Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Document Information [Line Items] | ||
Entity Registrant Name | REPUBLIC BANCORP, INC. | |
Entity Central Index Key | 0000921557 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 0-24649 | |
Entity Incorporation, State or Country Code | KY | |
Entity Tax Identification Number | 61-0862051 | |
Entity Address, Address Line One | 601 West Market Street | |
Entity Address, City or Town | Louisville | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40202 | |
City Area Code | 502 | |
Local Phone Number | 584-3600 | |
Title of 12(b) Security | Class A Common | |
Trading Symbol | RBCAA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 18,042,274 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,165,064 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 1,011,247 | $ 485,587 |
Available-for-sale debt securities, at fair value (amortized cost of $489,015 in 2021 and $512,518 in 2020, allowance for credit losses of $0 in 2021 and $0 in 2020) | 495,880 | 523,863 |
Held-to-maturity debt securities (fair value of $45,590 in 2021 and $54,190 in 2020, allowance for credit losses of $54 in 2021 and $178 in 2020) | 44,991 | 53,324 |
Equity securities with readily determinable fair value | 2,578 | 3,083 |
Mortgage loans held for sale, at fair value | 25,791 | 46,867 |
Consumer loans held for sale, at fair value | 10,779 | 3,298 |
Consumer loans held for sale, at the lower of cost or fair value | 3,976 | 1,478 |
Loans for discontinued operations, at the lower of cost or fair value | 24 | 23,765 |
Loans (loans carried at fair value of $254 in 2021 and $497 in 2020) | 4,343,782 | 4,789,338 |
Allowance for credit losses | (63,024) | (61,067) |
Loans, net | 4,280,758 | 4,728,271 |
Federal Home Loan Bank stock, at cost | 10,311 | 17,397 |
Premises and equipment, net | 37,499 | 39,512 |
Right-of-use assets | 39,257 | 43,345 |
Goodwill | 16,300 | 16,300 |
Other real estate owned | 1,845 | 2,499 |
Bank owned life insurance | 99,634 | 68,018 |
Other assets and accrued interest receivable | 106,764 | 111,718 |
TOTAL ASSETS | 6,187,634 | 6,168,325 |
Deposits: | ||
Noninterest-bearing | 2,053,485 | 1,871,539 |
Interest-bearing | 2,861,399 | 2,842,765 |
Deposits of discontinued operations | 33,063 | 18,877 |
Total deposits | 4,947,947 | 4,733,181 |
Securities sold under agreements to repurchase and other short-term borrowings | 260,583 | 211,026 |
Operating lease liabilities | 40,151 | 44,340 |
Federal Home Loan Bank advances | 25,000 | 235,000 |
Subordinated note | 41,240 | |
Other liabilities and accrued interest payable | 75,296 | 80,215 |
Total liabilities | 5,348,977 | 5,345,002 |
Commitments and contingent liabilities (Footnote 9) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value | ||
Class A Common Stock and Class B Common Stock, no par value | 4,752 | 4,899 |
Additional paid in capital | 140,842 | 143,637 |
Retained earnings | 687,915 | 666,278 |
Accumulated other comprehensive income | 5,148 | 8,509 |
Total stockholders' equity | 838,657 | 823,323 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,187,634 | $ 6,168,325 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-sale debt securities | $ 489,015 | $ 512,518 |
Available-for-sale debt securities, allowance for credit losses | 0 | 0 |
Held-to-maturity debt securities | 45,590 | 54,190 |
Held-to-maturity debt securities, allowance for credit losses | 54 | 178 |
Loans held for investment fair value | $ 254 | $ 497 |
Preferred stock, no par value | $ 0 | $ 0 |
Class A Common Stock | ||
Common Stock, no par value | 0 | 0 |
Class B Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 51,409 | $ 53,447 | $ 153,433 | $ 164,302 |
Taxable investment securities | 1,845 | 2,266 | 5,655 | 7,761 |
Federal Home Loan Bank stock and other | 446 | 192 | 1,178 | 2,379 |
Total interest income | 53,700 | 55,905 | 160,266 | 174,442 |
INTEREST EXPENSE: | ||||
Deposits | 1,148 | 2,876 | 4,037 | 12,298 |
Securities sold under agreements to repurchase and other short-term borrowings | 71 | 92 | 350 | 1,701 |
Federal Reserve Payment Protection Plan Liquidity Facility | 48 | 153 | ||
Federal Home Loan Bank advances | 6 | 658 | 47 | 3,128 |
Subordinated note | 166 | 182 | 507 | 829 |
Total interest expense | 1,391 | 3,856 | 4,941 | 18,109 |
NET INTEREST INCOME | 52,309 | 52,049 | 155,325 | 156,333 |
Provision for expected credit loss expense | 3,553 | 5,842 | 4,381 | 15,555 |
NET INTEREST INCOME AFTER PROVISION | 48,756 | 46,207 | 150,944 | 140,778 |
NONINTEREST INCOME: | ||||
Mortgage banking income | 5,280 | 10,775 | 16,655 | 23,968 |
Program fees | 4,530 | 1,487 | 10,304 | 5,249 |
Increase in cash surrender value of bank owned life insurance | 626 | 400 | 1,616 | 1,184 |
Total noninterest income | 17,995 | 19,400 | 49,997 | 49,761 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 25,948 | 25,207 | 79,470 | 75,405 |
Technology, equipment, and communication | 7,226 | 7,402 | 21,479 | 20,966 |
Occupancy | 3,195 | 3,367 | 10,004 | 9,885 |
Marketing and development | 1,234 | 864 | 3,085 | 2,574 |
FDIC insurance expense | 325 | 345 | 1,039 | 644 |
Bank franchise tax expense | 329 | 972 | 1,106 | 2,665 |
Interchange related expense | 1,275 | 1,056 | 3,707 | 3,305 |
Other real estate owned and other repossession expense | 6 | (32) | 45 | |
Legal and professional fees | 581 | 1,240 | 2,182 | 3,337 |
Other | 2,481 | 3,319 | 7,953 | 10,262 |
Total noninterest expense | 42,594 | 43,778 | 129,993 | 129,088 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE | 24,157 | 21,829 | 70,948 | 61,451 |
INCOME TAX EXPENSE | 5,745 | 4,554 | 15,708 | 12,107 |
INCOME FROM CONTINUING OPERATIONS | 18,412 | 17,275 | 55,240 | 49,344 |
DISCONTINUED OPERATIONS: | ||||
Income from discontinued operations before income taxes | 2,070 | 3,997 | 19,584 | 17,550 |
Income tax expense | 473 | 883 | 4,840 | 4,004 |
Income from discontinued operations, net of tax | 1,597 | 3,114 | 14,744 | 13,546 |
NET INCOME | 20,009 | 20,389 | 69,984 | 62,890 |
Service charges on deposit accounts | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 3,277 | 3,017 | 9,221 | 8,604 |
Interchange fee income | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 3,200 | 2,874 | 9,539 | 8,093 |
Net gains (losses) on other real estate owned | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | (52) | (14) | (107) | (10) |
Other | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | $ 1,134 | $ 861 | $ 2,769 | $ 2,673 |
Class A Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share continuing operations (in dollars per share) | $ 0.91 | $ 0.83 | $ 2.69 | $ 2.37 |
Basic earnings per share discontinued operations (in dollars per share) | 0.08 | 0.15 | 0.71 | 0.65 |
Basic earnings per share (in dollars per share) | 0.99 | 0.98 | 3.40 | 3.02 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share continuing operations (in dollars per share) | 0.91 | 0.83 | 2.68 | 2.37 |
Diluted earnings per share discontinued operations (in dollar per share) | 0.08 | 0.15 | 0.71 | 0.65 |
Diluted earnings per share (in dollars per share) | 0.99 | 0.98 | 3.39 | 3.02 |
Class B Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share continuing operations (in dollars per share) | 0.83 | 0.75 | 2.45 | 2.16 |
Basic earnings per share discontinued operations (in dollars per share) | 0.07 | 0.14 | 0.65 | 0.59 |
Basic earnings per share (in dollars per share) | 0.90 | 0.89 | 3.10 | 2.75 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share continuing operations (in dollars per share) | 0.83 | 0.75 | 2.44 | 2.15 |
Diluted earnings per share discontinued operations (in dollar per share) | 0.07 | 0.14 | 0.65 | 0.59 |
Diluted earnings per share (in dollars per share) | $ 0.90 | $ 0.89 | $ 3.09 | $ 2.74 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 20,009 | $ 20,389 | $ 69,984 | $ 62,890 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Change in fair value of derivatives used for cash flow hedges | (1) | (173) | ||
Reclassification amount for net derivative losses realized in income | 103 | 211 | ||
Unrealized gains and (losses) on AFS debt securities | (1,899) | (258) | (4,542) | 8,618 |
Unrealized gain (loss) of AFS debt security for which a portion of OTTI has been recognized in earnings | 13 | 61 | 62 | (46) |
Total other comprehensive income (loss) before income tax | (1,886) | (95) | (4,480) | 8,610 |
Tax effect | 471 | 24 | 1,119 | (2,153) |
Total other comprehensive (loss) income, net of tax | (1,415) | (71) | (3,361) | 6,457 |
COMPREHENSIVE INCOME | $ 18,594 | $ 20,318 | $ 66,623 | $ 69,347 |
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 Income | Class A Common Stock | Class B Common Stock | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at beginning of period at Dec. 31, 2019 | $ 4,907 | $ 142,068 | $ (4,291) | $ 614,171 | $ 3,098 | $ (4,291) | $ 764,244 | ||||||
Balance (in shares) at Dec. 31, 2019 | 18,737 | 2,206 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 62,890 | 62,890 | |||||||||||
Net change in accumulated other comprehensive income | 6,457 | 6,457 | |||||||||||
Dividends declared on Common Stock: | |||||||||||||
Dividends declared on Common Stock | $ (16,080) | $ (1,716) | $ (16,080) | $ (1,716) | |||||||||
Stock options exercised, net of shares withheld | 9 | 242 | 251 | ||||||||||
Stock options exercised, net of shares withheld (in shares) | 20 | ||||||||||||
Conversion of Class B Common Stock to Class A Common Stock | (20) | (582) | (2,250) | (2,852) | |||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | (86) | ||||||||||||
Repurchase of Class A Common Stock | $ (6) | ||||||||||||
Repurchase of Class A Common Stock (in shares) | 6 | ||||||||||||
Net change in notes receivable on Class A Common Stock | (87) | (87) | |||||||||||
Deferred director compensation expense - Class A Common Stock | 222 | 222 | |||||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 4 | ||||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 418 | 418 | |||||||||||
Employee stock purchase plan - Class A Common Stock | 3 | 458 | 461 | ||||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 15 | ||||||||||||
Stock-based awards, Performance stock units | (200) | (200) | |||||||||||
Stock-based awards, Performance stock units (in shares) | 18 | ||||||||||||
Stock-based awards, Restricted stock | 1 | 316 | 317 | ||||||||||
Stock-based awards, Restricted stock (in shares) | 1 | ||||||||||||
Stock options | 328 | 328 | |||||||||||
Balance at end of period at Sep. 30, 2020 | 4,900 | 143,183 | 652,724 | 9,555 | 810,362 | ||||||||
Balance (in shares) at Sep. 30, 2020 | 18,715 | 2,200 | |||||||||||
Balance at beginning of period at Jun. 30, 2020 | 4,898 | 142,813 | 638,282 | 9,626 | 795,619 | ||||||||
Balance (in shares) at Jun. 30, 2020 | 18,708 | 2,200 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 20,389 | 20,389 | |||||||||||
Net change in accumulated other comprehensive income | (71) | (71) | |||||||||||
Dividends declared on Common Stock: | |||||||||||||
Dividends declared on Common Stock | (5,375) | (572) | (5,375) | (572) | |||||||||
Stock options exercised, net of shares withheld | 1 | (6) | (5) | ||||||||||
Stock options exercised, net of shares withheld (in shares) | 1 | ||||||||||||
Net change in notes receivable on Class A Common Stock | (201) | (201) | |||||||||||
Deferred director compensation expense - Class A Common Stock | 72 | 72 | |||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 141 | 141 | |||||||||||
Employee stock purchase plan - Class A Common Stock | 1 | 169 | 170 | ||||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 6 | ||||||||||||
Stock-based awards, Restricted stock | 69 | 69 | |||||||||||
Stock options | 126 | 126 | |||||||||||
Balance at end of period at Sep. 30, 2020 | 4,900 | 143,183 | 652,724 | 9,555 | 810,362 | ||||||||
Balance (in shares) at Sep. 30, 2020 | 18,715 | 2,200 | |||||||||||
Balance at beginning of period at Dec. 31, 2020 | 4,899 | 143,637 | 666,278 | 8,509 | 823,323 | ||||||||
Balance (in shares) at Dec. 31, 2020 | 18,697 | 2,199 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 69,984 | 69,984 | |||||||||||
Net change in accumulated other comprehensive income | (3,361) | (3,361) | |||||||||||
Dividends declared on Common Stock: | |||||||||||||
Dividends declared on Common Stock | (16,980) | (1,830) | (16,980) | (1,830) | |||||||||
Stock options exercised, net of shares withheld | 13 | (155) | (142) | ||||||||||
Stock options exercised, net of shares withheld (in shares) | 28 | ||||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 34 | (34) | |||||||||||
Repurchase of Class A Common Stock | (165) | (5,205) | (29,537) | (34,907) | |||||||||
Repurchase of Class A Common Stock (in shares) | (749) | ||||||||||||
Net change in notes receivable on Class A Common Stock | 150 | 150 | |||||||||||
Deferred director compensation expense - Class A Common Stock | 330 | 330 | |||||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 4 | ||||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 478 | 478 | |||||||||||
Employee stock purchase plan - Class A Common Stock | 3 | 507 | 510 | ||||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 11 | ||||||||||||
Stock-based awards, Performance stock units | 97 | 97 | |||||||||||
Stock-based awards, Restricted stock | 2 | 583 | 585 | ||||||||||
Stock-based awards, Restricted stock (in shares) | 15 | ||||||||||||
Stock options | 420 | 420 | |||||||||||
Balance at end of period at Sep. 30, 2021 | 4,752 | 140,842 | 687,915 | 5,148 | 838,657 | ||||||||
Balance (in shares) at Sep. 30, 2021 | 18,040 | 2,165 | |||||||||||
Balance at beginning of period at Jun. 30, 2021 | 4,841 | 142,884 | 690,802 | 6,563 | 845,090 | ||||||||
Balance (in shares) at Jun. 30, 2021 | 18,421 | 2,166 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 20,009 | 20,009 | |||||||||||
Net change in accumulated other comprehensive income | (1,415) | (1,415) | |||||||||||
Dividends declared on Common Stock: | |||||||||||||
Dividends declared on Common Stock | $ (5,557) | $ (606) | $ (5,557) | $ (606) | |||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 1 | (1) | |||||||||||
Repurchase of Class A Common Stock | (90) | (2,855) | (16,733) | (19,678) | |||||||||
Repurchase of Class A Common Stock (in shares) | (387) | ||||||||||||
Net change in notes receivable on Class A Common Stock | 100 | 100 | |||||||||||
Deferred director compensation expense - Class A Common Stock | 121 | 121 | |||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 175 | 175 | |||||||||||
Employee stock purchase plan - Class A Common Stock | 1 | 191 | 192 | ||||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 4 | ||||||||||||
Stock-based awards, Performance stock units | 32 | 32 | |||||||||||
Stock-based awards, Restricted stock | 64 | 64 | |||||||||||
Stock-based awards, Restricted stock (in shares) | 1 | ||||||||||||
Stock options | 130 | 130 | |||||||||||
Balance at end of period at Sep. 30, 2021 | $ 4,752 | $ 140,842 | $ 687,915 | $ 5,148 | $ 838,657 | ||||||||
Balance (in shares) at Sep. 30, 2021 | 18,040 | 2,165 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class A Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.308 | $ 0.286 | $ 0.924 | $ 0.858 |
Class B Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.280 | $ 0.260 | $ 0.840 | $ 0.780 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING ACTIVITIES: | ||
Net income | $ 69,984 | $ 62,890 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization on investment securities | 805 | 1,154 |
Net accretion on loans and amortization of core deposit intangible and operating lease components | (12,650) | (3,261) |
Unrealized losses on equity securities with readily determinable fair value | 505 | 118 |
Depreciation of premises and equipment | 6,747 | 7,420 |
Amortization of mortgage servicing rights | 2,617 | 2,701 |
Impairment of mortgage servicing rights | (500) | 500 |
Provision for on-balance sheet exposures for continuing operations | 4,381 | 15,555 |
Provision for on-balance sheet exposures for discontinued operations | 7,850 | 15,239 |
Provision for off-balance sheet exposures | (52) | 467 |
Net gain on sale of mortgage loans held for sale | (16,339) | (25,030) |
Origination of mortgage loans held for sale | (525,246) | (547,556) |
Proceeds from sale of mortgage loans held for sale | 562,661 | 546,950 |
Net gain on sale of consumer loans held for sale | (7,889) | (3,751) |
Origination of consumer loans held for sale | (561,062) | (391,688) |
Proceeds from sale of consumer loans held for sale | 558,972 | 395,791 |
Net gain realized on sale of other real estate owned | (51) | (43) |
Writedowns of other real estate owned | 158 | 53 |
Deferred compensation expense - Class A Common Stock | 808 | 640 |
Stock-based awards and ESPP expense - Class A Common Stock | 1,178 | 445 |
Net gain on sale of bank premises and equipment | (399) | (353) |
Increase in cash surrender value of bank owned life insurance | (1,616) | (1,184) |
Net change in other assets and liabilities: | ||
Accrued interest receivable | 3,573 | 810 |
Accrued interest payable | (162) | (2,074) |
Other assets | (4,743) | (13,126) |
Other liabilities | (1,381) | (623) |
Net cash provided by operating activities | 88,149 | 62,044 |
INVESTING ACTIVITIES: | ||
Purchases of available-for-sale debt securities | (141,571) | (278,878) |
Proceeds from calls, maturities and paydowns of available-for-sale debt securities | 164,280 | 207,397 |
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities | 8,444 | 7,952 |
Net change in outstanding warehouse lines of credit | 212,114 | (311,217) |
Net change in other loans from continuing operations | 235,993 | (282,185) |
Net change in loans from discontinued operations | 23,717 | 14,132 |
Proceeds from redemption of Federal Home Loan Bank stock | 7,086 | 20,197 |
Purchase of Federal Home Loan Bank stock | (9,000) | |
Proceeds from sales of other real estate owned | 611 | 156 |
Proceeds from sale of bank premises and equipment | 637 | 894 |
Purchase of bank owned life insurance | (30,000) | |
Net purchases of premises and equipment | (4,972) | (2,711) |
Net cash provided by (used in) investing activities | 476,339 | (633,263) |
FINANCING ACTIVITIES: | ||
Net change in deposits from continuing operations | 200,580 | 1,153,770 |
Net change in deposits from discontinued operations | 14,186 | 52,551 |
Net change in securities sold under agreements to repurchase and other short-term borrowings | 49,557 | (41,445) |
Payments of Federal Home Loan Bank advances | (235,000) | (1,067,500) |
Proceeds from Federal Home Loan Bank advances | 25,000 | 450,000 |
Payoff of subordinated note, net of common security interest | (40,000) | |
Repurchase of Class A Common Stock | (34,907) | (2,852) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 435 | 461 |
Net proceeds from option exercises and equity awards vested - Class A Common Stock | (142) | 251 |
Cash dividends paid | (18,537) | (17,292) |
Net cash (used in) provided by financing activities | (38,828) | 527,944 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 525,660 | (43,275) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 485,587 | 385,303 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,011,247 | 342,028 |
Cash paid during the period for: | ||
Interest | 4,790 | 19,167 |
Income taxes | 16,736 | 16,204 |
SUPPLEMENTAL NONCASH DISCLOSURES: | ||
Mortgage servicing rights capitalized | 3,889 | 3,987 |
Transfers from loans to real estate acquired in settlement of loans | 64 | 2,109 |
Transfers from loans held for investment to held for sale | 24 | |
Unfunded commitments in low-income-housing investments | 10,000 | |
Right-of-use assets recorded | $ 263 | 14,144 |
Allowance for credit losses recorded upon adoption of ASC 326 | $ 7,241 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-member financial institution that provides both traditional and non-traditional banking products through five reportable segments using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery channels allow it to reach clients across the U.S. The Captive is a Nevada-based, wholly-owned insurance subsidiary of the Company. The Captive provides property and casualty insurance coverage to the Company and the Bank, as well as a group of third-party insurance captives for which insurance may not be available or economically feasible. In 2005, Republic Bancorp Capital Trust, an unconsolidated trust subsidiary of Republic, was formed and issued $40 million in TPS. On September 30, 2021, as permitted under the terms of RBCT’s governing documents, Republic redeemed these securities at the par amount of approximately $40 million, without penalty. Although the TPS were treated as part of Republic’s Tier I Capital while outstanding, Republic’s capital ratios remained well above “well capitalized” levels following this redemption. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in Republic’s Form 10-K for the year ended December 31, 2020. As of September 30, 2021, 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. See additional detail regarding the Bank’s agreement to sell TRS under Footnote 17 “Discontinued Operations” in this section of the filing. The Company’s financial condition as of September 30, 2021 and results of operations for the three and nine months ended September 30, 2021 and 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 4 “Loans and Allowance for Credit Losses” ● Footnote 9 “Off Balance Sheet Risks, Commitments, and Contingent Liabilities” Core Bank Traditional Banking segment — ● Kentucky — 28 ● Metropolitan Louisville — 18 ● Central Kentucky — 7 ● Georgetown — 1 ● Lexington — 5 ● Shelbyville — 1 ● Northern Kentucky — 3 ● Covington — 1 ● Crestview Hills — 1 ● Florence — 1 ● Southern Indiana — 3 ● Floyds Knobs — 1 ● Jeffersonville — 1 ● New Albany — 1 ● Metropolitan Tampa, Florida — 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; technology, equipment, and communication; occupancy; interchange related expense; marketing and development; FDIC insurance expense, and various other general and administrative costs. Traditional Banking results of operations are significantly impacted by general economic and competitive conditions, particularly changes in market interest rates, government laws and policies, and actions of regulatory agencies. Warehouse Lending segment — The Core Bank provides short-term, revolving credit facilities to mortgage bankers across the United States through mortgage warehouse lines of credit. These credit facilities are primarily secured by single-family, first-lien residential real estate loans. The credit facility enables the mortgage banking clients to close single-family, first-lien residential real estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days . Reverse mortgage loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client. Mortgage Banking segment — Republic Processing Group Tax Refund Solutions segment — As a result of the Purchase Agreement and the proposed Sale Transaction, the results for the Company, RPG, and its TRS segment are presented within this filing to reflect continuing versus discontinued operations. RPG’s continuing operations include its RCS segment, its RPS division, and certain overhead costs previously allocated to TRS that will remain with RPG. Discontinued operations are those contracted to be sold. These discontinued operations have historically contained the majority of TRS’s revenue and expense. Interest income and expense for continuing and discontinued operations also include intercompany interest charged and earned based on the Company’s funds transfer pricing methodology. On October 4, 2021, Green Dot announced that it had been unable to obtain the Federal Reserve’s approval of or non-objection to the Sale Transaction and that, as a result, Green Dot would not consummate the Sale Transaction. On October 5, 2021, the Bank filed a lawsuit against Green Dot in the Delaware Court of Chancery, C.A. No. 2021-0854-SG, alleging breach of contract. In so doing, the Bank seeks, among other relief, specific performance to require that Green Dot proceed with the Sale Transaction as the parties had agreed to in the Purchase Agreement. Due to the inherent uncertainties of legal proceedings, at this time, the Company cannot predict the outcome of these proceedings and their impact on the Company’s financial condition and results of operations. See additional detail regarding the Bank’s agreement to sell TRS under Footnote 17 “Discontinued Operations” in this section of the filing. Republic Payment Solutions division . 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 products – Using separate third-party service providers, the Bank originates two line-of-credit products to generally subprime borrowers in multiple states. The first of these two products (the “LOC I”) has been originated by the Bank since 2014. The second (the “LOC II”) was introduced in January 2021. o RCS’s LOC I represents the substantial majority of RCS activity. Elastic Marketing, LLC and Elevate Decision Sciences, LLC, are third-party service providers for the product and are both subject to the Bank’s oversight and supervision. Together, these companies provide the Bank with certain marketing, servicing, technology, and support services, while a separate third party provides customer support, servicing, and other services on the Bank’s behalf. The Bank is the lender for this product and is marketed as such. Further, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of the product. The Bank sells participation interests in this product. These participation interests are a 90% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three business days following the Bank’s funding of the associated advances. Although the Bank retains a 10% participation interest in each advance, it maintains 100% ownership of the underlying LOC I account with each borrower. Loan balances held for sale through this program are carried at the lower of cost or fair value. o In January 2021, RCS began originating balances through its LOC II. One of RCS’s existing th ird-party service providers, subject to the Bank’s oversight and supervision, provides the Bank with marketing services and loan servicing for the LOC II product. The Bank is the lender for this product and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this product. The Bank sells participation interests in this product. These participation interests are a 95% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three business days following the Bank’s funding of the associated advances. Although the Bank retains a 5% participation interest in each advance, it maintains 100% ownership of the underlying LOC II account with each borrower. Loan balances held for sale through this program are carried at the lower of cost or fair value. ● 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. The same third-party service provider for RCS’s LOC II is the third-party service provider for the installment loans. This third-party service provider is subject to the Bank’s oversight and supervision and provides the Bank with marketing services and loan servicing for these RCS installment loans. The Bank is the lender for these RCS installment loans and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these loans to its third-party service provider generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. ● RCS healthcare receivables products – The Bank originates healthcare-receivables products across the U.S. through two different third-party service providers. In one program, the Bank retains 100% of the receivables originated. In the other program, the Bank retains 100% of the receivables originated in some instances, and in other instances, sells 100% of the receivables within one month of origination. Loan balances held for sale through this program are carried at the lower of cost or fair value. The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains or losses on sale and mark-to-market adjustments of RCS loans are reported as noninterest income under “Program fees.” Recently Adopted Accounting Standards The following ASUs were adopted by the Company during the nine months ended September 30, 2021: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2020-08 Codification Improvements to Subtopic 310-20, This ASU clarifies that an entity should re-evaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. January 1, 2021 Prospectively Immaterial 2020-10 Codification Improvements This ASU affects a wide variety of Topics in the Codification. 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 Immaterial 2021-06 Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946) This ASU amends the SEC sections of the Codification related to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. August 9, 2021 Prospectively Immaterial Accounting Standards Update There were no not-yet-effective ASUs relevant to the Company’s financial statements issued since the Company’s last filing on Form 10-Q. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 234,980 $ 747 $ (882) $ — $ 234,845 Private label mortgage-backed security 1,468 1,312 — — 2,780 Mortgage-backed securities - residential 204,869 5,059 (123) — 209,805 Collateralized mortgage obligations 34,027 521 (29) — 34,519 Corporate bonds 10,000 81 — — 10,081 Trust preferred security 3,671 179 — — 3,850 Total available-for-sale debt securities $ 489,015 $ 7,899 $ (1,034) $ — $ 495,880 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 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 September 30, 2021 (in thousands) Value Gains Losses Value Credit Losses Mortgage-backed securities - residential $ 47 $ — $ — $ 47 $ — Collateralized mortgage obligations 9,777 150 — 9,927 — Corporate bonds 34,976 390 — 35,366 (54) Obligations of state and political subdivisions 245 5 — 250 — Total held-to-maturity debt securities $ 45,045 $ 545 $ — $ 45,590 $ (54) 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) Sales of Available-for-Sale Debt Securities During the three and nine months ended September 30, 2021 and 2020, there were no material gains or losses on sales or calls of AFS debt securities. Debt Securities by Contractual Maturity The amortized cost and fair value of debt securities by contractual maturity as of September 30, 2021 follow. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are detailed separately. Available-for-Sale Held-to-Maturity Debt Securities Debt Securities Amortized Fair Carrying Fair September 30, 2021 (in thousands) Cost Value Value Value Due in one year or less $ 25,044 $ 25,270 $ 121 $ 123 Due from one year to five years 179,937 179,803 35,100 35,493 Due from five years to ten years 40,000 39,853 — — Due beyond ten years 3,670 3,850 — — Private label mortgage-backed security 1,468 2,780 — — Mortgage-backed securities - residential 204,869 209,805 47 47 Collateralized mortgage obligations 34,027 34,519 9,777 9,927 Total debt securities $ 489,015 $ 495,880 $ 45,045 $ 45,590 Unrealized-Loss Analysis on Debt Securities The following tables summarize AFS debt securities in an unrealized loss position for which an ACLS had not been recorded as of September 30, 2021 and 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 September 30, 2021 (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 $ 158,944 $ (882) $ — $ — $ 158,944 $ (882) Mortgage-backed securities - residential 34,432 (123) — — 34,432 (123) Collateralized mortgage obligations 5,164 (29) — — 5,164 (29) Total available-for-sale debt securities $ 198,540 $ (1,034) $ — $ — $ 198,540 $ (1,034) 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) As of September 30, 2021, the Bank’s security portfolio consisted of 170 securities, 30 of which were in an unrealized loss position. As of December 31, 2020, the Bank’s security portfolio consisted of 173 securities, 19 of which were in an unrealized loss position. As of September 30, 2021 and December 31, 2020, there were no holdings of debt securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity. Mortgage-Backed Securities and Collateralized Mortgage Obligations As of September 30, 2021, with the exception of the $2.8 million private label mortgage-backed security, all other mortgage-backed securities and CMOs held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily the FHLMC and FNMA. As of September 30, 2021 and December 31, 2020, there were gross unrealized losses of $152,000 and $13,000 related to AFS mortgage-backed securities and CMOs. Because these unrealized losses are attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, management does not consider these securities to have OTTI. Trust Preferred Security During 2015, the Parent Company purchased a $3 million floating rate TRUP at a price of 68% of par. The coupon on this security is based on the 3-month LIBOR rate plus 159 basis points. The Company performed an initial analysis prior to acquisition and performs ongoing analysis of the credit risk of the underlying borrower in relation to its TRUP. Private Label Mortgage-Backed Security The Bank owns one private label mortgage-backed security with a total carrying value of $2.8 million as of September 30, 2021. This security is mostly backed by “Alternative A” first-lien mortgage loans, but also has an insurance “wrap” or guarantee as an added layer of protection to the security holder. This asset is illiquid, and as such, the Bank determined it to be a Level 3 security in accordance with ASC Topic 820, Fair Value Measurement. See additional discussion regarding the Bank’s private label mortgage-backed security under Footnote 10 “Fair Value” in this section of the filing. Rollforward of the Allowance for Credit Losses on Debt Securities The tables below present a rollforward for the three and nine months ended September 30, 2021 and 2020 of the ACLS on AFS and HTM debt securities: ACLS Rollforward Three Months Ended September 30, 2021 2020 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ — $ — $ — $ 126 $ (74) $ — $ — $ 52 Held-to-Maturity Securities: Corporate Bonds 56 (2) — — 54 147 148 — — 295 Total $ 56 $ (2) $ — $ — $ 54 $ 273 $ 74 $ — $ — $ 347 The Company decreased the ACLS on its HTM corporate bonds during the three months ended September 30, 2021 based on improved PD and LGD estimates on these bonds. PD and LGD estimates for these bonds were elevated during 2020 due to pandemic-driven economic concerns. ACLS Rollforward Nine Months Ended September 30, 2021 2020 Beginning Charge- Ending Beginning ASC 326 Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Adoption Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ — $ — $ — $ — $ — $ 52 $ — $ — $ 52 Held-to-Maturity Securities: Corporate Bonds 178 (124) — — 54 — 51 244 — — 295 Total $ 178 $ (124) $ — $ — $ 54 $ — $ 51 $ 296 $ — $ — $ 347 The Company decreased the ACLS on its HTM corporate bonds during the nine months ended September 30, 2021 based on improved PD and LGD estimates on these bonds. PD and LGD estimates for these bonds were elevated during 2020 due to pandemic-driven economic concerns. There were no HTM debt securities on nonaccrual or past due over 89 days as of September 30, 2021 and December 31, 2020. All of the Company’s HTM corporate bonds were rated investment grade as of September 30, 2021 and December 31, 2020. There were no HTM debt securities considered collateral dependent as of September 30, 2021 and December 31, 2020. Accrued interest on AFS debt securities is presented as a component of other assets on the Company’s balance sheet and is excluded from the ACLS. Accrued interest on AFS debt securities totaled $1 million and $1 million as of September 30, 2021 and December 31, 2020. Accrued interest receivable on HTM debt securities totaled $88,000 and $110,000 as of September 30, 2021 and December 31, 2020. Pledged Debt Securities Debt securities pledged to secure public deposits, securities sold under agreements to repurchase and debt securities held for other purposes, as required or permitted by law are as follows: (in thousands) September 30, 2021 December 31, 2020 Carrying amount $ 354,275 $ 303,535 Fair value 354,341 303,611 Equity Securities The carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values were as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2021 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 102 $ — $ 102 Community Reinvestment Act mutual fund 2,500 — (24) 2,476 Total equity securities with readily determinable fair values $ 2,500 $ 102 $ (24) $ 2,578 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 For equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company’s consolidated statements of income were as follows: Gains (Losses) Recognized on Equity Securities Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (13) $ (13) $ — $ 50 $ 50 Community Reinvestment Act mutual fund — (9) (9) — 4 4 Total equity securities with readily determinable fair value $ — $ (22) $ (22) $ — $ 54 $ 54 Gains (Losses) Recognized on Equity Securities Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (458) $ (458) $ — $ (178) $ (178) Community Reinvestment Act mutual fund — (47) (47) — 60 60 Total equity securities with readily determinable fair value $ — $ (505) $ (505) $ — $ (118) $ (118) |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 9 Months Ended |
Sep. 30, 2021 | |
LOANS HELD FOR SALE. | |
