehouse Lending | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 63 | 44 | 40 | |||||||||
Service charges on deposit accounts | Republic Processing Group | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | (19) | |||||||||||
Service charges on deposit accounts | Tax Refund Solutions | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | (19) | |||||||||||
Net refund transfer fees | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 20,297 | 21,158 | 20,029 | |||||||||
Net refund transfer fees | Republic Processing Group | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 20,297 | 21,158 | 20,029 | |||||||||
Net refund transfer fees | Tax Refund Solutions | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 20,297 | 21,158 | 20,029 | |||||||||
Interchange fee | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 11,188 | 11,859 | 11,159 | |||||||||
Interchange fee | Core Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 10,978 | 11,600 | 10,868 | |||||||||
Interchange fee | Traditional Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 10,978 | 11,600 | 10,868 | |||||||||
Interchange fee | Republic Processing Group | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 210 | 259 | 291 | |||||||||
Interchange fee | Tax Refund Solutions | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 210 | 259 | 226 | |||||||||
Interchange fee | Republic Credit Solutions | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 65 | |||||||||||
Net gains (losses) on OREO | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | (40) | 540 | 729 | |||||||||
Net gains (losses) on OREO | Core Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | (40) | 540 | 729 | |||||||||
Net gains (losses) on OREO | Traditional Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | (40) | 540 | 729 | |||||||||
Other | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 3,466 | 3,664 | 4,658 | |||||||||
Other | Core Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 3,374 | 3,004 | 3,158 | |||||||||
Other | Traditional Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 3,310 | 2,881 | 2,608 | |||||||||
Other | Warehouse Lending | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | (39) | (90) | ||||||||||
Other | Mortgage Banking | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 103 | 213 | 550 | |||||||||
Other | Republic Processing Group | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | 92 | 660 | 1,500 | |||||||||
Other | Tax Refund Solutions | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | $ 92 | 1 | 1,003 | |||||||||
Other | Republic Credit Solutions | ||||||||||||
Noninterest income: | ||||||||||||
Revenue under 606 | $ 659 | $ 497 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Disclosure information | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Segment information | |||||||||||
Net interest income | $ 55,120 | $ 52,252 | $ 52,205 | $ 72,738 | $ 54,395 | $ 55,486 | $ 53,946 | $ 72,299 | $ 232,315 | $ 236,126 | $ 226,058 |
Provision for expected credit loss expense | 484 | 1,500 | 6,534 | 22,760 | 914 | 3,153 | 4,460 | 17,231 | 31,278 | 25,758 | 31,368 |
Mortgage banking income | 31,847 | 9,499 | 4,825 | ||||||||
Program fees | 7,095 | 4,712 | 6,225 | ||||||||
Net gain on branch divestiture | 7,900 | 7,829 | |||||||||
Other noninterest income | 27,814 | 31,810 | 32,346 | ||||||||
Total noninterest income | 17,136 | 20,597 | 18,751 | 30,569 | 19,655 | 12,811 | 15,125 | 27,417 | 87,053 | 75,008 | 63,425 |
Total noninterest expenses | 48,140 | 45,523 | 44,825 | 46,969 | 40,835 | 42,411 | 43,428 | 45,509 | 185,457 | 172,183 | 163,852 |
