Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 31, 2022 | |
Document Information [Line Items] | ||
Entity Registrant Name | REPUBLIC BANCORP, INC. | |
Entity Central Index Key | 0000921557 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
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 | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 17,580,806 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,160,924 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 795,143 | $ 756,971 |
Available-for-sale debt securities, at fair value (amortized cost of $651,048 in 2022 and $492,626 in 2021, allowance for credit losses of $30 in 2022 and $0 in 2021) | 622,145 | 495,126 |
Held-to-maturity debt securities (fair value of $32,978 in 2022 and $44,764 in 2021, allowance for credit losses of $50 in 2022 and $47 in 2021) | 32,962 | 44,299 |
Equity securities with readily determinable fair value | 189 | 2,620 |
Mortgage loans held for sale, at fair value | 8,491 | 29,393 |
Consumer loans held for sale, at fair value | 17,459 | 19,747 |
Consumer loans held for sale, at the lower of cost or fair value | 13,777 | 2,937 |
Loans (loans carried at fair value of $45 in 2022 and $170 in 2021) | 4,362,233 | 4,496,562 |
Allowance for credit losses | (64,449) | (64,577) |
Loans, net | 4,297,784 | 4,431,985 |
Federal Home Loan Bank stock, at cost | 10,311 | 10,311 |
Premises and equipment, net | 33,886 | 36,073 |
Right-of-use assets | 41,364 | 38,825 |
Goodwill | 16,300 | 16,300 |
Other real estate owned | 1,687 | 1,792 |
Bank owned life insurance | 100,396 | 99,161 |
Other assets and accrued interest receivable | 120,582 | 108,092 |
TOTAL ASSETS | 6,112,476 | 6,093,632 |
Deposits: | ||
Noninterest-bearing | 2,094,436 | 1,990,781 |
Interest-bearing | 2,733,093 | 2,849,637 |
Total deposits | 4,827,529 | 4,840,418 |
Securities sold under agreements to repurchase and other short-term borrowings | 303,315 | 290,967 |
Operating lease liabilities | 42,163 | 39,672 |
Federal Home Loan Bank advances | 20,000 | 25,000 |
Other liabilities and accrued interest payable | 77,295 | 63,343 |
Total liabilities | 5,270,302 | 5,259,400 |
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 | 4,663 | 4,702 |
Additional paid in capital | 140,516 | 139,956 |
Retained earnings | 718,649 | 687,700 |
Accumulated other comprehensive (loss) income | (21,654) | 1,874 |
Total stockholders' equity | 842,174 | 834,232 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,112,476 | $ 6,093,632 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-sale debt securities | $ 651,048 | $ 492,626 |
Available-for-sale debt securities, allowance for credit losses | 30 | 0 |
Held-to-maturity debt securities | 32,978 | 44,764 |
Held-to-maturity debt securities, allowance for credit losses | 50 | 47 |
Loans held for investment fair value | $ 45 | $ 170 |
Preferred stock, no par value | $ 0 | $ 0 |
Class A Common Stock | ||
Common Stock, no par value | 0 | 0 |
Class B Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 47,916 | $ 49,640 | $ 108,931 | $ 117,112 |
Taxable investment securities | 2,688 | 1,858 | 4,747 | 3,810 |
Federal Home Loan Bank stock and other | 1,716 | 317 | 2,197 | 536 |
Total interest income | 52,320 | 51,815 | 115,875 | 121,458 |
INTEREST EXPENSE: | ||||
Deposits | 945 | 1,324 | 1,824 | 2,889 |
Securities sold under agreements to repurchase and other short-term borrowings | 49 | 8 | 77 | 17 |
Federal Home Loan Bank advances | 94 | 10 | 130 | 41 |
Subordinated note | 169 | 341 | ||
Total interest expense | 1,088 | 1,511 | 2,031 | 3,288 |
NET INTEREST INCOME | 51,232 | 50,304 | 113,844 | 118,170 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 3,705 | (4,323) | 12,931 | 10,939 |
NET INTEREST INCOME AFTER PROVISION | 47,527 | 54,627 | 100,913 | 107,231 |
NONINTEREST INCOME: | ||||
Mortgage banking income | 1,763 | 4,182 | 4,420 | 11,375 |
Program fees | 3,885 | 3,342 | 7,739 | 5,551 |
Increase in cash surrender value of bank owned life insurance | 623 | 600 | 1,235 | 990 |
Total noninterest income | 30,566 | 21,648 | 61,567 | 50,669 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 28,896 | 27,410 | 58,208 | 56,747 |
Technology, equipment, and communication | 7,229 | 7,444 | 14,443 | 14,511 |
Occupancy | 3,224 | 3,251 | 6,664 | 6,810 |
Marketing and development | 1,720 | 1,094 | 3,068 | 1,866 |
FDIC insurance expense | 399 | 418 | 818 | 864 |
Interchange related expense | 1,264 | 1,288 | 2,381 | 2,432 |
Legal and professional fees | 804 | 1,466 | 2,169 | 2,680 |
Other | 4,117 | 3,343 | 8,475 | 7,685 |
Total noninterest expense | 47,653 | 45,714 | 96,226 | 93,595 |
INCOME BEFORE INCOME TAX EXPENSE | 30,440 | 30,561 | 66,254 | 64,305 |
INCOME TAX EXPENSE | 6,539 | 6,639 | 14,427 | 14,330 |
NET INCOME | 23,901 | 23,922 | 51,827 | 49,975 |
Service charges on deposit accounts | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 3,363 | 3,071 | 6,589 | 5,944 |
Net refund transfer fees | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 3,950 | 5,923 | 16,001 | 18,644 |
Interchange fee income | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 3,461 | 3,481 | 6,531 | 6,508 |
Net losses on other real estate owned | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | (52) | (44) | (105) | (55) |
Contract termination fee | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 5,000 | |||
Legal settlement | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 13,000 | 13,000 | ||
Other | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | $ 573 | $ 1,093 | $ 1,157 | $ 1,712 |
Class A Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share (in dollars per share) | $ 1.20 | $ 1.16 | $ 2.60 | $ 2.42 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share (in dollars per share) | 1.20 | 1.16 | 2.59 | 2.41 |
Class B Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share (in dollars per share) | 1.09 | 1.05 | 2.37 | 2.20 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share (in dollars per share) | $ 1.09 | $ 1.05 | $ 2.36 | $ 2.19 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 23,901 | $ 23,922 | $ 51,827 | $ 49,975 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized losses on AFS debt securities | (10,133) | (614) | (31,382) | (2,643) |
Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | (15) | 34 | 9 | 49 |
Total other comprehensive loss before income tax | (10,148) | (580) | (31,373) | (2,594) |
Tax effect | 2,537 | 145 | 7,845 | 648 |
Total other comprehensive loss, net of tax | (7,611) | (435) | (23,528) | (1,946) |
COMPREHENSIVE INCOME | $ 16,290 | $ 23,487 | $ 28,299 | $ 48,029 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Common Stock | Additional Paid In Capital | Retained Earnings Class A Common Stock | Retained Earnings Class B Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Class A Common Stock | Class B Common Stock | Total |
Balance at beginning of period at Dec. 31, 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 | 49,975 | 49,975 | |||||||||
Net change in accumulated other comprehensive income (loss) | (1,946) | (1,946) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (11,423) | $ (1,224) | $ (11,423) | $ (1,224) | |||||||
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) | 33 | (33) | |||||||||
Repurchase of Class A Common Stock | (75) | (2,350) | (12,804) | (15,229) | |||||||
Repurchase of Class A Common Stock (in shares) | (362) | ||||||||||
Net change in notes receivable on Class A Common Stock | 50 | 50 | |||||||||
Deferred director compensation expense - Class A Common Stock | 209 | 209 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 4 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 303 | 303 | |||||||||
Employee stock purchase plan - Class A Common Stock | 2 | 316 | 318 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 7 | ||||||||||
Stock-based awards, Performance stock units | 65 | 65 | |||||||||
Stock-based awards, Restricted stock | 2 | 519 | 521 | ||||||||
Stock-based awards, Restricted stock (in shares) | 14 | ||||||||||
Stock options | 290 | 290 | |||||||||
Balance at end 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 | |||||||||
Balance at beginning of period at Mar. 31, 2021 | $ 18,628 | $ 2,198 | 4,884 | 143,563 | 682,264 | 6,998 | 837,709 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 23,922 | 23,922 | |||||||||
Net change in accumulated other comprehensive income (loss) | (435) | (435) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (5,680) | (608) | (5,680) | (608) | |||||||
Stock options exercised, net of shares withheld | 5 | (54) | (49) | ||||||||
Stock options exercised, net of shares withheld (in shares) | 12 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock | (51) | (1,614) | (9,096) | (10,761) | |||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | (255) | ||||||||||
Repurchase of Class A Common Stock (in shares) | 32 | (32) | |||||||||
Net change in notes receivable on Class A Common Stock | (44) | (44) | |||||||||
Deferred director compensation expense - Class A Common Stock | 95 | 95 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 167 | 167 | |||||||||
Employee stock purchase plan - Class A Common Stock | 1 | 162 | 163 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 4 | ||||||||||
Stock-based awards, Performance stock units | 33 | 33 | |||||||||
Stock-based awards, Restricted stock | 2 | 409 | 411 | ||||||||
Stock options | 167 | 167 | |||||||||
Balance at end 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 | |||||||||
Balance at beginning of period at Dec. 31, 2021 | 4,702 | 139,956 | 687,700 | 1,874 | 834,232 | ||||||
Balance (in shares) at Dec. 31, 2021 | 17,816 | 2,165 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 51,827 | 51,827 | |||||||||
Net change in accumulated other comprehensive income (loss) | (23,528) | (23,528) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (12,128) | (1,341) | (12,128) | (1,341) | |||||||
Stock options exercised, net of shares withheld | 2 | 40 | 42 | ||||||||
Stock options exercised, net of shares withheld (in shares) | 3 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 4 | (4) | |||||||||
Repurchase of Class A Common Stock | (43) | (1,384) | (7,409) | (8,836) | |||||||
Repurchase of Class A Common Stock (in shares) | (215) | ||||||||||
Net change in notes receivable on Class A Common Stock | 18 | 18 | |||||||||
Deferred director compensation expense - Class A Common Stock | 211 | 211 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 6 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 357 | 357 | |||||||||
Employee stock purchase plan - Class A Common Stock | 2 | 325 | 327 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 7 | ||||||||||
Stock-based awards, Performance stock units | 76 | 76 | |||||||||
Stock-based awards, Restricted stock | 610 | 610 | |||||||||
Stock-based awards, Restricted stock (in shares) | 8 | ||||||||||
Stock options | 307 | 307 | |||||||||
Balance at end of period at Jun. 30, 2022 | 4,663 | 140,516 | 718,649 | (21,654) | 842,174 | ||||||
Balance (in shares) at Jun. 30, 2022 | 17,629 | 2,161 | |||||||||
Balance at beginning of period at Mar. 31, 2022 | 4,703 | 140,795 | 708,874 | (14,043) | 840,329 | ||||||
Balance (in shares) at Mar. 31, 2022 | 17,834 | 2,165 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 23,901 | 23,901 | |||||||||
Net change in accumulated other comprehensive income (loss) | (7,611) | (7,611) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (6,047) | $ (670) | $ (6,047) | $ (670) | |||||||
Stock options exercised, net of shares withheld | 2 | 88 | 90 | ||||||||
Stock options exercised, net of shares withheld (in shares) | 3 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 4 | (4) | |||||||||
Repurchase of Class A Common Stock | (43) | (1,384) | (7,409) | (8,836) | |||||||
Repurchase of Class A Common Stock (in shares) | (215) | ||||||||||
Net change in notes receivable on Class A Common Stock | (42) | (42) | |||||||||
Deferred director compensation expense - Class A Common Stock | 82 | 82 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 178 | 178 | |||||||||
Employee stock purchase plan - Class A Common Stock | 1 | 163 | 164 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 3 | ||||||||||
Stock-based awards, Performance stock units | 38 | 38 | |||||||||
Stock-based awards, Restricted stock | 447 | 447 | |||||||||
Stock options | 151 | 151 | |||||||||
Balance at end of period at Jun. 30, 2022 | $ 4,663 | $ 140,516 | $ 718,649 | $ (21,654) | $ 842,174 | ||||||
Balance (in shares) at Jun. 30, 2022 | 17,629 | 2,161 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class A Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.341 | $ 0.308 | $ 0.682 | $ 0.616 |
Class B Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.310 | $ 0.280 | $ 0.620 | $ 0.560 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES: | ||
Net income | $ 51,827 | $ 49,975 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization on investment securities and low-income housing investments | 1,496 | 2,489 |
Net accretion on loans and amortization of core deposit intangible and operating lease components | (2,220) | (10,894) |
Unrealized and realized losses on equity securities with readily determinable fair value | 190 | 482 |
Depreciation of premises and equipment | 4,029 | 4,515 |
Amortization of mortgage servicing rights | 1,248 | 1,735 |
Recovery of mortgage servicing rights | (500) | |
Provision for on-balance sheet exposures | 12,931 | 10,939 |
Provision for off-balance sheet exposures | 48 | (55) |
Net gain on sale of mortgage loans held for sale | (3,919) | (11,009) |
Origination of mortgage loans held for sale | (162,150) | (354,764) |
Proceeds from sale of mortgage loans held for sale | 186,971 | 380,239 |
Net gain on sale of consumer loans held for sale | (6,265) | (4,121) |
Origination of consumer loans held for sale | (527,996) | (304,045) |
Proceeds from sale of consumer loans held for sale | 525,709 | 288,510 |
Net gain realized on sale of other real estate owned | (51) | |
Writedowns of other real estate owned | 105 | 105 |
Deferred compensation expense - Class A Common Stock | 568 | 512 |
Stock-based awards and ESPP expense - Class A Common Stock | 1,042 | 923 |
Net gain on sale of bank premises and equipment | (399) | |
Increase in cash surrender value of bank owned life insurance | (1,235) | (990) |
Net change in other assets and liabilities: | ||
Accrued interest receivable | 5 | 2,450 |
Accrued interest payable | 3 | (131) |
Other assets | 1,718 | 1,728 |
Other liabilities | 9,889 | (2,352) |
Net cash provided by operating activities | 93,994 | 55,291 |
INVESTING ACTIVITIES: | ||
Purchases of available-for-sale debt securities | (189,820) | (111,664) |
Proceeds from calls, maturities and paydowns of equity and available-for-sale debt securities | 33,340 | 108,201 |
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities | 11,330 | 7,162 |
Net change in outstanding warehouse lines of credit | 253,872 | 122,641 |
Net change in other loans | (130,331) | 135,473 |
Proceeds from redemption of Federal Home Loan Bank stock | 5,727 | |
Proceeds from sales of other real estate owned | 611 | |
Proceeds from sale of bank premises and equipment | 637 | |
Purchase of bank owned life insurance | (30,000) | |
Investments in low-income housing tax partnerships | (5,509) | (7,684) |
Net purchases of premises and equipment | (1,842) | (3,923) |
Net cash (used in) provided by investing activities | (28,960) | 227,181 |
FINANCING ACTIVITIES: | ||
Net change in deposits | (12,889) | 284,397 |
Net change in securities sold under agreements to repurchase and other short-term borrowings | 12,348 | (68,131) |
Payments of Federal Home Loan Bank advances | (25,000) | (235,000) |
Proceeds from Federal Home Loan Bank advances | 20,000 | 25,000 |
Repurchase of Class A Common Stock | (8,836) | (15,229) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 278 | 272 |
Net proceeds from option exercises and equity awards vested - Class A Common Stock | 42 | (142) |
Cash dividends paid | (12,805) | (12,219) |
Net cash used in financing activities | (26,862) | (21,052) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 38,172 | 261,420 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 756,971 | 485,587 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 795,143 | 747,007 |
Cash paid during the period for: | ||
Interest | 2,028 | 3,419 |
Income taxes | 8,677 | 13,466 |
SUPPLEMENTAL NONCASH DISCLOSURES: | ||
Mortgage servicing rights capitalized | 1,459 | 2,475 |
Transfers from loans to real estate acquired in settlement of loans | $ 64 | |
Unfunded commitments in low-income-housing investments | 10,100 | |
Right-of-use assets recorded | $ 4,956 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