LOANS HELD FOR SALE | 3. LOANS HELD FOR SALE In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Mortgage Banking segment, while consumer loans originated for sale are originated and sold through the RCS segment. Mortgage Loans Held for Sale, at Fair Value See additional detail regarding mortgage loans originated for sale, at fair value under Footnote 11 “Mortgage Banking Activities” of this section of the filing. Consumer Loans Held for Sale, at Fair Value In December 2019, the Bank began offering RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intent to sell generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. Activity for consumer loans held for sale and carried at fair value was as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 13,020 $ 164 $ 3,298 $ 598 Origination of consumer loans held for sale 67,526 1,559 136,222 49,300 Proceeds from the sale of consumer loans held for sale (71,427) (1,321) (132,330) (50,872) Net gain on sale of consumer loans held for sale 1,660 47 3,589 1,423 Balance, end of period $ 10,779 $ 449 $ 10,779 $ 449 Consumer Loans Held for Sale, at the Lower of Cost or Fair Value RCS originates for sale 90% to 95% of the balances from its line-of-credit products and 100% for some of its healthcare receivables products. Ordinary gains or losses on the sale of these RCS products are reported as a component of “Program fees.” Activity for consumer loans held for sale and carried at the lower of cost or market value was as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 11,412 $ 12,801 $ 1,478 $ 11,646 Origination of consumer loans held for sale 189,492 107,518 424,840 342,388 Proceeds from the sale of consumer loans held for sale (199,036) (109,669) (426,642) (344,919) Net gain on sale of consumer loans held for sale 2,108 793 4,300 2,328 Balance, end of period $ 3,976 $ 11,443 $ 3,976 $ 11,443 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2021 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio follows: (in thousands) September 30, 2021 December 31, 2020 Traditional Banking: Residential real estate: Owner occupied $ 827,898 $ 879,800 Nonowner occupied 294,818 264,780 Commercial real estate 1,393,241 1,349,085 Construction & land development 105,968 98,674 Commercial & industrial 333,795 325,596 Paycheck Protection Program 126,271 392,319 Lease financing receivables 9,427 10,130 Aircraft 130,398 101,375 Home equity 215,282 240,640 Consumer: Credit cards 14,781 14,196 Overdrafts 753 587 Automobile loans 17,533 30,300 Other consumer 6,223 8,167 Total Traditional Banking 3,476,388 3,715,649 Warehouse lines of credit* 750,682 962,796 Total Core Banking 4,227,070 4,678,445 Republic Processing Group*: Tax Refund Solutions: Easy Advances — — Other TRS loans 1 — Republic Credit Solutions 116,711 110,893 Total Republic Processing Group 116,712 110,893 Total loans** 4,343,782 4,789,338 Allowance for credit losses (63,024) (61,067) Total loans, net $ 4,280,758 $ 4,728,271 *Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. The following table reconciles the contractually receivable and carrying amounts of loans: (in thousands) September 30, 2021 December 31, 2020 Contractually receivable $ 4,348,535 $ 4,797,297 Unearned income (598) (708) Unamortized premiums 121 216 Unaccreted discounts (688) (988) PPP net unamortized deferred origination fees and costs (3,986) (8,564) Other net unamortized deferred origination fees and costs 398 2,085 Carrying value of loans $ 4,343,782 $ 4,789,338 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. The Economic Aid Act was enacted in December 2020 and provided for a second round of PPP loans. PPP loans are fully backed by the SBA and may be entirely forgiven if the loan client uses loan funds for qualifying reasons. million of unaccreted PPP fees reported as a credit offset to these originated balances. Unaccreted PPP fees will generally be recognized into income over the estimated remaining life of the PPP portfolio, with fee recognition accelerated if loans are forgiven or repaid earlier than estimated. 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 September 30, 2021, the Bank had no outstanding borrowings from the FRB under the PPPLF. Credit Quality Indicators The following tables include loans by segment, risk category, and, for non-revolving loans, origination year. Loan segments and risk categories as of September 30, 2021 remain unchanged from those defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Regarding 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 September 30, 2021 2021 2020 2019 2018 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 170,594 $ 229,444 $ 96,923 $ 56,318 $ 251,929 $ — $ — $ 805,208 Special Mention 304 — — 36 8,509 — — 8,849 Substandard — 557 685 1,006 11,593 — — 13,841 Doubtful — — — — — — — — Total $ 170,898 $ 230,001 $ 97,608 $ 57,360 $ 272,031 $ — $ — $ 827,898 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 75,983 $ 71,290 $ 50,082 $ 32,111 $ 61,625 $ — $ 3,588 $ 294,679 Special Mention — — — — 40 — — 40 Substandard — — — — 99 — — 99 Doubtful — — — — — — — — Total $ 75,983 $ 71,290 $ 50,082 $ 32,111 $ 61,764 $ — $ 3,588 $ 294,818 Commercial real estate: Risk Rating Pass or not rated $ 362,616 $ 271,691 $ 179,046 $ 104,300 $ 311,904 $ — $ 79,005 $ 1,308,562 Special Mention 12,103 2,411 29,879 11,535 19,767 — — 75,695 Substandard — 2,576 266 — 3,941 — 2,201 8,984 Doubtful — — — — — — — — Total $ 374,719 $ 276,678 $ 209,191 $ 115,835 $ 335,612 $ — $ 81,206 $ 1,393,241 Construction and land development: Risk Rating Pass or not rated $ 59,659 $ 37,136 $ 4,384 $ 1,527 $ 593 $ — $ — $ 103,299 Special Mention — 310 2,359 — — — — 2,669 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 59,659 $ 37,446 $ 6,743 $ 1,527 $ 593 $ — $ — $ 105,968 Commercial and industrial: Risk Rating Pass or not rated $ 117,127 $ 55,354 $ 66,818 $ 21,262 $ 48,361 $ — $ 4,112 $ 313,034 Special Mention 15,398 2,344 800 43 2,095 — — 20,680 Substandard — 48 — — 33 — — 81 Doubtful — — — — — — — — Total $ 132,525 $ 57,746 $ 67,618 $ 21,305 $ 50,489 $ — $ 4,112 $ 333,795 Paycheck Protection Program: Risk Rating Pass or not rated $ 107,498 $ 18,773 $ — $ — $ — $ — $ — $ 126,271 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 107,498 $ 18,773 $ — $ — $ — $ — $ — $ 126,271 Lease financing receivables: Risk Rating Pass or not rated $ 2,068 $ 903 $ 2,896 $ 1,406 $ 2,154 $ — $ — $ 9,427 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 2,068 $ 903 $ 2,896 $ 1,406 $ 2,154 $ — $ — $ 9,427 Aircraft: Risk Rating Pass or not rated $ 47,983 $ 46,405 $ 24,134 $ 10,049 $ 1,827 $ — $ — $ 130,398 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 47,983 $ 46,405 $ 24,134 $ 10,049 $ 1,827 $ — $ — $ 130,398 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 213,297 $ — $ 213,297 Special Mention — — — — — 125 — 125 Substandard — — — — — 1,860 — 1,860 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 215,282 $ — $ 215,282 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of September 30, 2021 2021 2020 2019 2018 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 844 $ 725 $ 10,451 $ 5,156 $ 6,864 $ 14,880 $ — $ 38,920 Special Mention — — — — — — — — Substandard — — 25 47 298 — — 370 Doubtful — — — — — — — — Total $ 844 $ 725 $ 10,476 $ 5,203 $ 7,162 $ 14,880 $ — $ 39,290 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 750,682 $ — $ 750,682 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 750,682 $ — $ 750,682 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 1 $ — $ 1 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 1 $ — $ 1 RCS: Risk Rating Pass or not rated $ 23,112 $ 9,275 $ 2,387 $ 985 $ 3,943 $ 76,004 $ — $ 115,706 Special Mention — — — — — — — — Substandard — — — — — 1,005 — 1,005 Doubtful — — — — — — — — Total $ 23,112 $ 9,275 $ 2,387 $ 985 $ 3,943 $ 77,009 $ — $ 116,711 Grand Total: Risk Rating Pass or not rated $ 967,484 $ 740,996 $ 437,121 $ 233,114 $ 689,200 $ 1,054,864 $ 86,705 $ 4,209,484 Special Mention 27,805 5,065 33,038 11,614 30,411 125 — 108,058 Substandard — 3,181 976 1,053 15,964 2,865 2,201 26,240 Doubtful — — — — — — — — Grand Total $ 995,289 $ 749,242 $ 471,135 $ 245,781 $ 735,575 $ 1,057,854 $ 88,906 $ 4,343,782 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 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 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 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 $ — $ — $ — $ — $ — $ — $ — $ — Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ — $ — $ — 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 $ 1,269,098 $ 57,610 $ 4,667,157 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 $ 1,272,456 $ 60,413 $ 4,789,338 Allowance for Credit Losses on Loans The following table presents the activity in the ACLL by portfolio class: ACLL Rollforward Three Months Ended September 30, 2021 2020 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 8,977 $ (677) $ — $ 329 $ 8,629 $ 9,303 $ 330 $ (13) $ 21 $ 9,641 Nonowner occupied 2,551 47 — — 2,598 2,274 96 — 7 2,377 Commercial real estate 23,307 286 — 3 23,596 16,300 4,663 — — 20,963 Construction & land development 3,299 376 — — 3,675 4,940 (341) — — 4,599 Commercial & industrial 4,117 (139) (35) 16 3,959 2,405 654 (255) 80 2,884 Paycheck Protection Program — — — — — — — — — — Lease financing receivables 97 2 — — 99 125 (8) — — 117 Aircraft 303 23 — — 326 208 11 — — 219 Home equity 4,305 (63) — 5 4,247 5,124 (7) (14) 21 5,124 Consumer: Credit cards 949 22 (40) 20 951 928 36 (29) 7 942 Overdrafts 717 143 (195) 88 753 488 324 (157) 50 705 Automobile loans 273 (34) (19) 6 226 473 (67) — — 406 Other consumer 467 (28) (25) 14 428 609 92 (41) 20 680 Total Traditional Banking 49,362 (42) (314) 481 49,487 43,177 5,783 (509) 206 48,657 Warehouse lines of credit 2,100 (223) — — 1,877 2,575 (3) — — 2,572 Total Core Banking 51,462 (265) (314) 481 51,364 45,752 5,780 (509) 206 51,229 Republic Processing Group (includes discontinued operations): Tax Refund Solutions: Easy Advances (discontinued operations) — (2,242) — 2,242 — — (4,294) — 4,294 — Other TRS loans (discontinued operations) — (19) — 19 — 211 (48) (22) — 141 Republic Credit Solutions (continuing operations) 8,829 3,820 (1,064) 75 11,660 9,134 (12) (684) 83 8,521 Total Republic Processing Group 8,829 1,559 (1,064) 2,336 11,660 9,345 (4,354) (706) 4,377 8,662 Total $ 60,291 $ 1,294 $ (1,378) $ 2,817 $ 63,024 $ 55,097 $ 1,426 $ (1,215) $ 4,583 $ 59,891 ACLL Rollforward Nine Months Ended September 30, 2021 2020 Beginning Charge- Ending Beginning ASC 326 Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Adoption Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 9,715 $ (1,461) $ — $ 375 $ 8,629 $ 4,729 $ 4,199 $ 648 $ (40) $ 105 $ 9,641 Nonowner occupied 2,466 131 — 1 2,598 1,737 148 481 — 11 2,377 Commercial real estate 23,606 336 (428) 82 23,596 10,486 273 10,002 (270) 472 20,963 Construction & land development 3,274 401 — — 3,675 2,152 1,447 1,000 — — 4,599 Commercial & industrial 2,797 1,170 (35) 27 3,959 2,882 (1,318) 1,643 (447) 124 2,884 Paycheck Protection Program — — — — — — — — — — — Lease financing receivables 106 (7) — — 99 147 — (30) — — 117 Aircraft 253 73 — — 326 176 — 43 — — 219 Home equity 4,990 (789) — 46 4,247 2,721 1,652 657 (14) 108 5,124 Consumer: Credit cards 929 108 (130) 44 951 1,020 33 74 (206) 21 942 Overdrafts 587 351 (444) 259 753 1,169 — 13 (660) 183 705 Automobile loans 399 (178) (19) 24 226 612 (7) (220) (8) 29 406 Other consumer 577 (137) (56) 44 428 374 307 (81) (86) 166 680 Total Traditional Banking 49,699 (2) (1,112) 902 49,487 28,205 6,734 14,230 (1,731) 1,219 48,657 Warehouse lines of credit 2,407 (530) — — 1,877 1,794 — 778 — — 2,572 Total Core Banking 52,106 (532) (1,112) 902 51,364 29,999 6,734 15,008 (1,731) 1,219 51,229 Republic Processing Group (includes discontinued operations): Tax Refund Solutions: Easy Advances (discontinued operations) — 7,984 (10,256) 2,272 — — — 15,239 (19,575) 4,336 — Other TRS loans (discontinued operations) 158 (134) (51) 27 — 234 — — (94) 1 141 Republic Credit Solutions (continuing operations) 8,803 5,037 (2,427) 247 11,660 13,118 — 251 (5,401) 553 8,521 Total Republic Processing Group 8,961 12,887 (12,734) 2,546 11,660 13,352 — 15,490 (25,070) 4,890 8,662 Total $ 61,067 $ 12,355 $ (13,846) $ 3,448 $ 63,024 $ 43,351 $ 6,734 $ 30,498 $ (26,801) $ 6,109 $ 59,891 The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of September 30, 2021 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, supplemented by qualitative factor adjustments for current and forecasted conditions. The Company employs one-year forecasts of unemployment and CRE values within its ACLL model, with reversion to long-term averages following the forecasted period. The cumulative loss rate within the Company’s ACLL also includes estimated losses based on an individual evaluation of loans which are either collateral dependent or which do not share risk characteristics with pooled loans, e.g., TDRs. For its CRE loan pool, the Company employed a one-year forecast of CRE vacancy rates through March 31, 2021 but discontinued use of this forecast during the second quarter of 2021 in favor of a one-year forecast of general CRE values. This change in forecast method had no material impact on the Company’s ACLL. Nonperforming Loans and Nonperforming Assets Detail of nonperforming loans, nonperforming assets, and select credit quality ratios follows: (dollars in thousands) September 30, 2021 December 31, 2020 Loans on nonaccrual status* $ 20,252 $ 23,548 Loans past due 90-days-or-more and still on accrual** 691 47 Total nonperforming loans 20,943 23,595 Other real estate owned 1,845 2,499 Total nonperforming assets $ 22,788 $ 26,094 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.48 % 0.49 % Nonperforming assets to total loans (including OREO) 0.52 0.54 Nonperforming assets to total assets 0.37 0.42 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.48 % 0.50 % Nonperforming assets to total loans (including OREO) 0.52 0.56 Nonperforming assets to total assets 0.39 0.45 * Loans on nonaccrual status include collateral-dependent loans. ** Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. The following tables present the recorded investment in nonaccrual loans and loans past due 90-days-or-more and still on accrual by class of loans: Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Traditional Banking: Residential real estate: Owner occupied $ 11,708 $ 14,328 $ — $ — Nonowner occupied 99 81 — — Commercial real estate 6,607 6,762 — — Construction & land development — — — — Commercial & industrial 93 55 — — Paycheck Protection Program — — — Lease financing receivables — — — — Aircraft — — — Home equity 1,657 2,141 — — Consumer: Credit cards — — — 5 Overdrafts — — — — Automobile loans 84 170 — — Other consumer 4 11 — — Total Traditional Banking 20,252 23,548 — 5 Warehouse lines of credit — — — — Total Core Banking 20,252 23,548 — 5 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — — — Republic Credit Solutions — — 691 42 Total Republic Processing Group — — 691 42 Total $ 20,252 $ 23,548 $ 691 $ 47 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended Nine Months Ended As of September 30, 2021 September 30, 2021 September 30, 2021 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 2,041 $ 9,667 $ 11,708 $ 225 $ 672 Nonowner occupied 33 66 99 2 5 Commercial real estate 4,153 2,454 6,607 16 125 Construction & land development — — — — — Commercial & industrial 45 48 93 — 2 Paycheck Protection Program — — — — — Lease financing receivables — — — — — Aircraft — — — — — Home equity 63 1,594 1,657 19 121 Consumer 14 74 88 4 8 Total $ 6,349 $ 13,903 $ 20,252 $ 266 $ 933 * I |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2021 | |
DEPOSITS | |
DEPOSITS | 5. DEPOSITS The composition of the deposit portfolio follows: (in thousands) September 30, 2021 December 31, 2020 Core Bank: Demand $ 1,342,395 $ 1,217,263 Money market accounts 793,236 712,824 Savings 295,663 236,335 Individual retirement accounts (1) 46,196 47,889 Time deposits, $250 and over (1) 84,340 83,448 Other certificates of deposit (1) 163,345 199,214 Reciprocal money market and time deposits (1) 101,109 314,109 Brokered deposits (1) 30,001 25,010 Total Core Bank interest-bearing deposits 2,856,285 2,836,092 Total Core Bank noninterest-bearing deposits 1,691,413 1,503,662 Total Core Bank deposits 4,547,698 4,339,754 Republic Processing Group: Money market accounts 5,114 6,673 Total RPG interest-bearing deposits 5,114 6,673 Brokered prepaid card deposits 323,250 257,856 Other noninterest-bearing deposits 38,822 110,021 Total RPG noninterest-bearing deposits 362,072 367,877 Total RPG deposits 367,186 374,550 Deposits of discontinued operations (2) 33,063 18,877 Total deposits $ 4,947,947 $ 4,733,181 (1) Includes time deposit (2) See additional detail regarding the Bank’s agreement to sell TRS under Footnote 17 “Discontinued Operations” in this section of the filing . |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2021 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 6. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional securities. To mitigate the risk of under collateralization, the Bank typically pledges at least two percent more in securities than the associated repurchase agreements. All such securities are under the Bank’s control. As of September 30, 2021 and December 31, 2020, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase follows: (dollars in thousands) September 30, 2021 December 31, 2020 Outstanding balance at end of period $ 260,583 $ 211,026 Weighted average interest rate at end of period 0.04 % 0.04 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 114,308 $ 60,059 Mortgage backed securities - residential 156,237 140,554 Collateralized mortgage obligations 23,457 29,656 Total securities pledged $ 294,002 $ 230,269 Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2021 2020 2021 2020 Average outstanding balance during the period $ 242,867 $ 213,010 $ 201,992 $ 199,556 Average interest rate during the period 0.03 % 0.04 % 0.02 % 0.11 % Maximum outstanding at any month end during the period $ 307,358 $ 195,229 $ 307,358 $ 195,229 |
RIGHT-OF-USE ASSETS AND OPERATI
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 7. RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES The Company records as operating lease liabilities the present value of its required minimum lease payments plus any amounts probable of being owed under a residual value guarantee. Offsetting these operating lease liabilities, the Company records right-of-use assets for the underlying leased property. As of September 30, 2021, the Company was under 45 separate and distinct operating lease contracts to lease the land and/or buildings for 36 of its offices, with 14 such operating leases contracted with a related party of the Company. As of September 30, 2021, payments on The Company executed no new operating leases during 2021. The Company renewed a related-party lease on one of its Louisville, Kentucky banking centers during the fourth quarter of 2020 that commenced in January 2021 with a right-of-use asset value of $392,000 . During the second quarter of 2021, the Company extended one third-party lease for an additional five years , with the extended term beginning during the third quarter of 2021 and valued at approximately $263,000 . During the fourth quarter of 2021, the Company recorded an amendment to one related-party lease to add leased space, with this amendment valued at approximately $819,000 . The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within the “Occupancy” category for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Operating lease expense: Related Party: Variable lease expense $ 1,224 $ 1,235 $ 3,662 $ 3,706 Fixed lease expense 34 23 102 69 Third Party: Variable lease expense 197 180 590 541 Fixed lease expense 337 371 1,021 1,109 Short-term lease expense — 3 — 7 Total operating lease expense $ 1,792 $ 1,812 $ 5,375 $ 5,432 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,793 $ 1,817 $ 5,390 $ 5,448 Short-term lease payments not included in the measurement of lease liabilities — 3 — 7 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 September 30, 2021 and December 31, 2020: (dollars in thousands) September 30, 2021 December 31, 2020 Weighted average remaining term in years 7.76 8.37 Weighted average discount rate 3.08 % 3.10 % The following table presents a maturity schedule of the Company’s operating lease liabilities based on undiscounted cash flows, and a reconciliation of those undiscounted cash flows to the operating lease liabilities recognized on the Company’s balance sheet as of September 30, 2021: Year (in thousands) Related Party Third Party Total 2021 $ 1,160 $ 636 $ 1,796 2022 4,639 2,492 7,131 2023 4,639 2,049 6,688 2024 4,512 1,517 6,029 2025 4,344 979 5,323 Thereafter 15,800 2,729 18,529 Total undiscounted cash flows $ 35,094 $ 10,402 $ 45,496 Discount applied to cash flows (4,065) (1,280) (5,345) Total discounted cash flows reported as operating lease liabilities $ 31,029 $ 9,122 $ 40,151 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 9 Months Ended |
Sep. 30, 2021 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 8. FEDERAL HOME LOAN BANK ADVANCES FHLB advances were as follows: (in thousands) September 30, 2021 December 31, 2020 Overnight advances $ 25,000 $ 225,000 Fixed interest rate advances — 10,000 Total FHLB advances $ 25,000 $ 235,000 Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity. FHLB advances are collateralized by a blanket pledge of eligible real estate loans. As of September 30, 2021 and December 31, 2020, Republic had available borrowing capacity of $898 million and $683 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $125 million available through various other financial institutions as of September 30, 2021 and December 31, 2020. 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) $ 25,000 0.14 % 2021 (Term) — — 2022 — — 2023 — — 2024 — — 2025 — — Thereafter — — Total $ 25,000 0.14 % Due to their nature, the Bank considers average balance information more meaningful than period-end balances for its overnight borrowings from the FHLB. Information regarding overnight FHLB advances follows: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2021 2020 2021 2020 Average outstanding balance during the period $ 25,000 $ 272 $ 30,037 $ 29,106 Average interest rate during the period 0.10 % 0.17 % 0.15 % 0.92 % Maximum outstanding at any month end during the period $ 25,000 $ 25,000 $ 25,000 $ 250,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: (in thousands) September 30, 2021 December 31, 2020 First lien, single family residential real estate $ 1,034,959 $ 1,048,236 Home equity lines of credit 191,443 208,944 |
OFF BALANCE SHEET RISKS, COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 9. OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES COVID-19 Pandemic COVID-19 was declared a pandemic by the World Health Organization on March 11, 2020. Since March 2020, to slow the spread of COVID-19, jurisdictions within the U.S. have imposed economic and social restrictions on the population in general and non-essential businesses in particular. These restrictions in combination with the public’s response to them effectively suspended or curtailed economic activity for many industries across the U.S., with industries in the Company’s market footprint impacted. While vaccines for the virus began rolling out during 2021, the future potential financial impact of the COVID-19 pandemic is still unknown at this time. This pandemic and the public’s response to it could cause the Company to experience a material adverse impact on its business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on the Company’s intangible assets, investments, loans, MSRs, deferred tax assets, or counterparty risk derivatives. Commitments to Extend Credit The Company, in the normal course of business, is party to financial instruments with off balance sheet risk. These financial instruments primarily include commitments to extend credit and standby letters of credit. The contract or notional amounts of these instruments reflect the potential future obligations of the Company pursuant to those financial instruments. Creditworthiness for all instruments is evaluated on a case-by-case basis in accordance with the Company’s credit policies. Collateral from the client may be required based on the Company’s credit evaluation of the client and may include business assets of commercial clients, as well as personal property and real estate of individual clients or guarantors. The Company also extends binding commitments to clients and prospective clients. Such commitments assure a borrower of financing for a specified period of time at a specified rate. The risk to the Company under such loan commitments is limited by the terms of the contracts. For example, the Company may not be obligated to advance funds if the client’s financial condition deteriorates or if the client fails to meet specific covenants. An approved but unfunded loan commitment represents a potential credit risk and a liquidity risk, since the Company’s client(s) may demand immediate cash that would require funding. In addition, unfunded loan commitments represent interest rate risk as market interest rates may rise above the rate committed to the Company’s client. Since a portion of these loan commitments normally expire unused, the total amount of outstanding commitments at any point in time may not require future funding. The following table presents the Company’s commitments, exclusive of Mortgage Banking loan commitments, for each period ended: (in thousands) September 30, 2021 December 31, 2020 Unused warehouse lines of credit $ 658,318 $ 456,004 Unused home equity lines of credit 350,198 353,322 Unused loan commitments - other 787,660 775,128 Standby letters of credit 14,130 10,949 FHLB letter of credit 643 643 Total commitments $ 1,810,949 $ 1,596,046 Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third-party. The terms and risk of loss involved in issuing standby letters of credit are similar to those involved in issuing loan commitments and extending credit. In addition to credit risk, the Company also has liquidity risk associated with standby letters of credit because funding for these obligations could be required immediately. The Company does not deem this risk to be material. The following tables present a rollforward of the ACLC for the three and nine months ended September 30, 2021 and 2020: ACLC Rollforward Three Months Ended 2021 2020 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ 140 $ — $ — $ — $ 140 $ 58 $ (6) $ — $ — $ 52 Unused home equity lines of credit 213 29 — — 242 124 22 — — 146 Unused loan commitments - other 581 (26) — — 555 454 271 — — 725 Total $ 934 $ 3 $ — $ — $ 937 $ 636 $ 287 $ — $ — $ 923 The Company increased its ACLC during the three months ended September 30, 2021 based on an increase in the expected usage for its home equity lines of credit. ACLC Rollforward Nine Months Ended 2021 2020 Beginning Charge- Ending Beginning ASC 326 Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Adoption Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ 79 $ 61 $ — $ — $ 140 $ — $ 55 $ (3) $ — $ — $ 52 Unused home equity lines of credit 173 69 — — 242 — 89 57 — — 146 Unused loan commitments - other 737 (182) — — 555 — 312 413 — — 725 Total $ 989 $ (52) $ — $ — $ 937 $ — $ 456 $ 467 $ — $ — $ 923 The Company decreased its ACLC during the nine months ended September 30, 2021 based on a decrease in the expected loss rate for its unused commitments. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE | |
FAIR VALUE | 10. FAIR VALUE Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Level 2: Level 3: The Bank used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Available-for-sale debt securities: The Bank’s private label mortgage-backed security remains illiquid, and as such, the Bank classifies this security as a Level 3 security in accordance with ASC Topic 820, Fair Value Measurement See in this section of the filing under Footnote 2 “Investment Securities” for additional discussion regarding the Bank’s private label mortgage-backed security. For its TRUP investment, the Company considered the most recent bid price for the same instrument to approximate market value as of September 30, 2021. The Company’s TRUP investment is considered highly illiquid and also valued using Level 3 inputs, as the most recent bid price for this instrument is not always considered generally observable. Equity securities with readily determinable fair value: The fair value of the Company’s Freddie Mac preferred stock is determined by matrix pricing, as described above (Level 2 inputs). Mortgage loans held for sale, at fair value: Consumer loans held for sale, at fair value: In December 2019, the Bank began offering RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intent to sell 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. Fair value for these loans is based on contractual sales terms, Level 3 inputs. Consumer loans held for investment, at fair value: Mortgage Banking derivatives Interest rate swap agreements: Collateral-dependent loans: Other Real Estate Owned: Mortgage servicing rights: Assets and liabilities measured at fair value on a recurring basis Fair Value Measurements at September 30, 2021 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 $ — $ 234,845 $ — $ 234,845 Private label mortgage-backed security — — 2,780 2,780 Mortgage-backed securities - residential — 209,805 — 209,805 Collateralized mortgage obligations — 34,519 — 34,519 Corporate bonds — 10,081 — 10,081 Trust preferred security — — 3,850 3,850 Total available-for-sale debt securities $ — $ 489,250 $ 6,630 $ 495,880 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 102 $ — $ 102 Community Reinvestment Act mutual fund 2,476 — — 2,476 Total equity securities with readily determinable fair value $ 2,476 $ 102 $ — $ 2,578 Mortgage loans held for sale $ — $ 25,791 $ — $ 25,791 Consumer loans held for sale — — 10,779 10,779 Consumer loans held for investment — — 254 254 Rate lock loan commitments — 1,943 — 1,943 Mandatory forward contracts — 722 — 722 Interest rate swap agreements — 6,707 — 6,707 Financial liabilities: Interest rate swap agreements $ — $ 6,707 $ — $ 6,707 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 All transfers between levels are generally recognized at the end of each quarter. There were no transfers into or out of Level 1, 2, or 3 assets during the three and nine months ended September 30, 2021 and 2020. Private Label Mortgage-Backed Security The following table presents a reconciliation of the Bank’s private label mortgage-backed security measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 2,824 $ 3,023 $ 2,957 $ 3,495 Total gains or losses included in earnings: Net change in unrealized gain 13 60 62 (46) Principal paydowns (57) (79) (239) (445) Balance, end of period $ 2,780 $ 3,004 $ 2,780 $ 3,004 The fair value of the Bank’s single private label mortgage-backed security is supported by analysis prepared by an independent third party. The third party’s approach to determining fair value involved several steps: 1) detailed collateral analysis of the underlying mortgages, including consideration of geographic location, original loan-to-value and the weighted average FICO score of the borrowers; 2) collateral performance projections for each pool of mortgages underlying the security (probability of default, severity of default, and prepayment probabilities) and 3) discounted cash flow modeling. The significant unobservable inputs in the fair value measurement of the Bank’s single private label mortgage-backed security are prepayment rates, probability of default and loss severity in the event of default. Significant fluctuations in any of those inputs in isolation would result in a significantly different fair value measurement. Quantitative information about recurring Level 3 fair value measurement inputs for the Bank’s single private label mortgage-backed security follows: Fair Valuation September 30, 2021 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,780 Discounted cash flow (1) Constant prepayment rate 4.5% - 18.0% (2) Probability of default 1.8% - 9.3% (3) Loss severity 50% - 75% 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% Trust Preferred Security The following table presents a reconciliation of the Company’s TRUP measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 3,700 $ 3,500 $ 3,800 $ 4,000 Total gains or losses included in earnings: Discount accretion 14 21 40 43 Net change in unrealized gain 136 279 10 (243) Balance, end of period $ 3,850 $ 3,800 $ 3,850 $ 3,800 The fair value of the Company’s TRUP investment is based on the most recent bid price for this instrument, as provided by a third-party broker. Mortgage Loans Held for Sale The Bank has elected the fair value option for mortgage loans held for sale. These loans are intended for sale and the Bank believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of September 30, 2021 and December 31, 2020. The aggregate fair value, contractual balance, and unrealized gain were as follows: (in thousands) September 30, 2021 December 31, 2020 Aggregate fair value $ 25,791 $ 46,867 Contractual balance 25,232 44,781 Unrealized gain 559 2,086 The total amount of gains and losses from changes in fair value included in earnings for the three and nine months ended September 30, 2021 and 2020 for mortgage loans held for sale are presented in the following table: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Interest income $ 253 $ 300 $ 802 $ 932 Change in fair value (373) 126 (1,527) 1,382 Total included in earnings $ (120) $ 426 $ (725) $ 2,314 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 September 30, 2021 and December 31, 2020. 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 September 30, 2021 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 10,779 Contract Terms (1) Net Premium 1.4% (2) Discounted Sales 5.00% 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% The aggregate fair value, contractual balance, and unrealized gain on consumer loans held for sale, at fair value, were as follows: (in thousands) September 30, 2021 December 31, 2020 Aggregate fair value $ 10,779 $ 3,298 Contractual balance 10,703 3,284 Unrealized gain 76 14 The total amount of net gains from changes in fair value included in earnings for consumer loans held for sale, at fair value, are presented in the following table: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Interest income $ 2,102 $ 42 $ 4,070 $ 1,563 Change in fair value (16) 2 62 (2) Total included in earnings $ 2,086 $ 44 $ 4,132 $ 1,561 Assets measured at fair value on a non-recurring basis Fair Value Measurements at September 30, 2021 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Collateral-dependent loans: Residential real estate: Owner occupied $ — $ — $ 1,733 $ 1,733 Commercial real estate — — 3,568 3,568 Commercial & industrial — — 60 60 Home equity — — 314 314 Total collateral-dependent loans* $ — $ — $ 5,675 $ 5,675 Other real estate owned: Commercial real estate $ — $ — $ 1,845 $ 1,845 Total other real estate owned $ — $ — $ 1,845 $ 1,845 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: Residential real estate $ — $ — $ 2,003 $ 2,003 Total other real estate owned $ — $ — $ 2,003 $ 2,003 Mortgage servicing rights $ — $ 3,233 $ — $ 3,233 * The difference between the carrying value and the fair value of collateral-dependent 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 September 30, 2021 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,733 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 51% (10%) Collateral-dependent loans - commercial real estate $ 3,568 Sales comparison approach Adjustments determined for differences between comparable sales 15% - 31% (26%) Collateral-dependent loans - commercial & industrial $ 60 Sales comparison approach Adjustments determined for differences between comparable sales 1% ( Collateral-dependent loans - home equity $ 314 Sales comparison approach Adjustments determined for differences between comparable sales 6%-10% ( Other real estate owned - commercial real estate $ 1,845 Sales comparison approach Adjustments determined for differences between comparable sales 32% ( 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% ( Other real estate owned - commercial real estate $ 2,003 Sales comparison approach Adjustments determined for differences between comparable sales 26% ( Collateral-Dependent Loans Collateral-dependent loans are generally measured for loss using the fair value for reasonable disposition of the underlying collateral. The Bank’s practice is to obtain new or updated appraisals or BPOs on the loans subject to the initial review and then to evaluate the need for an update to this value on an as-necessary or possibly annual basis thereafter (depending on the market conditions impacting the value of the collateral). The Bank may discount the valuation amount as necessary for selling costs and past due real estate taxes. If a new or updated appraisal or BPO is not available at the time of a loan’s loss review, the Bank may apply a discount to the existing value of an old valuation to reflect the property’s current estimated value if it is believed to have deteriorated in either: (i) the physical or economic aspects of the subject property or (ii) material changes in market conditions. The review generally results in a partial charge-off of the loan if fair value, less selling costs, are below the loan’s carrying value. Collateral-dependent loans are valued within Level 3 of the fair value hierarchy. Collateral-dependent loans are as follows: (in thousands) September 30, 2021 December 31, 2020 Carrying amount of loans measured at fair value $ 5,122 $ 7,110 Estimated selling costs considered in carrying amount 911 1,252 Valuation allowance (358) — Total fair value $ 5,675 $ 8,362 Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Provision on collateral-dependent $ 345 $ 430 $ 393 $ (71) Other Real Estate Owned Details of other real estate owned carrying value and write downs follows: (in thousands) September 30, 2021 December 31, 2020 Other real estate owned carried at fair value $ 1,845 $ 2,003 Other real estate owned carried at cost — 496 Total carrying value of other real estate owned $ 1,845 $ 2,499 Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Other real estate owned write-downs during the period $ 53 $ 53 $ 158 $ 53 The carrying amounts and estimated exit price fair values of all financial instruments follow: Fair Value Measurements at September 30, 2021: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 1,011,247 $ 1,011,247 $ — $ — $ 1,011,247 Available-for-sale debt securities 495,880 — 489,250 6,630 495,880 Held-to-maturity debt securities 44,991 — 45,590 — 45,590 Equity securities with readily determinable fair values 2,578 2,476 102 — 2,578 Mortgage loans held for sale, at fair value 25,791 — 25,791 — 25,791 Consumer loans held for sale, at fair value 10,779 — — 10,779 10,779 Consumer loans held for sale, at the lower of cost or fair value 3,976 — — 3,976 3,976 Loans for discontinued operations, at the lower of cost or fair value 24 — — 24 24 Loans, net 4,280,758 — — 4,276,437 4,276,437 Federal Home Loan Bank stock 10,311 — — — NA Accrued interest receivable 9,352 — 9,352 — 9,352 Mortgage servicing rights 8,867 — 10,906 — 10,906 Rate lock loan commitments 1,943 — 1,943 — 1,943 Mandatory forward contracts 722 — 722 — 722 Interest rate swap agreements 6,707 — 6,707 — 6,707 Liabilities: Noninterest-bearing deposits $ 2,053,485 — $ 2,053,485 — $ 2,053,485 Transaction deposits 2,536,782 — 2,536,782 — 2,536,782 Time deposits 324,617 — 328,162 — 328,162 Deposits of discontinued operations 33,063 — 33,063 — 33,063 Securities sold under agreements to repurchase and other short-term borrowings 260,583 — 260,583 — 260,583 Federal Home Loan Bank advances 25,000 — 25,000 — 25,000 Accrued interest payable 180 — 180 — 180 Interest rate swap agreements 6,707 — 6,707 — 6,707 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 for discontinued operations, at the lower of cost or fair value 23,765 — — 23,765 23,765 Loans, net 4,728,271 — — 4,726,066 4,726,066 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 $ 1,871,539 — $ 1,871,539 — $ 1,871,539 Transaction deposits 2,444,361 — 2,444,361 — 2,444,361 Time deposits 398,404 — 404,773 — 404,773 Deposits of discontinued operations 18,877 — 18,877 — 18,877 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 |