INCOME BEFORE INCOME TAX EXPENSE | 23,632 | 25,826 | 19,597 | 33,578 | 32,301 | 22,733 | 21,183 | 36,976 | 102,633 | 113,193 | 94,263 |
Income tax expense | 3,276 | 5,437 | 3,793 | 6,881 | 6,533 | 4,325 | 3,176 | 7,460 | 19,387 | 21,494 | 16,411 |
NET INCOME | 20,356 | $ 20,389 | $ 15,804 | $ 26,697 | 25,768 | $ 18,408 | $ 18,007 | $ 29,516 | 83,246 | 91,699 | 77,852 |
Period-end assets | 6,168,325 | 5,620,319 | $ 6,168,325 | $ 5,620,319 | $ 5,240,404 | ||||||
Net interest margin (as percent) | 4.10% | 4.46% | 4.62% | ||||||||
Net-revenue concentration (as percent) | 100.00% | 100.00% | 100.00% | ||||||||
Core Banking | |||||||||||
Segment Disclosure information | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Segment information | |||||||||||
Net interest income | $ 186,700 | $ 184,574 | $ 176,526 | ||||||||
Provision for expected credit loss expense | 16,870 | 3,066 | 3,568 | ||||||||
Mortgage banking income | 31,847 | 9,499 | 4,825 | ||||||||
Net gain on branch divestiture | 7,829 | ||||||||||
Other noninterest income | 27,531 | 30,891 | 30,555 | ||||||||
Total noninterest income | 59,378 | 48,219 | 35,380 | ||||||||
Total noninterest expenses | 164,208 | 153,051 | 144,162 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 65,000 | 76,676 | 64,176 | ||||||||
Income tax expense | 10,852 | 13,223 | 9,986 | ||||||||
NET INCOME | 54,148 | 63,453 | 54,190 | ||||||||
Period-end assets | 5,775,552 | 5,428,579 | $ 5,775,552 | $ 5,428,579 | $ 5,131,409 | ||||||
Net interest margin (as percent) | 3.39% | 3.61% | 3.70% | ||||||||
Net-revenue concentration (as percent) | 77.00% | 75.00% | 73.00% | ||||||||
Traditional Banking | |||||||||||
Segment information | |||||||||||
Net interest income | $ 159,381 | $ 168,076 | $ 160,398 | ||||||||
Provision for expected credit loss expense | 16,257 | 2,444 | 3,710 | ||||||||
Net gain on branch divestiture | 7,829 | ||||||||||
Other noninterest income | 27,404 | 30,724 | 29,965 | ||||||||
Total noninterest income | 27,404 | 38,553 | 29,965 | ||||||||
Total noninterest expenses | 149,061 | 143,671 | 136,439 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 21,467 | 60,514 | 50,214 | ||||||||
Income tax expense | 1,395 | 9,651 | 6,819 | ||||||||
NET INCOME | 20,072 | 50,863 | 43,395 | ||||||||
Period-end assets | 4,750,460 | 4,684,116 | $ 4,750,460 | $ 4,684,116 | $ 4,647,037 | ||||||
Net interest margin (as percent) | 3.42% | 3.76% | 3.76% | ||||||||
Net-revenue concentration (as percent) | 59.00% | 67.00% | 66.00% | ||||||||
Warehouse Lending | |||||||||||
Segment information | |||||||||||
Net interest income | $ 25,957 | $ 15,801 | $ 15,726 | ||||||||
Provision for expected credit loss expense | 613 | 622 | (142) | ||||||||
Other noninterest income | 24 | (46) | 40 | ||||||||
Total noninterest income | 24 | (46) | 40 | ||||||||
Total noninterest expenses | 4,387 | 3,268 | 3,367 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 20,981 | 11,865 | 12,541 | ||||||||
Income tax expense | 4,721 | 2,670 | 2,869 | ||||||||
NET INCOME | 16,260 | 9,195 | 9,672 | ||||||||
Period-end assets | 962,692 | 717,994 | $ 962,692 | $ 717,994 | $ 470,126 | ||||||
Net interest margin (as percent) | 3.19% | 2.42% | 3.18% | ||||||||
Net-revenue concentration (as percent) | 8.00% | 5.00% | 5.00% | ||||||||
Mortgage Banking | |||||||||||
Segment information | |||||||||||
Net interest income | $ 1,362 | $ 697 | $ 402 | ||||||||
Mortgage banking income | 31,847 | 9,499 | 4,825 | ||||||||
Other noninterest income | 103 | 213 | 550 | ||||||||
Total noninterest income | 31,950 | 9,712 | 5,375 | ||||||||