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. 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 months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021. As of June 30, 2022, 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. 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 — 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 2022 and 2021: ● 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 a DDA Card, 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. The Company reports fees paid for the EA product as interest income on loans. During 2021, EAs were repaid, on average, within 32 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 in 2022 and 2021 if it remained unpaid 35 days 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 are recorded as recoveries of previously charged-off loans unless such recovery is subject to guarantor reimbursement under a loan-loss guaranty. 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. Settlement of Lawsuit Against Green Dot - As previously disclosed in the Company’s prior SEC filings, the Lawsuit arose from Green Dot’s inability to consummate the Sale Transaction contemplated in the TRS Purchase Agreement through which Green Dot would purchase all of the assets and operations of the Bank’s Tax Refund Solutions business. In accordance with the Settlement Agreement, on June 6, 2022, Green Dot paid $13 million to the Bank, which was in addition to a $5 million termination fee that Green Dot paid to the Bank during the first quarter of 2022 under the terms of the TRS Purchase Agreement. On June 6, 2022, the Bank and Green Dot submitted to the Delaware Court of Chancery a stipulation of dismissal of the Lawsuit, which was effective to dismiss the Lawsuit when filed. 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 represented the substantial majority of RCS activity during 2021 and 2022. Elastic Marketing, LLC and Elevate Decision Sciences, LLC are third-party service providers for the product and are 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 third-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 provider for the installment loans. This third-party 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 a third-party, who is an affiliate of the Bank’s 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 six months ended June 30, 2022: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity This ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share calculation in certain areas. January 1, 2022 Prospectively Immaterial 2021-04 Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options This ASU provides guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. It specifically addresses: (1) How an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; (2) How an entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; and (3) How an entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. January 1, 2022 Prospectively Immaterial Accounting Standards Update The following not-yet-effective ASUs were issued since the Company’s most recently filed Form 10-K and are considered relevant to the Company’s financial statements. Date Adoption Adoption Expected ASU. No. Topic Nature of Update Required Method Financial Impact 2022-02 Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures This ASU eliminates the TDR recognition and measurement guidance and, instead, requires the Company to evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. This ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. January 1, 2024 Prospectively Immaterial |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES Available-for-Sale Debt Securities The following tables summarize the amortized cost, fair value, and ACLS of AFS debt securities and the corresponding amounts of related gross unrealized gains and losses recognized in AOCI: Gross Gross Allowance Amortized Unrealized Unrealized for Fair June 30, 2022 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 400,771 $ 1 $ (17,680) $ — $ 383,092 Private label mortgage-backed security 1,156 1,322 — — 2,478 Mortgage-backed securities - residential 210,571 83 (12,384) — 198,270 Collateralized mortgage obligations 24,838 48 (341) — 24,545 Corporate bonds 10,000 — (34) (30) 9,936 Trust preferred security 3,712 112 — — 3,824 Total available-for-sale debt securities $ 651,048 $ 1,566 $ (30,439) $ (30) $ 622,145 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2021 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 239,880 $ 473 $ (2,894) $ — $ 237,459 Private label mortgage-backed security 1,418 1,313 — — 2,731 Mortgage-backed securities - residential 207,697 3,525 (473) — 210,749 Collateralized mortgage obligations 29,947 377 (30) — 30,294 Corporate bonds 10,000 46 — — 10,046 Trust preferred security 3,684 163 — — 3,847 Total available-for-sale debt securities $ 492,626 $ 5,897 $ (3,397) $ — $ 495,126 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 Amortized Unrecognized Unrecognized Fair for June 30, 2022 (in thousands) Cost Gains Losses Value Credit Losses Mortgage-backed securities - residential $ 29 $ — $ — $ 29 $ — Collateralized mortgage obligations 7,772 70 (20) 7,822 — Corporate bonds 24,966 8 (92) 24,882 (50) Obligations of state and political subdivisions 245 — — 245 — Total held-to-maturity debt securities $ 33,012 $ 78 $ (112) $ 32,978 $ (50) Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for December 31, 2021 (in thousands) Cost Gains Losses Value Credit Losses Mortgage-backed securities - residential $ 46 $ — $ — $ 46 $ — Collateralized mortgage obligations 9,080 158 — 9,238 — Corporate bonds 34,975 263 (6) 35,232 (47) Obligations of state and political subdivisions 245 3 — 248 — Total held-to-maturity debt securities $ 44,346 $ 424 $ (6) $ 44,764 $ (47) Sales of Available-for-Sale Debt Securities During the three and six months ended June 30, 2022 and 2021, 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 June 30, 2022 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 Amortized Fair June 30, 2022 (in thousands) Cost Value Cost Value Due in one year or less $ 61,344 $ 61,128 $ 120 $ 120 Due from one year to five years 349,427 331,900 25,091 25,007 Due from five years to ten years — — — — Due beyond ten years 3,712 3,824 — — Private label mortgage-backed security 1,156 2,478 — — Mortgage-backed securities - residential 210,571 198,270 29 29 Collateralized mortgage obligations 24,838 24,545 7,772 7,822 Total debt securities $ 651,048 $ 622,145 $ 33,012 $ 32,978 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 June 30, 2022 and December 31, 2021, aggregated by investment category and length of time in a continuous unrealized loss position: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2022 (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 $ 296,890 $ (12,582) $ 64,902 $ (5,098) $ 361,792 $ (17,680) Mortgage-backed securities - residential 193,002 (12,384) — — 193,002 (12,384) Collateralized mortgage obligations 16,226 (341) — — 16,226 (341) Total available-for-sale debt securities $ 506,118 $ (25,307) $ 64,902 $ (5,098) $ 571,020 $ (30,405) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 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 $ 177,138 $ (2,622) $ 9,728 $ (272) $ 186,866 $ (2,894) Mortgage-backed securities - residential 84,937 (473) — — 84,937 (473) Collateralized mortgage obligations 4,495 (30) — — 4,495 (30) Total available-for-sale debt securities $ 266,570 $ (3,125) $ 9,728 $ (272) $ 276,298 $ (3,397) As of June 30, 2022, the Bank’s security portfolio consisted of 179 securities, 127 of which were in an unrealized loss position. As of December 31, 2021, the Bank’s security portfolio consisted of 173 securities, 29 of which were in an unrealized loss position. As of June 30, 2022 and December 31, 2021, 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. Private Label Mortgage-Backed Security The Bank owns one private label mortgage-backed security with a total carrying value of $2.5 million as of June 30, 2022. 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. Mortgage-Backed Securities and Collateralized Mortgage Obligations As of June 30, 2022, with the exception of the $2.5 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 June 30, 2022 and December 31, 2021, there were gross unrealized losses of $12.7 million and $503,000 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. Rollforward of the Allowance for Credit Losses on Debt Securities The table below presents a rollforward for the three months ended June 30, 2022 and 2021 of the ACLS on AFS and HTM debt securities: ACLS Rollforward Three Months Ended June 30, 2022 2021 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ 30 $ — $ — $ 30 $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 40 10 — — 50 103 (47) — — 56 Total $ 40 $ 40 $ — $ — $ 80 $ 103 $ (47) $ — $ — $ 56 ACLS Rollforward Six Months Ended June 30, 2022 2021 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ 30 $ — $ — $ 30 $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 47 3 — — 50 178 (122) — — 56 Total $ 47 $ 33 $ — $ — $ 80 $ 178 $ (122) $ — $ — $ 56 The Company increased the ACLS on its AFS and HTM corporate bonds during the three and six months ended June 30, 2022 based on increased PD and LGD estimates on these bonds. There were no HTM debt securities on nonaccrual or past due over 89 days as of June 30, 2022 and December 31, 2021. All of the Company’s HTM corporate bonds were rated investment grade as of June 30, 2022 and December 31, 2021. There were no HTM debt securities considered collateral dependent as of June 30, 2022 and December 31, 2021. 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 $2 million and $1 million as of June 30, 2022 and December 31, 2021. Accrued interest receivable on HTM debt securities totaled $118,000 and $89,000 as of June 30, 2022 and December 31, 2021. 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, were as follows: (in thousands) June 30, 2022 December 31, 2021 Carrying amount $ 415,244 $ 319,650 Fair value 415,244 319,808 Equity Securities The carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values were as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2022 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 189 $ — $ 189 Total equity securities with readily determinable fair values $ — $ 189 $ — $ 189 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2021 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 170 $ — $ 170 Community Reinvestment Act mutual fund 2,500 — (50) 2,450 Total equity securities with readily determinable fair values $ 2,500 $ 170 $ (50) $ 2,620 For equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company’s consolidated statements of income were as follows: Gains (Losses) Recognized on Equity Securities Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 25 $ 25 $ — $ 191 $ 191 Community Reinvestment Act mutual fund (97) — (97) — 16 16 Total equity securities with readily determinable fair value $ (97) $ 25 $ (72) $ — $ 207 $ 207 Gains (Losses) Recognized on Equity Securities Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 19 $ 19 $ — $ (444) $ (444) Community Reinvestment Act mutual fund (209) — (209) — (38) (38) Total equity securities with readily determinable fair value $ (209) $ 19 $ (190) $ — $ (482) $ (482) |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2022 | |
LOANS HELD FOR SALE. | |
LOANS HELD FOR SALE | 3. LOANS HELD FOR SALE In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Mortgage Banking segment, while consumer loans originated for sale are originated and sold through the RCS segment. Mortgage Loans Held for Sale, at Fair Value See additional detail regarding mortgage loans originated for sale, at fair value under Footnote 11 “Mortgage Banking Activities” of this section of the filing. Consumer Loans Held for Sale, at Fair Value In December 2019, the Bank began offering RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intent to sell generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. Activity for consumer loans held for sale and carried at fair value was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 11,709 $ 3,970 $ 19,747 $ 3,298 Origination of consumer loans held for sale 98,704 49,607 195,436 68,697 Proceeds from the sale of consumer loans held for sale (94,435) (41,974) (201,083) (60,904) Net gain on sale of consumer loans held for sale 1,481 1,417 3,359 1,929 Balance, end of period $ 17,459 $ 13,020 $ 17,459 $ 13,020 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 Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 3,026 $ 11,701 $ 2,937 $ 1,478 Origination of consumer loans held for sale 184,078 137,164 332,560 235,348 Proceeds from the sale of consumer loans held for sale (174,994) (138,852) (324,626) (227,606) Net gain on sale of consumer loans held for sale 1,667 1,399 2,906 2,192 Balance, end of period $ 13,777 $ 11,412 $ 13,777 $ 11,412 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2022 | |
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) June 30, 2022 December 31, 2021 Traditional Banking: Residential real estate: Owner occupied $ 832,137 $ 820,731 Nonowner occupied 313,534 306,323 Commercial real estate 1,569,119 1,456,009 Construction & land development 137,452 129,337 Commercial & industrial 394,175 340,363 Paycheck Protection Program 14,657 56,014 Lease financing receivables 11,345 8,637 Aircraft 159,958 142,894 Home equity 214,069 210,578 Consumer: Credit cards 15,419 14,510 Overdrafts 901 683 Automobile loans 9,579 14,448 Other consumer 1,245 1,432 Total Traditional Banking 3,673,590 3,501,959 Warehouse lines of credit* 596,678 850,550 Total Core Banking 4,270,268 4,352,509 Republic Processing Group*: Tax Refund Solutions: Easy Advances — — Other TRS loans 149 50,987 Republic Credit Solutions 91,816 93,066 Total Republic Processing Group 91,965 144,053 Total loans** 4,362,233 4,496,562 Allowance for credit losses (64,449) (64,577) Total loans, net $ 4,297,784 $ 4,431,985 *Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts, and net loan origination fees and costs. See table directly below for expanded detail. The following table reconciles the contractually receivable and carrying amounts of loans: (in thousands) June 30, 2022 December 31, 2021 Contractually receivable $ 4,364,937 $ 4,498,671 Unearned income (679) (542) Unamortized premiums 111 116 Unaccreted discounts (574) (641) PPP net unamortized deferred origination (fees) and costs (303) (1,203) Other net unamortized deferred origination (fees) and costs (1,259) 161 Carrying value of loans $ 4,362,233 $ 4,496,562 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 cashflow needs during the COVID 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. As of June 30, 2022, net PPP loans of $15 million remained on the Traditional Bank’s balance sheet compared to $56 million as of December 31, 2021 . PPP fees recognized by the Company for the first six months of 2022 and 2021 were 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 June 30, 2022 remain unchanged from those defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 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 June 30, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 95,596 $ 201,218 $ 200,132 $ 78,397 $ 235,958 $ — $ — $ 811,301 Special Mention — — — 189 7,681 — — 7,870 Substandard — 4 1,089 1,356 10,517 — — 12,966 Doubtful — — — — — — — — Total $ 95,596 $ 201,222 $ 201,221 $ 79,942 $ 254,156 $ — $ — $ 832,137 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 45,525 $ 98,419 $ 58,325 $ 36,582 $ 68,566 $ — $ 5,863 $ 313,280 Special Mention — — — — 126 — — 126 Substandard — 38 — — 90 — — 128 Doubtful — — — — — — — — Total $ 45,525 $ 98,457 $ 58,325 $ 36,582 $ 68,782 $ — $ 5,863 $ 313,534 Commercial real estate: Risk Rating Pass or not rated $ 252,650 $ 439,645 $ 228,470 $ 145,692 $ 315,211 $ 24,040 $ 104,446 $ 1,510,154 Special Mention 1,324 13,043 2,406 23,495 15,431 250 — 55,949 Substandard — — — — 3,016 — — 3,016 Doubtful — — — — — — — — Total $ 253,974 $ 452,688 $ 230,876 $ 169,187 $ 333,658 $ 24,290 $ 104,446 $ 1,569,119 Construction and land development: Risk Rating Pass or not rated $ 50,812 $ 76,293 $ 5,013 $ 770 $ 2,744 $ 1,820 $ — $ 137,452 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 50,812 $ 76,293 $ 5,013 $ 770 $ 2,744 $ 1,820 $ — $ 137,452 Commercial and industrial: Risk Rating Pass or not rated $ 53,046 $ 91,908 $ 26,068 $ 46,155 $ 52,459 $ 104,097 $ 2,824 $ 376,557 Special Mention 591 14,083 — 693 1,831 300 — 17,498 Substandard — — — 120 — — — 120 Doubtful — — — — — — — — Total $ 53,637 $ 105,991 $ 26,068 $ 46,968 $ 54,290 $ 104,397 $ 2,824 $ 394,175 Paycheck Protection Program: Risk Rating Pass or not rated $ — $ 12,207 $ 2,450 $ — $ — $ — $ — $ 14,657 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ 12,207 $ 2,450 $ — $ — $ — $ — $ 14,657 Lease financing receivables: Risk Rating Pass or not rated $ 4,423 $ 2,283 $ 617 $ 2,231 $ 1,791 $ — $ — $ 11,345 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 4,423 $ 2,283 $ 617 $ 2,231 $ 1,791 $ — $ — $ 11,345 Aircraft: Risk Rating Pass or not rated $ 32,905 $ 59,236 $ 39,231 $ 20,316 $ 8,270 $ — $ — $ 159,958 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 32,905 $ 59,236 $ 39,231 $ 20,316 $ 8,270 $ — $ — $ 159,958 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 212,580 $ — $ 212,580 Special Mention — — — — — 348 — 348 Substandard — — — — — 1,141 — 1,141 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 214,069 $ — $ 214,069 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of June 30, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 828 $ 682 $ 280 $ 3,430 $ 6,065 $ 15,522 $ — $ 26,807 Special Mention — — — — — — — — Substandard — — — 13 324 — — 337 Doubtful — — — — — — — — Total $ 828 $ 682 $ 280 $ 3,443 $ 6,389 $ 15,522 $ — $ 27,144 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 596,678 $ — $ 596,678 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 596,678 $ — $ 596,678 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 149 $ — $ 149 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 149 $ — $ 149 RCS: Risk Rating Pass or not rated $ 4,438 $ 3,319 $ 2,049 $ 1,198 $ 27,648 $ 52,806 $ — $ 91,458 Special Mention — — — — — — — — Substandard — — — — — 358 — 358 Doubtful — — — — — — — — Total $ 4,438 $ 3,319 $ 2,049 $ 1,198 $ 27,648 $ 53,164 $ — $ 91,816 Grand Total: Risk Rating Pass or not rated $ 540,223 $ 985,210 $ 562,635 $ 334,771 $ 718,712 $ 1,007,692 $ 113,133 $ 4,262,376 Special Mention 1,915 27,126 2,406 24,377 25,069 898 — 81,791 Substandard — 42 1,089 1,489 13,947 1,499 — 18,066 Doubtful — — — — — — — — Grand Total $ 542,138 $ 1,012,378 $ 566,130 $ 360,637 $ 757,728 $ 1,010,089 $ 113,133 $ 4,362,233 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of December 31, 2021 2021 2020 2019 2018 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 218,981 $ 213,010 $ 89,186 $ 50,301 $ 226,852 $ — $ — $ 798,330 Special Mention 301 — — 33 8,209 — — 8,543 Substandard 45 870 679 1,189 11,075 — — 13,858 Doubtful — — — — — — — — Total $ 219,327 $ 213,880 $ 89,865 $ 51,523 $ 246,136 $ — $ — $ 820,731 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 107,041 $ 65,786 $ 44,376 $ 29,292 $ 55,872 $ — $ 3,729 $ 306,096 Special Mention — — — — 132 — — 132 Substandard — — — — 95 — — 95 Doubtful — — — — — — — — Total $ 107,041 $ 65,786 $ 44,376 $ 29,292 $ 56,099 $ — $ 3,729 $ 306,323 Commercial real estate: Risk Rating Pass or not rated $ 472,095 $ 256,039 $ 153,224 $ 94,212 $ 286,223 $ 25,188 $ 80,211 $ 1,367,192 Special Mention 20,059 2,399 29,639 11,207 18,778 — — 82,082 Substandard — 111 266 2,453 3,905 — — 6,735 Doubtful — — — — — — — — Total $ 492,154 $ 258,549 $ 183,129 $ 107,872 $ 308,906 $ 25,188 $ 80,211 $ 1,456,009 Construction and land development: Risk Rating Pass or not rated $ 88,743 $ 30,593 $ 2,599 $ 1,155 $ 128 $ 1,925 $ — $ 125,143 Special Mention — 524 3,670 — — — — 4,194 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 88,743 $ 31,117 $ 6,269 $ 1,155 $ 128 $ 1,925 $ — $ 129,337 Commercial and industrial: Risk Rating Pass or not rated $ 105,148 $ 34,361 $ 54,524 $ 18,110 $ 44,972 $ 60,454 $ 2,541 $ 320,110 Special Mention 15,015 1,921 785 34 1,956 350 — 20,061 Substandard — 13 179 — — — — 192 Doubtful — — — — — — — — Total $ 120,163 $ 36,295 $ 55,488 $ 18,144 $ 46,928 $ 60,804 $ 2,541 $ 340,363 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2021 2021 2020 2019 2018 Prior Cost Basis to Term Total Paycheck Protection Program: Risk Rating Pass or not rated $ 40,607 $ 15,407 $ — $ — $ — $ — $ — $ 56,014 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 40,607 $ 15,407 $ — $ — $ — $ — $ — $ 56,014 Lease financing receivables: Risk Rating Pass or not rated $ 2,638 $ 839 $ 2,641 $ 1,264 $ 1,255 $ — $ — $ 8,637 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 2,638 $ 839 $ 2,641 $ 1,264 $ 1,255 $ — $ — $ 8,637 Aircraft: Risk Rating Pass or not rated $ 65,886 $ 43,301 $ 22,933 $ 9,119 $ 1,655 $ — $ — $ 142,894 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 65,886 $ 43,301 $ 22,933 $ 9,119 $ 1,655 $ — $ — $ 142,894 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 208,429 $ — $ 208,429 Special Mention — — — — — 279 — 279 Substandard — — — — — 1,870 — 1,870 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 210,578 $ — $ 210,578 Consumer: Risk Rating Pass or not rated $ 978 $ 417 $ 4,694 $ 4,326 $ 5,768 $ 14,613 $ — $ 30,796 Special Mention — — — — — — — — Substandard — — 22 61 194 — — 277 Doubtful — — — — — — — — Total $ 978 $ 417 $ 4,716 $ 4,387 $ 5,962 $ 14,613 $ — $ 31,073 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 850,550 $ — $ 850,550 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 850,550 $ — $ 850,550 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 50,987 $ — $ 50,987 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 50,987 $ — $ 50,987 RCS: Risk Rating Pass or not rated $ 5,524 $ 3,409 $ 1,642 $ 869 $ 3,699 $ 77,544 $ — $ 92,687 Special Mention — — — — — — — — Substandard — — — — — 379 — 379 Doubtful — — — — — — — — Total $ 5,524 $ 3,409 $ 1,642 $ 869 $ 3,699 $ 77,923 $ — $ 93,066 Grand Total: Risk Rating Pass or not rated $ 1,107,641 $ 663,162 $ 375,819 $ 208,648 $ 626,424 $ 1,289,690 $ 86,481 $ 4,357,865 Special Mention 35,375 4,844 34,094 11,274 29,075 629 — 115,291 Substandard 45 994 1,146 3,703 15,269 2,249 — 23,406 Doubtful — — — — — — — — Grand Total $ 1,143,061 $ 669,000 $ 411,059 $ 223,625 $ 670,768 $ 1,292,568 $ 86,481 $ 4,496,562 Allowance for Credit Losses on Loans The following table presents the activity in the ACLL by portfolio class: ACLL Rollforward Three Months Ended June 30, 2022 2021 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 $ 8,358 $ 62 $ — $ 25 $ 8,445 $ 9,489 $ (530) $ — $ 18 $ 8,977 Nonowner occupied 2,746 (14) — 1 2,733 2,532 18 — 1 2,551 Commercial real estate 24,624 (284) — 1 24,341 23,801 (506) — 12 23,307 Construction & land development 3,893 (302) — — 3,591 3,593 (294) — — 3,299 Commercial & industrial 3,412 348 — 8 3,768 2,718 1,395 — 4 4,117 Paycheck Protection Program — — — — — — — — — — Lease financing receivables 109 10 — — 119 104 (7) — — 97 Aircraft 378 22 — — 400 265 38 — — 303 Home equity 4,044 (40) — 109 4,113 4,615 (344) — 34 4,305 Consumer: Credit cards 944 59 (31) 22 994 930 42 (33) 10 949 Overdrafts 716 315 (194) 64 901 473 281 (111) 74 717 Automobile loans 151 (32) — 3 122 334 (66) — 5 273 Other consumer 241 (38) (20) 17 200 533 (57) (17) 8 467 Total Traditional Banking 49,616 106 (245) 250 49,727 49,387 (30) (161) 166 49,362 Warehouse lines of credit 1,725 (234) — — 1,491 2,165 (65) — — 2,100 Total Core Banking 51,341 (128) (245) 250 51,218 51,552 (95) (161) 166 51,462 Republic Processing Group: Tax Refund Solutions: Easy Advances 8,315 564 (11,505) 2,626 — 16,019 (5,793) (10,256) 30 — Other TRS loans 55 (204) (153) 302 — 10 20 (30) — — Republic Credit Solutions 11,945 3,433 (2,411) 264 13,231 7,755 1,592 (597) 79 8,829 Total Republic Processing Group 20,315 3,793 (14,069) 3,192 13,231 23,784 (4,181) (10,883) 109 8,829 Total $ 71,656 $ 3,665 $ (14,314) $ 3,442 $ 64,449 $ 75,336 $ (4,276) $ (11,044) $ 275 $ 60,291 ACLL Rollforward Six Months Ended June 30, 2022 2021 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 $ 8,647 $ (269) $ — $ 67 $ 8,445 $ 9,715 $ (783) $ — $ 45 $ 8,977 Nonowner occupied 2,700 31 — 2 2,733 2,466 84 — 1 2,551 Commercial real estate 23,769 570 — 2 24,341 23,606 49 (428) 80 23,307 Construction & land development 4,128 (537) — — 3,591 3,274 25 — — 3,299 Commercial & industrial 3,487 264 — 17 3,768 2,797 1,309 — 11 4,117 Paycheck Protection Program — — — — — — — — — — Lease financing receivables 91 28 — — 119 106 (9) — — 97 Aircraft 357 43 — — 400 253 50 — — 303 Home equity 4,111 (110) — 112 4,113 4,990 (726) — 41 4,305 Consumer: Credit cards 934 91 (70) 39 994 929 86 (90) 24 949 Overdrafts 683 503 (408) 123 901 587 208 (249) 171 717 Automobile loans 186 (68) — 4 122 399 (144) — 18 273 Other consumer 314 (113) (30) 29 200 577 (109) (31) 30 467 Total Traditional Banking 49,407 433 (508) 395 49,727 49,699 40 (798) 421 49,362 Warehouse lines of credit 2,126 (635) — — 1,491 2,407 (307) — — 2,100 Total Core Banking 51,533 (202) (508) 395 51,218 52,106 (267) (798) 421 51,462 Republic Processing Group: Tax Refund Solutions: Easy Advances — 8,879 (11,505) 2,626 — — 10,226 (10,256) 30 — Other TRS loans 96 (607) (153) 664 — 158 (115) (51) 8 — Republic Credit Solutions 12,948 4,828 (5,084) 539 13,231 8,803 1,217 (1,362) 171 8,829 Total Republic Processing Group 13,044 13,100 (16,742) 3,829 13,231 8,961 11,328 (11,669) 209 8,829 Total $ 64,577 $ 12,898 $ (17,250) $ 4,224 $ 64,449 $ 61,067 $ 11,061 $ (12,467) $ 630 $ 60,291 The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of June 30, 2022 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 2022, 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) June 30, 2022 December 31, 2021 Loans on nonaccrual status* $ 16,168 $ 20,504 Loans past due 90-days-or-more and still on accrual** 42 48 Total nonperforming loans 16,210 20,552 Other real estate owned 1,687 1,792 Total nonperforming assets $ 17,897 $ 22,344 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.37 % 0.46 % Nonperforming assets to total loans (including OREO) 0.41 0.50 Nonperforming assets to total assets 0.29 0.37 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.38 % 0.47 % Nonperforming assets to total loans (including OREO) 0.42 0.51 Nonperforming assets to total assets 0.32 0.40 * Loans on nonaccrual status include collateral-dependent loans. ** Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. The following tables present the recorded investment in nonaccrual loans and loans past due 90-days-or-more and still on accrual by class of loans: Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Traditional Banking: Residential real estate: Owner occupied $ 11,538 $ 12,039 $ — $ — Nonowner occupied 128 95 — — Commercial real estate 3,228 6,557 — — Construction & land development — — — — Commercial & industrial — 13 — — Paycheck Protection Program — — — — Lease financing receivables — — — — Aircraft — — — — Home equity 1,016 1,700 — — Consumer: Credit cards — — — — Overdrafts — — — 1 Automobile loans 36 97 — — Other consumer 222 3 — — Total Traditional Banking 16,168 20,504 — 1 Warehouse lines of credit — — — — Total Core Banking 16,168 20,504 — 1 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — — — Republic Credit Solutions — — 42 47 Total Republic Processing Group — — 42 47 Total $ 16,168 $ 20,504 $ 42 $ 48 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended Six Months Ended As of June 30, 2022 June 30, 2022 June 30, 2022 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 $ 18 $ 11,520 $ 11,538 $ 154 $ 257 Nonowner occupied 37 91 128 1 1 Commercial real estate 3,228 — 3,228 14 644 Construction & land development — — — — — Commercial & industrial — — — — — Paycheck Protection Program — — — — — Lease financing receivables — — — — — Aircraft — — — — — Home equity — 1,016 1,016 84 146 Consumer 11 247 258 48 52 Total $ 3,294 $ 12,874 $ 16,168 $ 301 $ 1,100 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Three Months Ended Six Months Ended As of December 31, 2021 June 30, 2021 June 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 $ 1,944 $ 10,095 $ 12,039 $ 166 $ 414 Nonowner occupied 31 64 95 2 3 Commercial real estate 4,105 2,452 6,557 36 51 Construction & land development — — — — — Commercial & industrial — 13 13 — |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2022 | |
DEPOSITS | |
DEPOSITS | 5. DEPOSITS The composition of the deposit portfolio follows: (in thousands) June 30, 2022 December 31, 2021 Core Bank: Demand $ 1,338,061 $ 1,381,522 Money market accounts 775,560 789,876 Savings 331,508 311,624 Individual retirement accounts (1) 41,305 43,724 Time deposits, $250 and over (1) 51,976 81,050 Other certificates of deposit (1) 132,536 154,174 Reciprocal money market and time deposits (1) 52,862 77,950 Total Core Bank interest-bearing deposits 2,723,808 2,839,920 Total Core Bank noninterest-bearing deposits 1,676,974 1,579,173 Total Core Bank deposits 4,400,782 4,419,093 Republic Processing Group: Money market accounts 9,285 9,717 Total RPG interest-bearing deposits 9,285 9,717 Brokered prepaid card deposits 319,455 320,907 Other noninterest-bearing deposits 98,007 90,701 Total RPG noninterest-bearing deposits 417,462 411,608 Total RPG deposits 426,747 421,325 Total deposits $ 4,827,529 $ 4,840,418 (1) Includes time deposit . |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 6 Months Ended |
Jun. 30, 2022 | |
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 As of June 30, 2022 and December 31, 2021, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase and other short-term borrowings follows: (dollars in thousands) June 30, 2022 December 31, 2021 Outstanding balance at end of period $ 303,315 $ 290,967 Weighted average interest rate at end of period 0.09 % 0.04 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 304,203 $ 108,813 Mortgage backed securities - residential 42,422 167,561 Collateralized mortgage obligations 1,190 33,441 Total securities pledged $ 347,815 $ 309,815 Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2022 2021 2022 2021 Average outstanding balance during the period $ 294,388 $ 169,888 $ 297,263 $ 181,216 Average interest rate during the period 0.07 % 0.02 % 0.05 % 0.02 % Maximum outstanding at any month end during the period $ 303,315 $ 174,928 $ 303,315 $ 200,704 |
RIGHT-OF-USE ASSETS AND OPERATI
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, the Company was under 45 separate and distinct operating lease contracts to lease the land and/or buildings for 37 of its offices, with 12 such operating leases contracted with a related party of the Company. As of June 30, 2022, payments on The Company recorded one new third-party office lease, renewed one of its existing related-party leases, and extended four of its third-party leases during the first six months of 2022, with a related total right-of-use asset value of $5.0 million connected to this 2022 activity. 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 six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Operating lease expense: Related Party: Variable lease expense $ 1,269 $ 1,218 $ 2,535 $ 2,438 Fixed lease expense 57 34 92 68 Third Party: Variable lease expense 220 197 417 393 Fixed lease expense 349 342 693 684 Total operating lease expense $ 1,895 $ 1,791 $ 3,737 $ 3,583 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,707 $ 1,799 $ 3,412 $ 3,597 Cash paid for variable rent payments not included in measurement of operating lease liabilities 151 — 302 — Short-term lease payments not included in the measurement of lease liabilities — — — — The following table presents the weighted average remaining term and weighted average discount rate for the Company’s non-short-term operating leases as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Weighted average remaining term in years 8.39 7.57 Weighted average discount rate 2.64 % 3.05 % The following table presents a maturity schedule of the Company’s operating lease liabilities based on undiscounted cash flows, and a reconciliation of those undiscounted cash flows to the operating lease liabilities recognized on the Company’s balance sheet as of June 30, 2022: Year (dollars in thousands) Related Party Third Party Total 2022 $ 2,123 $ 1,309 $ 3,432 2023 4,274 2,429 6,703 2024 4,189 1,928 6,117 2025 4,053 1,396 5,449 2026 4,124 1,100 5,224 Thereafter 16,375 4,313 20,688 Total undiscounted cash flows $ 35,138 $ 12,475 $ 47,613 Discount applied to cash flows (3,398) (2,052) (5,450) Total discounted cash flows reported as operating lease liabilities $ 31,740 $ 10,423 $ 42,163 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 6 Months Ended |
Jun. 30, 2022 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 8. FEDERAL HOME LOAN BANK ADVANCES FHLB advances were as follows: (in thousands) June 30, 2022 December 31, 2021 Overnight advances $ — $ 25,000 Fixed interest rate advances 20,000 — Total FHLB advances $ 20,000 $ 25,000 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 June 30, 2022 and December 31, 2021, Republic had available borrowing capacity of $905 million and $900 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 June 30, 2022 and December 31, 2021. 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 2022 $ — — % 2023 — — 2024 — — 2025 — — 2026 — — 2027 20,000 1.89 Total $ 20,000 1.89 % Due to their nature, the Bank considers average balance information more meaningful than period-end balances for its overnight borrowings from the FHLB. Information regarding overnight FHLB advances follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2022 2021 2022 2021 Average outstanding balance during the period $ — $ 25,000 $ — $ 32,597 Average interest rate during the period — % 0.16 % — % 0.16 % Maximum outstanding at any month end during the period $ — $ 25,000 $ — $ 25,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: (in thousands) June 30, 2022 December 31, 2021 First lien, single family residential real estate $ 1,036,228 $ 1,041,461 Home equity lines of credit 193,447 186,396 |
OFF BALANCE SHEET RISKS, COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
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 Pandemic COVID was declared a pandemic by the World Health Organization on March 11, 2020. Since March 2020, jurisdictions within and outside the U.S. have imposed economic and social restrictions on the population, in general, and non-essential businesses to slow the spread of COVID. These restrictions, in combination with the public’s response to them, have disrupted supply chains and effectively suspended or curtailed economic activity for many industries across the U.S. and the world. Industries within the Company’s market footprint have been impacted by these supply chain disruptions as well as the corresponding inflationary pressures driven by them in combination with on-going governmental stimulus programs. The future potential financial impact of the COVID 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) June 30, 2022 December 31, 2021 Unused warehouse lines of credit $ 865,822 $ 565,950 Unused home equity lines of credit 368,820 348,681 Unused loan commitments - other 828,583 828,229 Standby letters of credit 10,951 11,305 FHLB letter of credit 643 643 Total commitments $ 2,074,819 $ 1,754,808 Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third-party. The terms and risk of loss involved in issuing standby letters of credit are similar to those involved in issuing loan commitments and extending credit. In addition to credit risk, the Company also has liquidity risk associated with standby letters of credit because funding for these obligations could be required immediately. The Company does not deem this risk to be material. The following tables present a rollforward of the ACLC for the three and six months ended June 30, 2022 and 2021: ACLC Rollforward Three Months Ended 2022 2021 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 $ 130 $ 32 $ — $ — $ 162 $ 116 $ 24 $ — $ — $ 140 Unused home equity lines of credit 256 21 — — 277 194 19 — — 213 Unused loan commitments - other 654 7 — — 661 705 (124) — — 581 Total $ 1,040 $ 60 $ — $ — $ 1,100 $ 1,015 $ (81) $ — $ — $ 934 ACLC Rollforward Six Months Ended June 30, 2022 2021 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 $ 154 $ 8 $ — $ — $ 162 $ 79 $ 61 $ — $ — $ 140 Unused home equity lines of credit 247 30 — — 277 173 40 — — 213 Unused loan commitments - other 651 10 — — 661 737 (156) — — 581 Total $ 1,052 $ 48 $ — $ — $ 1,100 $ 989 $ (55) $ — $ — $ 934 The Company increased its ACLC during the three and six months ended June 30, 2022 based on an increase in total unused commitments. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2022 | |