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 9 Months Ended |
Sep. 30, 2021 | |
MORTGAGE BANKING ACTIVITIES | |
MORTGAGE BANKING ACTIVITIES | 11. MORTGAGE BANKING ACTIVITIES Mortgage Banking activities primarily include residential mortgage originations and servicing. Activity for mortgage loans held for sale, at fair value, was as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 32,401 $ 40,028 $ 46,867 $ 19,224 Origination of mortgage loans held for sale 170,482 203,615 525,246 547,556 Proceeds from the sale of mortgage loans held for sale (182,422) (210,309) (562,661) (546,950) Net gain on sale of mortgage loans held for sale 5,330 11,526 16,339 25,030 Balance, end of period $ 25,791 $ 44,860 $ 25,791 $ 44,860 The following table presents the components of Mortgage Banking income: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Net gain realized on sale of mortgage loans held for sale $ 5,008 $ 9,151 $ 18,764 $ 18,279 Net change in fair value recognized on loans held for sale (373) 126 (1,527) 1,382 Net change in fair value recognized on rate lock loan commitments (258) 2,194 (2,596) 5,841 Net change in fair value recognized on forward contracts 953 55 1,698 (472) Net gain recognized 5,330 11,526 16,339 25,030 Loan servicing income 832 757 2,433 2,139 Amortization of mortgage servicing rights (882) (1,108) (2,617) (2,701) Change in mortgage servicing rights valuation allowance — (400) 500 (500) Net servicing income recognized (50) (751) 316 (1,062) Total Mortgage Banking income $ 5,280 $ 10,775 $ 16,655 $ 23,968 Activity for capitalized mortgage servicing rights was as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 8,335 $ 6,711 $ 7,095 $ 5,888 Additions 1,414 1,471 3,889 3,987 Amortized to expense (882) (1,108) (2,617) (2,701) Change in valuation allowance — (400) 500 (500) Balance, end of period $ 8,867 $ 6,674 $ 8,867 $ 6,674 Activity in the valuation allowance for capitalized mortgage servicing rights follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Beginning valuation allowance $ — $ 100 $ 500 $ — Charge during the period — 400 (500) 500 Ending valuation allowance $ — $ 500 $ — $ 500 Other information relating to mortgage servicing rights follows: (in thousands) September 30, 2021 December 31, 2020 Fair value of mortgage servicing rights portfolio $ 10,906 $ 8,318 Monthly weighted average prepayment rate of unpaid principal balance* 205 % 308 % Discount rate 10 % 10 % Weighted average foreclosure rate 0.24 % 0.44 % Weighted average life in years 5.88 4.85 * Rates are applied to individual tranches with similar characteristics. Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts and interest rate lock loan commitments. Mandatory forward contracts represent future commitments to deliver loans at a specified price and date and are used to manage interest rate risk on loan commitments and mortgage loans held for sale. Interest rate lock loan commitments represent commitments to fund loans at a specific rate. These derivatives involve underlying items, such as interest rates, and are designed to transfer risk. Substantially all of these instruments expire within 90 days from the date of issuance. Notional amounts are amounts on which calculations and payments are based, but which do not represent credit exposure, as credit exposure is limited to the amounts required to be received or paid. Mandatory forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the counterparties fail to deliver commitments or are unable to fulfill their obligations, the Bank could potentially incur significant additional costs by replacing the positions at then current market rates. The Bank manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management and the Board of Directors. The Bank does not expect any counterparty to default on their obligations and therefore, the Bank does not expect to incur any cost related to counterparty default. The Bank is exposed to interest rate risk on loans held for sale and rate lock loan commitments. As market interest rates fluctuate, the fair value of mortgage loans held for sale and rate lock commitments will decline or increase. To offset this interest rate risk the Bank enters into derivatives, such as mandatory forward contracts to sell loans. The fair value of these mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate lock loan commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before expiration; and the time period required to close and sell loans. The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives as of the period ends presented: September 30, 2021 December 31, 2020 Notional Notional (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 25,232 $ 25,791 $ 44,781 $ 46,867 Included in other assets: Rate lock loan commitments $ 94,210 $ 1,943 $ 105,395 $ 4,540 Mandatory forward contracts 105,659 722 — — Included in other liabilities: Mandatory forward contracts $ — $ — $ 136,236 $ 976 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 9 Months Ended |
Sep. 30, 2021 | |
INTEREST RATE SWAPS | |
INTEREST RATE SWAPS | 12. INTEREST RATE SWAPS Interest Rate Swaps Used as Cash Flow Hedges The Bank entered into two interest rate swap agreements (“swaps”) during 2013 as part of its interest rate risk management strategy. The Bank designated these swaps as cash flow hedges intended to reduce the variability in cash flows attributable to either FHLB advances tied to the 3-month LIBOR or the overall changes in cash flows on certain money market deposit accounts tied to the 1-month LIBOR. Both swaps matured in December 2020. The following table reflects the total interest expense recorded on these swap transactions in the consolidated statements of income: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Interest rate swap on money market deposits $ — $ 52 $ — $ 107 Interest rate swap on FHLB advance — 51 — 104 Total interest (benefit) expense on swap transactions $ — $ 103 $ — $ 211 The following table presents the net gains (losses) recorded in OCI and the consolidated statements of income relating to the swaps designated as cash flow hedges: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Gains (losses) recognized in OCI on derivative (effective portion) $ — $ (1) $ — $ (173) Gains (losses) reclassified from OCI on derivative (effective portion) — (103) — (211) 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 counterparty or client owes the Bank, and results in credit risk to the Bank. When the fair value of a derivative instrument contract is negative, the Bank owes the client or counterparty, and therefore, has no credit risk. A summary of the Bank’s interest rate swaps related to clients is included in the following table: September 30, 2021 December 31, 2020 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 109,456 $ 6,707 $ 138,277 $ 12,545 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 15,953 (103) — — Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 125,409 $ 6,604 $ 138,277 $ 12,545 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 125,409 (6,604) 138,277 (12,545) Total $ 250,818 $ — $ 276,554 $ — 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 $7.8 million and $13.3 million as of September 30, 2021 and December 31, 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The Company calculates earnings per share under the two-class method. Under the two-class method, earnings available to common shareholders for the period are allocated between Class A Common Stock and Class B Common Stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. The difference in earnings per share between the two classes of common stock results from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock. A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2021 2020 2021 2020 Income from continuing operations $ 18,412 $ 17,275 $ 55,240 $ 49,344 Income (loss) from discontinued operations 1,597 3,114 14,744 13,546 Net income available to common shareholders 20,009 20,389 69,984 62,890 Dividends declared on Common Stock: Class A Shares (5,557) (5,375) (16,980) (16,080) Class B Shares (606) (572) (1,830) (1,716) Undistributed net income for basic earnings per share 13,846 14,442 51,174 45,094 Weighted average potential dividends on Class A shares upon exercise of dilutive options (17) (7) (40) (24) Undistributed net income for diluted earnings per share $ 13,829 $ 14,435 $ 51,134 $ 45,070 Weighted average shares outstanding: Class A Shares 18,342 18,826 18,625 18,830 Class B Shares 2,166 2,200 2,182 2,201 Effect of dilutive securities on Class A Shares outstanding 83 20 72 37 Weighted average shares outstanding including dilutive securities 20,591 21,046 20,879 21,068 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.31 $ 0.29 $ 0.92 $ 0.86 Undistributed earnings per share* from continuing operations 0.60 0.54 1.77 1.51 Total basic earnings per share from continuing operations 0.91 0.83 2.69 2.37 Total basic earnings per share from discontinued operations 0.08 0.15 0.71 0.65 Total basic earnings per share - Class A Common Stock $ 0.99 $ 0.98 $ 3.40 $ 3.02 Class B Common Stock: Per share dividends distributed $ 0.28 $ 0.26 $ 0.84 $ 0.78 Undistributed earnings per share* 0.55 0.49 1.61 1.38 Total basic earnings per share from continuing operations 0.83 0.75 2.45 2.16 Total basic earnings per share from discontinued operations 0.07 0.14 0.65 0.59 Total basic earnings per share - Class B Common Stock $ 0.90 $ 0.89 $ 3.10 $ 2.75 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.31 $ 0.29 $ 0.92 $ 0.86 Undistributed earnings per share* 0.60 0.54 1.76 1.51 Total diluted earnings per share from continuing operations 0.91 0.83 2.68 2.37 Total diluted earnings per share from discontinued operations 0.08 0.15 0.71 0.65 Total diluted earnings per share - Class A Common Stock $ 0.99 $ 0.98 $ 3.39 $ 3.02 Class B Common Stock: Per share dividends distributed $ 0.28 $ 0.26 $ 0.84 $ 0.78 Undistributed earnings per share* 0.55 0.49 1.60 1.37 Total diluted earnings per share from continuing operations 0.83 0.75 2.44 2.15 Total diluted earnings per share from discontinued operations 0.07 0.14 0.65 0.59 Total diluted earnings per share - Class B Common Stock $ 0.90 $ 0.89 $ 3.09 $ 2.74 * To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Antidilutive stock options 141,000 431,000 144,000 244,000 Average antidilutive stock options 141,000 367,000 144,000 193,000 |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2021 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 14. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Available-for-Sale Debt Securities: Unrealized gains and (losses) on AFS debt securities $ (1,899) $ (258) $ (4,542) $ 8,618 Unrealized gain (loss) of AFS debt security for which a portion of OTTI has been recognized in earnings 13 61 62 (46) Net unrealized (losses) gains (1,886) (197) (4,480) 8,572 Tax effect 471 49 1,119 (2,144) Net of tax (1,415) (148) (3,361) 6,428 Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges — (1) — (173) Reclassification amount for net derivative losses realized in income — 103 — 211 Net gains (losses) — 102 — 38 Tax effect — (25) — (9) Net of tax — 77 — 29 Total other comprehensive (loss) income components, net of tax $ (1,415) $ (71) $ (3,361) $ 6,457 The table below presents the significant amounts reclassified out of each component of AOCI: Amounts Reclassified from AOCI Affected Line Items Three Months Ended Nine Months Ended in the Consolidated September 30, September 30, (in thousands) Statements of Income 2021 2020 2021 2020 Cash Flow Hedges: Interest rate swap on money market deposits Interest expense on deposits $ — $ (52) $ — $ (107) Interest rate swap on FHLB advance Interest expense on FHLB advances — (51) — (104) Total derivative losses on cash flow hedges Total interest expense — (103) — (211) Tax effect Income tax expense — 26 — 53 Net of tax Net income $ — $ (77) $ — $ (158) The following is a summary of the AOCI balances, net of tax: 2021 (in thousands) December 31, 2020 Change September 30, 2021 Unrealized gain (loss) on AFS debt securities $ 7,571 $ (3,407) $ 4,164 Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 938 46 984 Total unrealized gain (loss) $ 8,509 $ (3,361) $ 5,148 2020 (in thousands) December 31, 2019 Change September 30, 2020 Unrealized gain on AFS debt securities $ 2,211 $ 6,464 $ 8,675 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 964 (35) 929 Unrealized (loss) gain on cash flow hedges (77) 28 (49) Total unrealized gain $ 3,098 $ 6,457 $ 9,555 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 15. REVENUE FROM CONTRACTS WITH CUSTOMERS The following tables present the Company’s net revenue and net revenue concentration from continuing operations by reportable segment: Three Months Ended September 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 40,297 $ 6,291 $ 253 $ 46,841 $ 171 $ 5,297 $ 5,468 $ 52,309 Noninterest income: Service charges on deposit accounts 3,262 15 — 3,277 — — — 3,277 Mortgage banking income (1) — — 5,280 5,280 — — — 5,280 Interchange fee income 3,199 — — 3,199 1 — 1 3,200 Program fees (1) — — — — 763 3,767 4,530 4,530 Increase in cash surrender value of BOLI (1) 626 — — 626 — — — 626 Net gains (losses) on OREO (52) — — (52) — — — (52) Other 1,073 — 62 1,135 (1) — (1) 1,134 Total noninterest income 8,108 15 5,342 13,465 763 3,767 4,530 17,995 Total net revenue $ 48,405 $ 6,306 $ 5,595 $ 60,306 $ 934 $ 9,064 $ 9,998 $ 70,304 Net-revenue concentration from continuing operations (2) 69 % 9 % 8 % 86 % 1 % 13 % 14 % 100 % Three Months Ended September 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 38,753 $ 7,345 $ 300 $ 46,398 $ 675 $ 4,976 $ 5,651 $ 52,049 Noninterest income: Service charges on deposit accounts 3,000 18 — 3,018 (1) — (1) 3,017 Mortgage banking income (1) — — 10,775 10,775 — — — 10,775 Interchange fee income 2,873 — — 2,873 1 — 1 2,874 Program fees (1) — — — — 643 844 1,487 1,487 Increase in cash surrender value of BOLI (1) 400 — — 400 — — — 400 Net gains (losses) on OREO (14) — — (14) — — — (14) Other 879 (39) 21 861 — — — 861 Total noninterest income 7,138 (21) 10,796 17,913 643 844 1,487 19,400 Total net revenue $ 45,891 $ 7,324 $ 11,096 $ 64,311 $ 1,318 $ 5,820 $ 7,138 $ 71,449 Net-revenue concentration from continuing operations (2) 64 % 10 % 16 % 90 % 2 % 8 % 10 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue from continuing operations represents net interest income plus total noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations. Nine Months Ended September 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 119,677 $ 19,387 $ 802 $ 139,866 $ 665 $ 14,794 $ 15,459 $ 155,325 Noninterest income: Service charges on deposit accounts 9,188 43 — 9,231 (10) — (10) 9,221 Mortgage banking income (1) — — 16,655 16,655 — — — 16,655 Interchange fee income 9,535 — — 9,535 4 — 4 9,539 Program fees (1) — — — — 2,374 7,930 10,304 10,304 Increase in cash surrender value of BOLI (1) 1,616 — — 1,616 — — — 1,616 Net gains (losses) on OREO (107) — — (107) — — — (107) Other 2,630 — 140 2,770 (1) — (1) 2,769 Total noninterest income 22,862 43 16,795 39,700 2,367 7,930 10,297 49,997 Total net revenue $ 142,539 $ 19,430 $ 17,597 $ 179,566 $ 3,032 $ 22,724 $ 25,756 $ 205,322 Net-revenue concentration from continuing operations (2) 70 % 9 % 9 % 88 % 1 % 11 % 12 % 100 % Nine Months Ended September 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 118,409 $ 17,715 $ 932 $ 137,056 $ 1,622 $ 17,655 $ 19,277 $ 156,333 Noninterest income: Service charges on deposit accounts 8,576 46 — 8,622 (18) — (18) 8,604 Mortgage banking income (1) — — 23,968 23,968 — — — 23,968 Interchange fee income 8,090 — — 8,090 3 — 3 8,093 Program fees (1) — — — — 1,573 3,676 5,249 5,249 Increase in cash surrender value of BOLI (1) 1,184 — — 1,184 — — — 1,184 Net gains (losses) on OREO (10) — — (10) — — — (10) Other 2,659 (39) 53 2,673 — — — 2,673 Total noninterest income 20,499 7 24,021 44,527 1,558 3,676 5,234 49,761 Total net revenue $ 138,908 $ 17,722 $ 24,953 $ 181,583 $ 3,180 $ 21,331 $ 24,511 $ 206,094 Net-revenue concentration from continuing operations (2) 67 % 9 % 12 % 88 % 2 % 10 % 12 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue from continuing operations represents net interest income plus total noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations. The following represents information for significant revenue streams from continuing operations subject to ASC 606: Service charges on deposit accounts Interchange fee income The Company compensates its cardholders by way of cash or other “rewards” for generating card transactions. These rewards are disclosed in cardholder agreements between the Company and its cardholders. Reward costs are accrued over time based on card transactions generated by the cardholder. Interchange fee income is presented net of reward costs within noninterest income. Net gains/(losses) on other real estate – The Company routinely sells OREO it has acquired through loan foreclosure. Net gains/(losses) on OREO reflect both 1) the gain or loss recognized upon an executed deed and 2) mark-to-market writedowns the Company takes on its OREO inventory. The Company generally recognizes gains or losses on OREO at the time of an executed deed, although gains may be recognized over a financing period if the Company finances the sale. For financed OREO sales, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. Mark-to-market writedowns taken by the Company during the property’s holding period are generally at least 10% per year, but may be higher based on updated real estate appraisals or BPOs. Incremental expenditures to bring OREO to salable condition are generally expensed as-incurred. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 16. SEGMENT INFORMATION Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar. As of September 30, 2021, 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. See additional detail regarding the Bank’s agreement to sell TRS under Footnote 17 “Discontinued Operations” in this section of the filing. The nature of segment operations and the primary drivers of net revenue by reportable segment are provided below: Reportable Segment: Nature of Operations: Primary Drivers of Net Revenue: Core Banking: Traditional Banking Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels. Loans, investments, and deposits Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the United States. Mortgage warehouse lines of credit Mortgage Banking Primarily originates, sells and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint. Loan sales and servicing Republic Processing Group: Tax Refund Solutions: Continuing Operations Continuing operations of TRS include its RPS division and certain indirect costs that are expected to remain with the Bank. The RPS division of TRS offers general-purpose reloadable cards primarily to clients outside of the Bank’s market footprint. Prepaid Cards Discontinued Operations The Bank agreed to sell its TRS business to Green Dot in May 2021. The TRS business has traditionally contained the significant majority of revenue and expense generated at the TRS segment. The TRS business contracted to be sold offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. TRS products are primarily provided to clients outside of the Bank’s market footprint. Loans and refund transfers Republic Credit Solutions Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers. Unsecured, consumer loans The accounting policies used for Republic’s reportable segments are generally the same as those described in the summary of significant accounting policies in the Company’s 2020 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value. Segment information follows: Three Months Ended September 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 40,297 $ 6,291 $ 253 $ 46,841 $ 171 $ 5,297 $ 5,468 $ 52,309 Provision for expected credit loss expense (44) (223) — (267) — 3,820 3,820 3,553 Mortgage banking income — — 5,280 5,280 — — — 5,280 Program fees — — — — 763 3,767 4,530 4,530 Other noninterest income 8,108 15 62 8,185 — — — 8,185 Total noninterest income 8,108 15 5,342 13,465 763 3,767 4,530 17,995 Total noninterest expense 35,927 1,056 3,257 40,240 1,308 1,046 2,354 42,594 Income (loss) from continuing operations before income tax expense 12,522 5,473 2,338 20,333 (374) 4,198 3,824 24,157 Income tax expense (benefit) 3,038 1,258 514 4,810 (102) 1,037 935 5,745 Income (loss) from continuing operations 9,484 4,215 1,824 15,523 (272) 3,161 2,889 18,412 Discontinued operations: Income from discontinued operations before income taxes — — — — 2,070 — 2,070 2,070 Income tax expense — — — — 473 — 473 473 Income from discontinued operations, net of tax — — — — 1,597 — 1,597 1,597 Net income $ 9,484 $ 4,215 $ 1,824 $ 15,523 $ 1,325 $ 3,161 $ 4,486 $ 20,009 Period-end assets $ 4,907,503 $ 750,266 $ 41,196 $ 5,698,965 $ 365,552 $ 123,117 $ 488,669 $ 6,187,634 Net interest margin from continuing operations 3.22 % 3.51 % NM 3.25 % NM NM NM 3.55 % Net-revenue concentration from continuing operations* 69 % 9 % 8 % 86 % 1 % 13 % 14 % 100 % Three Months Ended September 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 38,753 $ 7,345 $ 300 $ 46,398 $ 675 $ 4,976 $ 5,651 $ 52,049 Provision for expected credit loss expense 5,857 (3) — 5,854 — (12) (12) 5,842 Mortgage banking income — — 10,775 10,775 — — — 10,775 Program fees — — — — 643 844 1,487 1,487 Other noninterest income 7,138 (21) 21 7,138 — — — 7,138 Total noninterest income 7,138 (21) 10,796 17,913 643 844 1,487 19,400 Total noninterest expense 36,415 1,875 2,832 41,122 1,481 1,175 2,656 43,778 Income (loss) from continuing operations before income tax expense 3,619 5,452 8,264 17,335 (163) 4,657 4,494 21,829 Income tax expense (benefit) 558 1,226 1,736 3,520 (40) 1,074 1,034 4,554 Income (loss) from continuing operations 3,061 4,226 6,528 13,815 (123) 3,583 3,460 17,275 Discontinued operations: Income from discontinued operations before income taxes — — — — 3,997 — 3,997 3,997 Income tax expense — — — — 883 — 883 883 Income from discontinued operations, net of tax — — — — 3,114 — 3,114 3,114 Net income $ 3,061 $ 4,226 $ 6,528 $ 13,815 $ 2,991 $ 3,583 $ 6,574 $ 20,389 Period-end assets $ 4,769,848 $ 1,026,790 $ 61,809 $ 5,858,447 $ 269,337 $ 112,662 $ 381,999 $ 6,240,446 Net interest margin from continuing operations 3.22 % 3.41 % NM 3.25 % NM NM NM 3.57 % Net-revenue concentration from continuing operations* 64 % 10 % 16 % 90 % 2 % 8 % 10 % 100 % * Net revenue from continuing operations represents net interest income plus total noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations. Nine Months Ended September 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 119,677 $ 19,387 $ 802 $ 139,866 $ 665 $ 14,794 $ 15,459 $ 155,325 Provision for expected credit loss expense (126) (530) — (656) — 5,037 5,037 4,381 Mortgage banking income — — 16,655 16,655 — — — 16,655 Program fees — — — — 2,374 7,930 10,304 10,304 Other noninterest income 22,862 43 140 23,045 (7) — (7) 23,038 Total noninterest income 22,862 43 16,795 39,700 2,367 7,930 10,297 49,997 Total noninterest expense 110,192 3,150 9,384 122,726 4,239 3,028 7,267 129,993 Income (loss) from continuing operations before income tax expense 32,473 16,810 8,213 57,496 (1,207) 14,659 13,452 70,948 Income tax expense (benefit) 6,718 3,919 1,807 12,444 (373) 3,637 3,264 15,708 Income (loss) from continuing operations 25,755 12,891 6,406 45,052 (834) 11,022 10,188 55,240 Discontinued operations: Income from discontinued operations before income taxes — — — — 19,584 — 19,584 19,584 Income tax expense — — — — 4,840 — 4,840 4,840 Income from discontinued operations, net of tax — — — — 14,744 — 14,744 14,744 Net income $ 25,755 $ 12,891 $ 6,406 $ 45,052 $ 13,910 $ 11,022 $ 24,932 $ 69,984 Period-end assets $ 4,907,503 $ 750,266 $ 41,196 $ 5,698,965 $ 365,552 $ 123,117 $ 488,669 $ 6,187,634 Net interest margin from continuing operations 3.21 % 3.47 % NM 3.24 % NM NM NM 3.46 % Net-revenue concentration from continuing operations* 70 % 9 % 9 % 88 % 1 % 11 % 12 % 100 % Nine Months Ended September 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 118,409 $ 17,715 $ 932 $ 137,056 $ 1,622 $ 17,655 $ 19,277 $ 156,333 Provision for expected credit loss expense 14,526 778 — 15,304 — 251 251 15,555 Mortgage banking income — — 23,968 23,968 — — — 23,968 Program fees — — — — 1,573 3,676 5,249 5,249 Other noninterest income 20,499 7 53 20,559 (15) — (15) 20,544 Total noninterest income 20,499 7 24,021 44,527 1,558 3,676 5,234 49,761 Total noninterest expense 109,750 3,489 7,517 120,756 5,360 2,972 8,332 129,088 Income (loss) from continuing operations before income tax expense 14,632 13,455 17,436 45,523 (2,180) 18,108 15,928 61,451 Income tax expense (benefit) 1,747 3,027 3,662 8,436 (517) 4,188 3,671 12,107 Income (loss) from continuing operations 12,885 10,428 13,774 37,087 (1,663) 13,920 12,257 49,344 Discontinued operations: Income from discontinued operations before income taxes — — — — 17,550 — 17,550 17,550 Income tax expense — — — — 4,004 — 4,004 4,004 Income from discontinued operations, net of tax — — — — 13,546 — 13,546 13,546 Net income $ 12,885 $ 10,428 $ 13,774 $ 37,087 $ 11,883 $ 13,920 $ 25,803 $ 62,890 Period-end assets $ 4,769,848 $ 1,026,790 $ 61,809 $ 5,858,447 $ 269,337 $ 112,662 $ 381,999 $ 6,240,446 Net interest margin from continuing operations 3.41 % 3.07 % NM 3.37 % NM NM NM 3.69 % Net-revenue concentration from continuing operations* 67 % 9 % 12 % 88 % 2 % 10 % 12 % 100 % * Net revenue from continuing operations represents net interest income plus total noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 17. DISCONTINUED OPERATIONS On May 13, 2021, the Bank entered into the Purchase Agreement with Green Dot providing for the Sale Transaction. As a result of the Purchase Agreement and the proposed Sale Transaction, the results for the Company, RPG, and its TRS segment are presented within this filing to reflect continuing versus discontinued operations. RPG’s continuing operations include its RCS segment, its RPS division, and certain overhead costs previously allocated to TRS that will remain with RPG. Discontinued operations are those contracted to be sold. These discontinued operations have historically contained the majority of TRS’s revenue and expense. Interest income and expense for continuing and discontinued operations also include intercompany interest charged and earned based on the Company’s funds transfer pricing methodology. On October 4, 2021, Green Dot announced that it had been unable to obtain the Federal Reserve’s approval of or non-objection to the Sale Transaction and that, as a result, Green Dot would not consummate the Sale Transaction. On October 5, 2021, the Bank filed a lawsuit against Green Dot in the Delaware Court of Chancery alleging breach of contract. In so doing, the Bank seeks, among other relief, specific performance to require that Green Dot proceed with the Sale Transaction as the parties had agreed to in the Purchase Agreement. Due to the inherent uncertainties of legal proceedings, at this time, the Company cannot predict the outcome of these proceedings and their impact on the Company’s financial condition and results of operations. Results of operations for the TRS business sold to Green Dot are presented separately as discontinued operations for all periods because the sale met the relevant criteria as of September 30, 2021. A summary income statement of discontinued operations for the three and nine months ended September 30, 2021 is presented below: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 INTEREST INCOME: Loans, including fees $ 76 $ 135 $ 14,815 $ 20,978 Funds transfer credit 51 70 313 1,543 Total interest income 127 205 15,128 22,521 INTEREST EXPENSE: Deposits — — — 527 Funds transfer cost 4 2 200 1,132 Total interest expense 4 2 200 1,659 NET INTEREST INCOME 123 203 14,928 20,862 Provision for expected credit loss expense (2,261) (4,342) 7,850 15,239 NET INTEREST INCOME AFTER PROVISION 2,384 4,545 7,078 5,623 NONINTEREST INCOME: Net refund transfer fees 1,280 1,152 19,922 19,888 Interchange fee income 63 37 232 178 Other 1 8 78 90 Total noninterest income 1,344 1,197 20,232 20,156 NONINTEREST EXPENSE: Salaries and employee benefits 1,043 1,460 4,268 4,208 Technology, equipment, and communication 86 131 260 461 Occupancy — — 1 7 Marketing and development 45 55 160 196 FDIC insurance expense — — 150 — Bank franchise tax expense 9 2 14 1,729 Legal and professional fees 303 8 1,382 173 Other 172 89 1,491 1,455 Total noninterest expense 1,658 1,745 7,726 8,229 INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAX EXPENSE 2,070 3,997 19,584 17,550 INCOME TAX EXPENSE 473 883 4,840 4,004 INCOME FROM DISCONTINUED OPERATIONS $ 1,597 $ 3,114 $ 14,744 $ 13,546 Through its TRS business, the Bank is one of a limited number of financial institutions that facilitates the receipt and payment of federal and state tax refund products and offers a credit product through third-party tax preparers located throughout the U.S., as well as tax-preparation software providers (collectively, the “Tax Providers”). Substantially all of the business generated by the TRS business occurs during the first half of each year. During the second half of each year, TRS generates limited revenue and incurs costs preparing for the next year’s tax season. RTs are fee-based products whereby a tax refund is issued to the taxpayer after the Bank has received the refund from the federal or state government. There is no credit risk or borrowing cost associated with these products because they are only delivered to the taxpayer upon receipt of the tax refund directly from the governmental paying authority. Fees earned by the Company on RTs, net of revenue share, are reported as noninterest income under the line item “Net refund transfer fees.” The 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 2021 and 2020: ● Offered only during the first two months of each year; ● The taxpayer was given the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $6,250 ; ● No requirement that the taxpayer pays for another bank product, such as an RT; ● Multiple funds disbursement methods, including direct deposit, prepaid card, or check, 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. During 2020, EAs were generally repaid within 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. EAs do not have a contractual due date but the Company considered an EA delinquent if it remained unpaid 21 days in 2020 and 35 days in 2021 after the taxpayer’s tax return was submitted to the applicable taxing authority. The number of days for delinquency eligibility is based on management’s annual analysis of tax return processing times. Provisions on EAs are estimated when advances are made. Unpaid EAs are charged-off by June 30 th of each year, with EAs collected during the second half of each year recorded as recoveries of previously charged-off loans. Related to the overall credit losses on EAs, the Bank’s ability to control losses is highly dependent upon its ability to predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s EA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the EA volume occurs each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes made, credit losses during a current year could be higher than management’s predictions if tax refund payment patterns change materially between years. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-member financial institution that provides both traditional and non-traditional banking products through five reportable segments using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery channels allow it to reach clients across the U.S. The Captive is a Nevada-based, wholly-owned insurance subsidiary of the Company. The Captive provides property and casualty insurance coverage to the Company and the Bank, as well as a group of third-party insurance captives for which insurance may not be available or economically feasible. In 2005, Republic Bancorp Capital Trust, an unconsolidated trust subsidiary of Republic, was formed and issued $40 million in TPS. On September 30, 2021, as permitted under the terms of RBCT’s governing documents, Republic redeemed these securities at the par amount of approximately $40 million, without penalty. Although the TPS were treated as part of Republic’s Tier I Capital while outstanding, Republic’s capital ratios remained well above “well capitalized” levels following this redemption. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in Republic’s Form 10-K for the year ended December 31, 2020. As of September 30, 2021, 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. See additional detail regarding the Bank’s agreement to sell TRS under Footnote 17 “Discontinued Operations” in this section of the filing. The Company’s financial condition as of September 30, 2021 and results of operations for the three and nine months ended September 30, 2021 and 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 4 “Loans and Allowance for Credit Losses” ● Footnote 9 “Off Balance Sheet Risks, Commitments, and Contingent Liabilities” Core Bank Traditional Banking segment — ● Kentucky — 28 ● Metropolitan Louisville — 18 ● Central Kentucky — 7 ● Georgetown — 1 ● Lexington — 5 ● Shelbyville — 1 ● Northern Kentucky — 3 ● Covington — 1 ● Crestview Hills — 1 ● Florence — 1 ● Southern Indiana — 3 ● Floyds Knobs — 1 ● Jeffersonville — 1 ● New Albany — 1 ● Metropolitan Tampa, Florida — 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; technology, equipment, and communication; occupancy; interchange related expense; marketing and development; FDIC insurance expense, and various other general and administrative costs. Traditional Banking results of operations are significantly impacted by general economic and competitive conditions, particularly changes in market interest rates, government laws and policies, and actions of regulatory agencies. Warehouse Lending segment — The Core Bank provides short-term, revolving credit facilities to mortgage bankers across the United States through mortgage warehouse lines of credit. These credit facilities are primarily secured by single-family, first-lien residential real estate loans. The credit facility enables the mortgage banking clients to close single-family, first-lien residential real estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days . Reverse mortgage loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client. Mortgage Banking segment — Republic Processing Group Tax Refund Solutions segment — As a result of the Purchase Agreement and the proposed Sale Transaction, the results for the Company, RPG, and its TRS segment are presented within this filing to reflect continuing versus discontinued operations. RPG’s continuing operations include its RCS segment, its RPS division, and certain overhead costs previously allocated to TRS that will remain with RPG. Discontinued operations are those contracted to be sold. These discontinued operations have historically contained the majority of TRS’s revenue and expense. Interest income and expense for continuing and discontinued operations also include intercompany interest charged and earned based on the Company’s funds transfer pricing methodology. On October 4, 2021, Green Dot announced that it had been unable to obtain the Federal Reserve’s approval of or non-objection to the Sale Transaction and that, as a result, Green Dot would not consummate the Sale Transaction. On October 5, 2021, the Bank filed a lawsuit against Green Dot in the Delaware Court of Chancery, C.A. No. 2021-0854-SG, alleging breach of contract. In so doing, the Bank seeks, among other relief, specific performance to require that Green Dot proceed with the Sale Transaction as the parties had agreed to in the Purchase Agreement. Due to the inherent uncertainties of legal proceedings, at this time, the Company cannot predict the outcome of these proceedings and their impact on the Company’s financial condition and results of operations. See additional detail regarding the Bank’s agreement to sell TRS under Footnote 17 “Discontinued Operations” in this section of the filing. Republic Payment Solutions division . 