Total noninterest expenses | 10,760 | 6,112 | 4,356 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 22,552 | 4,297 | 1,421 | ||||||||
Income tax expense | 4,736 | 902 | 298 | ||||||||
NET INCOME | 17,816 | 3,395 | 1,123 | ||||||||
Period-end assets | 62,400 | 26,469 | $ 62,400 | $ 26,469 | $ 14,246 | ||||||
Net-revenue concentration (as percent) | 10.00% | 3.00% | 2.00% | ||||||||
Republic Processing Group | |||||||||||
Segment Disclosure information | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Segment information | |||||||||||
Net interest income | $ 45,615 | $ 51,552 | $ 49,532 | ||||||||
Provision for expected credit loss expense | 14,408 | 22,692 | 27,800 | ||||||||
Program fees | 7,095 | 4,712 | 6,225 | ||||||||
Other noninterest income | 283 | 919 | 1,791 | ||||||||
Total noninterest income | 27,675 | 26,789 | 28,045 | ||||||||
Total noninterest expenses | 21,249 | 19,132 | 19,690 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 37,633 | 36,517 | 30,087 | ||||||||
Income tax expense | 8,535 | 8,271 | 6,425 | ||||||||
NET INCOME | 29,098 | 28,246 | 23,662 | ||||||||
Period-end assets | 392,773 | 191,740 | $ 392,773 | $ 191,740 | $ 108,995 | ||||||
Net-revenue concentration (as percent) | 23.00% | 25.00% | 27.00% | ||||||||
Tax Refund Solutions | |||||||||||
Segment information | |||||||||||
Net interest income | $ 22,972 | $ 21,626 | $ 19,203 | ||||||||
Provision for expected credit loss expense | 13,189 | 11,249 | 10,919 | ||||||||
Program fees | 2,193 | 437 | 295 | ||||||||
Other noninterest income | 283 | 260 | 1,229 | ||||||||
Total noninterest income | 22,773 | 21,855 | 21,553 | ||||||||
Total noninterest expenses | 17,514 | 16,539 | 14,686 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 15,042 | 15,693 | 15,151 | ||||||||
Income tax expense | 3,323 | 3,454 | 3,033 | ||||||||
NET INCOME | 11,719 | 12,239 | 12,118 | ||||||||
Period-end assets | 285,612 | 86,849 | $ 285,612 | $ 86,849 | $ 20,288 | ||||||
Net-revenue concentration (as percent) | 14.00% | 14.00% | 14.00% | ||||||||
Republic Credit Solutions | |||||||||||
Segment information | |||||||||||
Net interest income | $ 22,643 | $ 29,926 | $ 30,329 | ||||||||
Provision for expected credit loss expense | 1,219 | 11,443 | 16,881 | ||||||||
Program fees | 4,902 | 4,275 | 5,930 | ||||||||
Other noninterest income | 659 | 562 | |||||||||
Total noninterest income | 4,902 | 4,934 | 6,492 | ||||||||
Total noninterest expenses | 3,735 | 2,593 | 5,004 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 22,591 | 20,824 | 14,936 | ||||||||
Income tax expense | 5,212 | 4,817 | 3,392 | ||||||||
NET INCOME | 17,379 | 16,007 | 11,544 | ||||||||
Period-end assets | $ 107,161 | $ 104,891 | $ 107,161 | $ 104,891 | $ 88,707 | ||||||
Net-revenue concentration (as percent) | 9.00% | 11.00% | 13.00% | ||||||||
Net refund transfer fees | |||||||||||
Segment information | |||||||||||
Revenue under 606 | $ 20,297 | $ 21,158 | $ 20,029 | ||||||||
Net refund transfer fees | Republic Processing Group | |||||||||||
Segment information | |||||||||||
Revenue under 606 | 20,297 | 21,158 | 20,029 | ||||||||
Net refund transfer fees | Tax Refund Solutions | |||||||||||
Segment information | |||||||||||
Revenue under 606 | $ 20,297 | $ 21,158 | $ 20,029 |
BRANCH DIVESTITURE - NARRATIVE
BRANCH DIVESTITURE - NARRATIVE (Details) $ in Millions | Nov. 15, 2019USD ($) | Jul. 31, 2019item | Dec. 31, 2019 | Dec. 31, 2018 |
Disposal Group | ||||
Period of operation of divested branches | 10 months 15 days | 12 months | ||
Disposal Group, Disposed of by Sale | Four banking centers | ||||