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 U.S. Treasury securities are based on quoted market prices (Level 1 inputs) and considered highly liquid. 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 June 30, 2022. 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: Assets and liabilities measured at fair value on a recurring basis Fair Value Measurements at June 30, 2022 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 $ 230,771 $ 152,321 $ — $ 383,092 Private label mortgage-backed security — — 2,478 2,478 Mortgage-backed securities - residential — 198,270 — 198,270 Collateralized mortgage obligations — 24,545 — 24,545 Corporate bonds — 9,936 — 9,936 Trust preferred security — — 3,824 3,824 Total available-for-sale debt securities $ 230,771 $ 385,072 $ 6,302 $ 622,145 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 189 $ — $ 189 Total equity securities with readily determinable fair value $ — $ 189 $ — $ 189 Mortgage loans held for sale $ — $ 8,491 $ — $ 8,491 Consumer loans held for sale — — 17,459 17,459 Consumer loans held for investment — — 45 45 Rate lock loan commitments — 220 — 220 Mandatory forward contracts — 359 — 359 Interest rate swap agreements — 4,501 — 4,501 Financial liabilities: Interest rate swap agreements $ — $ 4,501 $ — $ 4,501 Fair Value Measurements at December 31, 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 $ 70,112 $ 167,347 $ — $ 237,459 Private label mortgage-backed security — — 2,731 2,731 Mortgage-backed securities - residential — 210,749 — 210,749 Collateralized mortgage obligations — 30,294 — 30,294 Corporate bonds — 10,046 — 10,046 Trust preferred security — — 3,847 3,847 Total available-for-sale debt securities $ 70,112 $ 418,436 $ 6,578 $ 495,126 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 170 $ — $ 170 Community Reinvestment Act mutual fund 2,450 — — 2,450 Total equity securities with readily determinable fair value $ 2,450 $ 170 $ — $ 2,620 Mortgage loans held for sale $ — $ 29,393 $ — $ 29,393 Consumer loans held for sale — — 19,747 19,747 Consumer loans held for investment — — 170 170 Rate lock loan commitments — 1,404 — 1,404 Mandatory forward contracts — 66 — 66 Interest rate swap agreements — 5,786 — 5,786 Financial liabilities: Interest rate swap agreements — 5,786 — 5,786 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 months and six months ended June 30, 2022 and 2021. Private Label Mortgage-Backed Security The following table presents a reconciliation of the Bank’s private label mortgage-backed security measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 2,602 $ 2,863 $ 2,731 $ 2,957 Total gains or losses included in earnings: Net change in unrealized gain (15) 34 9 49 Principal paydowns (109) (73) (262) (182) Balance, end of period $ 2,478 $ 2,824 $ 2,478 $ 2,824 The fair value of the Bank’s single private label mortgage-backed security is supported by analysis prepared by an independent third party. The third party’s approach to determining fair value involved several steps: 1) detailed collateral analysis of the underlying mortgages, including consideration of geographic location, original loan-to-value, and the weighted average FICO score of the borrowers; 2) collateral performance projections for each pool of mortgages underlying the security (probability of default, severity of default, and prepayment probabilities) and 3) discounted cash flow modeling. The significant unobservable inputs in the fair value measurement of the Bank’s single private label mortgage-backed security are prepayment rates, probability of default, and loss severity in the event of default. Significant fluctuations in any of those inputs in isolation would result in a significantly different fair value measurement. Quantitative information about recurring Level 3 fair value measurement inputs for the Bank’s single private label mortgage-backed security follows: Fair Valuation June 30, 2022 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,478 Discounted cash flow (1) Constant prepayment rate 4.5% - 5.4% (2) Probability of default 1.8% - 9.3% (3) Loss severity 50% - 75% Fair Valuation December 31, 2021 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,731 Discounted cash flow (1) Constant prepayment rate 4.5% - 5.7% (2) Probability of default 1.8% - 9.3% (3) Loss severity 50% - 75% Trust Preferred Security The following table presents a reconciliation of the Company’s TRUP measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 3,725 $ 3,650 $ 3,847 $ 3,800 Total gains or losses included in earnings: Discount accretion 14 13 28 26 Net change in unrealized gain 85 37 (51) (126) Balance, end of period $ 3,824 $ 3,700 $ 3,824 $ 3,700 The fair value of the Company’s TRUP investment is based on the most recent bid price for this instrument, as provided by a third-party broker. Mortgage Loans Held for Sale The Bank has elected the fair value option for mortgage loans held for sale. These loans are intended for sale and the Bank believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of June 30, 2022 and December 31, 2021. The aggregate fair value, contractual balance, and unrealized gain were as follows: (in thousands) June 30, 2022 December 31, 2021 Aggregate fair value $ 8,491 $ 29,393 Contractual balance 8,363 28,668 Unrealized gain 128 725 The total amount of gains and losses from changes in fair value included in earnings for the three and six months ended June 30, 2022 and 2021 for mortgage loans held for sale are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Interest income $ 153 $ 140 $ 357 $ 549 Change in fair value 109 (143) (597) (1,154) Total included in earnings $ 262 $ (3) $ (240) $ (605) Consumer Loans Held for Sale RCS carries loans originated through its installment loan program at fair value. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of June 30, 2022 and December 31, 2021. The significant unobservable inputs in the fair value measurement of the Bank’s short-term installment loans are the net contractual premiums and level of loans sold at a discount price. Significant fluctuations in any of those inputs in isolation would result in a significantly lower/higher fair value measurement. The following table presents quantitative information about recurring Level 3 fair value measurement inputs for installment loans: Fair Valuation June 30, 2022 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 17,459 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% Fair Valuation December 31, 2021 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 19,747 Contract Terms (1) Net Premium 1.4% (2) Discounted Sales 5.00% The aggregate fair value, contractual balance, and unrealized gain on consumer loans held for sale, at fair value, were as follows: (in thousands) June 30, 2022 December 31, 2021 Aggregate fair value $ 17,459 $ 19,747 Contractual balance 17,563 19,633 Unrealized gain (104) 114 The total amount of net gains from changes in fair value included in earnings for consumer loans held for sale, at fair value, are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Interest income $ 2,990 $ 1,397 $ 5,880 $ 1,968 Change in fair value (181) 63 (218) 78 Total included in earnings $ 2,809 $ 1,460 $ 5,662 $ 2,046 Assets measured at fair value on a non-recurring basis Fair Value Measurements at June 30, 2022 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 $ — $ — $ 1,345 $ 1,345 Commercial real estate — — 2,475 2,475 Total collateral-dependent loans* $ — $ — $ 3,820 $ 3,820 Other real estate owned: Commercial real estate $ — $ — $ 1,687 $ 1,687 Total other real estate owned $ — $ — $ 1,687 $ 1,687 * 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. Fair Value Measurements at December 31, 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 $ — $ — $ 1,626 $ 1,626 Commercial real estate — — 2,841 2,841 Home equity — — 378 378 Total collateral-dependent loans* $ — $ — $ 4,845 $ 4,845 Other real estate owned: Residential real estate $ — $ — $ 1,792 $ 1,792 Total other real estate owned $ — $ — $ 1,792 $ 1,792 * 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 June 30, 2022 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,345 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 41% (11%) Collateral-dependent loans - commercial real estate $ 2,475 Sales comparison approach Adjustments determined for differences between comparable sales 12% - 13% (12%) Other real estate owned - commercial real estate $ 1,687 Sales comparison approach Adjustments determined for differences between comparable sales 37% ( Range Fair Valuation Unobservable (Weighted December 31, 2021 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,626 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 51% (10%) Collateral-dependent loans - commercial real estate $ 2,841 Sales comparison approach Adjustments determined for differences between comparable sales 12% - 13% (12%) Collateral-dependent loans - home equity $ 378 Sales comparison approach Adjustments determined for differences between comparable sales 2%-4% ( Other real estate owned - commercial real estate $ 1,792 Sales comparison approach Adjustments determined for differences between comparable sales 33% ( 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) June 30, 2022 December 31, 2021 Carrying amount of loans measured at fair value $ 4,024 $ 4,928 Estimated selling costs considered in carrying amount 714 842 Valuation allowance (918) (925) Total fair value $ 3,820 $ 4,845 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Provision on collateral-dependent loans $ (7) $ 45 $ (4) $ 45 Other Real Estate Owned Details of other real estate owned carrying value and write downs follows: (in thousands) June 30, 2022 December 31, 2021 Other real estate owned carried at fair value $ 1,687 $ 1,792 Other real estate owned carried at cost — — Total carrying value of other real estate owned $ 1,687 $ 1,792 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Other real estate owned write-downs during the period $ 54 $ 52 $ 105 $ 105 The carrying amounts and estimated exit price fair values of all financial instruments follow: Fair Value Measurements at June 30, 2022: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 795,143 $ 795,143 $ — $ — $ 795,143 Available-for-sale debt securities 622,145 230,771 385,072 6,302 622,145 Held-to-maturity debt securities 32,962 — 32,978 — 32,978 Equity securities with readily determinable fair values 189 — 189 — 189 Mortgage loans held for sale, at fair value 8,491 — 8,491 — 8,491 Consumer loans held for sale, at fair value 17,459 — — 17,459 17,459 Consumer loans held for sale, at the lower of cost or fair value 13,777 — — 13,777 13,777 Loans, net 4,297,784 — — 4,165,381 4,165,381 Federal Home Loan Bank stock 10,311 — — — NA Accrued interest receivable 9,872 — 9,872 — 9,872 Mortgage servicing rights 9,407 — 16,568 — 16,568 Rate lock loan commitments 220 — 220 — 220 Mandatory forward contracts 359 — 359 — 359 Interest rate swap agreements 4,501 — 4,501 — 4,501 Liabilities: Noninterest-bearing deposits $ 2,094,436 $ — $ 2,094,436 $ — $ 2,094,436 Transaction deposits 2,499,250 — 2,499,250 — 2,499,250 Time deposits 233,843 — 230,849 — 230,849 Securities sold under agreements to repurchase and other short-term borrowings 303,315 — 303,315 — 303,315 Federal Home Loan Bank advances 20,000 — 21,766 — 21,766 Accrued interest payable 162 — 162 — 162 Interest rate swap agreements 4,501 — 4,501 — 4,501 Fair Value Measurements at December 31, 2021: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 756,971 $ 756,971 $ — $ — $ 756,971 Available-for-sale debt securities 495,126 70,112 418,436 6,578 495,126 Held-to-maturity debt securities 44,299 — 44,764 — 44,764 Equity securities with readily determinable fair values 2,620 2,450 170 — 2,620 Mortgage loans held for sale, at fair value 29,393 — 29,393 — 29,393 Consumer loans held for sale, at fair value 19,747 — — 19,747 19,747 Consumer loans held for sale, at the lower of cost or fair value 2,937 — — 2,937 2,937 Loans, net 4,431,985 — — 4,445,244 4,445,244 Federal Home Loan Bank stock 10,311 — — — NA Accrued interest receivable 9,877 — 9,877 — 9,877 Mortgage servicing rights 9,196 — 11,540 — 11,540 Rate lock loan commitments 1,404 — 1,404 — 1,404 Mandatory forward contracts 66 — 66 — 66 Interest rate swap agreements 5,786 — 5,786 — 5,786 Liabilities: Noninterest-bearing deposits $ 1,990,781 $ — $ 1,990,781 $ — $ 1,990,781 Transaction deposits 2,553,423 — 2,553,423 — 2,553,423 Time deposits 296,214 — 298,236 — 298,236 Securities sold under agreements to repurchase and other short-term borrowings 290,967 — 290,967 — 290,967 Federal Home Loan Bank advances 25,000 — 25,000 — 25,000 Accrued interest payable 159 — 159 — 159 Interest rate swap agreements 5,786 — 5,786 — 5,786 |
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 6 Months Ended |
Jun. 30, 2022 | |
MORTGAGE BANKING ACTIVITIES | |
MORTGAGE BANKING ACTIVITIES | 11. MORTGAGE BANKING ACTIVITIES Mortgage Banking activities primarily include residential mortgage originations and servicing. Activity for mortgage loans held for sale, at fair value, was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 13,302 $ 63,636 $ 29,393 $ 46,867 Origination of mortgage loans held for sale 61,489 141,177 162,150 354,764 Proceeds from the sale of mortgage loans held for sale (67,759) (176,424) (186,971) (380,239) Net gain on sale of mortgage loans held for sale 1,459 4,012 3,919 11,009 Balance, end of period $ 8,491 $ 32,401 $ 8,491 $ 32,401 The following table presents the components of Mortgage Banking income: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Net gain realized on sale of mortgage loans held for sale $ 2,674 $ 5,711 $ 5,407 $ 13,756 Net change in fair value recognized on loans held for sale 109 (143) (597) (1,154) Net change in fair value recognized on rate lock loan commitments (222) 299 (1,184) (2,338) Net change in fair value recognized on forward contracts (1,102) (1,855) 293 745 Net gain recognized 1,459 4,012 3,919 11,009 Loan servicing income 884 808 1,749 1,601 Amortization of mortgage servicing rights (580) (738) (1,248) (1,735) Change in mortgage servicing rights valuation allowance — 100 — 500 Net servicing income recognized 304 170 501 366 Total Mortgage Banking income $ 1,763 $ 4,182 $ 4,420 $ 11,375 Activity for capitalized mortgage servicing rights was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 9,502 $ 7,711 $ 9,196 $ 7,095 Additions 485 1,262 1,459 2,475 Amortized to expense (580) (738) (1,248) (1,735) Change in valuation allowance — 100 — 500 Balance, end of period $ 9,407 $ 8,335 $ 9,407 $ 8,335 Activity in the valuation allowance for capitalized mortgage servicing rights follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Beginning valuation allowance $ — $ 100 $ — $ 500 Charge during the period — (100) — (500) Ending valuation allowance $ — $ — $ — $ — Other information relating to mortgage servicing rights follows: (dollars in thousands) June 30, 2022 December 31, 2021 Fair value of mortgage servicing rights portfolio $ 16,568 $ 11,540 Monthly weighted average prepayment rate of unpaid principal balance* 128 % 208 % Discount rate 10.17 % 10.15 % Weighted average foreclosure rate 0.15 % 0.19 % Weighted average life in years 7.55 5.93 * Rates are applied to individual tranches with similar characteristics. Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts and interest rate lock loan commitments. Mandatory forward contracts represent future commitments to deliver loans at a specified price and date and are used to manage interest rate risk on loan commitments and mortgage loans held for sale. Interest rate lock loan commitments represent commitments to fund loans at a specific rate. These derivatives involve underlying items, such as interest rates, and are designed to transfer risk. Substantially all of these instruments expire within 90 days from the date of issuance. Notional amounts are amounts on which calculations and payments are based, but which do not represent credit exposure, as credit exposure is limited to the amounts required to be received or paid. Mandatory forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the counterparties fail to deliver commitments or are unable to fulfill their obligations, the Bank could potentially incur significant additional costs by replacing the positions at then current market rates. The Bank manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management and the Board of Directors. The Bank does not expect any counterparty to default on their obligations and therefore, the Bank does not expect to incur any cost related to counterparty default. The Bank is exposed to interest rate risk on loans held for sale and rate lock loan commitments. As market interest rates fluctuate, the fair value of mortgage loans held for sale and rate lock commitments will decline or increase. To offset this interest rate risk the Bank enters into derivatives, such as mandatory forward contracts to sell loans. The fair value of these mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate lock loan commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before expiration; and the time period required to close and sell loans. The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives as of the period ends presented: June 30, 2022 December 31, 2021 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 $ 8,363 $ 8,491 $ 28,668 $ 29,393 Included in other assets: Rate lock loan commitments $ 28,072 $ 220 $ 56,736 $ 1,404 Mandatory forward contracts 29,812 359 70,812 66 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 6 Months Ended |
Jun. 30, 2022 | |
INTEREST RATE SWAPS | |