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 products – Using separate third-party service providers, the Bank originates two line-of-credit products to generally subprime borrowers in multiple states. The first of these two products (the “LOC I”) has been originated by the Bank since 2014. The second (the “LOC II”) was introduced in January 2021. o RCS’s LOC I represents the substantial majority of RCS activity. Elastic Marketing, LLC and Elevate Decision Sciences, LLC, are third-party service providers for the product and are both subject to the Bank’s oversight and supervision. Together, these companies provide the Bank with certain marketing, servicing, technology, and support services, while a separate third party provides customer support, servicing, and other services on the Bank’s behalf. The Bank is the lender for this product and is marketed as such. Further, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of the product. The Bank sells participation interests in this product. These participation interests are a 90% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three business days following the Bank’s funding of the associated advances. Although the Bank retains a 10% participation interest in each advance, it maintains 100% ownership of the underlying LOC I account with each borrower. Loan balances held for sale through this program are carried at the lower of cost or fair value. o In January 2021, RCS began originating balances through its LOC II. One of RCS’s existing th ird-party service providers, subject to the Bank’s oversight and supervision, provides the Bank with marketing services and loan servicing for the LOC II product. The Bank is the lender for this product and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this product. The Bank sells participation interests in this product. These participation interests are a 95% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three business days following the Bank’s funding of the associated advances. Although the Bank retains a 5% participation interest in each advance, it maintains 100% ownership of the underlying LOC II account with each borrower. Loan balances held for sale through this program are carried at the lower of cost or fair value. ● 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. The same third-party service provider for RCS’s LOC II is the third-party service provider for the installment loans. This third-party service provider is subject to the Bank’s oversight and supervision and provides the Bank with marketing services and loan servicing for these RCS installment loans. The Bank is the lender for these RCS installment loans and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these loans to its third-party service provider generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. ● RCS healthcare receivables products – The Bank originates healthcare-receivables products across the U.S. through two different third-party service providers. In one program, the Bank retains 100% of the receivables originated. In the other program, the Bank retains 100% of the receivables originated in some instances, and in other instances, sells 100% of the receivables within one month of origination. Loan balances held for sale through this program are carried at the lower of cost or fair value. The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains or losses on sale and mark-to-market adjustments of RCS loans are reported as noninterest income under “Program fees.” |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards The following ASUs were adopted by the Company during the nine months ended September 30, 2021: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2020-08 Codification Improvements to Subtopic 310-20, This ASU clarifies that an entity should re-evaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. January 1, 2021 Prospectively Immaterial 2020-10 Codification Improvements This ASU affects a wide variety of Topics in the Codification. 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 Immaterial 2021-06 Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946) This ASU amends the SEC sections of the Codification related to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. August 9, 2021 Prospectively Immaterial |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedules of Accounting Standards Updates | Recently Adopted Accounting Standards The following ASUs were adopted by the Company during the nine months ended September 30, 2021: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2020-08 Codification Improvements to Subtopic 310-20, This ASU clarifies that an entity should re-evaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. January 1, 2021 Prospectively Immaterial 2020-10 Codification Improvements This ASU affects a wide variety of Topics in the Codification. 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 Immaterial 2021-06 Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946) This ASU amends the SEC sections of the Codification related to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. August 9, 2021 Prospectively Immaterial |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 234,980 $ 747 $ (882) $ — $ 234,845 Private label mortgage-backed security 1,468 1,312 — — 2,780 Mortgage-backed securities - residential 204,869 5,059 (123) — 209,805 Collateralized mortgage obligations 34,027 521 (29) — 34,519 Corporate bonds 10,000 81 — — 10,081 Trust preferred security 3,671 179 — — 3,850 Total available-for-sale debt securities $ 489,015 $ 7,899 $ (1,034) $ — $ 495,880 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 |
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 September 30, 2021 (in thousands) Value Gains Losses Value Credit Losses Mortgage-backed securities - residential $ 47 $ — $ — $ 47 $ — Collateralized mortgage obligations 9,777 150 — 9,927 — Corporate bonds 34,976 390 — 35,366 (54) Obligations of state and political subdivisions 245 5 — 250 — Total held-to-maturity debt securities $ 45,045 $ 545 $ — $ 45,590 $ (54) 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) |
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 September 30, 2021 (in thousands) Cost Value Value Value Due in one year or less $ 25,044 $ 25,270 $ 121 $ 123 Due from one year to five years 179,937 179,803 35,100 35,493 Due from five years to ten years 40,000 39,853 — — Due beyond ten years 3,670 3,850 — — Private label mortgage-backed security 1,468 2,780 — — Mortgage-backed securities - residential 204,869 209,805 47 47 Collateralized mortgage obligations 34,027 34,519 9,777 9,927 Total debt securities $ 489,015 $ 495,880 $ 45,045 $ 45,590 |
Schedule of debt securities with unrealized losses | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized September 30, 2021 (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 $ 158,944 $ (882) $ — $ — $ 158,944 $ (882) Mortgage-backed securities - residential 34,432 (123) — — 34,432 (123) Collateralized mortgage obligations 5,164 (29) — — 5,164 (29) Total available-for-sale debt securities $ 198,540 $ (1,034) $ — $ — $ 198,540 $ (1,034) 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) |
Schedule of allowance for credit losses on investment | ACLS Rollforward Three Months Ended September 30, 2021 2020 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ — $ — $ — $ 126 $ (74) $ — $ — $ 52 Held-to-Maturity Securities: Corporate Bonds 56 (2) — — 54 147 148 — — 295 Total $ 56 $ (2) $ — $ — $ 54 $ 273 $ 74 $ — $ — $ 347 ACLS Rollforward Nine Months Ended September 30, 2021 2020 Beginning Charge- Ending Beginning ASC 326 Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Adoption Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ — $ — $ — $ — $ — $ 52 $ — $ — $ 52 Held-to-Maturity Securities: Corporate Bonds 178 (124) — — 54 — 51 244 — — 295 Total $ 178 $ (124) $ — $ — $ 54 $ — $ 51 $ 296 $ — $ — $ 347 |
Schedule of pledged investment securities | (in thousands) September 30, 2021 December 31, 2020 Carrying amount $ 354,275 $ 303,535 Fair value 354,341 303,611 |
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 September 30, 2021 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 102 $ — $ 102 Community Reinvestment Act mutual fund 2,500 — (24) 2,476 Total equity securities with readily determinable fair values $ 2,500 $ 102 $ (24) $ 2,578 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 |
Schedule of equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company's consolidated statements of income | Gains (Losses) Recognized on Equity Securities Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (13) $ (13) $ — $ 50 $ 50 Community Reinvestment Act mutual fund — (9) (9) — 4 4 Total equity securities with readily determinable fair value $ — $ (22) $ (22) $ — $ 54 $ 54 Gains (Losses) Recognized on Equity Securities Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (458) $ (458) $ — $ (178) $ (178) Community Reinvestment Act mutual fund — (47) (47) — 60 60 Total equity securities with readily determinable fair value $ — $ (505) $ (505) $ — $ (118) $ (118) |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
LOANS HELD FOR SALE. | |
Schedule of activity of consumer loans held for sale and carried at fair value | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 13,020 $ 164 $ 3,298 $ 598 Origination of consumer loans held for sale 67,526 1,559 136,222 49,300 Proceeds from the sale of consumer loans held for sale (71,427) (1,321) (132,330) (50,872) Net gain on sale of consumer loans held for sale 1,660 47 3,589 1,423 Balance, end of period $ 10,779 $ 449 $ 10,779 $ 449 |
Schedule of activity of consumer loans held for sale and carried at lower of cost or fair value | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 11,412 $ 12,801 $ 1,478 $ 11,646 Origination of consumer loans held for sale 189,492 107,518 424,840 342,388 Proceeds from the sale of consumer loans held for sale (199,036) (109,669) (426,642) (344,919) Net gain on sale of consumer loans held for sale 2,108 793 4,300 2,328 Balance, end of period $ 3,976 $ 11,443 $ 3,976 $ 11,443 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Schedule of composition of loan portfolio | (in thousands) September 30, 2021 December 31, 2020 Traditional Banking: Residential real estate: Owner occupied $ 827,898 $ 879,800 Nonowner occupied 294,818 264,780 Commercial real estate 1,393,241 1,349,085 Construction & land development 105,968 98,674 Commercial & industrial 333,795 325,596 Paycheck Protection Program 126,271 392,319 Lease financing receivables 9,427 10,130 Aircraft 130,398 101,375 Home equity 215,282 240,640 Consumer: Credit cards 14,781 14,196 Overdrafts 753 587 Automobile loans 17,533 30,300 Other consumer 6,223 8,167 Total Traditional Banking 3,476,388 3,715,649 Warehouse lines of credit* 750,682 962,796 Total Core Banking 4,227,070 4,678,445 Republic Processing Group*: Tax Refund Solutions: Easy Advances — — Other TRS loans 1 — Republic Credit Solutions 116,711 110,893 Total Republic Processing Group 116,712 110,893 Total loans** 4,343,782 4,789,338 Allowance for credit losses (63,024) (61,067) Total loans, net $ 4,280,758 $ 4,728,271 *Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. |
Schedule that reconciles the contractually receivable and carrying amounts of loans | (in thousands) September 30, 2021 December 31, 2020 Contractually receivable $ 4,348,535 $ 4,797,297 Unearned income (598) (708) Unamortized premiums 121 216 Unaccreted discounts (688) (988) PPP net unamortized deferred origination fees and costs (3,986) (8,564) Other net unamortized deferred origination fees and costs 398 2,085 Carrying value of loans $ 4,343,782 $ 4,789,338 |
Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed | Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of September 30, 2021 2021 2020 2019 2018 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 170,594 $ 229,444 $ 96,923 $ 56,318 $ 251,929 $ — $ — $ 805,208 Special Mention 304 — — 36 8,509 — — 8,849 Substandard — 557 685 1,006 11,593 — — 13,841 Doubtful — — — — — — — — Total $ 170,898 $ 230,001 $ 97,608 $ 57,360 $ 272,031 $ — $ — $ 827,898 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 75,983 $ 71,290 $ 50,082 $ 32,111 $ 61,625 $ — $ 3,588 $ 294,679 Special Mention — — — — 40 — — 40 Substandard — — — — 99 — — 99 Doubtful — — — — — — — — Total $ 75,983 $ 71,290 $ 50,082 $ 32,111 $ 61,764 $ — $ 3,588 $ 294,818 Commercial real estate: Risk Rating Pass or not rated $ 362,616 $ 271,691 $ 179,046 $ 104,300 $ 311,904 $ — $ 79,005 $ 1,308,562 Special Mention 12,103 2,411 29,879 11,535 19,767 — — 75,695 Substandard — 2,576 266 — 3,941 — 2,201 8,984 Doubtful — — — — — — — — Total $ 374,719 $ 276,678 $ 209,191 $ 115,835 $ 335,612 $ — $ 81,206 $ 1,393,241 Construction and land development: Risk Rating Pass or not rated $ 59,659 $ 37,136 $ 4,384 $ 1,527 $ 593 $ — $ — $ 103,299 Special Mention — 310 2,359 — — — — 2,669 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 59,659 $ 37,446 $ 6,743 $ 1,527 $ 593 $ — $ — $ 105,968 Commercial and industrial: Risk Rating Pass or not rated $ 117,127 $ 55,354 $ 66,818 $ 21,262 $ 48,361 $ — $ 4,112 $ 313,034 Special Mention 15,398 2,344 800 43 2,095 — — 20,680 Substandard — 48 — — 33 — — 81 Doubtful — — — — — — — — Total $ 132,525 $ 57,746 $ 67,618 $ 21,305 $ 50,489 $ — $ 4,112 $ 333,795 Paycheck Protection Program: Risk Rating Pass or not rated $ 107,498 $ 18,773 $ — $ — $ — $ — $ — $ 126,271 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 107,498 $ 18,773 $ — $ — $ — $ — $ — $ 126,271 Lease financing receivables: Risk Rating Pass or not rated $ 2,068 $ 903 $ 2,896 $ 1,406 $ 2,154 $ — $ — $ 9,427 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 2,068 $ 903 $ 2,896 $ 1,406 $ 2,154 $ — $ — $ 9,427 Aircraft: Risk Rating Pass or not rated $ 47,983 $ 46,405 $ 24,134 $ 10,049 $ 1,827 $ — $ — $ 130,398 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 47,983 $ 46,405 $ 24,134 $ 10,049 $ 1,827 $ — $ — $ 130,398 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 213,297 $ — $ 213,297 Special Mention — — — — — 125 — 125 Substandard — — — — — 1,860 — 1,860 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 215,282 $ — $ 215,282 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of September 30, 2021 2021 2020 2019 2018 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 844 $ 725 $ 10,451 $ 5,156 $ 6,864 $ 14,880 $ — $ 38,920 Special Mention — — — — — — — — Substandard — — 25 47 298 — — 370 Doubtful — — — — — — — — Total $ 844 $ 725 $ 10,476 $ 5,203 $ 7,162 $ 14,880 $ — $ 39,290 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 750,682 $ — $ 750,682 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 750,682 $ — $ 750,682 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 1 $ — $ 1 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 1 $ — $ 1 RCS: Risk Rating Pass or not rated $ 23,112 $ 9,275 $ 2,387 $ 985 $ 3,943 $ 76,004 $ — $ 115,706 Special Mention — — — — — — — — Substandard — — — — — 1,005 — 1,005 Doubtful — — — — — — — — Total $ 23,112 $ 9,275 $ 2,387 $ 985 $ 3,943 $ 77,009 $ — $ 116,711 Grand Total: Risk Rating Pass or not rated $ 967,484 $ 740,996 $ 437,121 $ 233,114 $ 689,200 $ 1,054,864 $ 86,705 $ 4,209,484 Special Mention 27,805 5,065 33,038 11,614 30,411 125 — 108,058 Substandard — 3,181 976 1,053 15,964 2,865 2,201 26,240 Doubtful — — — — — — — — Grand Total $ 995,289 $ 749,242 $ 471,135 $ 245,781 $ 735,575 $ 1,057,854 $ 88,906 $ 4,343,782 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 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 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 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 $ — $ — $ — $ — $ — $ — $ — $ — Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ — $ — $ — 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 $ 1,269,098 $ 57,610 $ 4,667,157 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 $ 1,272,456 $ 60,413 $ 4,789,338 |
Schedule of activity in the ACLL for loan and lease losses | ACLL Rollforward Three Months Ended September 30, 2021 2020 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 8,977 $ (677) $ — $ 329 $ 8,629 $ 9,303 $ 330 $ (13) $ 21 $ 9,641 Nonowner occupied 2,551 47 — — 2,598 2,274 96 — 7 2,377 Commercial real estate 23,307 286 — 3 23,596 16,300 4,663 — — 20,963 Construction & land development 3,299 376 — — 3,675 4,940 (341) — — 4,599 Commercial & industrial 4,117 (139) (35) 16 3,959 2,405 654 (255) 80 2,884 Paycheck Protection Program — — — — — — — — — — Lease financing receivables 97 2 — — 99 125 (8) — — 117 Aircraft 303 23 — — 326 208 11 — — 219 Home equity 4,305 (63) — 5 4,247 5,124 (7) (14) 21 5,124 Consumer: Credit cards 949 22 (40) 20 951 928 36 (29) 7 942 Overdrafts 717 143 (195) 88 753 488 324 (157) 50 705 Automobile loans 273 (34) (19) 6 226 473 (67) — — 406 Other consumer 467 (28) (25) 14 428 609 92 (41) 20 680 Total Traditional Banking 49,362 (42) (314) 481 49,487 43,177 5,783 (509) 206 48,657 Warehouse lines of credit 2,100 (223) — — 1,877 2,575 (3) — — 2,572 Total Core Banking 51,462 (265) (314) 481 51,364 45,752 5,780 (509) 206 51,229 Republic Processing Group (includes discontinued operations): Tax Refund Solutions: Easy Advances (discontinued operations) — (2,242) — 2,242 — — (4,294) — 4,294 — Other TRS loans (discontinued operations) — (19) — 19 — 211 (48) (22) — 141 Republic Credit Solutions (continuing operations) 8,829 3,820 (1,064) 75 11,660 9,134 (12) (684) 83 8,521 Total Republic Processing Group 8,829 1,559 (1,064) 2,336 11,660 9,345 (4,354) (706) 4,377 8,662 Total $ 60,291 $ 1,294 $ (1,378) $ 2,817 $ 63,024 $ 55,097 $ 1,426 $ (1,215) $ 4,583 $ 59,891 ACLL Rollforward Nine Months Ended September 30, 2021 2020 Beginning Charge- Ending Beginning ASC 326 Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Adoption Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 9,715 $ (1,461) $ — $ 375 $ 8,629 $ 4,729 $ 4,199 $ 648 $ (40) $ 105 $ 9,641 Nonowner occupied 2,466 131 — 1 2,598 1,737 148 481 — 11 2,377 Commercial real estate 23,606 336 (428) 82 23,596 10,486 273 10,002 (270) 472 20,963 Construction & land development 3,274 401 — — 3,675 2,152 1,447 1,000 — — 4,599 Commercial & industrial 2,797 1,170 (35) 27 3,959 2,882 (1,318) 1,643 (447) 124 2,884 Paycheck Protection Program — — — — — — — — — — — Lease financing receivables 106 (7) — — 99 147 — (30) — — 117 Aircraft 253 73 — — 326 176 — 43 — — 219 Home equity 4,990 (789) — 46 4,247 2,721 1,652 657 (14) 108 5,124 Consumer: Credit cards 929 108 (130) 44 951 1,020 33 74 (206) 21 942 Overdrafts 587 351 (444) 259 753 1,169 — 13 (660) 183 705 Automobile loans 399 (178) (19) 24 226 612 (7) (220) (8) 29 406 Other consumer 577 (137) (56) 44 428 374 307 (81) (86) 166 680 Total Traditional Banking 49,699 (2) (1,112) 902 49,487 28,205 6,734 14,230 (1,731) 1,219 48,657 Warehouse lines of credit 2,407 (530) — — 1,877 1,794 — 778 — — 2,572 Total Core Banking 52,106 (532) (1,112) 902 51,364 29,999 6,734 15,008 (1,731) 1,219 51,229 Republic Processing Group (includes discontinued operations): Tax Refund Solutions: Easy Advances (discontinued operations) — 7,984 (10,256) 2,272 — — — 15,239 (19,575) 4,336 — Other TRS loans (discontinued operations) 158 (134) (51) 27 — 234 — — (94) 1 141 Republic Credit Solutions (continuing operations) 8,803 5,037 (2,427) 247 11,660 13,118 — 251 (5,401) 553 8,521 Total Republic Processing Group 8,961 12,887 (12,734) 2,546 11,660 13,352 — 15,490 (25,070) 4,890 8,662 Total $ 61,067 $ 12,355 $ (13,846) $ 3,448 $ 63,024 $ 43,351 $ 6,734 $ 30,498 $ (26,801) $ 6,109 $ 59,891 |
Schedule of non-performing loans and non-performing assets and select credit quality ratios | (dollars in thousands) September 30, 2021 December 31, 2020 Loans on nonaccrual status* $ 20,252 $ 23,548 Loans past due 90-days-or-more and still on accrual** 691 47 Total nonperforming loans 20,943 23,595 Other real estate owned 1,845 2,499 Total nonperforming assets $ 22,788 $ 26,094 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.48 % 0.49 % Nonperforming assets to total loans (including OREO) 0.52 0.54 Nonperforming assets to total assets 0.37 0.42 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.48 % 0.50 % Nonperforming assets to total loans (including OREO) 0.52 0.56 Nonperforming assets to total assets 0.39 0.45 * Loans on nonaccrual status include collateral-dependent loans. ** Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. |
Schedule of recorded investment in non-accrual loans | Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Traditional Banking: Residential real estate: Owner occupied $ 11,708 $ 14,328 $ — $ — Nonowner occupied 99 81 — — Commercial real estate 6,607 6,762 — — Construction & land development — — — — Commercial & industrial 93 55 — — Paycheck Protection Program — — — Lease financing receivables — — — — Aircraft — — — Home equity 1,657 2,141 — — Consumer: Credit cards — — — 5 Overdrafts — — — — Automobile loans 84 170 — — Other consumer 4 11 — — Total Traditional Banking 20,252 23,548 — 5 Warehouse lines of credit — — — — Total Core Banking 20,252 23,548 — 5 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — — — Republic Credit Solutions — — 691 42 Total Republic Processing Group — — 691 42 Total $ 20,252 $ 23,548 $ 691 $ 47 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended Nine Months Ended As of September 30, 2021 September 30, 2021 September 30, 2021 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 2,041 $ 9,667 $ 11,708 $ 225 $ 672 Nonowner occupied 33 66 99 2 5 Commercial real estate 4,153 2,454 6,607 16 125 Construction & land development — — — — — Commercial & industrial 45 48 93 — 2 Paycheck Protection Program — — — — — Lease financing receivables — — — — — Aircraft — — — — — Home equity 63 1,594 1,657 19 121 Consumer 14 74 88 4 8 Total $ 6,349 $ 13,903 $ 20,252 $ 266 $ 933 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Three Months Ended Nine Months Ended As of December 31, 2020 September 30, 2020 September 30, 2020 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 1,995 $ 12,333 $ 14,328 $ 252 $ 649 Nonowner occupied 8 73 81 2 6 Commercial real estate 576 6,186 6,762 17 854 Construction & land development — — — 7 7 Commercial & industrial — 55 55 7 16 Paycheck Protection Program — — — — — Lease financing receivables — — — — — Aircraft — — — — — Home equity 91 2,050 2,141 29 81 Consumer 69 112 181 3 9 $ 2,739 $ 20,809 $ 23,548 $ 317 $ 1,622 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. |
Schedule of aging of the recorded investment in loans by class of loans | 30 - 59 60 - 89 90 or More September 30, 2021 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 896 $ 315 $ 917 $ 2,128 $ 825,770 $ 827,898 Nonowner occupied — — — — 294,818 294,818 Commercial real estate — — 5,037 5,037 1,388,204 1,393,241 Construction & land development — — — — 105,968 105,968 Commercial & industrial 8 — 58 66 333,729 333,795 Paycheck Protection Program — — — — 126,271 126,271 Lease financing receivables — — — — 9,427 9,427 Aircraft — — — — 130,398 130,398 Home equity 50 — 209 259 215,023 215,282 Consumer: Credit cards 36 9 — 45 14,736 14,781 Overdrafts 137 6 2 145 608 753 Automobile loans — — 11 11 17,522 17,533 Other consumer 1 — — 1 6,222 6,223 Total Traditional Banking 1,128 330 6,234 7,692 3,468,696 3,476,388 Warehouse lines of credit — — — — 750,682 750,682 Total Core Banking 1,128 330 6,234 7,692 4,219,378 4,227,070 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans — — — — 1 1 Republic Credit Solutions 6,828 2,182 691 9,701 107,010 116,711 Total Republic Processing Group 6,828 2,182 691 9,701 107,011 116,712 Total $ 7,956 $ 2,512 $ 6,925 $ 17,393 $ 4,326,389 $ 4,343,782 Delinquency ratio*** 0.18 % 0.06 % 0.16 % 0.40 % * 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, 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 — — — — — — Republic Credit Solutions 6,572 3,620 42 10,234 100,659 110,893 Total Republic Processing Group 6,572 3,620 42 10,234 100,659 110,893 Total $ 7,924 $ 4,690 $ 7,333 $ 19,947 $ 4,769,391 $ 4,789,338 Delinquency ratio*** 0.17 % 0.10 % 0.15 % 0.42 % * All loans past due 90-days-or-more, excluding smaller balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. |
Schedule of amortized cost basis of collateral-dependent loans | September 30, 2021 December 31, 2020 Secured Secured Secured Secured by Real by Personal by Real by Personal (dollars in thousands) Estate Property Estate Property Traditional Banking: Residential real estate: Owner occupied $ 13,645 $ — $ 17,212 $ — Nonowner occupied 99 — 81 — Commercial real estate 8,985 — 10,205 — Construction & land development — — — — Commercial & industrial — 47 — 12 Paycheck Protection Program — — — — Lease financing receivables — — — — Aircraft — — — — Home equity 1,860 — 2,899 — Consumer — 369 — 237 Total Traditional Banking $ 24,589 $ 416 $ 30,397 $ 249 |
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 September 30, 2021 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 64 $ 3,736 94 $ 8,293 158 $ 12,029 Commercial real estate 2 2,580 2 1,262 4 3,842 Commercial & industrial — — 1 1 1 1 Consumer 1 12 2,306 567 2,307 579 Total troubled debt restructurings 67 $ 6,328 2,403 $ 10,123 2,470 $ 16,451 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 |
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 September 30, 2021 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Rate reduction 88 $ 7,964 2 $ 123 90 $ 8,087 Principal deferral 7 605 1 160 8 765 Legal modification 51 2,758 9 419 60 3,177 Total residential TDRs 146 11,327 12 702 158 12,029 Commercial related and construction/land development loans: Rate reduction 1 936 — — 1 936 Principal deferral 3 444 1 2,463 4 2,907 Total commercial TDRs 4 1,380 1 2,463 5 3,843 Consumer loans: Principal deferral 2,304 560 — — 2,304 560 Legal modification 3 19 — — 3 19 Total consumer TDRs 2,307 579 — — 2,307 579 Total troubled debt restructurings 2,457 $ 13,286 13 $ 3,165 2,470 $ 16,451 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 |
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 September 30, 2021 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Legal modification 3 $ 142 1 $ 14 4 $ 156 Total residential TDRs 3 142 1 14 4 156 Consumer loans: Principal deferral 124 13 — — 124 13 Total consumer TDRs 124 13 — — 124 13 Total troubled debt restructurings 127 $ 155 1 $ 14 128 $ 169 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 September 30, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral 2 $ 54 1 $ 4 3 $ 58 Legal modification 4 152 1 20 5 172 Total residential TDRs 6 206 2 24 8 230 Consumer loans: Principal deferral 221 29 — — 221 29 Legal modification 1 15 — — 1 15 Total consumer TDRs 222 44 — — 222 44 Total troubled debt restructurings 228 $ 250 2 $ 24 230 $ 274 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded September 30, 2021 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral — $ — 1 $ 160 1 $ 160 Legal modification 6 378 5 288 11 666 Total residential TDRs 6 378 6 448 12 826 Consumer loans: Principal deferral 556 72 — — 556 72 Legal modification 1 3 — — 1 3 Total consumer TDRs 557 75 — — 557 75 Total troubled debt restructurings 563 $ 453 6 $ 448 569 $ 901 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 September 30, 2020 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Rate reduction 2 $ 54 1 $ 4 3 $ 58 Legal modification 11 429 2 128 13 557 Total residential TDRs 13 483 3 132 16 615 Commercial related and construction/land development loans: Principal deferral 1 21 — — 1 21 Total commercial TDRs 1 21 — — 1 21 Consumer loans: Principal deferral 1,492 183 — — 1,492 183 Legal modification 1 15 — — 1 15 Total consumer TDRs 1,493 198 — — 1,493 198 Total troubled debt restructurings 1,507 $ 702 3 $ 132 1,510 $ 834 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. |
Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Recorded Number of Recorded Number of Recorded Number of Recorded (dollars in thousands) Loans Investment Loans Investment Loans Investment Loans Investment Residential real estate: Owner occupied 2 $ 179 3 $ 163 6 $ 468 5 $ 269 Commercial real estate — — 2 2,964 1 116 2 2,964 Home equity 1 14 1 20 1 14 2 33 Total 3 $ 193 6 $ 3,147 8 $ 598 9 $ 3,266 |
Schedule of carrying amount of foreclosed properties held | (in thousands) September 30, 2021 December 31, 2020 Residential real estate $ — $ 496 Commercial real estate 1,845 2,003 Total other real estate owned $ 1,845 $ 2,499 |
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties | (in thousands) September 30, 2021 December 31, 2020 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure $ 475 $ 981 |
Schedule of Easy Advances | Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2021 2020 2021 2020 Easy Advances originated $ — $ — $ 250,045 $ 387,762 Net (credit) charge to the Provision for Easy Advances (2,242) (4,294) 7,984 15,239 Provision to total Easy Advances originated NA NA 3.19 % 3.93 % Easy Advances net charge-offs (recoveries) $ (2,242) $ (4,294) $ 7,984 $ 15,239 Easy Advances net charge-offs to total Easy Advances originated NA NA 3.19 % 3.93 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
DEPOSITS | |
Composition of deposit portfolio | The composition of the deposit portfolio follows: (in thousands) September 30, 2021 December 31, 2020 Core Bank: Demand $ 1,342,395 $ 1,217,263 Money market accounts 793,236 712,824 Savings 295,663 236,335 Individual retirement accounts (1) 46,196 47,889 Time deposits, $250 and over (1) 84,340 83,448 Other certificates of deposit (1) 163,345 199,214 Reciprocal money market and time deposits (1) 101,109 314,109 Brokered deposits (1) 30,001 25,010 Total Core Bank interest-bearing deposits 2,856,285 2,836,092 Total Core Bank noninterest-bearing deposits 1,691,413 1,503,662 Total Core Bank deposits 4,547,698 4,339,754 Republic Processing Group: Money market accounts 5,114 6,673 Total RPG interest-bearing deposits 5,114 6,673 Brokered prepaid card deposits 323,250 257,856 Other noninterest-bearing deposits 38,822 110,021 Total RPG noninterest-bearing deposits 362,072 367,877 Total RPG deposits 367,186 374,550 Deposits of discontinued operations (2) 33,063 18,877 Total deposits $ 4,947,947 $ 4,733,181 (1) Includes time deposit (2) See additional detail regarding the Bank’s agreement to sell TRS under Footnote 17 “Discontinued Operations” in this section of the filing . |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |
Schedule of securities sold under agreements to repurchase | (dollars in thousands) September 30, 2021 December 31, 2020 Outstanding balance at end of period $ 260,583 $ 211,026 Weighted average interest rate at end of period 0.04 % 0.04 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 114,308 $ 60,059 Mortgage backed securities - residential 156,237 140,554 Collateralized mortgage obligations 23,457 29,656 Total securities pledged $ 294,002 $ 230,269 Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2021 2020 2021 2020 Average outstanding balance during the period $ 242,867 $ 213,010 $ 201,992 $ 199,556 Average interest rate during the period 0.03 % 0.04 % 0.02 % 0.11 % Maximum outstanding at any month end during the period $ 307,358 $ 195,229 $ 307,358 $ 195,229 |
RIGHT-OF-USE ASSETS AND OPERA_2
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Summary of operating lease expense | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Operating lease expense: Related Party: Variable lease expense $ 1,224 $ 1,235 $ 3,662 $ 3,706 Fixed lease expense 34 23 102 69 Third Party: Variable lease expense 197 180 590 541 Fixed lease expense 337 371 1,021 1,109 Short-term lease expense — 3 — 7 Total operating lease expense $ 1,792 $ 1,812 $ 5,375 $ 5,432 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,793 $ 1,817 $ 5,390 $ 5,448 Short-term lease payments not included in the measurement of lease liabilities — 3 — 7 |
Schedule of weighted average remaining term and weighted average discount rate for operating leases | (dollars in thousands) September 30, 2021 December 31, 2020 Weighted average remaining term in years 7.76 8.37 Weighted average discount rate 3.08 % 3.10 % |
Schedule of operating lease liabilities | Year (in thousands) Related Party Third Party Total 2021 $ 1,160 $ 636 $ 1,796 2022 4,639 2,492 7,131 2023 4,639 2,049 6,688 2024 4,512 1,517 6,029 2025 4,344 979 5,323 Thereafter 15,800 2,729 18,529 Total undiscounted cash flows $ 35,094 $ 10,402 $ 45,496 Discount applied to cash flows (4,065) (1,280) (5,345) Total discounted cash flows reported as operating lease liabilities $ 31,029 $ 9,122 $ 40,151 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Federal Home Loan Bank Advances | (in thousands) September 30, 2021 December 31, 2020 Overnight advances $ 25,000 $ 225,000 Fixed interest rate advances — 10,000 Total FHLB advances $ 25,000 $ 235,000 |
Aggregate Future Principal Payments on FHLB Advances | Weighted Average Year (dollars in thousands) Principal Rate 2021 (Overnight) $ 25,000 0.14 % 2021 (Term) — — 2022 — — 2023 — — 2024 — — 2025 — — Thereafter — — Total $ 25,000 0.14 % |
Information Regarding Overnight FHLB Advances | Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2021 2020 2021 2020 Average outstanding balance during the period $ 25,000 $ 272 $ 30,037 $ 29,106 Average interest rate during the period 0.10 % 0.17 % 0.15 % 0.92 % Maximum outstanding at any month end during the period $ 25,000 $ 25,000 $ 25,000 $ 250,000 |
Real Estate Loans Pledged | (in thousands) September 30, 2021 December 31, 2020 First lien, single family residential real estate $ 1,034,959 $ 1,048,236 Home equity lines of credit 191,443 208,944 |
OFF BALANCE SHEET RISKS, COMM_2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
Commitments Exclusive of Mortgage Bank Loan Commitments | (in thousands) September 30, 2021 December 31, 2020 Unused warehouse lines of credit $ 658,318 $ 456,004 Unused home equity lines of credit 350,198 353,322 Unused loan commitments - other 787,660 775,128 Standby letters of credit 14,130 10,949 FHLB letter of credit 643 643 Total commitments $ 1,810,949 $ 1,596,046 |
Schedule of rollforward of the Off Balance Sheet risks ACLC | The following tables present a rollforward of the ACLC for the three and nine months ended September 30, 2021 and 2020: ACLC Rollforward Three Months Ended 2021 2020 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ 140 $ — $ — $ — $ 140 $ 58 $ (6) $ — $ — $ 52 Unused home equity lines of credit 213 29 — — 242 124 22 — — 146 Unused loan commitments - other 581 (26) — — 555 454 271 — — 725 Total $ 934 $ 3 $ — $ — $ 937 $ 636 $ 287 $ — $ — $ 923 The Company increased its ACLC during the three months ended September 30, 2021 based on an increase in the expected usage for its home equity lines of credit. ACLC Rollforward Nine Months Ended 2021 2020 Beginning Charge- Ending Beginning ASC 326 Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Adoption Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ 79 $ 61 $ — $ — $ 140 $ — $ 55 $ (3) $ — $ — $ 52 Unused home equity lines of credit 173 69 — — 242 — 89 57 — — 146 Unused loan commitments - other 737 (182) — — 555 — 312 413 — — 725 Total $ 989 $ (52) $ — $ — $ 937 $ — $ 456 $ 467 $ — $ — $ 923 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at September 30, 2021 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 $ — $ 234,845 $ — $ 234,845 Private label mortgage-backed security — — 2,780 2,780 Mortgage-backed securities - residential — 209,805 — 209,805 Collateralized mortgage obligations — 34,519 — 34,519 Corporate bonds — 10,081 — 10,081 Trust preferred security — — 3,850 3,850 Total available-for-sale debt securities $ — $ 489,250 $ 6,630 $ 495,880 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 102 $ — $ 102 Community Reinvestment Act mutual fund 2,476 — — 2,476 Total equity securities with readily determinable fair value $ 2,476 $ 102 $ — $ 2,578 Mortgage loans held for sale $ — $ 25,791 $ — $ 25,791 Consumer loans held for sale — — 10,779 10,779 Consumer loans held for investment — — 254 254 Rate lock loan commitments — 1,943 — 1,943 Mandatory forward contracts — 722 — 722 Interest rate swap agreements — 6,707 — 6,707 Financial liabilities: Interest rate swap agreements $ — $ 6,707 $ — $ 6,707 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 |
Assets Measured at Fair Value on a Non-Recurring Basis | Fair Value Measurements at September 30, 2021 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Collateral-dependent loans: Residential real estate: Owner occupied $ — $ — $ 1,733 $ 1,733 Commercial real estate — — 3,568 3,568 Commercial & industrial — — 60 60 Home equity — — 314 314 Total collateral-dependent loans* $ — $ — $ 5,675 $ 5,675 Other real estate owned: Commercial real estate $ — $ — $ 1,845 $ 1,845 Total other real estate owned $ — $ — $ 1,845 $ 1,845 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: Residential real estate $ — $ — $ 2,003 $ 2,003 Total other real estate owned $ — $ — $ 2,003 $ 2,003 Mortgage servicing rights $ — $ 3,233 $ — $ 3,233 * The difference between the carrying value and the fair value of collateral-dependent loans measured at fair value is reconciled in a subsequent table of this Footnote. |
Impaired collateral dependent loans classified with Level 3 fair value hierarchy | (in thousands) September 30, 2021 December 31, 2020 Carrying amount of loans measured at fair value $ 5,122 $ 7,110 Estimated selling costs considered in carrying amount 911 1,252 Valuation allowance (358) — Total fair value $ 5,675 $ 8,362 |
Provisions for loss on collateral dependent impaired loans | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Provision on collateral-dependent $ 345 $ 430 $ 393 $ (71) |