Disposal Group | ||||
Number of banking centers held for sale | item | 4 | |||
Loans, including credit cards | $ 128 | |||
Deposits | 132 | |||
Fixed assets | $ 1.3 | |||
Blended premium of the total deposits expected (as a percent) | 6.10% | |||
Trailing day | 10 days |
SUMMARY OF QUARTERLY FINANCIA_3
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated quarterly financial data | |||||||||||
Interest income | $ 57,970 | $ 56,038 | $ 57,091 | $ 81,159 | $ 64,527 | $ 68,059 | $ 65,664 | $ 82,633 | $ 252,258 | $ 280,883 | $ 256,181 |
Interest expense | 2,850 | 3,786 | 4,886 | 8,421 | 10,132 | 12,573 | 11,718 | 10,334 | 19,943 | 44,757 | 30,123 |
NET INTEREST INCOME | 55,120 | 52,252 | 52,205 | 72,738 | 54,395 | 55,486 | 53,946 | 72,299 | 232,315 | 236,126 | 226,058 |
Provision for loan and lease losses | 484 | 1,500 | 6,534 | 22,760 | 914 | 3,153 | 4,460 | 17,231 | 31,278 | 25,758 | 31,368 |
NET INTEREST INCOME AFTER PROVISION | 54,636 | 50,752 | 45,671 | 49,978 | 53,481 | 52,333 | 49,486 | 55,068 | 201,037 | 210,368 | 194,690 |
Noninterest income (3) | 17,136 | 20,597 | 18,751 | 30,569 | 19,655 | 12,811 | 15,125 | 27,417 | 87,053 | 75,008 | 63,425 |
Noninterest expense (4) | 48,140 | 45,523 | 44,825 | 46,969 | 40,835 | 42,411 | 43,428 | 45,509 | 185,457 | 172,183 | 163,852 |
INCOME BEFORE INCOME TAX EXPENSE | 23,632 | 25,826 | 19,597 | 33,578 | 32,301 | 22,733 | 21,183 | 36,976 | 102,633 | 113,193 | 94,263 |
Income tax expense | 3,276 | 5,437 | 3,793 | 6,881 | 6,533 | 4,325 | 3,176 | 7,460 | 19,387 | 21,494 | 16,411 |
NET INCOME | $ 20,356 | $ 20,389 | $ 15,804 | $ 26,697 | $ 25,768 | $ 18,408 | $ 18,007 | $ 29,516 | $ 83,246 | $ 91,699 | $ 77,852 |
Class A Common Stock | |||||||||||
Basic earnings per share: | |||||||||||
Basic earnings per share (in dollars per share) | $ 0.98 | $ 0.98 | $ 0.77 | $ 1.29 | $ 1.23 | $ 0.88 | $ 0.86 | $ 1.42 | $ 4 | $ 4.41 | $ 3.76 |
Diluted earnings per share: | |||||||||||
Diluted earnings per share (in dollars per share) | 0.98 | 0.98 | 0.76 | 1.28 | 1.23 | 0.88 | 0.86 | 1.41 | 3.99 | 4.39 | 3.74 |
Dividends declared per common share: | |||||||||||
Dividend declared common stock, per share (in dollars per share) | 0.286 | 0.286 | 0.286 | 0.286 | 0.264 | 0.264 | 0.264 | 0.264 | 1.144 | 1.056 | 0.968 |
Class B Common Stock | |||||||||||
Basic earnings per share: | |||||||||||
Basic earnings per share (in dollars per share) | 0.89 | 0.89 | 0.69 | 1.17 | 1.13 | 0.80 | 0.79 | 1.29 | 3.64 | 4.01 | 3.41 |
Diluted earnings per share: | |||||||||||
Diluted earnings per share (in dollars per share) | 0.89 | 0.89 | 0.69 | 1.16 | 1.12 | 0.80 | 0.78 | 1.28 | 3.63 | 3.99 | 3.40 |
Dividends declared per common share: | |||||||||||
Dividend declared common stock, per share (in dollars per share) | $ 0.260 | $ 0.260 | $ 0.260 | $ 0.260 | $ 0.240 | $ 0.240 | $ 0.240 | $ 0.240 | $ 1.04 | $ 0.96 | $ 0.88 |
SUMMARY OF QUARTERLY FINANCIA_4
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) - ADDITIONAL DISCLOSURES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated quarterly financial data | |||||||
Release in reserves associated with divested loans in branch divestiture | $ 900,000 | ||||||
Net gain on branch divestiture | 7,900,000 | $ 7,829,000 | |||||
Reversal of incentive compensation accruals based on revised payout estimates | $ 600,000 | $ 1,200,000 | |||||
FHLB advances early termination penalties | $ 2,100,000 | $ 2,108,000 | $ 0 | $ 0 | |||
Tax Refund Solutions | Easy Advances | |||||||
Consolidated quarterly financial data | |||||||
Provision expense for EAs | $ 15,200,000 | $ 13,400,000 |