INTEREST RATE SWAPS | 12. INTEREST RATE SWAPS Non-hedge Interest Rate Swaps The Bank enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Bank enters into offsetting positions in order to minimize the Bank’s interest rate risk. These swaps are derivatives, but are not designated as hedging instruments, and therefore changes in fair value are reported in current year earnings. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or client owes the Bank, and results in credit risk to the Bank. When the fair value of a derivative instrument contract is negative, the Bank owes the client or counterparty, and therefore, has no credit risk. A summary of the Bank’s interest rate swaps related to clients is included in the following table: June 30, 2022 December 31, 2021 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 22,009 $ 595 $ 107,502 $ 5,786 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 93,757 (4,501) 16,423 (298) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 115,766 $ (3,906) $ 123,925 $ 5,488 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 115,766 3,906 123,925 (5,488) Total $ 231,532 $ — $ 247,850 $ — 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 $0 and $6.8 million as of June 30, 2022 and December 31, 2021. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The Company calculates earnings per share under the two-class method. Under the two-class method, earnings available to common shareholders for the period are allocated between Class A Common Stock and Class B Common Stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. The difference in earnings per share between the two classes of common stock results from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock. A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2022 2021 2022 2021 Net income $ 23,901 $ 23,922 $ 51,827 $ 49,975 Dividends declared on Common Stock: Class A Shares (6,047) (5,680) (12,128) (11,423) Class B Shares (670) (608) (1,341) (1,224) Undistributed net income for basic earnings per share 17,184 17,634 38,358 37,328 Weighted average potential dividends on Class A shares upon exercise of dilutive options (21) (17) (49) (40) Undistributed net income for diluted earnings per share $ 17,163 $ 17,617 $ 38,309 $ 37,288 Weighted average shares outstanding: Class A Shares 17,946 18,712 17,968 18,761 Class B Shares 2,161 2,182 2,163 2,190 Effect of dilutive securities on Class A Shares outstanding 62 55 71 65 Weighted average shares outstanding including dilutive securities 20,169 20,949 20,202 21,016 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.34 $ 0.31 $ 0.68 $ 0.62 Undistributed earnings per share* 0.86 0.85 1.92 1.80 Total basic earnings per share - Class A Common Stock $ 1.20 $ 1.16 $ 2.60 $ 2.42 Class B Common Stock: Per share dividends distributed $ 0.31 $ 0.28 $ 0.62 $ 0.56 Undistributed earnings per share* 0.78 0.77 1.75 1.64 Total basic earnings per share - Class B Common Stock $ 1.09 $ 1.05 $ 2.37 $ 2.20 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.34 $ 0.31 $ 0.68 $ 0.62 Undistributed earnings per share* 0.86 0.85 1.91 1.79 Total diluted earnings per share - Class A Common Stock $ 1.20 $ 1.16 $ 2.59 $ 2.41 Class B Common Stock: Per share dividends distributed $ 0.31 $ 0.28 $ 0.62 $ 0.56 Undistributed earnings per share* 0.78 0.77 1.74 1.63 Total diluted earnings per share - Class B Common Stock $ 1.09 $ 1.05 $ 2.36 $ 2.19 * To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Antidilutive stock options 187,000 149,000 186,000 169,000 Average antidilutive stock options 184,000 149,000 178,000 166,000 |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2022 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 14. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Available-for-Sale Debt Securities: Unrealized losses on AFS debt securities $ (10,133) $ (614) $ (31,382) $ (2,643) Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings (15) 34 9 49 Net losses (10,148) (580) (31,373) (2,594) Tax effect 2,537 145 7,845 648 Net of tax (7,611) (435) $ (23,528) $ (1,946) The following is a summary of the AOCI balances, net of tax: 2022 (in thousands) December 31, 2021 Change June 30, 2022 Unrealized gain (loss) on AFS debt securities $ 890 $ (23,535) $ (22,645) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 984 7 991 Total unrealized gain (loss) $ 1,874 $ (23,528) $ (21,654) 2021 (in thousands) December 31, 2020 Change June 30, 2021 Unrealized gain on AFS debt securities $ 7,571 $ (1,982) $ 5,589 Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 938 36 974 Total unrealized gain (loss) $ 8,509 $ (1,946) $ 6,563 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2022 | |
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 by reportable segment: Three Months Ended June 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 39,158 $ 3,886 $ 153 $ 43,197 $ 1,638 $ 6,397 $ 8,035 $ 51,232 Noninterest income: Service charges on deposit accounts 3,355 12 — 3,367 (4) — (4) 3,363 Net refund transfer fees — — — — 3,950 — 3,950 3,950 Mortgage banking income (1) — — 1,763 1,763 — — — 1,763 Interchange fee income 3,389 — — 3,389 72 — 72 3,461 Program fees (1) — — — — 736 3,149 3,885 3,885 Increase in cash surrender value of BOLI (1) 623 — — 623 — — — 623 Net losses on OREO (52) — — (52) — — — (52) Legal settlement — — — — 13,000 — 13,000 13,000 Other 416 — 46 462 111 — 111 573 Total noninterest income 7,731 12 1,809 9,552 17,865 3,149 21,014 30,566 Total net revenue $ 46,889 $ 3,898 $ 1,962 $ 52,749 $ 19,503 $ 9,546 $ 29,049 $ 81,798 Net-revenue concentration (2) 57 % 5 % 2 % 64 % 24 % 12 % 36 % 100 % Three Months Ended June 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 38,278 $ 6,324 $ 140 $ 44,742 $ 623 $ 4,939 $ 5,562 $ 50,304 Noninterest income: Service charges on deposit accounts 3,061 14 — 3,075 (4) — (4) 3,071 Net refund transfer fees 2 — — 2 5,921 — 5,921 5,923 Mortgage banking income (1) — — 4,182 4,182 — — — 4,182 Interchange fee income 3,367 — — 3,367 114 — 114 3,481 Program fees (1) — — — — 715 2,627 3,342 3,342 Increase in cash surrender value of BOLI (1) 600 — — 600 — — — 600 Net losses on OREO (44) — — (44) — — — (44) Other 986 — 50 1,036 57 — 57 1,093 Total noninterest income 7,972 14 4,232 12,218 6,803 2,627 9,430 21,648 Total net revenue $ 46,250 $ 6,338 $ 4,372 $ 56,960 $ 7,426 $ 7,566 $ 14,992 $ 71,952 Net-revenue concentration (2) 64 % 9 % 6 % 79 % 10 % 11 % 21 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 75,306 $ 8,401 $ 357 $ 84,064 $ 17,042 $ 12,738 $ 29,780 $ 113,844 Noninterest income: Service charges on deposit accounts 6,574 25 — 6,599 (10) — (10) 6,589 Net refund transfer fees — — — — 16,001 — 16,001 16,001 Mortgage banking income (1) — — 4,420 4,420 — — — 4,420 Interchange fee income 6,401 — — 6,401 130 — 130 6,531 Program fees (1) — — — — 1,463 6,276 7,739 7,739 Increase in cash surrender value of BOLI (1) 1,235 — — 1,235 — — — 1,235 Net losses on OREO (105) — — (105) — — — (105) Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — 13,000 — 13,000 13,000 Other 860 — 80 940 217 — 217 1,157 Total noninterest income 14,965 25 4,500 19,490 35,801 6,276 42,077 61,567 Total net revenue $ 90,271 $ 8,426 $ 4,857 $ 103,554 $ 52,843 $ 19,014 $ 71,857 $ 175,411 Net-revenue concentration (2) 51 % 5 % 3 % 59 % 30 % 11 % 41 % 100 % Six Months Ended June 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 79,380 $ 13,096 $ 549 $ 93,025 $ 15,299 $ 9,846 $ 25,145 $ 118,170 Noninterest income: Service charges on deposit accounts 5,926 28 — 5,954 (10) — (10) 5,944 Net refund transfer fees 2 — — 2 18,642 — 18,642 18,644 Mortgage banking income (1) — — 11,375 11,375 — — — 11,375 Interchange fee income 6,336 — — 6,336 172 — 172 6,508 Program fees (1) — — — — 1,611 3,940 5,551 5,551 Increase in cash surrender value of BOLI (1) 990 — — 990 — — — 990 Net losses on OREO (55) — — (55) — — — (55) Other 1,557 — 78 1,635 77 — 77 1,712 Total noninterest income 14,756 28 11,453 26,237 20,492 3,940 24,432 50,669 Total net revenue $ 94,136 $ 13,124 $ 12,002 $ 119,262 $ 35,791 $ 13,786 $ 49,577 $ 168,839 Net-revenue concentration (2) 56 % 8 % 7 % 71 % 21 % 8 % 29 % 100 % (3) This revenue is not subject to ASC 606. (4) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. The following represents information for significant revenue streams subject to ASC 606: Service charges on deposit accounts Net refund transfer fees superior to the claims of other third-party service providers, including the Tax Providers. The remainder of the refund is disbursed to the taxpayer by a Bank check printed at a tax office, direct deposit to the taxpayer’s personal bank account, or loaded to a prepaid card. The Company executes contracts with individual Tax Providers to offer RTs to their taxpayer customers. RT revenue is recognized by the Bank immediately after the taxpayer’s refund is disbursed in accordance with the RT contract with the taxpayer customer. The fee paid by the taxpayer for the RT is shared between the Bank and the Tax Providers based on contracts executed between the parties. The Company presents RT revenue net of any amounts shared with the Tax Providers. The Bank’s share of RT revenue is generally based on the obligations undertaken by the Tax Provider for each individual RT program, with more obligations generally corresponding to higher RT revenue share. The significant majority of net RT revenue is recognized and obligations under RT contracts fulfilled by the Bank during the first half of each year. Incremental expenses associated with the fulfillment of RT contracts are generally expensed during the first half of the year. Interchange fee income The Company compensates its cardholders by way of cash or other “rewards” for generating card transactions. These rewards are disclosed in cardholder agreements between the Company and its cardholders. Reward costs are accrued over time based on card transactions generated by the cardholder. Interchange fee income is presented net of reward costs within noninterest income. Net gains/(losses) on other real estate – The Company routinely sells OREO it has acquired through loan foreclosure. Net gains/(losses) on OREO reflect both 1) the gain or loss recognized upon an executed deed and 2) mark-to-market writedowns the Company takes on its OREO inventory. The Company generally recognizes gains or losses on OREO at the time of an executed deed, although gains may be recognized over a financing period if the Company finances the sale. For financed OREO sales, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. Mark-to-market writedowns taken by the Company during the property’s holding period are generally at least 10% per year, but may be higher based on updated real estate appraisals or BPOs. Incremental expenditures to bring OREO to salable condition are generally expensed as-incurred. Contract termination fee – During the first quarter of 2022, RB&T provided Green Dot a notice of termination for the May 2021 Purchase Agreement for the sale of substantially all of RB&T’s TRS assets and operations to Green Dot. As a result of this contract termination, Green Dot paid RB&T a contract termination fee of Legal settlement |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 16. SEGMENT INFORMATION Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar. As of June 30, 2022, the Company was divided into five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute RPG operations. The nature of segment operations and the primary drivers of net revenue by reportable segment are provided below: Reportable Segment: Nature of Operations: Primary Drivers of Net Revenue: Core Banking: Traditional Banking Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels. Loans, investments, and deposits Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the United States. Mortgage warehouse lines of credit Mortgage Banking Primarily originates, sells, and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint. Loan sales and servicing Republic Processing Group: Tax Refund Solutions TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint. Loans, refund transfers, and prepaid cards. Republic Credit Solutions Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers. Unsecured, consumer loans The accounting policies used for Republic’s reportable segments are generally the same as those described in the summary of significant accounting policies in the Company’s 2021 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value. Segment information follows: Three Months Ended June 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 39,158 $ 3,886 $ 153 $ 43,197 $ 1,638 $ 6,397 $ 8,035 $ 51,232 Provision for expected credit loss expense 146 (234) — (88) 360 3,433 3,793 3,705 Net refund transfer fees — — — — 3,950 — 3,950 3,950 Mortgage banking income — — 1,763 1,763 — — — 1,763 Program fees — — — — 736 3,149 3,885 3,885 Legal settlement — — — — 13,000 — 13,000 13,000 Other noninterest income 7,731 12 46 7,789 179 — 179 7,968 Total noninterest income 7,731 12 1,809 9,552 17,865 3,149 21,014 30,566 Total noninterest expense 38,314 1,035 2,832 42,181 3,533 1,939 5,472 47,653 Income (loss) before income tax expense 8,429 3,097 (870) 10,656 15,610 4,174 19,784 30,440 Income tax expense (benefit) 1,647 692 (191) 2,148 3,465 926 4,391 6,539 Net income (loss) $ 6,782 $ 2,405 $ (679) $ 8,508 $ 12,145 $ 3,248 $ 15,393 $ 23,901 Period-end assets $ 4,997,734 $ 596,031 $ 22,342 $ 5,616,107 $ 382,156 $ 114,213 $ 496,369 $ 6,112,476 Net interest margin 3.06 % 2.69 % NM 3.02 % NM NM NM 3.51 % Net-revenue concentration* 57 % 5 % 2 % 64 % 24 % 12 % 36 % 100 % Three Months Ended June 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 38,278 $ 6,324 $ 140 $ 44,742 $ 623 $ 4,939 $ 5,562 $ 50,304 Provision for expected credit loss expense (77) (65) — (142) (5,773) 1,592 (4,181) (4,323) Net refund transfer fees 2 — — 2 5,921 — 5,921 5,923 Mortgage banking income — — 4,182 4,182 — — — 4,182 Program fees — — — — 715 2,627 3,342 3,342 Other noninterest income 7,970 14 50 8,034 167 — 167 8,201 Total noninterest income 7,972 14 4,232 12,218 6,803 2,627 9,430 21,648 Total noninterest expense 36,939 1,066 3,006 41,011 3,697 1,006 4,703 45,714 Income before income tax expense 9,388 5,337 1,366 16,091 9,502 4,968 14,470 30,561 Income tax expense 1,555 1,227 301 3,083 2,326 1,230 3,556 6,639 Net income $ 7,833 $ 4,110 $ 1,065 $ 13,008 $ 7,176 $ 3,738 $ 10,914 $ 23,922 Period-end assets $ 4,774,765 $ 840,083 $ 46,816 $ 5,661,664 $ 389,999 $ 131,647 $ 521,646 $ 6,183,310 Net interest margin 2.97 % 3.48 % NM 3.03 % NM NM NM 3.33 % Net-revenue concentration* 64 % 9 % 6 % 79 % 10 % 11 % 21 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 75,306 $ 8,401 $ 357 $ 84,064 $ 17,042 $ 12,738 $ 29,780 $ 113,844 Provision for expected credit loss expense 466 (635) — (169) 8,272 4,828 13,100 12,931 Net refund transfer fees — — — — 16,001 — 16,001 16,001 Mortgage banking income — — 4,420 4,420 — — — 4,420 Program fees — — — — 1,463 6,276 7,739 7,739 Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — 13,000 — 13,000 13,000 Other noninterest income 14,965 25 80 15,070 337 — 337 15,407 Total noninterest income 14,965 25 4,500 19,490 35,801 6,276 42,077 61,567 Total noninterest expense 76,533 1,987 5,522 84,042 8,678 3,506 12,184 96,226 Income (loss) before income tax expense 13,272 7,074 (665) 19,681 35,893 10,680 46,573 66,254 Income tax expense (benefit) 2,119 1,596 (146) 3,569 8,371 2,487 10,858 14,427 Net income (loss) $ 11,153 $ 5,478 $ (519) $ 16,112 $ 27,522 $ 8,193 $ 35,715 $ 51,827 Period-end assets $ 4,997,734 $ 596,031 $ 22,342 $ 5,616,107 $ 382,156 $ 114,213 $ 496,369 $ 6,112,476 Net interest margin 2.98 % 2.89 % NM 2.97 % NM NM NM 3.90 % Net-revenue concentration* 51 % 5 % 3 % 59 % 30 % 11 % 41 % 100 % Six Months Ended June 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 79,380 $ 13,096 $ 549 $ 93,025 $ 15,299 $ 9,846 $ 25,145 $ 118,170 Provision for expected credit loss expense (82) (307) — (389) 10,111 1,217 11,328 10,939 Net refund transfer fees 2 — — 2 18,642 — 18,642 18,644 Mortgage banking income — — 11,375 11,375 — — — 11,375 Program fees — — — — 1,611 3,940 5,551 5,551 Other noninterest income 14,754 28 78 14,860 239 — 239 15,099 Total noninterest income 14,756 28 11,453 26,237 20,492 3,940 24,432 50,669 Total noninterest expense 74,267 2,094 6,127 82,488 8,999 2,108 11,107 93,595 Income before income tax expense 19,951 11,337 5,875 37,163 16,681 10,461 27,142 64,305 Income tax expense 3,680 2,661 1,293 7,634 4,096 2,600 6,696 14,330 Net income $ 16,271 $ 8,676 $ 4,582 $ 29,529 $ 12,585 $ 7,861 $ 20,446 $ 49,975 Period-end assets $ 4,774,765 $ 840,083 $ 46,816 $ 5,661,664 $ 389,999 $ 131,647 $ 521,646 $ 6,183,310 Net interest margin 3.21 % 3.45 % NM 3.24 % NM NM NM 3.98 % Net-revenue concentration* 56 % 8 % 7 % 71 % 21 % 8 % 29 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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. 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 months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021. As of June 30, 2022, 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. 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 — 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 2022 and 2021: ● 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 a DDA Card, 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. The Company reports fees paid for the EA product as interest income on loans. During 2021, EAs were repaid, on average, within 32 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 in 2022 and 2021 if it remained unpaid 35 days 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 are recorded as recoveries of previously charged-off loans unless such recovery is subject to guarantor reimbursement under a loan-loss guaranty. 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. Settlement of Lawsuit Against Green Dot - As previously disclosed in the Company’s prior SEC filings, the Lawsuit arose from Green Dot’s inability to consummate the Sale Transaction contemplated in the TRS Purchase Agreement through which Green Dot would purchase all of the assets and operations of the Bank’s Tax Refund Solutions business. In accordance with the Settlement Agreement, on June 6, 2022, Green Dot paid $13 million to the Bank, which was in addition to a $5 million termination fee that Green Dot paid to the Bank during the first quarter of 2022 under the terms of the TRS Purchase Agreement. On June 6, 2022, the Bank and Green Dot submitted to the Delaware Court of Chancery a stipulation of dismissal of the Lawsuit, which was effective to dismiss the Lawsuit when filed. 