Other Real Estate Owned | (in thousands) September 30, 2021 December 31, 2020 Other real estate owned carried at fair value $ 1,845 $ 2,003 Other real estate owned carried at cost — 496 Total carrying value of other real estate owned $ 1,845 $ 2,499 Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Other real estate owned write-downs during the period $ 53 $ 53 $ 158 $ 53 |
Carrying amount and estimated fair values of financial instruments | Fair Value Measurements at September 30, 2021: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 1,011,247 $ 1,011,247 $ — $ — $ 1,011,247 Available-for-sale debt securities 495,880 — 489,250 6,630 495,880 Held-to-maturity debt securities 44,991 — 45,590 — 45,590 Equity securities with readily determinable fair values 2,578 2,476 102 — 2,578 Mortgage loans held for sale, at fair value 25,791 — 25,791 — 25,791 Consumer loans held for sale, at fair value 10,779 — — 10,779 10,779 Consumer loans held for sale, at the lower of cost or fair value 3,976 — — 3,976 3,976 Loans for discontinued operations, at the lower of cost or fair value 24 — — 24 24 Loans, net 4,280,758 — — 4,276,437 4,276,437 Federal Home Loan Bank stock 10,311 — — — NA Accrued interest receivable 9,352 — 9,352 — 9,352 Mortgage servicing rights 8,867 — 10,906 — 10,906 Rate lock loan commitments 1,943 — 1,943 — 1,943 Mandatory forward contracts 722 — 722 — 722 Interest rate swap agreements 6,707 — 6,707 — 6,707 Liabilities: Noninterest-bearing deposits $ 2,053,485 — $ 2,053,485 — $ 2,053,485 Transaction deposits 2,536,782 — 2,536,782 — 2,536,782 Time deposits 324,617 — 328,162 — 328,162 Deposits of discontinued operations 33,063 — 33,063 — 33,063 Securities sold under agreements to repurchase and other short-term borrowings 260,583 — 260,583 — 260,583 Federal Home Loan Bank advances 25,000 — 25,000 — 25,000 Accrued interest payable 180 — 180 — 180 Interest rate swap agreements 6,707 — 6,707 — 6,707 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 for discontinued operations, at the lower of cost or fair value 23,765 — — 23,765 23,765 Loans, net 4,728,271 — — 4,726,066 4,726,066 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 $ 1,871,539 — $ 1,871,539 — $ 1,871,539 Transaction deposits 2,444,361 — 2,444,361 — 2,444,361 Time deposits 398,404 — 404,773 — 404,773 Deposits of discontinued operations 18,877 — 18,877 — 18,877 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 |
Nonrecurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Range Fair Valuation Unobservable (Weighted September 30, 2021 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,733 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 51% (10%) Collateral-dependent loans - commercial real estate $ 3,568 Sales comparison approach Adjustments determined for differences between comparable sales 15% - 31% (26%) Collateral-dependent loans - commercial & industrial $ 60 Sales comparison approach Adjustments determined for differences between comparable sales 1% ( Collateral-dependent loans - home equity $ 314 Sales comparison approach Adjustments determined for differences between comparable sales 6%-10% ( Other real estate owned - commercial real estate $ 1,845 Sales comparison approach Adjustments determined for differences between comparable sales 32% ( 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% ( Other real estate owned - commercial real estate $ 2,003 Sales comparison approach Adjustments determined for differences between comparable sales 26% ( |
Private label mortgage backed security | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 2,824 $ 3,023 $ 2,957 $ 3,495 Total gains or losses included in earnings: Net change in unrealized gain 13 60 62 (46) Principal paydowns (57) (79) (239) (445) Balance, end of period $ 2,780 $ 3,004 $ 2,780 $ 3,004 |
Private label mortgage backed security | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation September 30, 2021 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,780 Discounted cash flow (1) Constant prepayment rate 4.5% - 18.0% (2) Probability of default 1.8% - 9.3% (3) Loss severity 50% - 75% 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% |
Trust Preferred Securities | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 3,700 $ 3,500 $ 3,800 $ 4,000 Total gains or losses included in earnings: Discount accretion 14 21 40 43 Net change in unrealized gain 136 279 10 (243) Balance, end of period $ 3,850 $ 3,800 $ 3,850 $ 3,800 |
Net change in fair value recognized on loans held for sale | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) September 30, 2021 December 31, 2020 Aggregate fair value $ 25,791 $ 46,867 Contractual balance 25,232 44,781 Unrealized gain 559 2,086 |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Interest income $ 253 $ 300 $ 802 $ 932 Change in fair value (373) 126 (1,527) 1,382 Total included in earnings $ (120) $ 426 $ (725) $ 2,314 |
Consumer loans | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) September 30, 2021 December 31, 2020 Aggregate fair value $ 10,779 $ 3,298 Contractual balance 10,703 3,284 Unrealized gain 76 14 |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Interest income $ 2,102 $ 42 $ 4,070 $ 1,563 Change in fair value (16) 2 62 (2) Total included in earnings $ 2,086 $ 44 $ 4,132 $ 1,561 |
Consumer loans | Recurring basis | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Fair Valuation September 30, 2021 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 10,779 Contract Terms (1) Net Premium 1.4% (2) Discounted Sales 5.00% 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% |
MORTGAGE BANKING ACTIVITIES (Ta
MORTGAGE BANKING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
MORTGAGE BANKING ACTIVITIES | |
Activity for Mortgage Loans Held for Sale, at fair value | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 32,401 $ 40,028 $ 46,867 $ 19,224 Origination of mortgage loans held for sale 170,482 203,615 525,246 547,556 Proceeds from the sale of mortgage loans held for sale (182,422) (210,309) (562,661) (546,950) Net gain on sale of mortgage loans held for sale 5,330 11,526 16,339 25,030 Balance, end of period $ 25,791 $ 44,860 $ 25,791 $ 44,860 |
Components of Mortgage Banking Income | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Net gain realized on sale of mortgage loans held for sale $ 5,008 $ 9,151 $ 18,764 $ 18,279 Net change in fair value recognized on loans held for sale (373) 126 (1,527) 1,382 Net change in fair value recognized on rate lock loan commitments (258) 2,194 (2,596) 5,841 Net change in fair value recognized on forward contracts 953 55 1,698 (472) Net gain recognized 5,330 11,526 16,339 25,030 Loan servicing income 832 757 2,433 2,139 Amortization of mortgage servicing rights (882) (1,108) (2,617) (2,701) Change in mortgage servicing rights valuation allowance — (400) 500 (500) Net servicing income recognized (50) (751) 316 (1,062) Total Mortgage Banking income $ 5,280 $ 10,775 $ 16,655 $ 23,968 |
Activity for capitalized mortgage servicing rights | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Balance, beginning of period $ 8,335 $ 6,711 $ 7,095 $ 5,888 Additions 1,414 1,471 3,889 3,987 Amortized to expense (882) (1,108) (2,617) (2,701) Change in valuation allowance — (400) 500 (500) Balance, end of period $ 8,867 $ 6,674 $ 8,867 $ 6,674 |
Schedule of activity in the valuation allowance for capitalized mortgage servicing rights | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Beginning valuation allowance $ — $ 100 $ 500 $ — Charge during the period — 400 (500) 500 Ending valuation allowance $ — $ 500 $ — $ 500 |
Other information relating to mortgage servicing rights | (in thousands) September 30, 2021 December 31, 2020 Fair value of mortgage servicing rights portfolio $ 10,906 $ 8,318 Monthly weighted average prepayment rate of unpaid principal balance* 205 % 308 % Discount rate 10 % 10 % Weighted average foreclosure rate 0.24 % 0.44 % Weighted average life in years 5.88 4.85 * Rates are applied to individual tranches with similar characteristics. |
Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives | September 30, 2021 December 31, 2020 Notional Notional (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 25,232 $ 25,791 $ 44,781 $ 46,867 Included in other assets: Rate lock loan commitments $ 94,210 $ 1,943 $ 105,395 $ 4,540 Mandatory forward contracts 105,659 722 — — Included in other liabilities: Mandatory forward contracts $ — $ — $ 136,236 $ 976 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
INTEREST RATE SWAPS | |
Schedule of interest expense recorded on swap transactions in the consolidated statements of income | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Interest rate swap on money market deposits $ — $ 52 $ — $ 107 Interest rate swap on FHLB advance — 51 — 104 Total interest (benefit) expense on swap transactions $ — $ 103 $ — $ 211 |
Summary of net gains recorded in AOCI and the consolidated statements of income relating to the swaps | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Gains (losses) recognized in OCI on derivative (effective portion) $ — $ (1) $ — $ (173) Gains (losses) reclassified from OCI on derivative (effective portion) — (103) — (211) Gains (losses) recognized in income on derivative (ineffective portion) — — — — |
Summary of interest rate swaps related to clients | September 30, 2021 December 31, 2020 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 109,456 $ 6,707 $ 138,277 $ 12,545 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 15,953 (103) — — Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 125,409 $ 6,604 $ 138,277 $ 12,545 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 125,409 (6,604) 138,277 (12,545) Total $ 250,818 $ — $ 276,554 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER SHARE | |
Earnings Per Share and Diluted Earnings Per Share | Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2021 2020 2021 2020 Income from continuing operations $ 18,412 $ 17,275 $ 55,240 $ 49,344 Income (loss) from discontinued operations 1,597 3,114 14,744 13,546 Net income available to common shareholders 20,009 20,389 69,984 62,890 Dividends declared on Common Stock: Class A Shares (5,557) (5,375) (16,980) (16,080) Class B Shares (606) (572) (1,830) (1,716) Undistributed net income for basic earnings per share 13,846 14,442 51,174 45,094 Weighted average potential dividends on Class A shares upon exercise of dilutive options (17) (7) (40) (24) Undistributed net income for diluted earnings per share $ 13,829 $ 14,435 $ 51,134 $ 45,070 Weighted average shares outstanding: Class A Shares 18,342 18,826 18,625 18,830 Class B Shares 2,166 2,200 2,182 2,201 Effect of dilutive securities on Class A Shares outstanding 83 20 72 37 Weighted average shares outstanding including dilutive securities 20,591 21,046 20,879 21,068 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.31 $ 0.29 $ 0.92 $ 0.86 Undistributed earnings per share* from continuing operations 0.60 0.54 1.77 1.51 Total basic earnings per share from continuing operations 0.91 0.83 2.69 2.37 Total basic earnings per share from discontinued operations 0.08 0.15 0.71 0.65 Total basic earnings per share - Class A Common Stock $ 0.99 $ 0.98 $ 3.40 $ 3.02 Class B Common Stock: Per share dividends distributed $ 0.28 $ 0.26 $ 0.84 $ 0.78 Undistributed earnings per share* 0.55 0.49 1.61 1.38 Total basic earnings per share from continuing operations 0.83 0.75 2.45 2.16 Total basic earnings per share from discontinued operations 0.07 0.14 0.65 0.59 Total basic earnings per share - Class B Common Stock $ 0.90 $ 0.89 $ 3.10 $ 2.75 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.31 $ 0.29 $ 0.92 $ 0.86 Undistributed earnings per share* 0.60 0.54 1.76 1.51 Total diluted earnings per share from continuing operations 0.91 0.83 2.68 2.37 Total diluted earnings per share from discontinued operations 0.08 0.15 0.71 0.65 Total diluted earnings per share - Class A Common Stock $ 0.99 $ 0.98 $ 3.39 $ 3.02 Class B Common Stock: Per share dividends distributed $ 0.28 $ 0.26 $ 0.84 $ 0.78 Undistributed earnings per share* 0.55 0.49 1.60 1.37 Total diluted earnings per share from continuing operations 0.83 0.75 2.44 2.15 Total diluted earnings per share from discontinued operations 0.07 0.14 0.65 0.59 Total diluted earnings per share - Class B Common Stock $ 0.90 $ 0.89 $ 3.09 $ 2.74 * To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. |
Antidilutive Stock Options | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Antidilutive stock options 141,000 431,000 144,000 244,000 Average antidilutive stock options 141,000 367,000 144,000 193,000 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
OTHER COMPREHENSIVE INCOME | |
Summary of OCI components and related tax effects | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Available-for-Sale Debt Securities: Unrealized gains and (losses) on AFS debt securities $ (1,899) $ (258) $ (4,542) $ 8,618 Unrealized gain (loss) of AFS debt security for which a portion of OTTI has been recognized in earnings 13 61 62 (46) Net unrealized (losses) gains (1,886) (197) (4,480) 8,572 Tax effect 471 49 1,119 (2,144) Net of tax (1,415) (148) (3,361) 6,428 Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges — (1) — (173) Reclassification amount for net derivative losses realized in income — 103 — 211 Net gains (losses) — 102 — 38 Tax effect — (25) — (9) Net of tax — 77 — 29 Total other comprehensive (loss) income components, net of tax $ (1,415) $ (71) $ (3,361) $ 6,457 |
Summary of amounts reclassified out of each component of AOCI | Amounts Reclassified from AOCI Affected Line Items Three Months Ended Nine Months Ended in the Consolidated September 30, September 30, (in thousands) Statements of Income 2021 2020 2021 2020 Cash Flow Hedges: Interest rate swap on money market deposits Interest expense on deposits $ — $ (52) $ — $ (107) Interest rate swap on FHLB advance Interest expense on FHLB advances — (51) — (104) Total derivative losses on cash flow hedges Total interest expense — (103) — (211) Tax effect Income tax expense — 26 — 53 Net of tax Net income $ — $ (77) $ — $ (158) |
Summary of the AOCI balances, net of tax | 2021 (in thousands) December 31, 2020 Change September 30, 2021 Unrealized gain (loss) on AFS debt securities $ 7,571 $ (3,407) $ 4,164 Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 938 46 984 Total unrealized gain (loss) $ 8,509 $ (3,361) $ 5,148 2020 (in thousands) December 31, 2019 Change September 30, 2020 Unrealized gain on AFS debt securities $ 2,211 $ 6,464 $ 8,675 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 964 (35) 929 Unrealized (loss) gain on cash flow hedges (77) 28 (49) Total unrealized gain $ 3,098 $ 6,457 $ 9,555 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of net revenues by reportable segments | Three Months Ended September 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 40,297 $ 6,291 $ 253 $ 46,841 $ 171 $ 5,297 $ 5,468 $ 52,309 Noninterest income: Service charges on deposit accounts 3,262 15 — 3,277 — — — 3,277 Mortgage banking income (1) — — 5,280 5,280 — — — 5,280 Interchange fee income 3,199 — — 3,199 1 — 1 3,200 Program fees (1) — — — — 763 3,767 4,530 4,530 Increase in cash surrender value of BOLI (1) 626 — — 626 — — — 626 Net gains (losses) on OREO (52) — — (52) — — — (52) Other 1,073 — 62 1,135 (1) — (1) 1,134 Total noninterest income 8,108 15 5,342 13,465 763 3,767 4,530 17,995 Total net revenue $ 48,405 $ 6,306 $ 5,595 $ 60,306 $ 934 $ 9,064 $ 9,998 $ 70,304 Net-revenue concentration from continuing operations (2) 69 % 9 % 8 % 86 % 1 % 13 % 14 % 100 % Three Months Ended September 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 38,753 $ 7,345 $ 300 $ 46,398 $ 675 $ 4,976 $ 5,651 $ 52,049 Noninterest income: Service charges on deposit accounts 3,000 18 — 3,018 (1) — (1) 3,017 Mortgage banking income (1) — — 10,775 10,775 — — — 10,775 Interchange fee income 2,873 — — 2,873 1 — 1 2,874 Program fees (1) — — — — 643 844 1,487 1,487 Increase in cash surrender value of BOLI (1) 400 — — 400 — — — 400 Net gains (losses) on OREO (14) — — (14) — — — (14) Other 879 (39) 21 861 — — — 861 Total noninterest income 7,138 (21) 10,796 17,913 643 844 1,487 19,400 Total net revenue $ 45,891 $ 7,324 $ 11,096 $ 64,311 $ 1,318 $ 5,820 $ 7,138 $ 71,449 Net-revenue concentration from continuing operations (2) 64 % 10 % 16 % 90 % 2 % 8 % 10 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue from continuing operations represents net interest income plus total noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations. Nine Months Ended September 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 119,677 $ 19,387 $ 802 $ 139,866 $ 665 $ 14,794 $ 15,459 $ 155,325 Noninterest income: Service charges on deposit accounts 9,188 43 — 9,231 (10) — (10) 9,221 Mortgage banking income (1) — — 16,655 16,655 — — — 16,655 Interchange fee income 9,535 — — 9,535 4 — 4 9,539 Program fees (1) — — — — 2,374 7,930 10,304 10,304 Increase in cash surrender value of BOLI (1) 1,616 — — 1,616 — — — 1,616 Net gains (losses) on OREO (107) — — (107) — — — (107) Other 2,630 — 140 2,770 (1) — (1) 2,769 Total noninterest income 22,862 43 16,795 39,700 2,367 7,930 10,297 49,997 Total net revenue $ 142,539 $ 19,430 $ 17,597 $ 179,566 $ 3,032 $ 22,724 $ 25,756 $ 205,322 Net-revenue concentration from continuing operations (2) 70 % 9 % 9 % 88 % 1 % 11 % 12 % 100 % Nine Months Ended September 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 118,409 $ 17,715 $ 932 $ 137,056 $ 1,622 $ 17,655 $ 19,277 $ 156,333 Noninterest income: Service charges on deposit accounts 8,576 46 — 8,622 (18) — (18) 8,604 Mortgage banking income (1) — — 23,968 23,968 — — — 23,968 Interchange fee income 8,090 — — 8,090 3 — 3 8,093 Program fees (1) — — — — 1,573 3,676 5,249 5,249 Increase in cash surrender value of BOLI (1) 1,184 — — 1,184 — — — 1,184 Net gains (losses) on OREO (10) — — (10) — — — (10) Other 2,659 (39) 53 2,673 — — — 2,673 Total noninterest income 20,499 7 24,021 44,527 1,558 3,676 5,234 49,761 Total net revenue $ 138,908 $ 17,722 $ 24,953 $ 181,583 $ 3,180 $ 21,331 $ 24,511 $ 206,094 Net-revenue concentration from continuing operations (2) 67 % 9 % 12 % 88 % 2 % 10 % 12 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue from continuing operations represents net interest income plus total noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
SEGMENT INFORMATION | |
Segment Information | Three Months Ended September 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 40,297 $ 6,291 $ 253 $ 46,841 $ 171 $ 5,297 $ 5,468 $ 52,309 Provision for expected credit loss expense (44) (223) — (267) — 3,820 3,820 3,553 Mortgage banking income — — 5,280 5,280 — — — 5,280 Program fees — — — — 763 3,767 4,530 4,530 Other noninterest income 8,108 15 62 8,185 — — — 8,185 Total noninterest income 8,108 15 5,342 13,465 763 3,767 4,530 17,995 Total noninterest expense 35,927 1,056 3,257 40,240 1,308 1,046 2,354 42,594 Income (loss) from continuing operations before income tax expense 12,522 5,473 2,338 20,333 (374) 4,198 3,824 24,157 Income tax expense (benefit) 3,038 1,258 514 4,810 (102) 1,037 935 5,745 Income (loss) from continuing operations 9,484 4,215 1,824 15,523 (272) 3,161 2,889 18,412 Discontinued operations: Income from discontinued operations before income taxes — — — — 2,070 — 2,070 2,070 Income tax expense — — — — 473 — 473 473 Income from discontinued operations, net of tax — — — — 1,597 — 1,597 1,597 Net income $ 9,484 $ 4,215 $ 1,824 $ 15,523 $ 1,325 $ 3,161 $ 4,486 $ 20,009 Period-end assets $ 4,907,503 $ 750,266 $ 41,196 $ 5,698,965 $ 365,552 $ 123,117 $ 488,669 $ 6,187,634 Net interest margin from continuing operations 3.22 % 3.51 % NM 3.25 % NM NM NM 3.55 % Net-revenue concentration from continuing operations* 69 % 9 % 8 % 86 % 1 % 13 % 14 % 100 % Three Months Ended September 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 38,753 $ 7,345 $ 300 $ 46,398 $ 675 $ 4,976 $ 5,651 $ 52,049 Provision for expected credit loss expense 5,857 (3) — 5,854 — (12) (12) 5,842 Mortgage banking income — — 10,775 10,775 — — — 10,775 Program fees — — — — 643 844 1,487 1,487 Other noninterest income 7,138 (21) 21 7,138 — — — 7,138 Total noninterest income 7,138 (21) 10,796 17,913 643 844 1,487 19,400 Total noninterest expense 36,415 1,875 2,832 41,122 1,481 1,175 2,656 43,778 Income (loss) from continuing operations before income tax expense 3,619 5,452 8,264 17,335 (163) 4,657 4,494 21,829 Income tax expense (benefit) 558 1,226 1,736 3,520 (40) 1,074 1,034 4,554 Income (loss) from continuing operations 3,061 4,226 6,528 13,815 (123) 3,583 3,460 17,275 Discontinued operations: Income from discontinued operations before income taxes — — — — 3,997 — 3,997 3,997 Income tax expense — — — — 883 — 883 883 Income from discontinued operations, net of tax — — — — 3,114 — 3,114 3,114 Net income $ 3,061 $ 4,226 $ 6,528 $ 13,815 $ 2,991 $ 3,583 $ 6,574 $ 20,389 Period-end assets $ 4,769,848 $ 1,026,790 $ 61,809 $ 5,858,447 $ 269,337 $ 112,662 $ 381,999 $ 6,240,446 Net interest margin from continuing operations 3.22 % 3.41 % NM 3.25 % NM NM NM 3.57 % Net-revenue concentration from continuing operations* 64 % 10 % 16 % 90 % 2 % 8 % 10 % 100 % * Net revenue from continuing operations represents net interest income plus total noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations. Nine Months Ended September 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 119,677 $ 19,387 $ 802 $ 139,866 $ 665 $ 14,794 $ 15,459 $ 155,325 Provision for expected credit loss expense (126) (530) — (656) — 5,037 5,037 4,381 Mortgage banking income — — 16,655 16,655 — — — 16,655 Program fees — — — — 2,374 7,930 10,304 10,304 Other noninterest income 22,862 43 140 23,045 (7) — (7) 23,038 Total noninterest income 22,862 43 16,795 39,700 2,367 7,930 10,297 49,997 Total noninterest expense 110,192 3,150 9,384 122,726 4,239 3,028 7,267 129,993 Income (loss) from continuing operations before income tax expense 32,473 16,810 8,213 57,496 (1,207) 14,659 13,452 70,948 Income tax expense (benefit) 6,718 3,919 1,807 12,444 (373) 3,637 3,264 15,708 Income (loss) from continuing operations 25,755 12,891 6,406 45,052 (834) 11,022 10,188 55,240 Discontinued operations: Income from discontinued operations before income taxes — — — — 19,584 — 19,584 19,584 Income tax expense — — — — 4,840 — 4,840 4,840 Income from discontinued operations, net of tax — — — — 14,744 — 14,744 14,744 Net income $ 25,755 $ 12,891 $ 6,406 $ 45,052 $ 13,910 $ 11,022 $ 24,932 $ 69,984 Period-end assets $ 4,907,503 $ 750,266 $ 41,196 $ 5,698,965 $ 365,552 $ 123,117 $ 488,669 $ 6,187,634 Net interest margin from continuing operations 3.21 % 3.47 % NM 3.24 % NM NM NM 3.46 % Net-revenue concentration from continuing operations* 70 % 9 % 9 % 88 % 1 % 11 % 12 % 100 % Nine Months Ended September 30, 2020 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 118,409 $ 17,715 $ 932 $ 137,056 $ 1,622 $ 17,655 $ 19,277 $ 156,333 Provision for expected credit loss expense 14,526 778 — 15,304 — 251 251 15,555 Mortgage banking income — — 23,968 23,968 — — — 23,968 Program fees — — — — 1,573 3,676 5,249 5,249 Other noninterest income 20,499 7 53 20,559 (15) — (15) 20,544 Total noninterest income 20,499 7 24,021 44,527 1,558 3,676 5,234 49,761 Total noninterest expense 109,750 3,489 7,517 120,756 5,360 2,972 8,332 129,088 Income (loss) from continuing operations before income tax expense 14,632 13,455 17,436 45,523 (2,180) 18,108 15,928 61,451 Income tax expense (benefit) 1,747 3,027 3,662 8,436 (517) 4,188 3,671 12,107 Income (loss) from continuing operations 12,885 10,428 13,774 37,087 (1,663) 13,920 12,257 49,344 Discontinued operations: Income from discontinued operations before income taxes — — — — 17,550 — 17,550 17,550 Income tax expense — — — — 4,004 — 4,004 4,004 Income from discontinued operations, net of tax — — — — 13,546 — 13,546 13,546 Net income $ 12,885 $ 10,428 $ 13,774 $ 37,087 $ 11,883 $ 13,920 $ 25,803 $ 62,890 Period-end assets $ 4,769,848 $ 1,026,790 $ 61,809 $ 5,858,447 $ 269,337 $ 112,662 $ 381,999 $ 6,240,446 Net interest margin from continuing operations 3.41 % 3.07 % NM 3.37 % NM NM NM 3.69 % Net-revenue concentration from continuing operations* 67 % 9 % 12 % 88 % 2 % 10 % 12 % 100 % * Net revenue from continuing operations represents net interest income plus total noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
DISCONTINUED OPERATIONS | |
Summary income statement of discontinued operations | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 INTEREST INCOME: Loans, including fees $ 76 $ 135 $ 14,815 $ 20,978 Funds transfer credit 51 70 313 1,543 Total interest income 127 205 15,128 22,521 INTEREST EXPENSE: Deposits — — — 527 Funds transfer cost 4 2 200 1,132 Total interest expense 4 2 200 1,659 NET INTEREST INCOME 123 203 14,928 20,862 Provision for expected credit loss expense (2,261) (4,342) 7,850 15,239 NET INTEREST INCOME AFTER PROVISION 2,384 4,545 7,078 5,623 NONINTEREST INCOME: Net refund transfer fees 1,280 1,152 19,922 19,888 Interchange fee income 63 37 232 178 Other 1 8 78 90 Total noninterest income 1,344 1,197 20,232 20,156 NONINTEREST EXPENSE: Salaries and employee benefits 1,043 1,460 4,268 4,208 Technology, equipment, and communication 86 131 260 461 Occupancy — — 1 7 Marketing and development 45 55 160 196 FDIC insurance expense — — 150 — Bank franchise tax expense 9 2 14 1,729 Legal and professional fees 303 8 1,382 173 Other 172 89 1,491 1,455 Total noninterest expense 1,658 1,745 7,726 8,229 INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAX EXPENSE 2,070 3,997 19,584 17,550 INCOME TAX EXPENSE 473 883 4,840 4,004 INCOME FROM DISCONTINUED OPERATIONS $ 1,597 $ 3,114 $ 14,744 $ 13,546 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)itemsegment | Dec. 31, 2005USD ($) | |
Basis of Presentation | ||
Number of reportable segments | segment | 5 | |
Number of banking centers | 42 | |
Republic Bancorp Capital Trust | Trust Preferred Securities | ||
Basis of Presentation | ||
Payments for repurchase of trust preferred securities | $ | $ 40 | |
Value of trust preferred securities issued | $ | $ 40 | |
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 Activities | ||
Basis of Presentation | ||
Number of reportable segments | segment | 3 | |
Core Banking Activities | Minimum | ||
Basis of Presentation | ||
Period of loan expected to remain in warehouse line | 15 days | |
Core Banking Activities | Maximum | ||
Basis of Presentation | ||
Period of loan expected to remain in warehouse line | 30 days | |
Republic Processing Group | ||
Basis of Presentation | ||
Number of reportable segments | segment | 2 |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENTS (Details) - Republic Credit Solutions - item | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2021 | Dec. 31, 2019 | Sep. 30, 2021 | |
Line of credit | |||
Basis of Presentation | |||
Number of service products | 2 | ||
LOC 1 | |||
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% | ||
Loan held-for-sale term | 3 days | ||
LOC II | |||
Basis of Presentation | |||
Percentage of loan receivable held for sale (as a percent) | 95.00% | ||
Percentage of ownership maintained with each borrower | 100.00% | ||
Interest retained (as a percent) | 5.00% | ||
Loan held-for-sale term | 3 days | ||
Installment loan | |||
Basis of Presentation | |||
Term for intent to sell loans | 16 days | ||
Installment loan | Minimum | |||
Basis of Presentation | |||
Loan held-for-sale term | 12 months | ||
Installment loan | Maximum | |||
Basis of Presentation | |||
Loan held-for-sale term | 60 months | ||
Healthcare receivables | |||
Basis of Presentation | |||
Percentage of loan receivable held for sale (as a percent) | 100.00% | ||
Number of third party relationship | 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% |
INVESTMENT SECURITIES - AFS (De
INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 489,015 | $ 512,518 |
Gross Unrealized Gains | 7,899 | 11,383 |
Gross Unrealized Losses | (1,034) | (38) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale debt securities, Fair Value | 495,880 | 523,863 |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 234,980 | 245,204 |
Gross Unrealized Gains | 747 | 1,730 |
Gross Unrealized Losses | (882) | (25) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale debt securities, Fair Value | 234,845 | 246,909 |
Private label mortgage backed security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 1,468 | 1,707 |
Gross Unrealized Gains | 1,312 | 1,250 |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale debt securities, Fair Value | 2,780 | 2,957 |
Mortgage backed securities - residential | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 204,869 | 203,786 |
Gross Unrealized Gains | 5,059 | 7,419 |
Gross Unrealized Losses | (123) | (3) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale debt securities, Fair Value | 209,805 | 211,202 |
Collateralized mortgage obligations | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 34,027 | 48,190 |
Gross Unrealized Gains | 521 | 772 |
Gross Unrealized Losses | (29) | (10) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale debt securities, Fair Value | 34,519 | 48,952 |
Corporate bonds | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 10,000 | 10,000 |
Gross Unrealized Gains | 81 | 43 |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale debt securities, Fair Value | 10,081 | 10,043 |
Trust Preferred Securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 3,671 | 3,631 |
Gross Unrealized Gains | 179 | 169 |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale debt securities, Fair Value | $ 3,850 | $ 3,800 |
INVESTMENT SECURITIES - HTM (De
INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Held-to-Maturity Debt Securities | ||
Carrying Value | $ 45,045 | $ 53,502 |
Gross Unrecognized Gains | 545 | 688 |
Fair Value | 45,590 | 54,190 |
Allowance for credit losses | (54) | (178) |
Mortgage backed securities - residential | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 47 | 99 |
Gross Unrecognized Gains | 5 | |
Fair Value | 47 | 104 |
Collateralized mortgage obligations | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 9,777 | 13,061 |
Gross Unrecognized Gains | 150 | 176 |
Fair Value | 9,927 | 13,237 |
Corporate bonds | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 34,976 | 39,986 |
Gross Unrecognized Gains | 390 | 499 |
Fair Value | 35,366 | 40,485 |
Allowance for credit losses | (54) | (178) |
Obligations of state and political subdivisions | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 245 | 356 |
Gross Unrecognized Gains | 5 | 8 |
Fair Value | $ 250 | $ 364 |
INVESTMENT SECURITIES - AMORTIZ
INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities available for Sale - Amortized Cost | ||
Due in one year or less | $ 25,044 | |
Due from one year to five years | 179,937 | |
Due from five years to ten years | 40,000 | |
Due beyond ten years | 3,670 | |
Amortized Cost | 489,015 | $ 512,518 |
Securities available for Sale - Fair Value | ||
Due in one year or less | 25,270 | |
Due from one year to five years | 179,803 | |
Due from five years to ten years | 39,853 | |
Due beyond ten years | 3,850 | |
Total securities | 495,880 | 523,863 |
Securities held to maturity - Carrying Value | ||
Due in one year or less | 121 | |
Due from one year to five years | 35,100 | |
Total securities | 45,045 | 53,502 |
Securities held to maturity - Fair Value | ||
Due in one year or less | 123 | |
Due from one year to five years | 35,493 | |
Fair Value | 45,590 | 54,190 |
Private label mortgage backed security | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 1,468 | |
Amortized Cost | 1,468 | 1,707 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 2,780 | |
Total securities | 2,780 | 2,957 |
Mortgage backed securities - residential | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 204,869 | |
Amortized Cost | 204,869 | 203,786 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 209,805 | |
Total securities | 209,805 | 211,202 |
Securities held to maturity - Carrying Value | ||
Securities not due at a single maturity date | 47 | |
Total securities | 47 | 99 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 47 | |
Fair Value | 47 | 104 |
Collateralized mortgage obligations | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 34,027 | |
Amortized Cost | 34,027 | 48,190 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 34,519 | |
Total securities | 34,519 | 48,952 |
Securities held to maturity - Carrying Value | ||
Securities not due at a single maturity date | 9,777 | |
Total securities | 9,777 | 13,061 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 9,927 | |
Fair Value | $ 9,927 | $ 13,237 |
INVESTMENT SECURITIES - INVESTM
INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 198,540 | $ 63,827 |
Less than 12 months Unrealized Losses | (1,034) | (38) |
Total Fair Value | 198,540 | 63,827 |
Total Unrealized Losses | $ (1,034) | $ (38) |
Number of securities held | 170 | 173 |
Number of securities held in an unrealized loss position | 30 | 19 |
Maximum percentage of holdings of securities of any one issuer, other than the U.S. Government and its agencies | 10.00% | 10.00% |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 158,944 | $ 59,971 |
Less than 12 months Unrealized Losses | (882) | (25) |
Total Fair Value | 158,944 | 59,971 |
Total Unrealized Losses | (882) | (25) |
Mortgage backed securities - residential | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 34,432 | 1,068 |
Less than 12 months Unrealized Losses | (123) | (3) |
Total Fair Value | 34,432 | 1,068 |
Total Unrealized Losses | (123) | (3) |
Collateralized mortgage obligations | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 5,164 | 2,788 |
Less than 12 months Unrealized Losses | (29) | (10) |
Total Fair Value | 5,164 | 2,788 |
Total Unrealized Losses | $ (29) | $ (10) |
INVESTMENT SECURITIES - CORPORA
INVESTMENT SECURITIES - CORPORATE BONDS AND MORTGAGE BACKED SECURITIES (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Private label mortgage backed security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Securities | $ 2,780,000 | |
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 | $ 152,000 | $ 13,000 |
INVESTMENT SECURITIES - TRUST P
INVESTMENT SECURITIES - TRUST PREFERRED SECURITY (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2015 | |
Amortized cost and fair value of the investment securities portfolio by contractual maturity | |||
Amount of floating rate purchased | $ 141,571 | $ 278,878 | |
Trust Preferred Securities | |||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | |||
Amount of floating rate purchased | $ 3,000 | ||
Price as percentage of face value | 68.00% | ||
3 Month London Interbank Offered Rate (LIBOR) | Trust Preferred Securities | |||
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Bank's private label mortgage backed security credit losses recognized in earnings | ||
Number of securities held | 170 | 173 |
Available-for-sale debt securities, at fair value (amortized cost of $489,015 in 2021 and $512,518 in 2020, allowance for credit losses of $0 in 2021 and $0 in 2020) | $ 495,880 | $ 523,863 |
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 $489,015 in 2021 and $512,518 in 2020, allowance for credit losses of $0 in 2021 and $0 in 2020) | $ 2,780 | $ 2,957 |
INVESTMENT SECURITIES - ACLS RO
INVESTMENT SECURITIES - ACLS ROLLFORWARD (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Securities | |||||
Balance | $ 56,000 | $ 273,000 | $ 178,000 | ||
Provision | (2,000) | 74,000 | (124,000) | $ 296,000 | |
Balance | 54,000 | 347,000 | 54,000 | 347,000 | |
Debt Securities, Held-to-maturity, Nonaccrual | 0 | 0 | $ 0 | ||
Debt Securities, Held To Maturity, Collateral Dependent | 0 | 0 | 0 | ||
Other Assets. | |||||
Debt Securities | |||||
Accrued interest on AFS debt securities excluded from ACLS | 1,000,000 | 1,000,000 | 1,000,000 | ||
Accrued interest on HTM debt securities excluded from ACLS | 88,000 | 88,000 | $ 110,000 | ||
Corporate bonds | Available-for-Sale Securities | |||||
Debt Securities | |||||
Balance | 126,000 | ||||
Provision | (74,000) | 52,000 | |||
Balance | 52,000 | 52,000 | |||
Corporate bonds | Held-to-Maturity Securities | |||||
Debt Securities | |||||
Balance | 56,000 | 147,000 | 178,000 | ||
Provision | (2,000) | 148,000 | (124,000) | 244,000 | |
Balance | $ 54,000 | $ 295,000 | $ 54,000 | 295,000 | |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||
Debt Securities | |||||
Balance | 51,000 | ||||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Corporate bonds | Held-to-Maturity Securities | |||||
Debt Securities | |||||
Balance | $ 51,000 |
INVESTMENT SECURITIES - PLEDGED
INVESTMENT SECURITIES - PLEDGED DEBT SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
INVESTMENT SECURITIES | ||
Carrying amount | $ 354,275 | $ 303,535 |
Fair value | $ 354,341 | $ 303,611 |
INVESTMENT SECURITIES - EQUITY
INVESTMENT SECURITIES - EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Equity securities | |||||
Amortized Cost | $ 2,500 | $ 2,500 | $ 2,500 | ||
Gross Unrealized Gains | 102 | 583 | |||
Gross Unrealized Losses | (24) | ||||
Fair Value | 2,578 | 2,578 | 3,083 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | (22) | $ 54 | (505) | $ (118) | |
Gains (Losses) Recognized on Equity securities, Total | (22) | 54 | (505) | (118) | |
Freddie Mac preferred stock | |||||
Equity securities | |||||
Gross Unrealized Gains | 102 | 560 | |||
Fair Value | 102 | 102 | 560 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | (13) | 50 | (458) | (178) | |
Gains (Losses) Recognized on Equity securities, Total | (13) | 50 | (458) | (178) | |
Mutual fund | |||||
Equity securities | |||||
Amortized Cost | 2,500 | 2,500 | 2,500 | ||
Gross Unrealized Gains | 23 | ||||
Gross Unrealized Losses | (24) | ||||
Fair Value | 2,476 | 2,476 | $ 2,523 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | (9) | 4 | (47) | 60 | |