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 represented the substantial majority of RCS activity during 2021 and 2022. Elastic Marketing, LLC and Elevate Decision Sciences, LLC are third-party service providers for the product and are 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 third-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 provider for the installment loans. This third-party 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 a third-party, who is an affiliate of the Bank’s 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 six months ended June 30, 2022: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity This ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share calculation in certain areas. January 1, 2022 Prospectively Immaterial 2021-04 Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options This ASU provides guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. It specifically addresses: (1) How an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; (2) How an entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; and (3) How an entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. January 1, 2022 Prospectively Immaterial Accounting Standards Update The following not-yet-effective ASUs were issued since the Company’s most recently filed Form 10-K and are considered relevant to the Company’s financial statements. Date Adoption Adoption Expected ASU. No. Topic Nature of Update Required Method Financial Impact 2022-02 Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures This ASU eliminates the TDR recognition and measurement guidance and, instead, requires the Company to evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. This ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. January 1, 2024 Prospectively Immaterial |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedules of Accounting Standards Updates | The following ASUs were adopted by the Company during the six months ended June 30, 2022: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity This ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share calculation in certain areas. January 1, 2022 Prospectively Immaterial 2021-04 Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options This ASU provides guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. It specifically addresses: (1) How an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; (2) How an entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; and (3) How an entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. January 1, 2022 Prospectively Immaterial Date Adoption Adoption Expected ASU. No. Topic Nature of Update Required Method Financial Impact 2022-02 Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures This ASU eliminates the TDR recognition and measurement guidance and, instead, requires the Company to evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. This ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. January 1, 2024 Prospectively Immaterial |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
INVESTMENT SECURITIES | |
Schedule of gross amortized cost and fair value of available-for-sale debt securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income | Gross Gross Allowance Amortized Unrealized Unrealized for Fair June 30, 2022 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 400,771 $ 1 $ (17,680) $ — $ 383,092 Private label mortgage-backed security 1,156 1,322 — — 2,478 Mortgage-backed securities - residential 210,571 83 (12,384) — 198,270 Collateralized mortgage obligations 24,838 48 (341) — 24,545 Corporate bonds 10,000 — (34) (30) 9,936 Trust preferred security 3,712 112 — — 3,824 Total available-for-sale debt securities $ 651,048 $ 1,566 $ (30,439) $ (30) $ 622,145 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2021 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 239,880 $ 473 $ (2,894) $ — $ 237,459 Private label mortgage-backed security 1,418 1,313 — — 2,731 Mortgage-backed securities - residential 207,697 3,525 (473) — 210,749 Collateralized mortgage obligations 29,947 377 (30) — 30,294 Corporate bonds 10,000 46 — — 10,046 Trust preferred security 3,684 163 — — 3,847 Total available-for-sale debt securities $ 492,626 $ 5,897 $ (3,397) $ — $ 495,126 |
Schedule of carrying value, gross unrecognized gains and losses, and fair value of held-to-maturity debt securities | Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for June 30, 2022 (in thousands) Cost Gains Losses Value Credit Losses Mortgage-backed securities - residential $ 29 $ — $ — $ 29 $ — Collateralized mortgage obligations 7,772 70 (20) 7,822 — Corporate bonds 24,966 8 (92) 24,882 (50) Obligations of state and political subdivisions 245 — — 245 — Total held-to-maturity debt securities $ 33,012 $ 78 $ (112) $ 32,978 $ (50) Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for December 31, 2021 (in thousands) Cost Gains Losses Value Credit Losses Mortgage-backed securities - residential $ 46 $ — $ — $ 46 $ — Collateralized mortgage obligations 9,080 158 — 9,238 — Corporate bonds 34,975 263 (6) 35,232 (47) Obligations of state and political subdivisions 245 3 — 248 — Total held-to-maturity debt securities $ 44,346 $ 424 $ (6) $ 44,764 $ (47) |
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 Amortized Fair June 30, 2022 (in thousands) Cost Value Cost Value Due in one year or less $ 61,344 $ 61,128 $ 120 $ 120 Due from one year to five years 349,427 331,900 25,091 25,007 Due from five years to ten years — — — — Due beyond ten years 3,712 3,824 — — Private label mortgage-backed security 1,156 2,478 — — Mortgage-backed securities - residential 210,571 198,270 29 29 Collateralized mortgage obligations 24,838 24,545 7,772 7,822 Total debt securities $ 651,048 $ 622,145 $ 33,012 $ 32,978 |
Schedule of debt securities with unrealized losses | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2022 (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 $ 296,890 $ (12,582) $ 64,902 $ (5,098) $ 361,792 $ (17,680) Mortgage-backed securities - residential 193,002 (12,384) — — 193,002 (12,384) Collateralized mortgage obligations 16,226 (341) — — 16,226 (341) Total available-for-sale debt securities $ 506,118 $ (25,307) $ 64,902 $ (5,098) $ 571,020 $ (30,405) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 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 $ 177,138 $ (2,622) $ 9,728 $ (272) $ 186,866 $ (2,894) Mortgage-backed securities - residential 84,937 (473) — — 84,937 (473) Collateralized mortgage obligations 4,495 (30) — — 4,495 (30) Total available-for-sale debt securities $ 266,570 $ (3,125) $ 9,728 $ (272) $ 276,298 $ (3,397) |
Schedule of allowance for credit losses on investment | ACLS Rollforward Three Months Ended June 30, 2022 2021 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ 30 $ — $ — $ 30 $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 40 10 — — 50 103 (47) — — 56 Total $ 40 $ 40 $ — $ — $ 80 $ 103 $ (47) $ — $ — $ 56 ACLS Rollforward Six Months Ended June 30, 2022 2021 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ 30 $ — $ — $ 30 $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 47 3 — — 50 178 (122) — — 56 Total $ 47 $ 33 $ — $ — $ 80 $ 178 $ (122) $ — $ — $ 56 |
Schedule of pledged investment securities | (in thousands) June 30, 2022 December 31, 2021 Carrying amount $ 415,244 $ 319,650 Fair value 415,244 319,808 |
Schedule of carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values | Gross Gross Amortized Unrealized Unrealized Fair June 30, 2022 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 189 $ — $ 189 Total equity securities with readily determinable fair values $ — $ 189 $ — $ 189 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2021 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 170 $ — $ 170 Community Reinvestment Act mutual fund 2,500 — (50) 2,450 Total equity securities with readily determinable fair values $ 2,500 $ 170 $ (50) $ 2,620 |
Schedule of equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company's consolidated statements of income | Gains (Losses) Recognized on Equity Securities Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 25 $ 25 $ — $ 191 $ 191 Community Reinvestment Act mutual fund (97) — (97) — 16 16 Total equity securities with readily determinable fair value $ (97) $ 25 $ (72) $ — $ 207 $ 207 Gains (Losses) Recognized on Equity Securities Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 19 $ 19 $ — $ (444) $ (444) Community Reinvestment Act mutual fund (209) — (209) — (38) (38) Total equity securities with readily determinable fair value $ (209) $ 19 $ (190) $ — $ (482) $ (482) |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
LOANS HELD FOR SALE. | |
Schedule of activity of consumer loans held for sale and carried at fair value | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 11,709 $ 3,970 $ 19,747 $ 3,298 Origination of consumer loans held for sale 98,704 49,607 195,436 68,697 Proceeds from the sale of consumer loans held for sale (94,435) (41,974) (201,083) (60,904) Net gain on sale of consumer loans held for sale 1,481 1,417 3,359 1,929 Balance, end of period $ 17,459 $ 13,020 $ 17,459 $ 13,020 |
Schedule of activity of consumer loans held for sale and carried at lower of cost or fair value | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 3,026 $ 11,701 $ 2,937 $ 1,478 Origination of consumer loans held for sale 184,078 137,164 332,560 235,348 Proceeds from the sale of consumer loans held for sale (174,994) (138,852) (324,626) (227,606) Net gain on sale of consumer loans held for sale 1,667 1,399 2,906 2,192 Balance, end of period $ 13,777 $ 11,412 $ 13,777 $ 11,412 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Schedule of composition of loan portfolio | (in thousands) June 30, 2022 December 31, 2021 Traditional Banking: Residential real estate: Owner occupied $ 832,137 $ 820,731 Nonowner occupied 313,534 306,323 Commercial real estate 1,569,119 1,456,009 Construction & land development 137,452 129,337 Commercial & industrial 394,175 340,363 Paycheck Protection Program 14,657 56,014 Lease financing receivables 11,345 8,637 Aircraft 159,958 142,894 Home equity 214,069 210,578 Consumer: Credit cards 15,419 14,510 Overdrafts 901 683 Automobile loans 9,579 14,448 Other consumer 1,245 1,432 Total Traditional Banking 3,673,590 3,501,959 Warehouse lines of credit* 596,678 850,550 Total Core Banking 4,270,268 4,352,509 Republic Processing Group*: Tax Refund Solutions: Easy Advances — — Other TRS loans 149 50,987 Republic Credit Solutions 91,816 93,066 Total Republic Processing Group 91,965 144,053 Total loans** 4,362,233 4,496,562 Allowance for credit losses (64,449) (64,577) Total loans, net $ 4,297,784 $ 4,431,985 *Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts, and net loan origination fees and costs. See table directly below for expanded detail. |
Schedule that reconciles the contractually receivable and carrying amounts of loans | (in thousands) June 30, 2022 December 31, 2021 Contractually receivable $ 4,364,937 $ 4,498,671 Unearned income (679) (542) Unamortized premiums 111 116 Unaccreted discounts (574) (641) PPP net unamortized deferred origination (fees) and costs (303) (1,203) Other net unamortized deferred origination (fees) and costs (1,259) 161 Carrying value of loans $ 4,362,233 $ 4,496,562 |
Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed | Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of June 30, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 95,596 $ 201,218 $ 200,132 $ 78,397 $ 235,958 $ — $ — $ 811,301 Special Mention — — — 189 7,681 — — 7,870 Substandard — 4 1,089 1,356 10,517 — — 12,966 Doubtful — — — — — — — — Total $ 95,596 $ 201,222 $ 201,221 $ 79,942 $ 254,156 $ — $ — $ 832,137 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 45,525 $ 98,419 $ 58,325 $ 36,582 $ 68,566 $ — $ 5,863 $ 313,280 Special Mention — — — — 126 — — 126 Substandard — 38 — — 90 — — 128 Doubtful — — — — — — — — Total $ 45,525 $ 98,457 $ 58,325 $ 36,582 $ 68,782 $ — $ 5,863 $ 313,534 Commercial real estate: Risk Rating Pass or not rated $ 252,650 $ 439,645 $ 228,470 $ 145,692 $ 315,211 $ 24,040 $ 104,446 $ 1,510,154 Special Mention 1,324 13,043 2,406 23,495 15,431 250 — 55,949 Substandard — — — — 3,016 — — 3,016 Doubtful — — — — — — — — Total $ 253,974 $ 452,688 $ 230,876 $ 169,187 $ 333,658 $ 24,290 $ 104,446 $ 1,569,119 Construction and land development: Risk Rating Pass or not rated $ 50,812 $ 76,293 $ 5,013 $ 770 $ 2,744 $ 1,820 $ — $ 137,452 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 50,812 $ 76,293 $ 5,013 $ 770 $ 2,744 $ 1,820 $ — $ 137,452 Commercial and industrial: Risk Rating Pass or not rated $ 53,046 $ 91,908 $ 26,068 $ 46,155 $ 52,459 $ 104,097 $ 2,824 $ 376,557 Special Mention 591 14,083 — 693 1,831 300 — 17,498 Substandard — — — 120 — — — 120 Doubtful — — — — — — — — Total $ 53,637 $ 105,991 $ 26,068 $ 46,968 $ 54,290 $ 104,397 $ 2,824 $ 394,175 Paycheck Protection Program: Risk Rating Pass or not rated $ — $ 12,207 $ 2,450 $ — $ — $ — $ — $ 14,657 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ 12,207 $ 2,450 $ — $ — $ — $ — $ 14,657 Lease financing receivables: Risk Rating Pass or not rated $ 4,423 $ 2,283 $ 617 $ 2,231 $ 1,791 $ — $ — $ 11,345 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 4,423 $ 2,283 $ 617 $ 2,231 $ 1,791 $ — $ — $ 11,345 Aircraft: Risk Rating Pass or not rated $ 32,905 $ 59,236 $ 39,231 $ 20,316 $ 8,270 $ — $ — $ 159,958 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 32,905 $ 59,236 $ 39,231 $ 20,316 $ 8,270 $ — $ — $ 159,958 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 212,580 $ — $ 212,580 Special Mention — — — — — 348 — 348 Substandard — — — — — 1,141 — 1,141 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 214,069 $ — $ 214,069 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of June 30, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 828 $ 682 $ 280 $ 3,430 $ 6,065 $ 15,522 $ — $ 26,807 Special Mention — — — — — — — — Substandard — — — 13 324 — — 337 Doubtful — — — — — — — — Total $ 828 $ 682 $ 280 $ 3,443 $ 6,389 $ 15,522 $ — $ 27,144 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 596,678 $ — $ 596,678 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 596,678 $ — $ 596,678 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 149 $ — $ 149 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 149 $ — $ 149 RCS: Risk Rating Pass or not rated $ 4,438 $ 3,319 $ 2,049 $ 1,198 $ 27,648 $ 52,806 $ — $ 91,458 Special Mention — — — — — — — — Substandard — — — — — 358 — 358 Doubtful — — — — — — — — Total $ 4,438 $ 3,319 $ 2,049 $ 1,198 $ 27,648 $ 53,164 $ — $ 91,816 Grand Total: Risk Rating Pass or not rated $ 540,223 $ 985,210 $ 562,635 $ 334,771 $ 718,712 $ 1,007,692 $ 113,133 $ 4,262,376 Special Mention 1,915 27,126 2,406 24,377 25,069 898 — 81,791 Substandard — 42 1,089 1,489 13,947 1,499 — 18,066 Doubtful — — — — — — — — Grand Total $ 542,138 $ 1,012,378 $ 566,130 $ 360,637 $ 757,728 $ 1,010,089 $ 113,133 $ 4,362,233 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of December 31, 2021 2021 2020 2019 2018 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 218,981 $ 213,010 $ 89,186 $ 50,301 $ 226,852 $ — $ — $ 798,330 Special Mention 301 — — 33 8,209 — — 8,543 Substandard 45 870 679 1,189 11,075 — — 13,858 Doubtful — — — — — — — — Total $ 219,327 $ 213,880 $ 89,865 $ 51,523 $ 246,136 $ — $ — $ 820,731 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 107,041 $ 65,786 $ 44,376 $ 29,292 $ 55,872 $ — $ 3,729 $ 306,096 Special Mention — — — — 132 — — 132 Substandard — — — — 95 — — 95 Doubtful — — — — — — — — Total $ 107,041 $ 65,786 $ 44,376 $ 29,292 $ 56,099 $ — $ 3,729 $ 306,323 Commercial real estate: Risk Rating Pass or not rated $ 472,095 $ 256,039 $ 153,224 $ 94,212 $ 286,223 $ 25,188 $ 80,211 $ 1,367,192 Special Mention 20,059 2,399 29,639 11,207 18,778 — — 82,082 Substandard — 111 266 2,453 3,905 — — 6,735 Doubtful — — — — — — — — Total $ 492,154 $ 258,549 $ 183,129 $ 107,872 $ 308,906 $ 25,188 $ 80,211 $ 1,456,009 Construction and land development: Risk Rating Pass or not rated $ 88,743 $ 30,593 $ 2,599 $ 1,155 $ 128 $ 1,925 $ — $ 125,143 Special Mention — 524 3,670 — — — — 4,194 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 88,743 $ 31,117 $ 6,269 $ 1,155 $ 128 $ 1,925 $ — $ 129,337 Commercial and industrial: Risk Rating Pass or not rated $ 105,148 $ 34,361 $ 54,524 $ 18,110 $ 44,972 $ 60,454 $ 2,541 $ 320,110 Special Mention 15,015 1,921 785 34 1,956 350 — 20,061 Substandard — 13 179 — — — — 192 Doubtful — — — — — — — — Total $ 120,163 $ 36,295 $ 55,488 $ 18,144 $ 46,928 $ 60,804 $ 2,541 $ 340,363 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2021 2021 2020 2019 2018 Prior Cost Basis to Term Total Paycheck Protection Program: Risk Rating Pass or not rated $ 40,607 $ 15,407 $ — $ — $ — $ — $ — $ 56,014 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 40,607 $ 15,407 $ — $ — $ — $ — $ — $ 56,014 Lease financing receivables: Risk Rating Pass or not rated $ 2,638 $ 839 $ 2,641 $ 1,264 $ 1,255 $ — $ — $ 8,637 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 2,638 $ 839 $ 2,641 $ 1,264 $ 1,255 $ — $ — $ 8,637 Aircraft: Risk Rating Pass or not rated $ 65,886 $ 43,301 $ 22,933 $ 9,119 $ 1,655 $ — $ — $ 142,894 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 65,886 $ 43,301 $ 22,933 $ 9,119 $ 1,655 $ — $ — $ 142,894 Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 208,429 $ — $ 208,429 Special Mention — — — — — 279 — 279 Substandard — — — — — 1,870 — 1,870 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 210,578 $ — $ 210,578 Consumer: Risk Rating Pass or not rated $ 978 $ 417 $ 4,694 $ 4,326 $ 5,768 $ 14,613 $ — $ 30,796 Special Mention — — — — — — — — Substandard — — 22 61 194 — — 277 Doubtful — — — — — — — — Total $ 978 $ 417 $ 4,716 $ 4,387 $ 5,962 $ 14,613 $ — $ 31,073 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 850,550 $ — $ 850,550 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 850,550 $ — $ 850,550 TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 50,987 $ — $ 50,987 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 50,987 $ — $ 50,987 RCS: Risk Rating Pass or not rated $ 5,524 $ 3,409 $ 1,642 $ 869 $ 3,699 $ 77,544 $ — $ 92,687 Special Mention — — — — — — — — Substandard — — — — — 379 — 379 Doubtful — — — — — — — — Total $ 5,524 $ 3,409 $ 1,642 $ 869 $ 3,699 $ 77,923 $ — $ 93,066 Grand Total: Risk Rating Pass or not rated $ 1,107,641 $ 663,162 $ 375,819 $ 208,648 $ 626,424 $ 1,289,690 $ 86,481 $ 4,357,865 Special Mention 35,375 4,844 34,094 11,274 29,075 629 — 115,291 Substandard 45 994 1,146 3,703 15,269 2,249 — 23,406 Doubtful — — — — — — — — Grand Total $ 1,143,061 $ 669,000 $ 411,059 $ 223,625 $ 670,768 $ 1,292,568 $ 86,481 $ 4,496,562 |
Schedule of activity in the ACLL for loan and lease losses | ACLL Rollforward Three Months Ended June 30, 2022 2021 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 $ 8,358 $ 62 $ — $ 25 $ 8,445 $ 9,489 $ (530) $ — $ 18 $ 8,977 Nonowner occupied 2,746 (14) — 1 2,733 2,532 18 — 1 2,551 Commercial real estate 24,624 (284) — 1 24,341 23,801 (506) — 12 23,307 Construction & land development 3,893 (302) — — 3,591 3,593 (294) — — 3,299 Commercial & industrial 3,412 348 — 8 3,768 2,718 1,395 — 4 4,117 Paycheck Protection Program — — — — — — — — — — Lease financing receivables 109 10 — — 119 104 (7) — — 97 Aircraft 378 22 — — 400 265 38 — — 303 Home equity 4,044 (40) — 109 4,113 4,615 (344) — 34 4,305 Consumer: Credit cards 944 59 (31) 22 994 930 42 (33) 10 949 Overdrafts 716 315 (194) 64 901 473 281 (111) 74 717 Automobile loans 151 (32) — 3 122 334 (66) — 5 273 Other consumer 241 (38) (20) 17 200 533 (57) (17) 8 467 Total Traditional Banking 49,616 106 (245) 250 49,727 49,387 (30) (161) 166 49,362 Warehouse lines of credit 1,725 (234) — — 1,491 2,165 (65) — — 2,100 Total Core Banking 51,341 (128) (245) 250 51,218 51,552 (95) (161) 166 51,462 Republic Processing Group: Tax Refund Solutions: Easy Advances 8,315 564 (11,505) 2,626 — 16,019 (5,793) (10,256) 30 — Other TRS loans 55 (204) (153) 302 — 10 20 (30) — — Republic Credit Solutions 11,945 3,433 (2,411) 264 13,231 7,755 1,592 (597) 79 8,829 Total Republic Processing Group 20,315 3,793 (14,069) 3,192 13,231 23,784 (4,181) (10,883) 109 8,829 Total $ 71,656 $ 3,665 $ (14,314) $ 3,442 $ 64,449 $ 75,336 $ (4,276) $ (11,044) $ 275 $ 60,291 ACLL Rollforward Six Months Ended June 30, 2022 2021 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 $ 8,647 $ (269) $ — $ 67 $ 8,445 $ 9,715 $ (783) $ — $ 45 $ 8,977 Nonowner occupied 2,700 31 — 2 2,733 2,466 84 — 1 2,551 Commercial real estate 23,769 570 — 2 24,341 23,606 49 (428) 80 23,307 Construction & land development 4,128 (537) — — 3,591 3,274 25 — — 3,299 Commercial & industrial 3,487 264 — 17 3,768 2,797 1,309 — 11 4,117 Paycheck Protection Program — — — — — — — — — — Lease financing receivables 91 28 — — 119 106 (9) — — 97 Aircraft 357 43 — — 400 253 50 — — 303 Home equity 4,111 (110) — 112 4,113 4,990 (726) — 41 4,305 Consumer: Credit cards 934 91 (70) 39 994 929 86 (90) 24 949 Overdrafts 683 503 (408) 123 901 587 208 (249) 171 717 Automobile loans 186 (68) — 4 122 399 (144) — 18 273 Other consumer 314 (113) (30) 29 200 577 (109) (31) 30 467 Total Traditional Banking 49,407 433 (508) 395 49,727 49,699 40 (798) 421 49,362 Warehouse lines of credit 2,126 (635) — — 1,491 2,407 (307) — — 2,100 Total Core Banking 51,533 (202) (508) 395 51,218 52,106 (267) (798) 421 51,462 Republic Processing Group: Tax Refund Solutions: Easy Advances — 8,879 (11,505) 2,626 — — 10,226 (10,256) 30 — Other TRS loans 96 (607) (153) 664 — 158 (115) (51) 8 — Republic Credit Solutions 12,948 4,828 (5,084) 539 13,231 8,803 1,217 (1,362) 171 8,829 Total Republic Processing Group 13,044 13,100 (16,742) 3,829 13,231 8,961 11,328 (11,669) 209 8,829 Total $ 64,577 $ 12,898 $ (17,250) $ 4,224 $ 64,449 $ 61,067 $ 11,061 $ (12,467) $ 630 $ 60,291 |
Schedule of non-performing loans and non-performing assets and select credit quality ratios | (dollars in thousands) June 30, 2022 December 31, 2021 Loans on nonaccrual status* $ 16,168 $ 20,504 Loans past due 90-days-or-more and still on accrual** 42 48 Total nonperforming loans 16,210 20,552 Other real estate owned 1,687 1,792 Total nonperforming assets $ 17,897 $ 22,344 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.37 % 0.46 % Nonperforming assets to total loans (including OREO) 0.41 0.50 Nonperforming assets to total assets 0.29 0.37 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.38 % 0.47 % Nonperforming assets to total loans (including OREO) 0.42 0.51 Nonperforming assets to total assets 0.32 0.40 * Loans on nonaccrual status include collateral-dependent loans. ** Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. |
Schedule of recorded investment in non-accrual loans | Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Traditional Banking: Residential real estate: Owner occupied $ 11,538 $ 12,039 $ — $ — Nonowner occupied 128 95 — — Commercial real estate 3,228 6,557 — — Construction & land development — — — — Commercial & industrial — 13 — — Paycheck Protection Program — — — — Lease financing receivables — — — — Aircraft — — — — Home equity 1,016 1,700 — — Consumer: Credit cards — — — — Overdrafts — — — 1 Automobile loans 36 97 — — Other consumer 222 3 — — Total Traditional Banking 16,168 20,504 — 1 Warehouse lines of credit — — — — Total Core Banking 16,168 20,504 — 1 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — — — Republic Credit Solutions — — 42 47 Total Republic Processing Group — — 42 47 Total $ 16,168 $ 20,504 $ 42 $ 48 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended Six Months Ended As of June 30, 2022 June 30, 2022 June 30, 2022 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 $ 18 $ 11,520 $ 11,538 $ 154 $ 257 Nonowner occupied 37 91 128 1 1 Commercial real estate 3,228 — 3,228 14 644 Construction & land development — — — — — Commercial & industrial — — — — — Paycheck Protection Program — — — — — Lease financing receivables — — — — — Aircraft — — — — — Home equity — 1,016 1,016 84 146 Consumer 11 247 258 48 52 Total $ 3,294 $ 12,874 $ 16,168 $ 301 $ 1,100 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Three Months Ended Six Months Ended As of December 31, 2021 June 30, 2021 June 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 $ 1,944 $ 10,095 $ 12,039 $ 166 $ 414 Nonowner occupied 31 64 95 2 3 Commercial real estate 4,105 2,452 6,557 36 51 Construction & land development — — — — — Commercial & industrial — 13 13 — 1 Paycheck Protection Program — — — — — Lease financing receivables — — — — — Aircraft — — — — — Home equity — 1,700 1,700 26 66 Consumer 17 83 100 2 4 $ 6,097 $ 14,407 $ 20,504 $ 232 $ 539 * 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 June 30, 2022 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,340 $ 796 $ 333 $ 2,469 $ 829,668 $ 832,137 Nonowner occupied — — 41 41 313,493 313,534 Commercial real estate — — 2,142 2,142 1,566,977 1,569,119 Construction & land development — — — — 137,452 137,452 Commercial & industrial — 321 — 321 393,854 394,175 Paycheck Protection Program — — — — 14,657 14,657 Lease financing receivables — — — — 11,345 11,345 Aircraft — — — — 159,958 159,958 Home equity 8 10 132 150 213,919 214,069 Consumer: Credit cards 19 5 — 24 15,395 15,419 Overdrafts 196 3 — 199 702 901 Automobile loans — — 6 6 9,573 9,579 Other consumer — — — — 1,245 1,245 Total Traditional Banking 1,563 1,135 2,654 5,352 3,668,238 3,673,590 Warehouse lines of credit — — — — 596,678 596,678 Total Core Banking 1,563 1,135 2,654 5,352 4,264,916 4,270,268 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans — — — — 149 149 Republic Credit Solutions 4,914 1,143 42 6,099 85,717 91,816 Total Republic Processing Group 4,914 1,143 42 6,099 85,866 91,965 Total $ 6,477 $ 2,278 $ 2,696 $ 11,451 $ 4,350,782 $ 4,362,233 Delinquency ratio*** 0.15 % 0.05 % 0.06 % 0.26 % * 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, 2021 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 606 $ 383 $ 610 $ 1,599 $ 819,132 $ 820,731 Nonowner occupied — — — — 306,323 306,323 Commercial real estate — — 5,292 5,292 1,450,717 1,456,009 Construction & land development — — — — 129,337 129,337 Commercial & industrial 8 — 13 21 340,342 340,363 Paycheck Protection Program — — — — 56,014 56,014 Lease financing receivables — — — — 8,637 8,637 Aircraft — — — — 142,894 142,894 Home equity 38 35 241 314 210,264 210,578 Consumer: Credit cards 19 11 — 30 14,480 14,510 Overdrafts 160 3 1 164 519 683 Automobile loans — — 9 9 14,439 14,448 Other consumer 1 — — 1 1,431 1,432 Total Traditional Banking 832 432 6,166 7,430 3,494,529 3,501,959 Warehouse lines of credit — — — — 850,550 850,550 Total Core Banking 832 432 6,166 7,430 4,345,079 4,352,509 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans — — — — 50,987 50,987 Republic Credit Solutions 5,010 978 47 6,035 87,031 93,066 Total Republic Processing Group 5,010 978 47 6,035 138,018 144,053 Total $ 5,842 $ 1,410 $ 6,213 $ 13,465 $ 4,483,097 $ 4,496,562 Delinquency ratio*** 0.13 % 0.03 % 0.14 % 0.30 % * 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 | June 30, 2022 December 31, 2021 Secured Secured Secured Secured by Real by Personal by Real by Personal (in thousands) Estate Property Estate Property Traditional Banking: Residential real estate: Owner occupied $ 14,050 $ — $ 14,798 $ — Nonowner occupied 128 — 95 — Commercial real estate 3,020 — 6,736 — Construction & land development — — — — Commercial & industrial — 120 — 192 Paycheck Protection Program — — — — Lease financing receivables — — — — Aircraft — — — — Home equity 1,246 — 1,976 — Consumer — 281 — 274 Total Traditional Banking $ 18,444 $ 401 $ 23,605 $ 466 |
Schedule of TDRs differentiated by loan type and accrual status | Troubled Debt Troubled Debt Total Restructurings on Restructurings on Troubled Debt Nonaccrual Status Accrual Status Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 64 $ 3,102 75 $ 7,046 139 $ 10,148 Commercial real estate 1 2,142 1 883 2 3,025 Commercial & industrial — — 1 1 1 1 Consumer 2 14 2,446 424 2,448 438 Total troubled debt restructurings 67 $ 5,258 2,523 $ 8,354 2,590 $ 13,612 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, 2021 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 63 $ 3,179 89 $ 7,856 152 $ 11,035 Commercial real estate 2 2,575 2 1,239 4 3,814 Commercial & industrial 2 45 1 1 3 46 Consumer 1 12 2,269 479 2,270 491 Total troubled debt restructurings 68 $ 5,811 2,361 $ 9,575 2,429 $ 15,386 |
Schedule of categories of TDR loan modifications outstanding and respective performance under modified terms | Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Rate reduction 71 $ 6,541 4 $ 327 75 $ 6,868 Principal deferral 6 558 1 157 7 715 Legal modification 48 2,344 9 221 57 2,565 Total residential TDRs 125 9,443 14 705 139 10,148 Commercial related and construction/land development loans: Rate reduction 1 883 — — 1 883 Principal deferral 1 1 1 2,142 2 2,143 Total commercial TDRs 2 884 1 2,142 3 3,026 Consumer loans: Principal deferral 2,444 420 — — 2,444 420 Legal modification 4 18 — — 4 18 Total consumer TDRs 2,448 438 — — 2,448 438 Total troubled debt restructurings 2,575 $ 10,765 15 $ 2,847 2,590 $ 13,612 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, 2021 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — — — — — $ — Rate reduction 82 $ 7,461 4 $ 303 86 7,764 Principal deferral 7 729 — — 7 729 Legal modification 48 2,100 11 442 59 2,542 Total residential TDRs 137 10,290 15 745 152 11,035 Commercial related and construction/land development loans: Interest only payments — — — — — — Rate reduction 1 919 — — 1 919 Principal deferral 5 477 1 2,464 6 2,941 Total commercial TDRs 6 1,396 1 2,464 7 3,860 Consumer loans: Principal deferral 2,266 470 — — 2,266 470 Legal modification 4 21 — — 4 21 Total consumer TDRs 2,270 491 — — 2,270 491 Total troubled debt restructurings 2,413 $ 12,177 16 $ 3,209 2,429 $ 15,386 |
Summary of categories of TDR loan modifications that occurred during the period | Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Legal modification 3 $ 35 2 $ 24 5 $ 59 Total residential TDRs 3 35 2 24 5 59 Consumer loans: Principal deferral 489 77 — — 489 77 Total consumer TDRs 489 77 — — 489 77 Total troubled debt restructurings 492 $ 112 2 $ 24 494 $ 136 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2021 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral 1 $ 16 — $ — 1 $ 16 Legal modification 3 226 1 50 4 276 Total residential TDRs 4 242 1 50 5 292 Consumer loans: Principal deferral 286 38 — — 286 38 Legal modification 1 — — — 1 — Total consumer TDRs 287 38 — — 287 38 Total troubled debt restructurings 291 $ 280 1 $ 50 292 $ 330 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Legal modification 5 $ 477 3 $ 51 8 $ 528 Total residential TDRs 5 477 3 51 8 528 Consumer loans: Principal deferral 489 77 — — 489 77 Total consumer TDRs 489 77 — — 489 77 Total troubled debt restructurings 494 $ 554 3 $ 51 497 $ 605 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2021 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral 1 $ 161 — $ — 1 161 Legal modification 5 279 3 255 8 534 Total residential TDRs 6 440 3 255 9 695 Consumer loans: Principal deferral 589 69 — — 589 69 Legal modification 2 3 — — 2 3 Total consumer TDRs 591 72 — — 591 72 Total troubled debt restructurings 597 $ 512 3 $ 255 600 $ 767 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. |
Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 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 $ 40 2 $ 121 2 $ 40 6 $ 293 Commercial real estate — — 1 127 — — 1 127 Home equity 1 11 — — 2 24 — — Total 3 $ 51 3 $ 248 4 $ 64 7 $ 420 |
Schedule of carrying amount of foreclosed properties held | (in thousands) June 30, 2022 December 31, 2021 Commercial real estate $ 1,687 $ 1,792 Total other real estate owned $ 1,687 $ 1,792 |
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties | (in thousands) June 30, 2022 December 31, 2021 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure $ 751 $ 508 |
Schedule of Easy Advances | Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2022 2021 2022 2021 Easy Advances originated $ — $ — $ 311,207 $ 250,045 Net charge (credit) to the Provision for Easy Advances 564 (5,793) 8,879 10,226 Provision to total Easy Advances originated NA NA 2.85 % 4.09 % Easy Advances net charge-offs $ 8,879 $ 10,226 $ 8,879 $ 10,226 Easy Advances net charge-offs (recoveries) to total Easy Advances originated NA NA 2.85 % 4.09 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
DEPOSITS | |
Composition of deposit portfolio | The composition of the deposit portfolio follows: (in thousands) June 30, 2022 December 31, 2021 Core Bank: Demand $ 1,338,061 $ 1,381,522 Money market accounts 775,560 789,876 Savings 331,508 311,624 Individual retirement accounts (1) 41,305 43,724 Time deposits, $250 and over (1) 51,976 81,050 Other certificates of deposit (1) 132,536 154,174 Reciprocal money market and time deposits (1) 52,862 77,950 Total Core Bank interest-bearing deposits 2,723,808 2,839,920 Total Core Bank noninterest-bearing deposits 1,676,974 1,579,173 Total Core Bank deposits 4,400,782 4,419,093 Republic Processing Group: Money market accounts 9,285 9,717 Total RPG interest-bearing deposits 9,285 9,717 Brokered prepaid card deposits 319,455 320,907 Other noninterest-bearing deposits 98,007 90,701 Total RPG noninterest-bearing deposits 417,462 411,608 Total RPG deposits 426,747 421,325 Total deposits $ 4,827,529 $ 4,840,418 (1) Includes time deposit . |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |
Schedule of securities sold under agreements to repurchase | (dollars in thousands) June 30, 2022 December 31, 2021 Outstanding balance at end of period $ 303,315 $ 290,967 Weighted average interest rate at end of period 0.09 % 0.04 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 304,203 $ 108,813 Mortgage backed securities - residential 42,422 167,561 Collateralized mortgage obligations 1,190 33,441 Total securities pledged $ 347,815 $ 309,815 Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2022 2021 2022 2021 Average outstanding balance during the period $ 294,388 $ 169,888 $ 297,263 $ 181,216 Average interest rate during the period 0.07 % 0.02 % 0.05 % 0.02 % Maximum outstanding at any month end during the period $ 303,315 $ 174,928 $ 303,315 $ 200,704 |
RIGHT-OF-USE ASSETS AND OPERA_2
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Summary of operating lease expense | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Operating lease expense: Related Party: Variable lease expense $ 1,269 $ 1,218 $ 2,535 $ 2,438 Fixed lease expense 57 34 92 68 Third Party: Variable lease expense 220 197 417 393 Fixed lease expense 349 342 693 684 Total operating lease expense $ 1,895 $ 1,791 $ 3,737 $ 3,583 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,707 $ 1,799 $ 3,412 $ 3,597 Cash paid for variable rent payments not included in measurement of operating lease liabilities 151 — 302 — Short-term lease payments not included in the measurement of lease liabilities — — — — |
Schedule of weighted average remaining term and weighted average discount rate for operating leases | June 30, 2022 December 31, 2021 Weighted average remaining term in years 8.39 7.57 Weighted average discount rate 2.64 % 3.05 % |
Schedule of operating lease liabilities | Year (dollars in thousands) Related Party Third Party Total 2022 $ 2,123 $ 1,309 $ 3,432 2023 4,274 2,429 6,703 2024 4,189 1,928 6,117 2025 4,053 1,396 5,449 2026 4,124 1,100 5,224 Thereafter 16,375 4,313 20,688 Total undiscounted cash flows $ 35,138 $ 12,475 $ 47,613 Discount applied to cash flows (3,398) (2,052) (5,450) Total discounted cash flows reported as operating lease liabilities $ 31,740 $ 10,423 $ 42,163 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Federal Home Loan Bank Advances | (in thousands) June 30, 2022 December 31, 2021 Overnight advances $ — $ 25,000 Fixed interest rate advances 20,000 — Total FHLB advances $ 20,000 $ 25,000 |
Aggregate Future Principal Payments on FHLB Advances | Weighted Average Year (dollars in thousands) Principal Rate 2022 $ — — % 2023 — — 2024 — — 2025 — — 2026 — — 2027 20,000 1.89 Total $ 20,000 1.89 % |
Information Regarding Overnight FHLB Advances | Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2022 2021 2022 2021 Average outstanding balance during the period $ — $ 25,000 $ — $ 32,597 Average interest rate during the period — % 0.16 % — % 0.16 % Maximum outstanding at any month end during the period $ — $ 25,000 $ — $ 25,000 |