Gains (Losses) Recognized on Equity securities, Total | $ (9) | $ 4 | $ (47) | $ 60 |
LOANS HELD FOR SALE - CONSUMER
LOANS HELD FOR SALE - CONSUMER LOANS - HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consumer Loans Held For Sale At Fair Value [RollForward] | ||||
Balance, beginning of period | $ 13,020 | $ 164 | $ 3,298 | $ 598 |
Origination of consumer loans held for sale | 67,526 | 1,559 | 136,222 | 49,300 |
Proceeds from the sale of consumer loans held for sale | (71,427) | (1,321) | (132,330) | (50,872) |
Net gain on sale of consumer loans held for sale | 1,660 | 47 | 3,589 | 1,423 |
Balance, end of period | $ 10,779 | $ 449 | $ 10,779 | $ 449 |
LOANS HELD FOR SALE - CONSUME_2
LOANS HELD FOR SALE - CONSUMER LOANS - LOWER COST (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Carried at lower of cost or fair value | |||||
Balance, beginning of period | $ 11,412 | $ 12,801 | $ 1,478 | $ 11,646 | |
Origination of consumer loans held for sale | 189,492 | 107,518 | 424,840 | 342,388 | |
Proceeds from the sale of consumer loans held for sale | (199,036) | (109,669) | (426,642) | (344,919) | |
Net gain on sale of consumer loans held for sale | 2,108 | 793 | 4,300 | 2,328 | |
Balance, end of period | $ 11,646 | $ 3,976 | $ 11,443 | $ 3,976 | $ 11,443 |
Republic Credit Solutions | Line of credit and credit card | Minimum | |||||
Loans held for sale | |||||
Percentage of loan receivable held for sale (as a percent) | 90.00% | ||||
Republic Credit Solutions | Line of credit and credit card | Maximum | |||||
Loans held for sale | |||||
Percentage of loan receivable held for sale (as a percent) | 95.00% | ||||
Republic Credit Solutions | Healthcare receivables | |||||
Loans held for sale | |||||
Percentage of loan receivable held for sale (as a percent) | 100.00% | ||||
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 | ||||
Republic Credit Solutions | Installment loan | Maximum | |||||
Loans held for sale | |||||
Loan held-for-sale term | 60 months |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COMPOSITION OF LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Loans disclosures | ||||||
Total loans | $ 4,343,782 | $ 4,789,338 | ||||
Allowance for credit losses | (63,024) | $ (60,291) | (61,067) | $ (59,891) | $ (55,097) | $ (43,351) |
Loans, net | 4,280,758 | 4,728,271 | ||||
Core Banking Activities | ||||||
Loans disclosures | ||||||
Total loans | 4,227,070 | 4,678,445 | ||||
Allowance for credit losses | (51,364) | (51,462) | (52,106) | (51,229) | (45,752) | (29,999) |
Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 3,476,388 | 3,715,649 | ||||
Allowance for credit losses | (49,487) | (49,362) | (49,699) | (48,657) | (43,177) | (28,205) |
Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 116,712 | 110,893 | ||||
Allowance for credit losses | (11,660) | (8,829) | (8,961) | (8,662) | (9,345) | (13,352) |
Other TRS loans | Republic Processing Group | ||||||
Loans disclosures | ||||||
Allowance for credit losses | (141) | (211) | ||||
Residential Real Estate | Residential Real Estate - Owner Occupied | ||||||
Loans disclosures | ||||||
Total loans | 827,898 | 879,800 | ||||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 827,898 | 879,800 | ||||
Allowance for credit losses | (8,629) | (8,977) | (9,715) | (9,641) | (9,303) | (4,729) |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||||||
Loans disclosures | ||||||
Total loans | 294,818 | 264,780 | ||||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 294,818 | 264,780 | ||||
Allowance for credit losses | (2,598) | (2,551) | (2,466) | (2,377) | (2,274) | (1,737) |
Residential Real Estate | Home equity | ||||||
Loans disclosures | ||||||
Total loans | 215,282 | 240,640 | ||||
Residential Real Estate | Home equity | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 215,282 | 240,640 | ||||
Allowance for credit losses | (4,247) | (4,305) | (4,990) | (5,124) | (5,124) | (2,721) |
Commercial Real Estate | ||||||
Loans disclosures | ||||||
Total loans | 1,393,241 | 1,349,085 | ||||
Commercial Real Estate | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 1,393,241 | 1,349,085 | ||||
Allowance for credit losses | (23,596) | (23,307) | (23,606) | (20,963) | (16,300) | (10,486) |
Construction & land development | ||||||
Loans disclosures | ||||||
Total loans | 105,968 | 98,674 | ||||
Construction & land development | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 105,968 | 98,674 | ||||
Allowance for credit losses | (3,675) | (3,299) | (3,274) | (4,599) | (4,940) | (2,152) |
Commercial | Commercial and Industrial | ||||||
Loans disclosures | ||||||
Total loans | 333,795 | 325,596 | ||||
Commercial | Commercial and Industrial | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 333,795 | 325,596 | ||||
Allowance for credit losses | (3,959) | (4,117) | (2,797) | (2,884) | (2,405) | (2,882) |
Commercial | Paycheck Protection Program | ||||||
Loans disclosures | ||||||
Total loans | 126,271 | 392,319 | ||||
Commercial | Paycheck Protection Program | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 126,271 | 392,319 | ||||
Loans, net | 126,000 | |||||
Lease Financing Receivables | ||||||
Loans disclosures | ||||||
Total loans | 9,427 | 10,130 | ||||
Lease Financing Receivables | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 9,427 | 10,130 | ||||
Allowance for credit losses | (99) | (97) | (106) | (117) | (125) | (147) |
Aircraft | ||||||
Loans disclosures | ||||||
Total loans | 130,398 | 101,375 | ||||
Aircraft | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 130,398 | 101,375 | ||||
Allowance for credit losses | (326) | (303) | (253) | (219) | (208) | (176) |
Consumer | ||||||
Loans disclosures | ||||||
Total loans | 39,290 | 53,250 | ||||
Consumer | Credit cards | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 14,781 | 14,196 | ||||
Allowance for credit losses | (951) | (949) | (929) | (942) | (928) | (1,020) |
Consumer | Overdrafts | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 753 | 587 | ||||
Allowance for credit losses | (753) | (717) | (587) | (705) | (488) | (1,169) |
Consumer | Automobile loans | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 17,533 | 30,300 | ||||
Allowance for credit losses | (226) | (273) | (399) | (406) | (473) | (612) |
Consumer | Other consumer | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 6,223 | 8,167 | ||||
Allowance for credit losses | (428) | (467) | (577) | (680) | (609) | (374) |
Warehouse lines of credit | ||||||
Loans disclosures | ||||||
Total loans | 750,682 | 962,796 | ||||
Warehouse lines of credit | Core Banking Activities | ||||||
Loans disclosures | ||||||
Total loans | 750,682 | 962,796 | ||||
Warehouse lines of credit | Warehouse Lending | ||||||
Loans disclosures | ||||||
Total loans | 750,682 | |||||
Allowance for credit losses | (1,877) | $ (2,100) | (2,407) | (2,572) | $ (2,575) | (1,794) |
Tax Refund Solution | ||||||
Loans disclosures | ||||||
Total loans | 1 | |||||
Tax Refund Solution | Other TRS loans | Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 1 | |||||
Allowance for credit losses | (158) | (141) | (234) | |||
Republic Credit Solution | ||||||
Loans disclosures | ||||||
Total loans | 116,711 | 110,893 | ||||
Republic Credit Solution | Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 116,711 | 110,893 | ||||
Allowance for credit losses | $ (11,660) | $ (8,803) | $ (8,521) | $ (13,118) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Contractually receivable | $ 4,348,535 | $ 4,797,297 |
Unearned income | (598) | (708) |
Unamortized premiums | 121 | 216 |
Unaccreted discounts | (688) | (988) |
PPP net unamortized deferred origination fees and costs | (3,986) | (8,564) |
Other net unamortized deferred origination fees and costs | 398 | 2,085 |
Carrying value of loans | $ 4,343,782 | $ 4,789,338 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - PAYCHECK PROTECTION PROGRAM (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | $ 4,280,758 | $ 4,728,271 |
Commercial | Paycheck Protection Program | Traditional Banking | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | 126,000 | |
Originated balance | 111,000 | $ 19,000 |
Unaccreted lender fees | 4,000 | |
PPPLF | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding borrowings | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RISK CATEGORY (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Risk category of rated loans | ||
Current fiscal year | $ 995,289 | $ 1,319,443 |
Year One | 749,242 | 659,624 |
Year Two | 471,135 | 362,461 |
Year Three | 245,781 | 344,618 |
Prior | 735,575 | 770,323 |
Revolving Loans Amortized Cost Basis | 1,057,854 | 1,272,456 |
Revolving Loans Converted To Term Loans | 88,906 | 60,413 |
Loans | 4,343,782 | 4,789,338 |
Pass | ||
Risk category of rated loans | ||
Current fiscal year | 967,484 | 1,294,478 |
Year One | 740,996 | 623,234 |
Year Two | 437,121 | 360,803 |
Year Three | 233,114 | 329,823 |
Prior | 689,200 | 732,111 |
Revolving Loans Amortized Cost Basis | 1,054,864 | 1,269,098 |
Revolving Loans Converted To Term Loans | 86,705 | 57,610 |
Loans | 4,209,484 | 4,667,157 |
Special Mention | ||
Risk category of rated loans | ||
Current fiscal year | 27,805 | 21,592 |
Year One | 5,065 | 34,530 |
Year Two | 33,038 | 278 |
Year Three | 11,614 | 12,965 |
Prior | 30,411 | 20,609 |
Revolving Loans Amortized Cost Basis | 125 | 127 |
Loans | 108,058 | 90,101 |
Substandard | ||
Risk category of rated loans | ||
Current fiscal year | 3,373 | |
Year One | 3,181 | 1,860 |
Year Two | 976 | 1,380 |
Year Three | 1,053 | 1,830 |
Prior | 15,964 | 17,603 |
Revolving Loans Amortized Cost Basis | 2,865 | 3,231 |
Revolving Loans Converted To Term Loans | 2,201 | 2,803 |
Loans | 26,240 | 32,080 |
Core Banking Activities | ||
Risk category of rated loans | ||
Loans | 4,227,070 | 4,678,445 |
Traditional Banking | ||
Risk category of rated loans | ||
Loans | 3,476,388 | 3,715,649 |
Republic Processing Group | ||
Risk category of rated loans | ||
Loans | 116,712 | 110,893 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Current fiscal year | 170,898 | 268,707 |
Year One | 230,001 | 133,805 |
Year Two | 97,608 | 84,127 |
Year Three | 57,360 | 69,654 |
Prior | 272,031 | 323,507 |
Loans | 827,898 | 879,800 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 170,594 | 268,313 |
Year One | 229,444 | 132,018 |
Year Two | 96,923 | 82,754 |
Year Three | 56,318 | 67,430 |
Prior | 251,929 | 301,366 |
Loans | 805,208 | 851,881 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Special Mention | ||
Risk category of rated loans | ||
Current fiscal year | 304 | |
Year One | 364 | |
Year Two | 42 | |
Year Three | 36 | 1,610 |
Prior | 8,509 | 8,730 |
Loans | 8,849 | 10,746 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Substandard | ||
Risk category of rated loans | ||
Current fiscal year | 394 | |
Year One | 557 | 1,423 |
Year Two | 685 | 1,331 |
Year Three | 1,006 | 614 |
Prior | 11,593 | 13,411 |
Loans | 13,841 | 17,173 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 827,898 | 879,800 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Current fiscal year | 75,983 | 73,291 |
Year One | 71,290 | 63,102 |
Year Two | 50,082 | 43,610 |
Year Three | 32,111 | 45,759 |
Prior | 61,764 | 38,397 |
Revolving Loans Converted To Term Loans | 3,588 | 621 |
Loans | 294,818 | 264,780 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 75,983 | 73,291 |
Year One | 71,290 | 63,102 |
Year Two | 50,082 | 43,610 |
Year Three | 32,111 | 45,759 |
Prior | 61,625 | 38,316 |
Revolving Loans Converted To Term Loans | 3,588 | 621 |
Loans | 294,679 | 264,699 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Special Mention | ||
Risk category of rated loans | ||
Prior | 40 | |
Loans | 40 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Substandard | ||
Risk category of rated loans | ||
Prior | 99 | 81 |
Loans | 99 | 81 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 294,818 | 264,780 |
Residential Real Estate | Home equity | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 215,282 | 240,640 |
Loans | 215,282 | 240,640 |
Residential Real Estate | Home equity | Pass | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 213,297 | 237,633 |
Loans | 213,297 | 237,633 |
Residential Real Estate | Home equity | Special Mention | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 125 | 127 |
Loans | 125 | 127 |
Residential Real Estate | Home equity | Substandard | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 1,860 | 2,880 |
Loans | 1,860 | 2,880 |
Residential Real Estate | Home equity | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 215,282 | 240,640 |
Commercial Real Estate | ||
Risk category of rated loans | ||
Current fiscal year | 374,719 | 321,543 |
Year One | 276,678 | 289,569 |
Year Two | 209,191 | 166,778 |
Year Three | 115,835 | 183,549 |
Prior | 335,612 | 328,894 |
Revolving Loans Converted To Term Loans | 81,206 | 58,752 |
Loans | 1,393,241 | 1,349,085 |
Commercial Real Estate | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 362,616 | 315,550 |
Year One | 271,691 | 258,251 |
Year Two | 179,046 | 166,542 |
Year Three | 104,300 | 171,207 |
Prior | 311,904 | 315,336 |
Revolving Loans Converted To Term Loans | 79,005 | 55,949 |
Loans | 1,308,562 | 1,282,835 |
Commercial Real Estate | Special Mention | ||
Risk category of rated loans | ||
Current fiscal year | 12,103 | 3,397 |
Year One | 2,411 | 30,969 |
Year Two | 29,879 | 236 |
Year Three | 11,535 | 11,355 |
Prior | 19,767 | 9,659 |
Loans | 75,695 | 55,616 |
Commercial Real Estate | Substandard | ||
Risk category of rated loans | ||
Current fiscal year | 2,596 | |
Year One | 2,576 | 349 |
Year Two | 266 | |
Year Three | 987 | |
Prior | 3,941 | 3,899 |
Revolving Loans Converted To Term Loans | 2,201 | 2,803 |
Loans | 8,984 | 10,634 |
Commercial Real Estate | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 1,393,241 | 1,349,085 |
Construction & land development | ||
Risk category of rated loans | ||
Current fiscal year | 59,659 | 53,972 |
Year One | 37,446 | 34,197 |
Year Two | 6,743 | 7,840 |
Year Three | 1,527 | 701 |
Prior | 593 | 1,964 |
Loans | 105,968 | 98,674 |
Construction & land development | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 59,659 | 53,972 |
Year One | 37,136 | 31,756 |
Year Two | 4,384 | 7,840 |
Year Three | 1,527 | 701 |
Prior | 593 | 1,964 |
Loans | 103,299 | 96,233 |
Construction & land development | Special Mention | ||
Risk category of rated loans | ||
Year One | 310 | 2,397 |
Year Two | 2,359 | |
Loans | 2,669 | 2,397 |
Construction & land development | Substandard | ||
Risk category of rated loans | ||
Year One | 44 | |
Loans | 44 | |
Construction & land development | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 105,968 | 98,674 |
Commercial | Commercial and Industrial | ||
Risk category of rated loans | ||
Current fiscal year | 132,525 | 124,563 |
Year One | 57,746 | 85,387 |
Year Two | 67,618 | 33,391 |
Year Three | 21,305 | 32,303 |
Prior | 50,489 | 48,912 |
Revolving Loans Converted To Term Loans | 4,112 | 1,040 |
Loans | 333,795 | 325,596 |
Commercial | Commercial and Industrial | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 117,127 | 105,985 |
Year One | 55,354 | 84,575 |
Year Two | 66,818 | 33,391 |
Year Three | 21,262 | 32,303 |
Prior | 48,361 | 46,697 |
Revolving Loans Converted To Term Loans | 4,112 | 1,040 |
Loans | 313,034 | 303,991 |
Commercial | Commercial and Industrial | Special Mention | ||
Risk category of rated loans | ||
Current fiscal year | 15,398 | 18,195 |
Year One | 2,344 | 800 |
Year Two | 800 | |
Year Three | 43 | |
Prior | 2,095 | 2,215 |
Loans | 20,680 | 21,210 |
Commercial | Commercial and Industrial | Substandard | ||
Risk category of rated loans | ||
Current fiscal year | 383 | |
Year One | 48 | 12 |
Prior | 33 | |
Loans | 81 | 395 |
Commercial | Commercial and Industrial | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 333,795 | 325,596 |
Commercial | Paycheck Protection Program | ||
Risk category of rated loans | ||
Current fiscal year | 107,498 | 392,319 |
Year One | 18,773 | |
Loans | 126,271 | 392,319 |
Commercial | Paycheck Protection Program | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 107,498 | 392,319 |
Year One | 18,773 | |
Loans | 126,271 | 392,319 |
Commercial | Paycheck Protection Program | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 126,271 | 392,319 |
Aircraft | ||
Risk category of rated loans | ||
Current fiscal year | 47,983 | 55,823 |
Year One | 46,405 | 30,529 |
Year Two | 24,134 | 13,804 |
Year Three | 10,049 | 1,219 |
Prior | 1,827 | |
Loans | 130,398 | 101,375 |
Aircraft | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 47,983 | 55,823 |
Year One | 46,405 | 30,529 |
Year Two | 24,134 | 13,804 |
Year Three | 10,049 | 1,219 |
Prior | 1,827 | |
Loans | 130,398 | 101,375 |
Aircraft | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 130,398 | 101,375 |
Lease Financing Receivables | ||
Risk category of rated loans | ||
Current fiscal year | 2,068 | 1,117 |
Year One | 903 | 3,663 |
Year Two | 2,896 | 1,814 |
Year Three | 1,406 | 2,847 |
Prior | 2,154 | 689 |
Loans | 9,427 | 10,130 |
Lease Financing Receivables | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 2,068 | 1,117 |
Year One | 903 | 3,663 |
Year Two | 2,896 | 1,814 |
Year Three | 1,406 | 2,847 |
Prior | 2,154 | 689 |
Loans | 9,427 | 10,130 |
Lease Financing Receivables | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 9,427 | 10,130 |
Consumer | ||
Risk category of rated loans | ||
Current fiscal year | 844 | 425 |
Year One | 725 | 13,668 |
Year Two | 10,476 | 8,612 |
Year Three | 5,203 | 7,354 |
Prior | 7,162 | 8,865 |
Revolving Loans Amortized Cost Basis | 14,880 | 14,326 |
Loans | 39,290 | 53,250 |
Consumer | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 844 | 425 |
Year One | 725 | 13,636 |
Year Two | 10,451 | 8,563 |
Year Three | 5,156 | 7,125 |
Prior | 6,864 | 8,648 |
Revolving Loans Amortized Cost Basis | 14,880 | 14,321 |
Loans | 38,920 | 52,718 |
Consumer | Special Mention | ||
Risk category of rated loans | ||
Prior | 5 | |
Loans | 5 | |
Consumer | Substandard | ||
Risk category of rated loans | ||
Year One | 32 | |
Year Two | 25 | 49 |
Year Three | 47 | 229 |
Prior | 298 | 212 |
Revolving Loans Amortized Cost Basis | 5 | |
Loans | 370 | 527 |
Consumer | Credit cards | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 14,781 | 14,196 |
Consumer | Overdrafts | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 753 | 587 |
Consumer | Automobile loans | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 17,533 | 30,300 |
Consumer | Other consumer | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 6,223 | 8,167 |
Warehouse lines of credit | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 750,682 | 962,796 |
Loans | 750,682 | 962,796 |
Warehouse lines of credit | Pass | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 750,682 | 962,796 |
Loans | 750,682 | 962,796 |
Warehouse lines of credit | Core Banking Activities | ||
Risk category of rated loans | ||
Loans | 750,682 | 962,796 |
Warehouse lines of credit | Warehouse Lending | ||
Risk category of rated loans | ||
Loans | 750,682 | |
Tax Refund Solution | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 1 | |
Loans | 1 | |
Tax Refund Solution | Pass | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 1 | |
Loans | 1 | |
Tax Refund Solution | Other TRS loans | Republic Processing Group | ||
Risk category of rated loans | ||
Loans | 1 | |
Republic Credit Solution | ||
Risk category of rated loans | ||
Current fiscal year | 23,112 | 27,683 |
Year One | 9,275 | 5,704 |
Year Two | 2,387 | 2,485 |
Year Three | 985 | 1,232 |
Prior | 3,943 | 19,095 |
Revolving Loans Amortized Cost Basis | 77,009 | 54,694 |
Loans | 116,711 | 110,893 |
Republic Credit Solution | Pass | ||
Risk category of rated loans | ||
Current fiscal year | 23,112 | 27,683 |
Year One | 9,275 | 5,704 |
Year Two | 2,387 | 2,485 |
Year Three | 985 | 1,232 |
Prior | 3,943 | 19,095 |
Revolving Loans Amortized Cost Basis | 76,004 | 54,348 |
Loans | 115,706 | 110,547 |
Republic Credit Solution | Substandard | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 1,005 | 346 |
Loans | 1,005 | 346 |
Republic Credit Solution | Republic Processing Group | ||
Risk category of rated loans | ||
Loans | $ 116,711 | $ 110,893 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for loan losses rollforward | ||||
Beginning Balance | $ 60,291 | $ 55,097 | $ 61,067 | $ 43,351 |
Provision | 1,294 | 1,426 | 12,355 | 30,498 |
Charge-offs | (1,378) | (1,215) | (13,846) | (26,801) |
Recoveries | 2,817 | 4,583 | 3,448 | 6,109 |
Ending Balance | 63,024 | 59,891 | 63,024 | 59,891 |
Core Banking Activities | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 51,462 | 45,752 | 52,106 | 29,999 |
Provision | (265) | 5,780 | (532) | 15,008 |
Charge-offs | (314) | (509) | (1,112) | (1,731) |
Recoveries | 481 | 206 | 902 | 1,219 |
Ending Balance | 51,364 | 51,229 | 51,364 | 51,229 |
Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 49,362 | 43,177 | 49,699 | 28,205 |
Provision | (42) | 5,783 | (2) | 14,230 |
Charge-offs | (314) | (509) | (1,112) | (1,731) |
Recoveries | 481 | 206 | 902 | 1,219 |
Ending Balance | 49,487 | 48,657 | 49,487 | 48,657 |
Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 8,829 | 9,345 | 8,961 | 13,352 |
Provision | 1,559 | (4,354) | 12,887 | 15,490 |
Charge-offs | (1,064) | (706) | (12,734) | (25,070) |
Recoveries | 2,336 | 4,377 | 2,546 | 4,890 |
Ending Balance | 11,660 | 8,662 | 11,660 | 8,662 |
Easy Advances | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Provision | (2,242) | (4,294) | ||
Recoveries | 2,242 | 4,294 | ||
Other TRS loans | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 211 | |||
Provision | (19) | (48) | ||
Charge-offs | (22) | |||
Recoveries | 19 | |||
Ending Balance | 141 | 141 | ||
Republic Credit Solutions | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 8,829 | 9,134 | ||
Provision | 3,820 | (12) | ||
Charge-offs | (1,064) | (684) | ||
Recoveries | 75 | 83 | ||
Ending Balance | 11,660 | 8,521 | 11,660 | 8,521 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 8,977 | 9,303 | 9,715 | 4,729 |
Provision | (677) | 330 | (1,461) | 648 |
Charge-offs | (13) | (40) | ||
Recoveries | 329 | 21 | 375 | 105 |
Ending Balance | 8,629 | 9,641 | 8,629 | 9,641 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 2,551 | 2,274 | 2,466 | 1,737 |
Provision | 47 | 96 | 131 | 481 |
Recoveries | 7 | 1 | 11 | |
Ending Balance | 2,598 | 2,377 | 2,598 | 2,377 |
Residential Real Estate | Home equity | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 4,305 | 5,124 | 4,990 | 2,721 |
Provision | (63) | (7) | (789) | 657 |
Charge-offs | (14) | (14) | ||
Recoveries | 5 | 21 | 46 | 108 |
Ending Balance | 4,247 | 5,124 | 4,247 | 5,124 |
Commercial Real Estate | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 23,307 | 16,300 | 23,606 | 10,486 |
Provision | 286 | 4,663 | 336 | 10,002 |
Charge-offs | (428) | (270) | ||
Recoveries | 3 | 82 | 472 | |
Ending Balance | 23,596 | 20,963 | 23,596 | 20,963 |
Construction & land development | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 3,299 | 4,940 | 3,274 | 2,152 |
Provision | 376 | (341) | 401 | 1,000 |
Ending Balance | 3,675 | 4,599 | 3,675 | 4,599 |
Commercial | Commercial and Industrial | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 4,117 | 2,405 | 2,797 | 2,882 |
Provision | (139) | 654 | 1,170 | 1,643 |
Charge-offs | (35) | (255) | (35) | (447) |
Recoveries | 16 | 80 | 27 | 124 |
Ending Balance | 3,959 | 2,884 | 3,959 | 2,884 |
Lease Financing Receivables | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 97 | 125 | 106 | 147 |
Provision | 2 | (8) | (7) | (30) |
Ending Balance | 99 | 117 | 99 | 117 |
Aircraft | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 303 | 208 | 253 | 176 |
Provision | 23 | 11 | 73 | 43 |
Ending Balance | 326 | 219 | 326 | 219 |
Consumer | Credit cards | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 949 | 928 | 929 | 1,020 |
Provision | 22 | 36 | 108 | 74 |
Charge-offs | (40) | (29) | (130) | (206) |
Recoveries | 20 | 7 | 44 | 21 |
Ending Balance | 951 | 942 | 951 | 942 |
Consumer | Overdrafts | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 717 | 488 | 587 | 1,169 |
Provision | 143 | 324 | 351 | 13 |
Charge-offs | (195) | (157) | (444) | (660) |
Recoveries | 88 | 50 | 259 | 183 |
Ending Balance | 753 | 705 | 753 | 705 |
Consumer | Automobile loans | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 273 | 473 | 399 | 612 |
Provision | (34) | (67) | (178) | (220) |
Charge-offs | (19) | (19) | (8) | |
Recoveries | 6 | 24 | 29 | |
Ending Balance | 226 | 406 | 226 | 406 |
Consumer | Other consumer | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 467 | 609 | 577 | 374 |
Provision | (28) | 92 | (137) | (81) |
Charge-offs | (25) | (41) | (56) | (86) |
Recoveries | 14 | 20 | 44 | 166 |
Ending Balance | 428 | 680 | 428 | 680 |
Warehouse lines of credit | Warehouse Lending | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 2,100 | 2,575 | 2,407 | 1,794 |
Provision | (223) | (3) | (530) | 778 |
Ending Balance | 1,877 | 2,572 | 1,877 | 2,572 |
Tax Refund Solution | Easy Advances | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Provision | 7,984 | 15,239 | ||
Charge-offs | (10,256) | (19,575) | ||
Recoveries | 2,272 | 4,336 | ||
Tax Refund Solution | Other TRS loans | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 158 | 234 | ||
Provision | (134) | |||
Charge-offs | (51) | (94) | ||
Recoveries | 27 | 1 | ||
Ending Balance | 141 | 141 | ||
Republic Credit Solution | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 8,803 | 13,118 | ||
Provision | 5,037 | 251 | ||
Charge-offs | (2,427) | (5,401) | ||
Recoveries | 247 | 553 | ||
Ending Balance | $ 11,660 | $ 8,521 | $ 11,660 | 8,521 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 6,734 | |||
ASU 2016-13 | Core Banking Activities | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 6,734 | |||
ASU 2016-13 | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for loan losses rollforward | ||||
Beginning 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 | |||
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 | |||
ASU 2016-13 | Residential Real Estate | Home equity | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for loan losses rollforward | ||||
Beginning 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 | |||
ASU 2016-13 | Construction & land development | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for loan losses rollforward | ||||
Beginning 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) | |||
ASU 2016-13 | Consumer | Credit cards | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 33 | |||
ASU 2016-13 | Consumer | Automobile loans | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | (7) | |||
ASU 2016-13 | Consumer | Other consumer | Traditional Banking | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | $ 307 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 20,252 | $ 23,548 |
Loans past due 90 days or more and still on accrual | 691 | 47 |
Total nonperforming loans | 20,943 | 23,595 |
Other real estate owned | 1,845 | 2,499 |
Total nonperforming assets | $ 22,788 | $ 26,094 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.48% | 0.49% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.52% | 0.54% |
Nonperforming assets to total assets (as percent) | 0.37% | 0.42% |
Core Banking Activities | ||
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 20,252 | $ 23,548 |
Loans past due 90 days or more and still on accrual | $ 5 | |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.48% | 0.50% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.52% | 0.56% |
Nonperforming assets to total assets (as percent) | 0.39% | 0.45% |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | $ 6,349 | $ 6,349 | $ 2,739 | ||
Nonaccrual with no ACLL | 13,903 | 13,903 | 20,809 | ||
Nonaccrual | 20,252 | 20,252 | 23,548 | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 691 | 691 | 47 | ||
Interest Income Recognized on Nonaccrual Loans | 266 | $ 317 | $ 933 | $ 1,622 | |
Number of consecutive months payments received before non-accrual loans returned to accrual status (in months) | item | 6 | ||||
Core Banking Activities | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 20,252 | $ 20,252 | 23,548 | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 5 | ||||
Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 20,252 | 20,252 | 23,548 | ||
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 | 691 | 691 | 42 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 2,041 | 2,041 | 1,995 | ||
Nonaccrual with no ACLL | 9,667 | 9,667 | 12,333 | ||
Nonaccrual | 11,708 | 11,708 | 14,328 | ||
Interest Income Recognized on Nonaccrual Loans | 225 | 252 | 672 | 649 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 11,708 | 11,708 | 14,328 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 33 | 33 | 8 | ||
Nonaccrual with no ACLL | 66 | 66 | 73 | ||
Nonaccrual | 99 | 99 | 81 | ||
Interest Income Recognized on Nonaccrual Loans | 2 | 2 | 5 | 6 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 99 | 99 | 81 | ||
Residential Real Estate | Home equity | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 63 | 63 | 91 | ||
Nonaccrual with no ACLL | 1,594 | 1,594 | 2,050 | ||
Nonaccrual | 1,657 | 1,657 | 2,141 | ||
Interest Income Recognized on Nonaccrual Loans | 19 | 29 | 121 | 81 | |
Residential Real Estate | Home equity | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 1,657 | 1,657 | 2,141 | ||
Commercial Real Estate | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 4,153 | 4,153 | 576 | ||
Nonaccrual with no ACLL | 2,454 | 2,454 | 6,186 | ||
Nonaccrual | 6,607 | 6,607 | 6,762 | ||
Interest Income Recognized on Nonaccrual Loans | 16 | 17 | 125 | 854 | |
Commercial Real Estate | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 6,607 | 6,607 | 6,762 | ||
Construction & land development | |||||
Aging or recorded investments in loans | |||||
Interest Income Recognized on Nonaccrual Loans | 7 | 7 | |||
Commercial | Commercial and Industrial | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 45 | 45 | |||
Nonaccrual with no ACLL | 48 | 48 | 55 | ||
Nonaccrual | 93 | 93 | 55 | ||
Interest Income Recognized on Nonaccrual Loans | 7 | 2 | 16 | ||
Commercial | Commercial and Industrial | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 93 | 93 | 55 | ||
Consumer | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 14 | 14 | 69 | ||
Nonaccrual with no ACLL | 74 | 74 | 112 | ||
Nonaccrual | 88 | 88 | 181 | ||
Interest Income Recognized on Nonaccrual Loans | 4 | $ 3 | 8 | $ 9 | |
Consumer | Credit cards | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 5 | ||||
Consumer | Automobile loans | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 84 | 84 | 170 | ||
Consumer | Other consumer | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 4 | 4 | 11 | ||
Republic Credit Solution | Republic Processing Group | |||||
Aging or recorded investments in loans | |||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 691 | $ 691 | $ 42 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Aging or recorded investments in loans | ||
Carrying value of loans | $ 4,343,782 | $ 4,789,338 |
30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 7,956 | $ 7,924 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.18% | 0.17% |
60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 2,512 | $ 4,690 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.06% | 0.10% |
90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 6,925 | $ 7,333 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.16% | 0.15% |
Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 17,393 | $ 19,947 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.40% | 0.42% |
Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 4,326,389 | $ 4,769,391 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 827,898 | 879,800 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 294,818 | 264,780 |
Residential Real Estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 215,282 | 240,640 |
Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,393,241 | 1,349,085 |
Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 105,968 | 98,674 |
Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 333,795 | 325,596 |
Commercial | Paycheck Protection Program | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 126,271 | 392,319 |
Lease Financing Receivables | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,427 | 10,130 |
Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 130,398 | 101,375 |
Consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 39,290 | 53,250 |
Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 750,682 | 962,796 |
Tax Refund Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 116,711 | 110,893 |
Core Banking Activities | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,227,070 | 4,678,445 |
Core Banking Activities | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,128 | 1,352 |
Core Banking Activities | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 330 | 1,070 |
Core Banking Activities | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6,234 | 7,291 |
Core Banking Activities | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 7,692 | 9,713 |
Core Banking Activities | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,219,378 | 4,668,732 |
Core Banking Activities | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 750,682 | 962,796 |
Core Banking Activities | Warehouse lines of credit | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 962,796 | |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,476,388 | 3,715,649 |
Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,128 | 1,352 |
Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 330 | 1,070 |
Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6,234 | 7,291 |
Traditional Banking | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 7,692 | 9,713 |
Traditional Banking | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,468,696 | 3,705,936 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 827,898 | 879,800 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 896 | 1,038 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 315 | 668 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 917 | 1,554 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,128 | 3,260 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 825,770 | 876,540 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 294,818 | 264,780 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 294,818 | 264,780 |
Traditional Banking | Residential Real Estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 215,282 | 240,640 |
Traditional Banking | Residential Real Estate | Home equity | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 50 | 93 |
Traditional Banking | Residential Real Estate | Home equity | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 14 | |
Traditional Banking | Residential Real Estate | Home equity | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 209 | 595 |
Traditional Banking | Residential Real Estate | Home equity | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 259 | 702 |
Traditional Banking | Residential Real Estate | Home equity | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 215,023 | 239,938 |
Traditional Banking | Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,393,241 | 1,349,085 |
Traditional Banking | Commercial Real Estate | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 348 | |
Traditional Banking | Commercial Real Estate | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,037 | 5,109 |
Traditional Banking | Commercial Real Estate | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,037 | 5,457 |
Traditional Banking | Commercial Real Estate | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,388,204 | 1,343,628 |
Traditional Banking | Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 105,968 | 98,674 |
Traditional Banking | Construction & land development | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 105,968 | 98,674 |
Traditional Banking | Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 333,795 | 325,596 |
Traditional Banking | Commercial | Commercial and Industrial | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 8 | |
Traditional Banking | Commercial | Commercial and Industrial | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 58 | 12 |
Traditional Banking | Commercial | Commercial and Industrial | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 66 | 12 |
Traditional Banking | Commercial | Commercial and Industrial | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 333,729 | 325,584 |
Traditional Banking | Commercial | Paycheck Protection Program | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 126,271 | 392,319 |
Traditional Banking | Commercial | Paycheck Protection Program | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 126,271 | 392,319 |
Traditional Banking | Lease Financing Receivables | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,427 | 10,130 |
Traditional Banking | Lease Financing Receivables | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,427 | 10,130 |
Traditional Banking | Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 130,398 | 101,375 |
Traditional Banking | Aircraft | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 130,398 | 101,375 |
Traditional Banking | Consumer | Credit cards | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 14,781 | 14,196 |
Traditional Banking | Consumer | Credit cards | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 36 | 33 |
Traditional Banking | Consumer | Credit cards | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9 | 35 |
Traditional Banking | Consumer | Credit cards | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5 | |
Traditional Banking | Consumer | Credit cards | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 45 | 73 |
Traditional Banking | Consumer | Credit cards | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 14,736 | 14,123 |
Traditional Banking | Consumer | Overdrafts | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 753 | 587 |
Traditional Banking | Consumer | Overdrafts | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 137 | 140 |
Traditional Banking | Consumer | Overdrafts | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6 | 5 |
Traditional Banking | Consumer | Overdrafts | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2 | 2 |
Traditional Banking | Consumer | Overdrafts | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 145 | 147 |
Traditional Banking | Consumer | Overdrafts | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 608 | 440 |
Traditional Banking | Consumer | Automobile loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 17,533 | 30,300 |
Traditional Banking | Consumer | Automobile loans | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 42 | |
Traditional Banking | Consumer | Automobile loans | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 11 | 14 |
Traditional Banking | Consumer | Automobile loans | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 11 | 56 |
Traditional Banking | Consumer | Automobile loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 17,522 | 30,244 |
Traditional Banking | Consumer | Other consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6,223 | 8,167 |
Traditional Banking | Consumer | Other consumer | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | 6 |
Traditional Banking | Consumer | Other consumer | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | 6 |
Traditional Banking | Consumer | Other consumer | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6,222 | 8,161 |
Warehouse Lending | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 750,682 | |
Warehouse Lending | Warehouse lines of credit | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 750,682 | |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 116,712 | 110,893 |
Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6,828 | 6,572 |
Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,182 | 3,620 |
Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 691 | 42 |
Republic Processing Group | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,701 | 10,234 |
Republic Processing Group | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 107,011 | 100,659 |
Republic Processing Group | Tax Refund Solution | Other TRS loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Republic Processing Group | Tax Refund Solution | Other TRS loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Republic Processing Group | Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 116,711 | 110,893 |
Republic Processing Group | Republic Credit Solution | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6,828 | 6,572 |
Republic Processing Group | Republic Credit Solution | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,182 | 3,620 |
Republic Processing Group | Republic Credit Solution | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 691 | 42 |
Republic Processing Group | Republic Credit Solution | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,701 | 10,234 |
Republic Processing Group | Republic Credit Solution | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 107,010 | $ 100,659 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COLLATERAL DEPENDENT LOANS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
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 | $ 24,589 | $ 30,397 |
Traditional Banking | Personal Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 416 | 249 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 13,645 | 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 | 99 | 81 |
Traditional Banking | Residential Real Estate | Home equity | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 1,860 | 2,899 |
Traditional Banking | Commercial Real Estate | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 8,985 | 10,205 |
Traditional Banking | Commercial | Commercial and Industrial | Personal Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 47 | 12 |
Traditional Banking | Consumer | Personal Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | $ 369 | $ 237 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR ACCRUAL STATUS (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,470 | 2,388 |
Recorded Investment | $ | $ 16,451 | $ 20,778 |
Loans on non-accrual status | ||
Troubled Debt Restructurings disclosures | ||
Minimum period for which TDRs continue to be reported as non-performing loans | 6 months | |
Number of Loans | loan | 67 | 64 |
Recorded Investment | $ | $ 6,328 | $ 6,712 |
Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,403 | 2,324 |
Recorded Investment | $ | $ 10,123 | $ 14,066 |
Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 158 | 184 |
Recorded Investment | $ | $ 12,029 | $ 15,230 |
Residential Real Estate | Loans on non-accrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 64 | 61 |
Recorded Investment | $ | $ 3,736 | $ 4,189 |
Residential Real Estate | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 94 | 123 |
Recorded Investment | $ | $ 8,293 | $ 11,041 |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 4 | 7 |
Recorded Investment | $ | $ 3,842 | $ 4,904 |
Commercial Real Estate | Loans on non-accrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2 | 2 |
Recorded Investment | $ | $ 2,580 | $ 2,509 |
Commercial Real Estate | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2 | 5 |
Recorded Investment | $ | $ 1,262 | $ 2,395 |
Construction & land development | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 44 | |
Construction & land development | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 44 | |
Commercial | Commercial and Industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 1 | $ 1 |
Commercial | Commercial and Industrial | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 1 | $ 1 |
Consumer | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,307 | 2,195 |
Recorded Investment | $ | $ 579 | $ 599 |
Consumer | Loans on non-accrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 12 | $ 14 |
Consumer | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,306 | 2,194 |
Recorded Investment | $ | $ 567 | $ 585 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFICATIONS (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Dec. 31, 2020USD ($)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 | 2,470 | 2,388 | |||
Recorded Investment | $ 16,451,000 | $ 20,778,000 | |||
Commitments to lend any additional material amounts to existing TDR relationships | $ 0 | 0 | $ 0 | ||
Change between the pre and post modification loan | $ 0 | $ 0 | $ 0 | $ 0 | |
Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 128 | 230 | 569 | 1,510 | |
Recorded Investment | $ 169,000 | $ 274,000 | $ 901,000 | $ 834,000 | |
Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,457 | 2,371 | |||
Recorded Investment | $ 13,286,000 | $ 17,317,000 | |||
Percentage of troubled debt restructurings performing as per terms of modifications | 81.00% | 81.00% | 83.00% | ||
Specific reserve allocations made to customers | $ 2,000,000 | $ 2,000,000 | $ 1,000,000 | ||
Percentage of Bank's TDRs that occurred during period, which were performing according to their modified terms | 92.00% | 91.00% | 50.00% | 84.00% | |
Specific ACLL allocations made to customers whose loan terms were modified in TDRs during period | $ 6,000 | $ 29,000 | $ 38,000 | $ 121,000 | |
Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 127 | 228 | 563 | 1,507 | |
Recorded Investment | $ 155,000 | $ 250,000 | $ 453,000 | $ 702,000 | |
Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 13 | 17 | |||
Recorded Investment | $ 3,165,000 | $ 3,461,000 | |||
Nonperforming Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | 6 | 3 | |
Recorded Investment | $ 14,000 | $ 24,000 | $ 448,000 | $ 132,000 | |
Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 158 | 184 | |||
Recorded Investment | $ 12,029,000 | $ 15,230,000 | |||
Residential Real Estate | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 826,000 | ||||
Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 90 | 107 | |||
Recorded Investment | $ 8,087,000 | $ 9,896,000 | |||
Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 8 | 11 | |||
Recorded Investment | $ 765,000 | $ 1,024,000 | |||
Residential Real Estate | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 60 | 65 | |||
Recorded Investment | $ 3,177,000 | $ 3,484,000 | |||
Residential Real Estate | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 8 | 12 | 16 | |
Recorded Investment | $ 156,000 | $ 230,000 | $ 826,000 | $ 615,000 | |
Residential Real Estate | Modified During The Period | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | ||||
Recorded Investment | $ 58,000 | ||||
Residential Real Estate | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 1 | |||
Recorded Investment | $ 58,000 | $ 160,000 | |||
Residential Real Estate | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 5 | 11 | 13 | |
Recorded Investment | $ 156,000 | $ 172,000 | $ 666,000 | $ 557,000 | |
Residential Real Estate | Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 146 | 169 | |||
Recorded Investment | $ 11,327,000 | $ 14,278,000 | |||
Residential Real Estate | Performing Financing Receivable | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 826,000 | ||||
Residential Real Estate | Performing Financing Receivable | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 88 | 101 | |||
Recorded Investment | $ 7,964,000 | $ 9,526,000 | |||
Residential Real Estate | Performing Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 7 | 9 | |||
Recorded Investment | $ 605,000 | $ 858,000 | |||
Residential Real Estate | Performing Financing Receivable | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 51 | 58 | |||
Recorded Investment | $ 2,758,000 | $ 3,068,000 | |||
Residential Real Estate | Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 6 | 6 | 13 | |
Recorded Investment | $ 142,000 | $ 206,000 | $ 378,000 | $ 483,000 | |
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 54,000 | ||||
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 54,000 | ||||
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 4 | 6 | 11 | |
Recorded Investment | $ 142,000 | $ 152,000 | $ 378,000 | $ 429,000 | |
Residential Real Estate | Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 12 | 15 | |||
Recorded Investment | $ 702,000 | $ 952,000 | |||
Residential Real Estate | Nonperforming Financing Receivable | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 6 | |||
Recorded Investment | $ 123,000 | $ 370,000 | |||
Residential Real Estate | Nonperforming Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 160,000 | $ 166,000 | |||
Residential Real Estate | Nonperforming Financing Receivable | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 9 | 7 | |||
Recorded Investment | $ 419,000 | $ 416,000 | |||
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | 6 | 3 | |
Recorded Investment | $ 14,000 | $ 24,000 | $ 448,000 | $ 132,000 | |
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 4,000 | ||||
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 4,000 | $ 160,000 | |||
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | 5 | 2 | |
Recorded Investment | $ 14,000 | $ 20,000 | $ 288,000 | $ 128,000 | |
Commercial Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 7 | |||
Recorded Investment | $ 3,842,000 | $ 4,904,000 | |||
Commercial related and construction/land development | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 5 | 9 | |||
Recorded Investment | $ 3,843,000 | $ 4,949,000 | |||
Commercial related and construction/land development | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 488,000 | ||||
Commercial related and construction/land development | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 3 | |||
Recorded Investment | $ 936,000 | $ 1,091,000 | |||
Commercial related and construction/land development | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 5 | |||
Recorded Investment | $ 2,907,000 | $ 3,370,000 | |||
Commercial related and construction/land development | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 21,000 | ||||
Commercial related and construction/land development | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 21,000 | ||||
Commercial related and construction/land development | Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 7 | |||
Recorded Investment | $ 1,380,000 | $ 2,440,000 | |||
Commercial related and construction/land development | Performing Financing Receivable | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 488,000 | ||||
Commercial related and construction/land development | Performing Financing Receivable | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 936,000 | $ 1,046,000 | |||
Commercial related and construction/land development | Performing Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 4 | |||
Recorded Investment | $ 444,000 | $ 906,000 | |||
Commercial related and construction/land development | Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 21,000 | ||||
Commercial related and construction/land development | Performing Financing Receivable | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 21,000 | ||||
Commercial related and construction/land development | Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 2,463,000 | $ 2,509,000 | |||
Commercial related and construction/land development | Nonperforming Financing Receivable | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 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 | $ 2,463,000 | $ 2,464,000 | |||
Consumer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,307 | 2,195 | |||
Recorded Investment | $ 579,000 | $ 599,000 | |||
Consumer | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,304 | 2,193 | |||
Recorded Investment | $ 560,000 | $ 578,000 | |||
Consumer | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 2 | |||
Recorded Investment | $ 19,000 | $ 21,000 | |||
Consumer | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 124 | 222 | 557 | 1,493 | |
Recorded Investment | $ 13,000 | $ 44,000 | $ 75,000 | $ 198,000 | |
Consumer | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 124 | 221 | 556 | 1,492 | |
Recorded Investment | $ 13,000 | $ 29,000 | $ 72,000 | $ 183,000 | |
Consumer | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | 1 | ||
Recorded Investment | $ 15,000 | $ 3,000 | $ 15,000 | ||
Consumer | Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,307 | 2,195 | |||
Recorded Investment | $ 579,000 | $ 599,000 | |||
Consumer | Performing Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,304 | 2,193 | |||
Recorded Investment | $ 560,000 | $ 578,000 | |||
Consumer | Performing Financing Receivable | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 2 | |||
Recorded Investment | $ 19,000 | $ 21,000 | |||
Consumer | Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 124 | 222 | 557 | 1,493 | |
Recorded Investment | $ 13,000 | $ 44,000 | $ 75,000 | $ 198,000 | |
Consumer | Performing Financing Receivable | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 124 | 221 | 556 | 1,492 | |
Recorded Investment | $ 13,000 | $ 29,000 | $ 72,000 | $ 183,000 | |
Consumer | Performing Financing Receivable | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | 1 | ||
Recorded Investment | $ 15,000 | $ 3,000 | $ 15,000 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFIED CLASS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 3 | 6 | 8 | 9 |
Recorded Investment with payment default | $ | $ 193 | $ 3,147 | $ 598 | $ 3,266 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 2 | 3 | 6 | 5 |
Recorded Investment with payment default | $ | $ 179 | $ 163 | $ 468 | $ 269 |
Residential Real Estate | Home equity | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | 1 | 1 | 2 |
Recorded Investment with payment default | $ | $ 14 | $ 20 | $ 14 | $ 33 |
Commercial Real Estate | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 2 | 1 | 2 | |
Recorded Investment with payment default | $ | $ 2,964 | $ 116 | $ 2,964 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COVID-19 RELATED LOAN MODIFICATIONS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Troubled Debt Restructurings disclosures | ||
Loans | $ 4,280,758 | $ 4,728,271 |
COVID-19 Loan Accommodations | Traditional Banking | ||
Troubled Debt Restructurings disclosures | ||
Loans | $ 3,000 | |
COVID-19 Loan Accommodations | Traditional Banking | Maximum | ||
Troubled Debt Restructurings disclosures | ||
Percentage of Loans Accommodated | 1.00% |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,845 | $ 2,499 |
Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | 496 | |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,845 | $ 2,003 |
LOANS AND ALLOWANCE FOR CRED_17
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable Gross Carrying Amount | $ 4,343,782 | $ 4,789,338 |
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 | $ 475 | $ 981 |
LOANS AND ALLOWANCE FOR CRED_18
LOANS AND ALLOWANCE FOR CREDIT LOSSES - EASY ADVANCES (Details) - Tax Refund Solutions - Easy Advances - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Period Easy Advance tax credit product offered | 2 months | 2 months | ||||
Easy Advances originated | $ 250,045 | $ 387,762 | ||||
Net (credit) charge to the Provision for Easy Advances | $ (2,242) | $ (4,294) | $ 7,984 | $ 15,239 | ||
Provision to total Easy Advances originated | 3.19% | 3.93% | ||||
Easy Advances net (recoveries) charge-offs | $ (2,242) | $ (4,294) | $ 7,984 | $ 15,239 | ||
Easy Advances net charge-offs to total Easy Advances originated | 3.19% | 3.93% |
DEPOSITS - Balances (Details)
DEPOSITS - Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposit Liabilities | ||
Total interest-bearing deposits | $ 2,861,399 | $ 2,842,765 |
Total non interest-bearing deposits | 2,053,485 | 1,871,539 |
Deposits of discontinued operations | 33,063 | 18,877 |
Total deposits | 4,947,947 | 4,733,181 |
Core Banking Activities | ||
Deposit Liabilities | ||
Demand | 1,342,395 | 1,217,263 |
Money market accounts | 793,236 | 712,824 |
Savings | 295,663 | 236,335 |
Individual retirement accounts | 46,196 | 47,889 |
Time deposits, $250 and over | 84,340 | 83,448 |
Other certificates of deposit | 163,345 | 199,214 |
Reciprocal money market and time deposits | 101,109 | 314,109 |
Brokered deposits | 30,001 | 25,010 |
Total interest-bearing deposits | 2,856,285 | 2,836,092 |
Total non interest-bearing deposits | 1,691,413 | 1,503,662 |
Total deposits | 4,547,698 | 4,339,754 |
Republic Processing Group | ||
Deposit Liabilities | ||
Money market accounts | 5,114 | 6,673 |
Total interest-bearing deposits | 5,114 | 6,673 |
Brokered prepaid cards deposits | 323,250 | 257,856 |
Other noninterest-bearing deposits | 38,822 | 110,021 |
Total non interest-bearing deposits | 362,072 | 367,877 |
Total deposits | $ 367,186 | $ 374,550 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Securities sold under agreements to repurchase | |||||
Outstanding balance at end of period | $ 260,583 | $ 260,583 | $ 211,026 | ||
Securities sold under agreements to repurchase | |||||
Securities sold under agreements to repurchase | |||||
Securities pledged more than repurchase agreements (as a percent) | 2.00% | 2.00% | |||
Outstanding balance at end of period | $ 260,583 | $ 260,583 | $ 211,026 | ||
Weighted average interest rate at end of period (as a percent) | 0.04% | 0.04% | 0.04% | ||
Fair Value of securities pledged | $ 294,002 | $ 294,002 | $ 230,269 | ||
Average outstanding balance during the period | $ 242,867 | $ 213,010 | $ 201,992 | $ 199,556 | |
Average interest rate during the period (as a percent) | 0.03% | 0.04% | 0.02% | 0.11% | |
Maximum outstanding at any month end during the period | $ 307,358 | $ 195,229 | $ 307,358 | $ 195,229 | |
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 | 114,308 | 114,308 | 60,059 | ||
Securities sold under agreements to repurchase | Mortgage backed securities - residential | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | 156,237 | 156,237 | 140,554 | ||
Securities sold under agreements to repurchase | Collateralized mortgage obligations | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | $ 23,457 | $ 23,457 | $ 29,656 |
RIGHT-OF-USE ASSETS AND OPERA_3
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Details) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($)itemcontractlease | Jun. 30, 2021USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |||||
Number of separate and distinct operating lease contracts to lease the land and/or buildings | contract | 45 | ||||
Number of offices where separate and distinct operating lease contracts to lease the land and/or buildings is held | item | 36 | ||||
Number of operating leases contracted with a related party of the Company | contract | 14 | ||||
Number of operating leases considered variable | item | 24 | ||||
Number of new operating leases executed | lease | 0 | ||||
Related party lease right-of-use asset upon commencement of lease | $ 392,000 | ||||
Right-of-use assets | $ 39,257,000 | $ 43,345,000 | |||
Third Party | |||||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |||||
Extended lease term | 5 years | ||||
Right-of-use assets | $ 263,000 | ||||
Amended right-of-use asset | $ 819,000 |
RIGHT-OF-USE ASSETS AND OPERA_4
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Operating lease expense: | |||||
Total operating lease expense | $ 1,792 | $ 1,812 | $ 5,375 | $ 5,432 | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 1,793 | 1,817 | $ 5,390 | 5,448 | |
Short-term lease payments not included in the measurement of lease liabilities | 3 | 7 | |||
Weighted average remaining term in years | 7 years 9 months 3 days | 7 years 9 months 3 days | 8 years 4 months 13 days | ||
Weighted average discount rate | 3.08% | 3.08% | 3.10% | ||
Related Party | |||||
Operating lease expense: | |||||
Variable lease expense | $ 1,224 | 1,235 | $ 3,662 | 3,706 | |
Fixed lease expense | 34 | 23 | 102 | 69 | |
Third Party | |||||
Operating lease expense: | |||||
Variable lease expense | 197 | 180 | 590 | 541 | |
Fixed lease expense | $ 337 | 371 | $ 1,021 | 1,109 | |
Short-term lease expense | $ 3 | $ 7 |
RIGHT-OF-USE ASSETS AND OPERA_5
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating lease liabilities | ||
2021 | $ 1,796 | |
2022 | 7,131 | |
2023 | 6,688 | |
2024 | 6,029 | |
2025 | 5,323 | |
Thereafter | 18,529 | |
Total undiscounted cash flows | 45,496 | |
Discount applied to cash flows | (5,345) | |
Total discounted cash flows reported as operating lease liabilities | 40,151 | $ 44,340 |
Related Party | ||
Operating lease liabilities | ||
2021 | 1,160 | |
2022 | 4,639 | |
2023 | 4,639 | |
2024 | 4,512 | |
2025 | 4,344 | |
Thereafter | 15,800 | |
Total undiscounted cash flows | 35,094 | |
Discount applied to cash flows | (4,065) | |
Total discounted cash flows reported as operating lease liabilities | 31,029 | |
Third Party | ||
Operating lease liabilities | ||
2021 | 636 | |
2022 | 2,492 | |
2023 | 2,049 | |
2024 | 1,517 | |
2025 | 979 | |
Thereafter | 2,729 | |
Total undiscounted cash flows | 10,402 | |
Discount applied to cash flows | (1,280) | |
Total discounted cash flows reported as operating lease liabilities | $ 9,122 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
FHLB advances | ||
Total FHLB advances | $ 25,000 | $ 235,000 |
Additional collateralized advances available | 898,000 | 683,000 |
Overnight advance with an interest rate of 0.11% due on July 1, 2014 | ||
FHLB advances | ||
Total FHLB advances | 25,000 | 225,000 |
Fixed interest rate advances with a weighted average interest rate of 1.91% due through 2021 | ||
FHLB advances | ||
Total FHLB advances | 10,000 | |
Various other unsecured lines of credit | ||
FHLB advances | ||
Unsecured lines of credit | $ 125,000 | $ 125,000 |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - MATURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
FEDERAL HOME LOAN BANK ADVANCES | ||
2021 (Overnight) | $ 25,000 | |
Total | $ 25,000 | $ 235,000 |
Weighted Average Rate | ||
2021 (Overnight) | 0.14% | |
Total | 0.14% |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES - SHORT-TERM FHLB ADVANCES (Details) - Federal Home Loan Bank advances - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
FHLB advances | ||||
Average outstanding balance during the period | $ 25,000 | $ 272 | $ 30,037 | $ 29,106 |
Average interest rate during the period (as percent) | 0.10% | 0.17% | 0.15% | 0.92% |
Maximum outstanding at any month end during the period | $ 25,000 | $ 25,000 | $ 25,000 | $ 250,000 |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
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 | $ 1,034,959 | $ 1,048,236 |
Home equity | ||
Real estate loans pledged to collateralize advances and letters of credit with the FHLB | ||
Real estate loans pledged to collateralize advances and letters of credit with FHLB | $ 191,443 | $ 208,944 |
OFF BALANCE SHEET RISKS, COMM_3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Commitments and letters of credit | |||||
Loan commitment, line credit | $ 1,810,949 | $ 1,810,949 | $ 1,596,046 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 934 | $ 636 | 989 | ||
Provision | 3 | 287 | (52) | $ 467 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 937 | 923 | 937 | 923 | |
Unused warehouse lines of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 658,318 | 658,318 | 456,004 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 140 | 58 | 79 | ||
Provision | (6) | 61 | (3) | ||
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 140 | 52 | 140 | 52 | |
Unused home equity lines of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 350,198 | 350,198 | 353,322 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 213 | 124 | 173 | ||
Provision | 29 | 22 | 69 | 57 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 242 | 146 | 242 | 146 | |
Unused loan commitments - other | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 787,660 | 787,660 | 775,128 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 581 | 454 | 737 | ||
Provision | (26) | 271 | (182) | 413 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 555 | $ 725 | 555 | 725 | |
Standby letters of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 14,130 | 14,130 | 10,949 | ||
FHLB letters of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | $ 643 | $ 643 | $ 643 | ||
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 | ||||
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 | ||||
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 | ||||
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 |
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 | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | $ 495,880 | $ 495,880 | $ 523,863 | |||||
Mortgage loans held for sale, at fair value | 25,791 | $ 44,860 | 25,791 | $ 44,860 | $ 32,401 | 46,867 | $ 40,028 | $ 19,224 |
Consumer loans held for sale | 10,779 | 449 | 10,779 | 449 | $ 13,020 | 3,298 | $ 164 | $ 598 |
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,578 | 2,578 | 3,083 | |||||
U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 234,845 | 234,845 | 246,909 | |||||
Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 2,780 | 2,780 | 2,957 | |||||
Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 209,805 | 209,805 | 211,202 | |||||
Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 34,519 | 34,519 | 48,952 | |||||
Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 10,081 | 10,081 | 10,043 | |||||
Trust Preferred Securities | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 3,850 | 3,850 | 3,800 | |||||
Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 102 | 102 | 560 | |||||
Mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,476 | 2,476 | 2,523 | |||||
Recurring basis | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 495,880 | 495,880 | 523,863 | |||||
Mortgage loans held for sale, at fair value | 25,791 | 25,791 | 46,867 | |||||
Consumer loans held for sale | 10,779 | 10,779 | 3,298 | |||||
Consumer loans held for investment | 254 | 254 | 497 | |||||
Rate lock loan commitments | 1,943 | 1,943 | 4,540 | |||||
Mandatory forward contracts | 722 | 722 | ||||||
Interest rate swap agreements | 6,707 | 6,707 | 12,545 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,578 | 2,578 | 3,083 | |||||
Financial Liabilities: | ||||||||
Mandatory forward contracts | 976 | |||||||
Interest rate swap agreements | 6,707 | 6,707 | 12,545 | |||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 | ||||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | $ 0 | 0 | $ 0 | ||||
Recurring basis | U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 234,845 | 234,845 | 246,909 | |||||
Recurring basis | Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 2,780 | 2,780 | 2,957 | |||||
Recurring basis | Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 209,805 | 209,805 | 211,202 | |||||
Recurring basis | Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 34,519 | 34,519 | 48,952 | |||||
Recurring basis | Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 10,081 | 10,081 | 10,043 | |||||
Recurring basis | Trust Preferred Securities | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 3,850 | 3,850 | 3,800 | |||||
Recurring basis | Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 102 | 102 | 560 | |||||
Recurring basis | Mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,476 | 2,476 | 2,523 | |||||
Recurring basis | Fair Value, Inputs, Level 1 | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,476 | 2,476 | 2,523 | |||||
Recurring basis | Fair Value, Inputs, Level 1 | Mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,476 | 2,476 | 2,523 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 489,250 | 489,250 | 517,106 | |||||
Mortgage loans held for sale, at fair value | 25,791 | 25,791 | 46,867 | |||||
Rate lock loan commitments | 1,943 | 1,943 | 4,540 | |||||
Mandatory forward contracts | 722 | 722 | ||||||
Interest rate swap agreements | 6,707 | 6,707 | 12,545 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 102 | 102 | 560 | |||||
Financial Liabilities: | ||||||||
Mandatory forward contracts | 976 | |||||||
Interest rate swap agreements | 6,707 | 6,707 | 12,545 | |||||
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 | 234,845 | 234,845 | 246,909 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 209,805 | 209,805 | 211,202 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 34,519 | 34,519 | 48,952 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 10,081 | 10,081 | 10,043 | |||||
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 | 102 | 102 | 560 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 6,630 | 6,630 | 6,757 | |||||
Consumer loans held for sale | 10,779 | 10,779 | 3,298 | |||||
Consumer loans held for investment | 254 | 254 | 497 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | 2,780 | 2,780 | 2,957 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | Trust Preferred Securities | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities, Fair Value | $ 3,850 | $ 3,850 | $ 3,800 |
FAIR VALUE - RECONCILIATION USI
FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Private label mortgage backed security | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | $ 2,824 | $ 3,023 | $ 2,957 | $ 3,495 |
Net change in unrealized gain | 13 | 60 | 62 | (46) |
Principal paydowns | (57) | (79) | (239) | (445) |
Balance, end of period | 2,780 | 3,004 | 2,780 | 3,004 |
Trust Preferred Securities | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | 3,700 | 3,500 | 3,800 | 4,000 |
Discount accretion | 14 | 21 | 40 | 43 |
Net change in unrealized gain | 136 | 279 | 10 | (243) |
Balance, end of period | $ 3,850 | $ 3,800 | $ 3,850 | $ 3,800 |
FAIR VALUE - RECURRING LEVEL 3
FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Private label mortgage backed security | Recurring basis | ||
Fair value inputs quantitative information | ||
Mortgage backed security fair value | $ 2,780 | $ 2,957 |
Debt Securities - Valuation technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Private label mortgage backed security | Minimum | Recurring basis | Constant Prepayment Rate | ||
Fair value inputs quantitative information | ||
Measurable input | 0.045 | 0.045 |
Private label mortgage backed security | Minimum | Recurring basis | Probability of default | ||
Fair value inputs quantitative information | ||
Measurable input | 0.018 | 0.018 |
Private label mortgage backed security | Minimum | Recurring basis | Loss Severity | ||
Fair value inputs quantitative information | ||
Measurable input | 0.50 | 0.50 |
Private label mortgage backed security | Maximum | Recurring basis | Constant Prepayment Rate | ||
Fair value inputs quantitative information | ||
Measurable input | 0.180 | 0.180 |
Private label mortgage backed security | Maximum | Recurring basis | Probability of default | ||
Fair value inputs quantitative information | ||
Measurable input | 0.093 | 0.090 |
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 | $ 10,779 | $ 3,298 |
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 | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Option | ||||||||
Aggregate fair value | $ 25,791 | $ 44,860 | $ 25,791 | $ 44,860 | $ 32,401 | $ 46,867 | $ 40,028 | $ 19,224 |
Contractual balance | $ 4,348,535 | $ 4,348,535 | $ 4,797,297 | |||||
Net change in fair value recognized on loans held for sale | ||||||||
Fair Value, Option | ||||||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | 0 | |||||
Aggregate fair value | $ 25,791 | $ 25,791 | $ 46,867 | |||||
Contractual balance | 25,232 | 25,232 | 44,781 | |||||
Unrealized gain | 559 | 559 | $ 2,086 | |||||
Gains and losses from changes in fair value included in earnings | (120) | 426 | (725) | 2,314 | ||||
Net change in fair value recognized on loans held for sale | Interest Income | ||||||||
Fair Value, Option | ||||||||
Gains and losses from changes in fair value included in earnings | 253 | 300 | 802 | 932 | ||||
Net change in fair value recognized on loans held for sale | Change In Fair Value | ||||||||
Fair Value, Option | ||||||||
Gains and losses from changes in fair value included in earnings | $ (373) | 126 | $ (1,527) | 1,382 | ||||
Consumer Loans Held For Sale | ||||||||
Fair Value, Option | ||||||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | 0 | |||||
Aggregate fair value | $ 10,779 | $ 10,779 | $ 3,298 | |||||
Contractual balance | 10,703 | 10,703 | 3,284 | |||||
Unrealized gain | 76 | 76 | $ 14 | |||||
Gains and losses from changes in fair value included in earnings | 2,086 | 44 | 4,132 | 1,561 | ||||
Consumer Loans Held For Sale | Interest Income | ||||||||
Fair Value, Option | ||||||||
Gains and losses from changes in fair value included in earnings | 2,102 | 42 | 4,070 | 1,563 | ||||
Consumer Loans Held For Sale | Change In Fair Value | ||||||||
Fair Value, Option | ||||||||
Gains and losses from changes in fair value included in earnings | $ (16) | $ 2 | $ 62 | $ (2) |
FAIR VALUE - ASSETS MEASURED ON
FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 5,675 | $ 8,362 |
Other real estate owned | 1,845 | 2,003 |
Mortgage servicing rights | 3,233 | |
Commercial and Industrial | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 60 | |
Residential Real Estate | ||
Fair Value Disclosures | ||
Other real estate owned | 2,003 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,733 | 3,860 |
Residential Real Estate | Home equity | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 314 | 395 |
Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 3,568 | 4,107 |
Other real estate owned | 1,845 | |
Fair Value, Inputs, Level 2 | ||
Fair Value Disclosures | ||
Mortgage servicing rights | 3,233 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 5,675 | 8,362 |
Other real estate owned | 1,845 | 2,003 |
Fair Value, Inputs, Level 3 | Commercial and Industrial | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 60 | |
Fair Value, Inputs, Level 3 | Residential Real Estate | ||
Fair Value Disclosures | ||
Other real estate owned | 2,003 | |
Fair Value, Inputs, Level 3 | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,733 | 3,860 |
Fair Value, Inputs, Level 3 | Residential Real Estate | Home equity | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 314 | 395 |
Fair Value, Inputs, Level 3 | Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 3,568 | $ 4,107 |
Other real estate owned | $ 1,845 |
FAIR VALUE - NON-RECURRING LEVE
FAIR VALUE - NON-RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 - Nonrecurring basis - Sale comparison approach $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Collateral Dependent Loans | Commercial and Industrial | ||
Fair value inputs quantitative information | ||
Fair Value | $ 60 | |
Collateral Dependent Loans | Commercial and Industrial | Comparability Adjustment | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 1 | |
Collateral Dependent Loans | Commercial and Industrial | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 1 | |
Collateral Dependent Loans | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,733 | $ 3,860 |
Collateral Dependent Loans | Residential Real Estate | Residential Real Estate - Owner Occupied | Comparability Adjustment | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0 | 0 |
Collateral Dependent Loans | Residential Real Estate | Residential Real Estate - Owner Occupied | Comparability Adjustment | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.51 | 0.51 |
Collateral Dependent Loans | Residential Real Estate | Residential Real Estate - Owner Occupied | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.10 | 0.08 |
Collateral Dependent Loans | Residential Real Estate | Home equity | ||
Fair value inputs quantitative information | ||
Fair Value | $ 314 | $ 395 |
Collateral Dependent Loans | Residential Real Estate | Home equity | Comparability Adjustment | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.06 | 0.02 |
Collateral Dependent Loans | Residential Real Estate | Home equity | Comparability Adjustment | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.10 | 0.06 |
Collateral Dependent Loans | Residential Real Estate | Home equity | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.06 | 0.05 |
Collateral Dependent Loans | Commercial Real Estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 3,568 | $ 4,107 |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.15 | 0.07 |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.31 | 0.31 |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.26 | 0.26 |
Other Real Estate Owned | Commercial Real Estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,845 | $ 2,003 |
Other Real Estate Owned | Commercial Real Estate | Comparability Adjustment | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.32 | 0.26 |
Other Real Estate Owned | Commercial Real Estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.32 | 0.26 |
FAIR VALUE - IMPAIRED LOANS (De
FAIR VALUE - IMPAIRED LOANS (Details) - Nonrecurring basis - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Impaired loans | |||||
Total fair value | $ 5,675 | $ 5,675 | $ 8,362 | ||
Fair Value, Inputs, Level 3 | |||||
Impaired loans | |||||
Carrying amount of loans measured at fair value | 5,122 | 5,122 | 7,110 | ||
Estimated selling costs considered in carrying amount | 911 | 911 | 1,252 | ||
Valuation allowance | (358) | (358) | |||
Total fair value | 5,675 | 5,675 | $ 8,362 | ||
Provision for impairment on loan, lease and other losses | |||||
Provisions on collateral-dependent, impaired loans | $ 345 | $ 430 | $ 393 | $ (71) |
FAIR VALUE - OTHER REAL ESTATE
FAIR VALUE - OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value Disclosures | |||||
Total Carrying value of other real estate owned | $ 1,845 | $ 1,845 | $ 2,499 | ||
Other real estate owned write-downs during the years ended | 158 | $ 53 | |||
Nonrecurring basis | |||||
Fair Value Disclosures | |||||
Other real estate owned write-downs during the years ended | 53 | $ 53 | 158 | $ 53 | |
Nonrecurring basis | Other Real Estate Owned | |||||
Fair Value Disclosures | |||||
Other real estate owned carried at fair value | 1,845 | 1,845 | 2,003 | ||
Other real estate owned carried at cost | 496 | ||||
Total Carrying value of other real estate owned | $ 1,845 | $ 1,845 | $ 2,499 |
FAIR VALUE - CARRYING AMOUNTS A
FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||||||
Available-for-sale debt securities | $ 495,880 | $ 523,863 | ||||
Held-to-maturity debt securities | 45,590 | 54,190 | ||||
Equity securities with readily determinable fair value | 2,578 | 3,083 | ||||
Mortgage loans held for sale, at fair value | 25,791 | $ 32,401 | 46,867 | $ 44,860 | $ 40,028 | $ 19,224 |
Consumer loans held for sale, at fair value | 10,779 | 13,020 | 3,298 | 449 | 164 | 598 |
Consumer loans held for sale, at the lower of cost or fair value | 3,976 | $ 11,412 | 1,478 | $ 11,443 | $ 12,801 | $ 11,646 |
Loans for discontinued operations, at the lower of cost or fair value | 24 | 23,765 | ||||
Liabilities: | ||||||
Deposits of discontinued operations | 33,063 | 18,877 | ||||
Carrying Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 1,011,247 | 485,587 | ||||
Available-for-sale debt securities | 495,880 | 523,863 | ||||
Held-to-maturity debt securities | 44,991 | 53,324 | ||||
Equity securities with readily determinable fair value | 2,578 | 3,083 | ||||
Mortgage loans held for sale, at fair value | 25,791 | 46,867 | ||||
Consumer loans held for sale, at fair value | 10,779 | 3,298 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 3,976 | 1,478 | ||||
Loans for discontinued operations, at the lower of cost or fair value | 24 | 23,765 | ||||
Loans, net | 4,280,758 | 4,728,271 | ||||
Federal Home Loan Bank stock | 10,311 | 17,397 | ||||
Accrued interest receivable | 9,352 | 12,925 | ||||
Mortgage servicing rights | 8,867 | 7,095 | ||||
Rate lock loan commitments | 1,943 | 4,540 | ||||
Mandatory forward contracts | 722 | |||||
Interest rate swap agreements | 6,707 | 12,545 | ||||
Liabilities: | ||||||
Deposits of discontinued operations | 33,063 | 18,877 | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 260,583 | 211,026 | ||||
Federal Home Loan Bank advances | 25,000 | 235,000 | ||||
Subordinated note | 41,240 | |||||
Accrued interest payable | 180 | 342 | ||||
Mandatory forward contracts | 976 | |||||
Interest rate swap agreements | 6,707 | 12,545 | ||||
Carrying Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,053,485 | 1,871,539 | ||||
Carrying Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,536,782 | 2,444,361 | ||||
Carrying Value | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 324,617 | 398,404 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 1,011,247 | 485,587 | ||||
Available-for-sale debt securities | 495,880 | 523,863 | ||||
Held-to-maturity debt securities | 45,590 | 54,190 | ||||
Equity securities with readily determinable fair value | 2,578 | 3,083 | ||||
Mortgage loans held for sale, at fair value | 25,791 | 46,867 | ||||
Consumer loans held for sale, at fair value | 10,779 | 3,298 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 3,976 | 1,478 | ||||
Loans for discontinued operations, at the lower of cost or fair value | 24 | 23,765 | ||||
Loans, net | 4,276,437 | 4,726,066 | ||||
Accrued interest receivable | 9,352 | 12,925 | ||||
Mortgage servicing rights | 10,906 | 8,318 | ||||
Rate lock loan commitments | 1,943 | 4,540 | ||||
Mandatory forward contracts | 722 | |||||
Interest rate swap agreements | 6,707 | 12,545 | ||||
Liabilities: | ||||||
Deposits of discontinued operations | 33,063 | 18,877 | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 260,583 | 211,026 | ||||
Federal Home Loan Bank advances | 25,000 | 235,009 | ||||
Subordinated note | 31,071 | |||||
Accrued interest payable | 180 | 342 | ||||
Mandatory forward contracts | 976 | |||||
Interest rate swap agreements | 6,707 | 12,545 | ||||
Total Fair Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,053,485 | 1,871,539 | ||||
Total Fair Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,536,782 | 2,444,361 | ||||
Total Fair Value | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 328,162 | 404,773 | ||||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||||
Assets: | ||||||
Cash and cash equivalents | 1,011,247 | 485,587 | ||||
Equity securities with readily determinable fair value | 2,476 | 2,523 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 489,250 | 517,106 | ||||
Held-to-maturity debt securities | 45,590 | 54,190 | ||||
Equity securities with readily determinable fair value | 102 | 560 | ||||
Mortgage loans held for sale, at fair value | 25,791 | 46,867 | ||||
Accrued interest receivable | 9,352 | 12,925 | ||||
Mortgage servicing rights | 10,906 | 8,318 | ||||
Rate lock loan commitments | 1,943 | 4,540 | ||||
Mandatory forward contracts | 722 | |||||
Interest rate swap agreements | 6,707 | 12,545 | ||||
Liabilities: | ||||||
Deposits of discontinued operations | 33,063 | 18,877 | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 260,583 | 211,026 | ||||
Federal Home Loan Bank advances | 25,000 | 235,009 | ||||
Subordinated note | 31,071 | |||||
Accrued interest payable | 180 | 342 | ||||
Mandatory forward contracts | 976 | |||||
Interest rate swap agreements | 6,707 | 12,545 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,053,485 | 1,871,539 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,536,782 | 2,444,361 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 328,162 | 404,773 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 6,630 | 6,757 | ||||
Consumer loans held for sale, at fair value | 10,779 | 3,298 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 3,976 | 1,478 | ||||
Loans for discontinued operations, at the lower of cost or fair value | 24 | 23,765 | ||||
Loans, net | $ 4,276,437 | $ 4,726,066 |
MORTGAGE BANKING ACTIVITIES - M
MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 32,401 | $ 40,028 | $ 46,867 | $ 19,224 |
Origination of mortgage loans held for sale | 170,482 | 203,615 | 525,246 | 547,556 |
Proceeds from the sale of mortgage loans held for sale | (182,422) | (210,309) | (562,661) | (546,950) |
Net gain on sale of mortgage loans held for sale | 5,330 | 11,526 | 16,339 | 25,030 |
Balance, end of period | $ 25,791 | $ 44,860 | $ 25,791 | $ 44,860 |
MORTGAGE BANKING ACTIVITIES - C
MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Mortgage servicing rights | ||||
Net gain realized on sale of mortgage loans held for sale | $ 5,008 | $ 9,151 | $ 18,764 | $ 18,279 |
Net gain recognized | 5,330 | 11,526 | 16,339 | 25,030 |
Loan servicing income | 832 | 757 | 2,433 | 2,139 |
Amortization of mortgage servicing rights | (882) | (1,108) | (2,617) | (2,701) |
Change in mortgage servicing rights valuation allowance | (400) | 500 | (500) | |
Net servicing income recognized | (50) | (751) | 316 | (1,062) |
Total Mortgage banking income | 5,280 | 10,775 | 16,655 | 23,968 |
Net change in fair value recognized on loans held for sale | ||||
Mortgage servicing rights | ||||
Net change in fair value | (373) | 126 | (1,527) | 1,382 |
Rate lock loan commitments | ||||
Mortgage servicing rights | ||||
Net change in fair value | (258) | 2,194 | (2,596) | 5,841 |
Mandatory forward contracts | ||||
Mortgage servicing rights | ||||
Net change in fair value | $ 953 | $ 55 | $ 1,698 | $ (472) |
MORTGAGE BANKING ACTIVITIES -_2
MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 8,335 | $ 6,711 | $ 7,095 | $ 5,888 |
Additions | 1,414 | 1,471 | 3,889 | 3,987 |
Amortized to expense | (882) | (1,108) | (2,617) | (2,701) |
Change in valuation allowance | (400) | 500 | (500) | |
Balance, end of period | $ 8,867 | $ 6,674 | $ 8,867 | $ 6,674 |
MORTGAGE BANKING ACTIVITIES - V
MORTGAGE BANKING ACTIVITIES - VALUATION OF CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | ||||
Beginning valuation allowance | $ 0 | $ 100 | $ 500 | $ 0 |
Charge during the period | 0 | 400 | (500) | 500 |
Ending valuation allowance | $ 0 | $ 500 | $ 0 | $ 500 |
MORTGAGE BANKING ACTIVITIES - O
MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
MORTGAGE BANKING ACTIVITIES | ||
Fair value of mortgage servicing rights portfolio | $ 10,906 | $ 8,318 |
Monthly weighted average prepayment rate of unpaid principle balance (as percent) | 205.00% | 308.00% |
Discount rate (as percent) | 10.00% | 10.00% |
Weighted average foreclosure rate | 0.24% | 0.44% |
Weighted average life in years | 5 years 10 months 17 days | 4 years 10 months 6 days |
MORTGAGE BANKING ACTIVITIES - N
MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Mortgage servicing rights | ||
Derivative instruments expiration period | 90 days | |
Net change in fair value recognized on loans held for sale | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | $ 25,232 | $ 44,781 |
Fair Value, Assets | 25,791 | 46,867 |
Rate lock loan commitments | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 94,210 | 105,395 |
Fair Value, Assets | 1,943 | 4,540 |
Mandatory forward contracts | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 105,659 | |
Fair Value, Assets | $ 722 | |
Derivative Liabilities, Notional Amount | 136,236 | |
Fair Value, Liabilities | $ 976 |
INTEREST RATE SWAPS - CASH FLOW
INTEREST RATE SWAPS - CASH FLOW HEDGES (Details) | Dec. 31, 2013DerivativeInstrument |
Interest rate swap | Cash flow hedge | |
Information about derivatives and swaps | |
Number of derivative agreements | 2 |
INTEREST RATE SWAPS - INTEREST
INTEREST RATE SWAPS - INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
INTEREST RATE SWAPS | ||
Interest expense swap on money market deposits | $ 52 | $ 107 |
Interest expense swap on FHLB Advance | 51 | 104 |
Total interest (benefit) expense on swap transactions | $ 103 | $ 211 |
INTEREST RATE SWAPS - GAINS (LO
INTEREST RATE SWAPS - GAINS (LOSSES) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST RATE SWAPS | ||||
Gains (losses) recognized in OCI on derivative (effective portion) | $ (1) | $ (173) | ||
Gains (losses) reclassified from OCI on derivative (effective portion) | (103) | (211) | ||
Gains (losses) recognized in income on derivative (ineffective portion) | $ 0 | $ 0 | $ 0 | $ 0 |
INTEREST RATE SWAPS - NON-HEDGE
INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | $ 354,341 | $ 303,611 |
Counterparty | ||
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | 7,800 | 13,300 |
Counterparty | Minimum | ||
Information about derivatives and swaps | ||
Net loss position in which pledged securities as collateral are required | 250 | |
Interest rate swap | Non-Hedge | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 250,818 | 276,554 |
Interest rate swap | Non-Hedge | Bank Clients | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 109,456 | 138,277 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 15,953 | |
Interest rate swaps with Bank clients - Total, Notional Amount | 125,409 | 138,277 |
Interest rate swaps with Bank clients - Assets, Fair Value | 6,707 | 12,545 |
Interest rate swaps with Bank clients - Liabilities, Fair Value | (103) | |
Interest rate swaps with Bank clients - Total, Fair Value | 6,604 | 12,545 |
Interest rate swap | Non-Hedge | Counterparty | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 125,409 | 138,277 |
Interest rate swaps with Bank clients - Total, Fair Value | $ (6,604) | $ (12,545) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
EARNINGS PER SHARE | ||||
Net income from continuing operations | $ 18,412 | $ 17,275 | $ 55,240 | $ 49,344 |
Net (loss) income from discontinued operations | 1,597 | 3,114 | 14,744 | 13,546 |
Net income | 20,009 | 20,389 | 69,984 | 62,890 |
Dividends declared on Common Stock: | ||||
Undistributed net income for basic earnings per share | 13,846 | 14,442 | 51,174 | 45,094 |
Weighted average potential dividends on Class A shares upon exercise of dilutive options | (17) | (7) | (40) | (24) |
Undistributed net income for diluted earnings per share | $ 13,829 | $ 14,435 | $ 51,134 | $ 45,070 |
Weighted average shares outstanding: | ||||
Effect of dilutive securities on Class A Shares outstanding | 83,000 | 20,000 | 72,000 | 37,000 |
Weighted average shares outstanding including dilutive securities | 20,591,000 | 21,046,000 | 20,879,000 | 21,068,000 |
Stock option | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 141,000 | 431,000 | 144,000 | 244,000 |
Stock option | Weighted Average | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 141,000 | 367,000 | 144,000 | 193,000 |
Class A Common Stock | ||||
EARNINGS PER SHARE | ||||
Cash dividend premium per share (as a percent) | 10.00% | |||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (5,557) | $ (5,375) | $ (16,980) | $ (16,080) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 18,342,000 | 18,826,000 | 18,625,000 | 18,830,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.31 | $ 0.29 | $ 0.92 | $ 0.86 |
Undistributed earnings per share | 0.60 | 0.54 | 1.77 | 1.51 |
Total basic earnings per share continuing operations (in dollars per share) | 0.91 | 0.83 | 2.69 | 2.37 |
Total basic earnings per share discontinued operations (in dollars per share) | 0.08 | 0.15 | 0.71 | 0.65 |
Total basic earnings per share | 0.99 | 0.98 | 3.40 | 3.02 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.31 | 0.29 | 0.92 | 0.86 |
Undistributed earnings per share | 0.60 | 0.54 | 1.76 | 1.51 |
Total diluted earnings per share continuing operations (in dollars per share) | 0.91 | 0.83 | 2.68 | 2.37 |
Total diluted earnings per share discontinued operations (in dollar per share) | 0.08 | 0.15 | 0.71 | 0.65 |
Total diluted earnings per share | $ 0.99 | $ 0.98 | $ 3.39 | $ 3.02 |
Class B Common Stock | ||||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (606) | $ (572) | $ (1,830) | $ (1,716) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 2,166,000 | 2,200,000 | 2,182,000 | 2,201,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.28 | $ 0.26 | $ 0.84 | $ 0.78 |
Undistributed earnings per share | 0.55 | 0.49 | 1.61 | 1.38 |
Total basic earnings per share continuing operations (in dollars per share) | 0.83 | 0.75 | 2.45 | 2.16 |
Total basic earnings per share discontinued operations (in dollars per share) | 0.07 | 0.14 | 0.65 | 0.59 |
Total basic earnings per share | 0.90 | 0.89 | 3.10 | 2.75 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.28 | 0.26 | 0.84 | 0.78 |
Undistributed earnings per share | 0.55 | 0.49 | 1.60 | 1.37 |
Total diluted earnings per share continuing operations (in dollars per share) | 0.83 | 0.75 | 2.44 | 2.15 |
Total diluted earnings per share discontinued operations (in dollar per share) | 0.07 | 0.14 | 0.65 | 0.59 |
Total diluted earnings per share | $ 0.90 | $ 0.89 | $ 3.09 | $ 2.74 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Available-for-Sale Debt Securities: | ||||
Unrealized gains and (losses) on AFS debt securities | $ (1,899) | $ (258) | $ (4,542) | $ 8,618 |
Unrealized gain (loss) of AFS debt security for which a portion of OTTI has been recognized in earnings | 13 | 61 | 62 | (46) |
Net unrealized (losses) gains | (1,886) | (197) | (4,480) | 8,572 |
Tax effect | 471 | 49 | 1,119 | (2,144) |
Net of tax | (1,415) | (148) | (3,361) | 6,428 |
Cash Flow Hedges: | ||||
Change in fair value of derivatives used for cash flow hedges | (1) | (173) | ||
Reclassification amount for net derivative losses realized in income | 103 | 211 | ||
Net unrealized (losses) gains | 102 | 38 | ||
Tax effect | (25) | (9) | ||
Net of tax | 77 | 29 | ||
Total other comprehensive (loss) income, net of tax | $ (1,415) | $ (71) | $ (3,361) | $ 6,457 |
OTHER COMPREHENSIVE INCOME - RE
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Significant amounts reclassified out of each component of AOCI | ||||
Interest expense on deposits | $ (1,148) | $ (2,876) | $ (4,037) | $ (12,298) |
Interest expense on FHLB advances | (6) | (658) | (47) | (3,128) |
Total interest expense | (1,391) | (3,856) | (4,941) | (18,109) |
Income tax expense | (5,745) | (4,554) | (15,708) | (12,107) |
INCOME FROM CONTINUING OPERATIONS | 18,412 | 17,275 | 55,240 | 49,344 |
Net income | $ 20,009 | 20,389 | $ 69,984 | 62,890 |
Unrealized (loss) gain on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Significant amounts reclassified out of each component of AOCI | ||||
Interest expense on deposits | (52) | (107) | ||
Interest expense on FHLB advances | (51) | (104) | ||
Total interest expense | (103) | (211) | ||
Income tax expense | 26 | 53 | ||
Net income | $ (77) | $ (158) |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | $ 845,090 | $ 795,619 | $ 823,323 | $ 764,244 |
Current Year Change | (1,415) | (71) | (3,361) | 6,457 |
Balance at end of period | 838,657 | 810,362 | 838,657 | 810,362 |
Accumulated Other Comprehensive Income | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 6,563 | 9,626 | 8,509 | 3,098 |
Current Year Change | (3,361) | 6,457 | ||
Balance at end of period | 5,148 | 9,555 | 5,148 | 9,555 |
Unrealized gain (loss) on AFS debt securities | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 7,571 | 2,211 | ||
Current Year Change | (3,407) | 6,464 | ||
Balance at end of period | 4,164 | 8,675 | 4,164 | 8,675 |
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 | 938 | 964 | ||
Current Year Change | 46 | (35) | ||
Balance at end of period | $ 984 | 929 | $ 984 | 929 |
Unrealized (loss) gain on cash flow hedges | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | (77) | |||
Current Year Change | 28 | |||
Balance at end of period | $ (49) | $ (49) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue recognition | ||||
Net interest income | $ 52,309 | $ 52,049 | $ 155,325 | $ 156,333 |
Noninterest income: | ||||
Mortgage banking income | 5,280 | 10,775 | 16,655 | 23,968 |
Program fees | 4,530 | 1,487 | 10,304 | 5,249 |
Increase in cash surrender value of BOLI | 626 | 400 | 1,616 | 1,184 |
Total noninterest income | 17,995 | 19,400 | 49,997 | 49,761 |
Total net revenue | $ 70,304 | $ 71,449 | $ 205,322 | $ 206,094 |
Net-revenue concentration (as percent) | 100.00% | 100.00% | 100.00% | |
Net-revenue concentration from continuing operations | 100.00% | 100.00% | 100.00% | 100.00% |
Writedowns during entity's holding of property (as a percent) | 10.00% | |||
Core Banking Activities | ||||
Revenue recognition | ||||
Net interest income | $ 46,841 | $ 46,398 | $ 139,866 | $ 137,056 |
Noninterest income: | ||||
Mortgage banking income | 5,280 | 10,775 | 16,655 | 23,968 |
Increase in cash surrender value of BOLI | 626 | 400 | 1,616 | 1,184 |
Total noninterest income | 13,465 | 17,913 | 39,700 | 44,527 |
Total net revenue | $ 60,306 | $ 64,311 | $ 179,566 | $ 181,583 |
Net-revenue concentration (as percent) | 90.00% | 88.00% | 88.00% | |
Net-revenue concentration from continuing operations | 86.00% | 90.00% | 88.00% | 88.00% |
Traditional Banking | ||||
Revenue recognition | ||||
Net interest income | $ 40,297 | $ 38,753 | $ 119,677 | $ 118,409 |
Noninterest income: | ||||
Increase in cash surrender value of BOLI | 626 | 400 | 1,616 | 1,184 |
Total noninterest income | 8,108 | 7,138 | 22,862 | 20,499 |
Total net revenue | $ 48,405 | $ 45,891 | $ 142,539 | $ 138,908 |
Net-revenue concentration (as percent) | 64.00% | 70.00% | 67.00% | |
Net-revenue concentration from continuing operations | 69.00% | 64.00% | 70.00% | 67.00% |
Warehouse Lending | ||||
Revenue recognition | ||||
Net interest income | $ 6,291 | $ 7,345 | $ 19,387 | $ 17,715 |
Noninterest income: | ||||
Total noninterest income | 15 | (21) | 43 | 7 |
Total net revenue | $ 6,306 | $ 7,324 | $ 19,430 | $ 17,722 |
Net-revenue concentration (as percent) | 10.00% | 9.00% | 9.00% | |
Net-revenue concentration from continuing operations | 9.00% | 10.00% | 9.00% | 9.00% |
Mortgage Banking | ||||
Revenue recognition | ||||
Net interest income | $ 253 | $ 300 | $ 802 | $ 932 |
Noninterest income: | ||||
Mortgage banking income | 5,280 | 10,775 | 16,655 | 23,968 |
Total noninterest income | 5,342 | 10,796 | 16,795 | 24,021 |
Total net revenue | $ 5,595 | $ 11,096 | $ 17,597 | $ 24,953 |
Net-revenue concentration (as percent) | 16.00% | 9.00% | 12.00% | |
Net-revenue concentration from continuing operations | 8.00% | 16.00% | 9.00% | 12.00% |
Republic Processing Group | ||||
Revenue recognition | ||||
Net interest income | $ 5,468 | $ 5,651 | $ 15,459 | $ 19,277 |
Noninterest income: | ||||
Program fees | 4,530 | 1,487 | 10,304 | 5,249 |
Total noninterest income | 4,530 | 1,487 | 10,297 | 5,234 |
Total net revenue | $ 9,998 | $ 7,138 | $ 25,756 | $ 24,511 |
Net-revenue concentration (as percent) | 10.00% | 12.00% | 12.00% | |
Net-revenue concentration from continuing operations | 14.00% | 10.00% | 12.00% | 12.00% |
Tax Refund Solutions | ||||
Revenue recognition | ||||
Net interest income | $ 171 | $ 675 | $ 665 | $ 1,622 |
Noninterest income: | ||||
Program fees | 763 | 643 | 2,374 | 1,573 |
Total noninterest income | 763 | 643 | 2,367 | 1,558 |
Total net revenue | $ 934 | $ 1,318 | $ 3,032 | $ 3,180 |
Net-revenue concentration (as percent) | 2.00% | 1.00% | 2.00% | |
Net-revenue concentration from continuing operations | 1.00% | 2.00% | 1.00% | 2.00% |
Republic Credit Solutions | ||||
Revenue recognition | ||||
Net interest income | $ 5,297 | $ 4,976 | $ 14,794 | $ 17,655 |
Noninterest income: | ||||
Program fees | 3,767 | 844 | 7,930 | 3,676 |
Total noninterest income | 3,767 | 844 | 7,930 | 3,676 |
Total net revenue | $ 9,064 | $ 5,820 | $ 22,724 | $ 21,331 |
Net-revenue concentration (as percent) | 8.00% | 11.00% | 10.00% | |
Net-revenue concentration from continuing operations | 13.00% | 8.00% | 11.00% | 10.00% |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Revenue under 606 | $ 3,277 | $ 3,017 | $ 9,221 | $ 8,604 |
Service charges on deposit accounts | Core Banking Activities | ||||
Noninterest income: | ||||
Revenue under 606 | 3,277 | 3,018 | 9,231 | 8,622 |
Service charges on deposit accounts | Traditional Banking | ||||
Noninterest income: | ||||
Revenue under 606 | 3,262 | 3,000 | 9,188 | 8,576 |
Service charges on deposit accounts | Warehouse Lending | ||||
Noninterest income: | ||||
Revenue under 606 | 15 | 18 | 43 | 46 |
Service charges on deposit accounts | Republic Processing Group | ||||
Noninterest income: | ||||
Revenue under 606 | (1) | (10) | (18) | |
Service charges on deposit accounts | Tax Refund Solutions | ||||
Noninterest income: | ||||
Revenue under 606 | (1) | (10) | (18) | |
Interchange fee income | ||||
Noninterest income: | ||||
Revenue under 606 | 3,200 | 2,874 | 9,539 | 8,093 |
Interchange fee income | Core Banking Activities | ||||
Noninterest income: | ||||
Revenue under 606 | 3,199 | 2,873 | 9,535 | 8,090 |
Interchange fee income | Traditional Banking | ||||
Noninterest income: | ||||
Revenue under 606 | 3,199 | 2,873 | 9,535 | 8,090 |
Interchange fee income | Republic Processing Group | ||||
Noninterest income: | ||||
Revenue under 606 | 1 | 1 | 4 | 3 |
Interchange fee income | Tax Refund Solutions | ||||
Noninterest income: | ||||
Revenue under 606 | 1 | 1 | 4 | 3 |
Net gains (losses) on other real estate owned | ||||
Noninterest income: | ||||
Revenue under 606 | (52) | (14) | (107) | (10) |
Net gains (losses) on other real estate owned | Core Banking Activities | ||||
Noninterest income: | ||||
Revenue under 606 | (52) | (14) | (107) | (10) |
Net gains (losses) on other real estate owned | Traditional Banking | ||||
Noninterest income: | ||||
Revenue under 606 | (52) | (14) | (107) | (10) |
Other | ||||
Noninterest income: | ||||
Revenue under 606 | 1,134 | 861 | 2,769 | 2,673 |
Other | Core Banking Activities | ||||
Noninterest income: | ||||
Revenue under 606 | 1,135 | 861 | 2,770 | 2,673 |
Other | Traditional Banking | ||||
Noninterest income: | ||||
Revenue under 606 | 1,073 | 879 | 2,630 | 2,659 |
Other | Warehouse Lending | ||||
Noninterest income: | ||||
Revenue under 606 | (39) | (39) | ||
Other | Mortgage Banking | ||||
Noninterest income: | ||||
Revenue under 606 | 62 | $ 21 | 140 | $ 53 |
Other | Republic Processing Group | ||||
Noninterest income: | ||||
Revenue under 606 | (1) | (1) | ||
Other | Tax Refund Solutions | ||||
Noninterest income: | ||||
Revenue under 606 | $ (1) | $ (1) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Disclosure information | |||||
Number of reportable segments | segment | 5 | ||||
Segment information | |||||
Net interest income | $ 52,309 | $ 52,049 | $ 155,325 | $ 156,333 | |
Provision for expected credit loss expense | 3,553 | 5,842 | 4,381 | 15,555 | |
Mortgage banking income | 5,280 | 10,775 | 16,655 | 23,968 | |
Program fees | 4,530 | 1,487 | 10,304 | 5,249 | |
Other noninterest income | 8,185 | 7,138 | 23,038 | 20,544 | |
Total noninterest income | 17,995 | 19,400 | 49,997 | 49,761 | |
Total noninterest expenses | 42,594 | 43,778 | 129,993 | 129,088 | |
Income (loss) from continuing operations before income tax expense | 24,157 | 21,829 | 70,948 | 61,451 | |
Income tax expense (benefit) | 5,745 | 4,554 | 15,708 | 12,107 | |
INCOME FROM CONTINUING OPERATIONS | 18,412 | 17,275 | 55,240 | 49,344 | |
DISCONTINUED OPERATIONS: | |||||
Income from discontinued operations before income taxes | 2,070 | 3,997 | 19,584 | 17,550 | |
Income tax expense | 473 | 883 | 4,840 | 4,004 | |
Income from discontinued operations, net of tax | 1,597 | 3,114 | 14,744 | 13,546 | |
NET INCOME | 20,009 | 20,389 | 69,984 | 62,890 | |
Period-end assets | $ 6,187,634 | $ 6,240,446 | $ 6,187,634 | $ 6,240,446 | $ 6,168,325 |
Net interest margin from continuing operations | 3.55% | 3.57% | 3.46% | 3.69% | |
Net-revenue concentration from continuing operations | 100.00% | 100.00% | 100.00% | 100.00% | |
Core Banking Activities | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 3 | ||||
Segment information | |||||
Net interest income | $ 46,841 | $ 46,398 | $ 139,866 | $ 137,056 | |
Provision for expected credit loss expense | (267) | 5,854 | (656) | 15,304 | |
Mortgage banking income | 5,280 | 10,775 | 16,655 | 23,968 | |
Other noninterest income | 8,185 | 7,138 | 23,045 | 20,559 | |
Total noninterest income | 13,465 | 17,913 | 39,700 | 44,527 | |
Total noninterest expenses | 40,240 | 41,122 | 122,726 | 120,756 | |
Income (loss) from continuing operations before income tax expense | 20,333 | 17,335 | 57,496 | 45,523 | |
Income tax expense (benefit) | 4,810 | 3,520 | 12,444 | 8,436 | |
INCOME FROM CONTINUING OPERATIONS | 15,523 | 13,815 | 45,052 | 37,087 | |
DISCONTINUED OPERATIONS: | |||||
NET INCOME | 15,523 | 13,815 | 45,052 | 37,087 | |
Period-end assets | $ 5,698,965 | $ 5,858,447 | $ 5,698,965 | $ 5,858,447 | |
Net interest margin from continuing operations | 3.25% | 3.25% | 3.24% | 3.37% | |
Net-revenue concentration from continuing operations | 86.00% | 90.00% | 88.00% | 88.00% | |
Traditional Banking | |||||
Segment information | |||||
Net interest income | $ 40,297 | $ 38,753 | $ 119,677 | $ 118,409 | |
Provision for expected credit loss expense | (44) | 5,857 | (126) | 14,526 | |
Other noninterest income | 8,108 | 7,138 | 22,862 | 20,499 | |
Total noninterest income | 8,108 | 7,138 | 22,862 | 20,499 | |
Total noninterest expenses | 35,927 | 36,415 | 110,192 | 109,750 | |
Income (loss) from continuing operations before income tax expense | 12,522 | 3,619 | 32,473 | 14,632 | |
Income tax expense (benefit) | 3,038 | 558 | 6,718 | 1,747 | |
INCOME FROM CONTINUING OPERATIONS | 9,484 | 3,061 | 25,755 | 12,885 | |
DISCONTINUED OPERATIONS: | |||||
NET INCOME | 9,484 | 3,061 | 25,755 | 12,885 | |
Period-end assets | $ 4,907,503 | $ 4,769,848 | $ 4,907,503 | $ 4,769,848 | |
Net interest margin from continuing operations | 3.22% | 3.22% | 3.21% | 3.41% | |
Net-revenue concentration from continuing operations | 69.00% | 64.00% | 70.00% | 67.00% | |
Warehouse Lending | |||||
Segment information | |||||
Net interest income | $ 6,291 | $ 7,345 | $ 19,387 | $ 17,715 | |
Provision for expected credit loss expense | (223) | (3) | (530) | 778 | |
Other noninterest income | 15 | (21) | 43 | 7 | |
Total noninterest income | 15 | (21) | 43 | 7 | |
Total noninterest expenses | 1,056 | 1,875 | 3,150 | 3,489 | |
Income (loss) from continuing operations before income tax expense | 5,473 | 5,452 | 16,810 | 13,455 | |
Income tax expense (benefit) | 1,258 | 1,226 | 3,919 | 3,027 | |
INCOME FROM CONTINUING OPERATIONS | 4,215 | 4,226 | 12,891 | 10,428 | |
DISCONTINUED OPERATIONS: | |||||
NET INCOME | 4,215 | 4,226 | 12,891 | 10,428 | |
Period-end assets | $ 750,266 | $ 1,026,790 | $ 750,266 | $ 1,026,790 | |
Net interest margin from continuing operations | 3.51% | 3.41% | 3.47% | 3.07% | |
Net-revenue concentration from continuing operations | 9.00% | 10.00% | 9.00% | 9.00% | |
Mortgage Banking | |||||
Segment information | |||||
Net interest income | $ 253 | $ 300 | $ 802 | $ 932 | |
Mortgage banking income | 5,280 | 10,775 | 16,655 | 23,968 | |
Other noninterest income | 62 | 21 | 140 | 53 | |
Total noninterest income | 5,342 | 10,796 | 16,795 | 24,021 | |
Total noninterest expenses | 3,257 | 2,832 | 9,384 | 7,517 | |
Income (loss) from continuing operations before income tax expense | 2,338 | 8,264 | 8,213 | 17,436 | |
Income tax expense (benefit) | 514 | 1,736 | 1,807 | 3,662 | |
INCOME FROM CONTINUING OPERATIONS | 1,824 | 6,528 | 6,406 | 13,774 | |
DISCONTINUED OPERATIONS: | |||||
NET INCOME | 1,824 | 6,528 | 6,406 | 13,774 | |
Period-end assets | $ 41,196 | $ 61,809 | $ 41,196 | $ 61,809 | |
Net-revenue concentration from continuing operations | 8.00% | 16.00% | 9.00% | 12.00% | |
Republic Processing Group | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 2 | ||||
Segment information | |||||
Net interest income | $ 5,468 | $ 5,651 | $ 15,459 | $ 19,277 | |
Provision for expected credit loss expense | 3,820 | (12) | 5,037 | 251 | |
Program fees | 4,530 | 1,487 | 10,304 | 5,249 | |
Other noninterest income | (7) | (15) | |||
Total noninterest income | 4,530 | 1,487 | 10,297 | 5,234 | |
Total noninterest expenses | 2,354 | 2,656 | 7,267 | 8,332 | |
Income (loss) from continuing operations before income tax expense | 3,824 | 4,494 | 13,452 | 15,928 | |
Income tax expense (benefit) | 935 | 1,034 | 3,264 | 3,671 | |
INCOME FROM CONTINUING OPERATIONS | 2,889 | 3,460 | 10,188 | 12,257 | |
DISCONTINUED OPERATIONS: | |||||
Income from discontinued operations before income taxes | 2,070 | 3,997 | 19,584 | 17,550 | |
Income tax expense | 473 | 883 | 4,840 | 4,004 | |
Income from discontinued operations, net of tax | 1,597 | 3,114 | 14,744 | 13,546 | |
NET INCOME | 4,486 | 6,574 | 24,932 | 25,803 | |
Period-end assets | $ 488,669 | $ 381,999 | $ 488,669 | $ 381,999 | |
Net-revenue concentration from continuing operations | 14.00% | 10.00% | 12.00% | 12.00% | |
Tax Refund Solutions | |||||
Segment information | |||||
Net interest income | $ 171 | $ 675 | $ 665 | $ 1,622 | |
Program fees | 763 | 643 | 2,374 | 1,573 | |
Other noninterest income | (7) | (15) | |||
Total noninterest income | 763 | 643 | 2,367 | 1,558 | |
Total noninterest expenses | 1,308 | 1,481 | 4,239 | 5,360 | |
Income (loss) from continuing operations before income tax expense | (374) | (163) | (1,207) | (2,180) | |
Income tax expense (benefit) | (102) | (40) | (373) | (517) | |
INCOME FROM CONTINUING OPERATIONS | (272) | (123) | (834) | (1,663) | |
DISCONTINUED OPERATIONS: | |||||
Income from discontinued operations before income taxes | 2,070 | 3,997 | 19,584 | 17,550 | |
Income tax expense | 473 | 883 | 4,840 | 4,004 | |
Income from discontinued operations, net of tax | 1,597 | 3,114 | 14,744 | 13,546 | |
NET INCOME | 1,325 | 2,991 | 13,910 | 11,883 | |
Period-end assets | $ 365,552 | $ 269,337 | $ 365,552 | $ 269,337 | |
Net-revenue concentration from continuing operations | 1.00% | 2.00% | 1.00% | 2.00% | |
Republic Credit Solutions | |||||
Segment information | |||||
Net interest income | $ 5,297 | $ 4,976 | $ 14,794 | $ 17,655 | |
Provision for expected credit loss expense | 3,820 | (12) | 5,037 | 251 | |
Program fees | 3,767 | 844 | 7,930 | 3,676 | |
Total noninterest income | 3,767 | 844 | 7,930 | 3,676 | |
Total noninterest expenses | 1,046 | 1,175 | 3,028 | 2,972 | |
Income (loss) from continuing operations before income tax expense | 4,198 | 4,657 | 14,659 | 18,108 | |
Income tax expense (benefit) | 1,037 | 1,074 | 3,637 | 4,188 | |
INCOME FROM CONTINUING OPERATIONS | 3,161 | 3,583 | 11,022 | 13,920 | |
DISCONTINUED OPERATIONS: | |||||
NET INCOME | 3,161 | 3,583 | 11,022 | 13,920 | |
Period-end assets | $ 123,117 | $ 112,662 | $ 123,117 | $ 112,662 | |
Net-revenue concentration from continuing operations | 13.00% | 8.00% | 11.00% | 10.00% |
DISCONTINUED OPERATIONS - INCOM
DISCONTINUED OPERATIONS - INCOME STATEMENT (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
NONINTEREST EXPENSE: | |||||||
INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAX EXPENSE | $ 2,070,000 | $ 3,997,000 | $ 19,584,000 | $ 17,550,000 | |||
INCOME TAX EXPENSE | 473,000 | 883,000 | 4,840,000 | 4,004,000 | |||
Income from discontinued operations, net of tax | 1,597,000 | 3,114,000 | 14,744,000 | 13,546,000 | |||
Tax Refund Solutions Business | Discontinued Operations, Held-for-sale | |||||||
INTEREST INCOME: | |||||||
Loans, including fees | 76,000 | 135,000 | 14,815,000 | 20,978,000 | |||
Funds transfer credit | 51,000 | 70,000 | 313,000 | 1,543,000 | |||
Total interest income | 127,000 | 205,000 | 15,128,000 | 22,521,000 | |||
INTEREST EXPENSE: | |||||||
Deposits | 527,000 | ||||||
Funds transfer cost | 4,000 | 2,000 | 200,000 | 1,132,000 | |||
Total interest expense | 4,000 | 2,000 | 200,000 | 1,659,000 | |||
NET INTEREST INCOME | 123,000 | 203,000 | 14,928,000 | 20,862,000 | |||
Provision for expected credit loss expense | (2,261,000) | (4,342,000) | 7,850,000 | 15,239,000 | |||
NET INTEREST INCOME AFTER PROVISION | 2,384,000 | 4,545,000 | 7,078,000 | 5,623,000 | |||
NONINTEREST INCOME: | |||||||
Net refund transfer fees | 1,280,000 | 1,152,000 | 19,922,000 | 19,888,000 | |||
Interchange fee income | 63,000 | 37,000 | 232,000 | 178,000 | |||
Other | 1,000 | 8,000 | 78,000 | 90,000 | |||
Total noninterest income | 1,344,000 | 1,197,000 | 20,232,000 | 20,156,000 | |||
NONINTEREST EXPENSE: | |||||||
Salaries and employee benefits | 1,043,000 | 1,460,000 | 4,268,000 | 4,208,000 | |||
Technology, equipment, and communication | 86,000 | 131,000 | 260,000 | 461,000 | |||
Occupancy | 1,000 | 7,000 | |||||
Marketing and development | 45,000 | 55,000 | 160,000 | 196,000 | |||
FDIC insurance expense | 150,000 | ||||||
Bank franchise tax expense | 9,000 | 2,000 | 14,000 | 1,729,000 | |||
Legal and professional fees | 303,000 | 8,000 | 1,382,000 | 173,000 | |||
Other | 172,000 | 89,000 | 1,491,000 | 1,455,000 | |||
Total noninterest expense | 1,658,000 | 1,745,000 | 7,726,000 | 8,229,000 | |||
INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAX EXPENSE | 2,070,000 | 3,997,000 | 19,584,000 | 17,550,000 | |||
INCOME TAX EXPENSE | 473,000 | 883,000 | 4,840,000 | 4,004,000 | |||
Income from discontinued operations, net of tax | 1,597,000 | $ 3,114,000 | 14,744,000 | $ 13,546,000 | |||
Tax Refund Solutions Business | Discontinued Operations, Held-for-sale | Easy Advances | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Amount of credit risk associated with refund transfers | $ 0 | $ 0 | |||||
Period Easy Advance tax credit product offered | 2 months | 2 months | |||||
EA's repayment term | 35 days | ||||||
Maximum repayment period before Easy Advances considered delinquent | 35 days | 21 days | |||||
Tax Refund Solutions Business | Discontinued Operations, Held-for-sale | Easy Advances | Maximum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Advance amount per customer | $ 6,250 |