Real Estate Loans Pledged | (in thousands) June 30, 2022 December 31, 2021 First lien, single family residential real estate $ 1,036,228 $ 1,041,461 Home equity lines of credit 193,447 186,396 |
OFF BALANCE SHEET RISKS, COMM_2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
Commitments Exclusive of Mortgage Bank Loan Commitments | (in thousands) June 30, 2022 December 31, 2021 Unused warehouse lines of credit $ 865,822 $ 565,950 Unused home equity lines of credit 368,820 348,681 Unused loan commitments - other 828,583 828,229 Standby letters of credit 10,951 11,305 FHLB letter of credit 643 643 Total commitments $ 2,074,819 $ 1,754,808 |
Schedule of rollforward of the Off Balance Sheet risks ACLC | ACLC Rollforward Three Months Ended 2022 2021 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 $ 130 $ 32 $ — $ — $ 162 $ 116 $ 24 $ — $ — $ 140 Unused home equity lines of credit 256 21 — — 277 194 19 — — 213 Unused loan commitments - other 654 7 — — 661 705 (124) — — 581 Total $ 1,040 $ 60 $ — $ — $ 1,100 $ 1,015 $ (81) $ — $ — $ 934 ACLC Rollforward Six Months Ended June 30, 2022 2021 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 $ 154 $ 8 $ — $ — $ 162 $ 79 $ 61 $ — $ — $ 140 Unused home equity lines of credit 247 30 — — 277 173 40 — — 213 Unused loan commitments - other 651 10 — — 661 737 (156) — — 581 Total $ 1,052 $ 48 $ — $ — $ 1,100 $ 989 $ (55) $ — $ — $ 934 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at June 30, 2022 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 $ 230,771 $ 152,321 $ — $ 383,092 Private label mortgage-backed security — — 2,478 2,478 Mortgage-backed securities - residential — 198,270 — 198,270 Collateralized mortgage obligations — 24,545 — 24,545 Corporate bonds — 9,936 — 9,936 Trust preferred security — — 3,824 3,824 Total available-for-sale debt securities $ 230,771 $ 385,072 $ 6,302 $ 622,145 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 189 $ — $ 189 Total equity securities with readily determinable fair value $ — $ 189 $ — $ 189 Mortgage loans held for sale $ — $ 8,491 $ — $ 8,491 Consumer loans held for sale — — 17,459 17,459 Consumer loans held for investment — — 45 45 Rate lock loan commitments — 220 — 220 Mandatory forward contracts — 359 — 359 Interest rate swap agreements — 4,501 — 4,501 Financial liabilities: Interest rate swap agreements $ — $ 4,501 $ — $ 4,501 Fair Value Measurements at December 31, 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 $ 70,112 $ 167,347 $ — $ 237,459 Private label mortgage-backed security — — 2,731 2,731 Mortgage-backed securities - residential — 210,749 — 210,749 Collateralized mortgage obligations — 30,294 — 30,294 Corporate bonds — 10,046 — 10,046 Trust preferred security — — 3,847 3,847 Total available-for-sale debt securities $ 70,112 $ 418,436 $ 6,578 $ 495,126 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 170 $ — $ 170 Community Reinvestment Act mutual fund 2,450 — — 2,450 Total equity securities with readily determinable fair value $ 2,450 $ 170 $ — $ 2,620 Mortgage loans held for sale $ — $ 29,393 $ — $ 29,393 Consumer loans held for sale — — 19,747 19,747 Consumer loans held for investment — — 170 170 Rate lock loan commitments — 1,404 — 1,404 Mandatory forward contracts — 66 — 66 Interest rate swap agreements — 5,786 — 5,786 Financial liabilities: Interest rate swap agreements — 5,786 — 5,786 |
Assets Measured at Fair Value on a Non-Recurring Basis | Fair Value Measurements at June 30, 2022 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 $ — $ — $ 1,345 $ 1,345 Commercial real estate — — 2,475 2,475 Total collateral-dependent loans* $ — $ — $ 3,820 $ 3,820 Other real estate owned: Commercial real estate $ — $ — $ 1,687 $ 1,687 Total other real estate owned $ — $ — $ 1,687 $ 1,687 * 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. Fair Value Measurements at December 31, 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 $ — $ — $ 1,626 $ 1,626 Commercial real estate — — 2,841 2,841 Home equity — — 378 378 Total collateral-dependent loans* $ — $ — $ 4,845 $ 4,845 Other real estate owned: Residential real estate $ — $ — $ 1,792 $ 1,792 Total other real estate owned $ — $ — $ 1,792 $ 1,792 * 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) June 30, 2022 December 31, 2021 Carrying amount of loans measured at fair value $ 4,024 $ 4,928 Estimated selling costs considered in carrying amount 714 842 Valuation allowance (918) (925) Total fair value $ 3,820 $ 4,845 |
Provisions for loss on collateral dependent impaired loans | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Provision on collateral-dependent loans $ (7) $ 45 $ (4) $ 45 |
Other Real Estate Owned | (in thousands) June 30, 2022 December 31, 2021 Other real estate owned carried at fair value $ 1,687 $ 1,792 Other real estate owned carried at cost — — Total carrying value of other real estate owned $ 1,687 $ 1,792 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Other real estate owned write-downs during the period $ 54 $ 52 $ 105 $ 105 |
Carrying amount and estimated fair values of financial instruments | Fair Value Measurements at June 30, 2022: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 795,143 $ 795,143 $ — $ — $ 795,143 Available-for-sale debt securities 622,145 230,771 385,072 6,302 622,145 Held-to-maturity debt securities 32,962 — 32,978 — 32,978 Equity securities with readily determinable fair values 189 — 189 — 189 Mortgage loans held for sale, at fair value 8,491 — 8,491 — 8,491 Consumer loans held for sale, at fair value 17,459 — — 17,459 17,459 Consumer loans held for sale, at the lower of cost or fair value 13,777 — — 13,777 13,777 Loans, net 4,297,784 — — 4,165,381 4,165,381 Federal Home Loan Bank stock 10,311 — — — NA Accrued interest receivable 9,872 — 9,872 — 9,872 Mortgage servicing rights 9,407 — 16,568 — 16,568 Rate lock loan commitments 220 — 220 — 220 Mandatory forward contracts 359 — 359 — 359 Interest rate swap agreements 4,501 — 4,501 — 4,501 Liabilities: Noninterest-bearing deposits $ 2,094,436 $ — $ 2,094,436 $ — $ 2,094,436 Transaction deposits 2,499,250 — 2,499,250 — 2,499,250 Time deposits 233,843 — 230,849 — 230,849 Securities sold under agreements to repurchase and other short-term borrowings 303,315 — 303,315 — 303,315 Federal Home Loan Bank advances 20,000 — 21,766 — 21,766 Accrued interest payable 162 — 162 — 162 Interest rate swap agreements 4,501 — 4,501 — 4,501 Fair Value Measurements at December 31, 2021: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 756,971 $ 756,971 $ — $ — $ 756,971 Available-for-sale debt securities 495,126 70,112 418,436 6,578 495,126 Held-to-maturity debt securities 44,299 — 44,764 — 44,764 Equity securities with readily determinable fair values 2,620 2,450 170 — 2,620 Mortgage loans held for sale, at fair value 29,393 — 29,393 — 29,393 Consumer loans held for sale, at fair value 19,747 — — 19,747 19,747 Consumer loans held for sale, at the lower of cost or fair value 2,937 — — 2,937 2,937 Loans, net 4,431,985 — — 4,445,244 4,445,244 Federal Home Loan Bank stock 10,311 — — — NA Accrued interest receivable 9,877 — 9,877 — 9,877 Mortgage servicing rights 9,196 — 11,540 — 11,540 Rate lock loan commitments 1,404 — 1,404 — 1,404 Mandatory forward contracts 66 — 66 — 66 Interest rate swap agreements 5,786 — 5,786 — 5,786 Liabilities: Noninterest-bearing deposits $ 1,990,781 $ — $ 1,990,781 $ — $ 1,990,781 Transaction deposits 2,553,423 — 2,553,423 — 2,553,423 Time deposits 296,214 — 298,236 — 298,236 Securities sold under agreements to repurchase and other short-term borrowings 290,967 — 290,967 — 290,967 Federal Home Loan Bank advances 25,000 — 25,000 — 25,000 Accrued interest payable 159 — 159 — 159 Interest rate swap agreements 5,786 — 5,786 — 5,786 |
Nonrecurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Range Fair Valuation Unobservable (Weighted June 30, 2022 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,345 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 41% (11%) Collateral-dependent loans - commercial real estate $ 2,475 Sales comparison approach Adjustments determined for differences between comparable sales 12% - 13% (12%) Other real estate owned - commercial real estate $ 1,687 Sales comparison approach Adjustments determined for differences between comparable sales 37% ( Range Fair Valuation Unobservable (Weighted December 31, 2021 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,626 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 51% (10%) Collateral-dependent loans - commercial real estate $ 2,841 Sales comparison approach Adjustments determined for differences between comparable sales 12% - 13% (12%) Collateral-dependent loans - home equity $ 378 Sales comparison approach Adjustments determined for differences between comparable sales 2%-4% ( Other real estate owned - commercial real estate $ 1,792 Sales comparison approach Adjustments determined for differences between comparable sales 33% ( |
Private label mortgage backed security | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 2,602 $ 2,863 $ 2,731 $ 2,957 Total gains or losses included in earnings: Net change in unrealized gain (15) 34 9 49 Principal paydowns (109) (73) (262) (182) Balance, end of period $ 2,478 $ 2,824 $ 2,478 $ 2,824 |
Private label mortgage backed security | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation June 30, 2022 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,478 Discounted cash flow (1) Constant prepayment rate 4.5% - 5.4% (2) Probability of default 1.8% - 9.3% (3) Loss severity 50% - 75% Fair Valuation December 31, 2021 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,731 Discounted cash flow (1) Constant prepayment rate 4.5% - 5.7% (2) Probability of default 1.8% - 9.3% (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 Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 3,725 $ 3,650 $ 3,847 $ 3,800 Total gains or losses included in earnings: Discount accretion 14 13 28 26 Net change in unrealized gain 85 37 (51) (126) Balance, end of period $ 3,824 $ 3,700 $ 3,824 $ 3,700 |
Mortgage Loans Held for Sale | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) June 30, 2022 December 31, 2021 Aggregate fair value $ 8,491 $ 29,393 Contractual balance 8,363 28,668 Unrealized gain 128 725 |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Interest income $ 153 $ 140 $ 357 $ 549 Change in fair value 109 (143) (597) (1,154) Total included in earnings $ 262 $ (3) $ (240) $ (605) |
Consumer loans | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) June 30, 2022 December 31, 2021 Aggregate fair value $ 17,459 $ 19,747 Contractual balance 17,563 19,633 Unrealized gain (104) 114 |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Interest income $ 2,990 $ 1,397 $ 5,880 $ 1,968 Change in fair value (181) 63 (218) 78 Total included in earnings $ 2,809 $ 1,460 $ 5,662 $ 2,046 |
Consumer loans | Recurring basis | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Fair Valuation June 30, 2022 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 17,459 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% Fair Valuation December 31, 2021 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 19,747 Contract Terms (1) Net Premium 1.4% (2) Discounted Sales 5.00% |
MORTGAGE BANKING ACTIVITIES (Ta
MORTGAGE BANKING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
MORTGAGE BANKING ACTIVITIES | |
Activity for Mortgage Loans Held for Sale, at fair value | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 13,302 $ 63,636 $ 29,393 $ 46,867 Origination of mortgage loans held for sale 61,489 141,177 162,150 354,764 Proceeds from the sale of mortgage loans held for sale (67,759) (176,424) (186,971) (380,239) Net gain on sale of mortgage loans held for sale 1,459 4,012 3,919 11,009 Balance, end of period $ 8,491 $ 32,401 $ 8,491 $ 32,401 |
Components of Mortgage Banking Income | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Net gain realized on sale of mortgage loans held for sale $ 2,674 $ 5,711 $ 5,407 $ 13,756 Net change in fair value recognized on loans held for sale 109 (143) (597) (1,154) Net change in fair value recognized on rate lock loan commitments (222) 299 (1,184) (2,338) Net change in fair value recognized on forward contracts (1,102) (1,855) 293 745 Net gain recognized 1,459 4,012 3,919 11,009 Loan servicing income 884 808 1,749 1,601 Amortization of mortgage servicing rights (580) (738) (1,248) (1,735) Change in mortgage servicing rights valuation allowance — 100 — 500 Net servicing income recognized 304 170 501 366 Total Mortgage Banking income $ 1,763 $ 4,182 $ 4,420 $ 11,375 |
Activity for capitalized mortgage servicing rights | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 9,502 $ 7,711 $ 9,196 $ 7,095 Additions 485 1,262 1,459 2,475 Amortized to expense (580) (738) (1,248) (1,735) Change in valuation allowance — 100 — 500 Balance, end of period $ 9,407 $ 8,335 $ 9,407 $ 8,335 |
Schedule of activity in the valuation allowance for capitalized mortgage servicing rights | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Beginning valuation allowance $ — $ 100 $ — $ 500 Charge during the period — (100) — (500) Ending valuation allowance $ — $ — $ — $ — |
Other information relating to mortgage servicing rights | (dollars in thousands) June 30, 2022 December 31, 2021 Fair value of mortgage servicing rights portfolio $ 16,568 $ 11,540 Monthly weighted average prepayment rate of unpaid principal balance* 128 % 208 % Discount rate 10.17 % 10.15 % Weighted average foreclosure rate 0.15 % 0.19 % Weighted average life in years 7.55 5.93 * Rates are applied to individual tranches with similar characteristics. |
Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives | June 30, 2022 December 31, 2021 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 $ 8,363 $ 8,491 $ 28,668 $ 29,393 Included in other assets: Rate lock loan commitments $ 28,072 $ 220 $ 56,736 $ 1,404 Mandatory forward contracts 29,812 359 70,812 66 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
INTEREST RATE SWAPS | |
Summary of interest rate swaps related to clients | June 30, 2022 December 31, 2021 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 22,009 $ 595 $ 107,502 $ 5,786 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 93,757 (4,501) 16,423 (298) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 115,766 $ (3,906) $ 123,925 $ 5,488 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 115,766 3,906 123,925 (5,488) Total $ 231,532 $ — $ 247,850 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER SHARE | |
Earnings Per Share and Diluted Earnings Per Share | Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2022 2021 2022 2021 Net income $ 23,901 $ 23,922 $ 51,827 $ 49,975 Dividends declared on Common Stock: Class A Shares (6,047) (5,680) (12,128) (11,423) Class B Shares (670) (608) (1,341) (1,224) Undistributed net income for basic earnings per share 17,184 17,634 38,358 37,328 Weighted average potential dividends on Class A shares upon exercise of dilutive options (21) (17) (49) (40) Undistributed net income for diluted earnings per share $ 17,163 $ 17,617 $ 38,309 $ 37,288 Weighted average shares outstanding: Class A Shares 17,946 18,712 17,968 18,761 Class B Shares 2,161 2,182 2,163 2,190 Effect of dilutive securities on Class A Shares outstanding 62 55 71 65 Weighted average shares outstanding including dilutive securities 20,169 20,949 20,202 21,016 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.34 $ 0.31 $ 0.68 $ 0.62 Undistributed earnings per share* 0.86 0.85 1.92 1.80 Total basic earnings per share - Class A Common Stock $ 1.20 $ 1.16 $ 2.60 $ 2.42 Class B Common Stock: Per share dividends distributed $ 0.31 $ 0.28 $ 0.62 $ 0.56 Undistributed earnings per share* 0.78 0.77 1.75 1.64 Total basic earnings per share - Class B Common Stock $ 1.09 $ 1.05 $ 2.37 $ 2.20 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.34 $ 0.31 $ 0.68 $ 0.62 Undistributed earnings per share* 0.86 0.85 1.91 1.79 Total diluted earnings per share - Class A Common Stock $ 1.20 $ 1.16 $ 2.59 $ 2.41 Class B Common Stock: Per share dividends distributed $ 0.31 $ 0.28 $ 0.62 $ 0.56 Undistributed earnings per share* 0.78 0.77 1.74 1.63 Total diluted earnings per share - Class B Common Stock $ 1.09 $ 1.05 $ 2.36 $ 2.19 * To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. |
Antidilutive Stock Options | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Antidilutive stock options 187,000 149,000 186,000 169,000 Average antidilutive stock options 184,000 149,000 178,000 166,000 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
OTHER COMPREHENSIVE INCOME | |
Summary of OCI components and related tax effects | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2022 2021 2022 2021 Available-for-Sale Debt Securities: Unrealized losses on AFS debt securities $ (10,133) $ (614) $ (31,382) $ (2,643) Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings (15) 34 9 49 Net losses (10,148) (580) (31,373) (2,594) Tax effect 2,537 145 7,845 648 Net of tax (7,611) (435) $ (23,528) $ (1,946) |
Summary of the AOCI balances, net of tax | 2022 (in thousands) December 31, 2021 Change June 30, 2022 Unrealized gain (loss) on AFS debt securities $ 890 $ (23,535) $ (22,645) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 984 7 991 Total unrealized gain (loss) $ 1,874 $ (23,528) $ (21,654) 2021 (in thousands) December 31, 2020 Change June 30, 2021 Unrealized gain on AFS debt securities $ 7,571 $ (1,982) $ 5,589 Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 938 36 974 Total unrealized gain (loss) $ 8,509 $ (1,946) $ 6,563 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of net revenues by reportable segments | Three Months Ended June 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 39,158 $ 3,886 $ 153 $ 43,197 $ 1,638 $ 6,397 $ 8,035 $ 51,232 Noninterest income: Service charges on deposit accounts 3,355 12 — 3,367 (4) — (4) 3,363 Net refund transfer fees — — — — 3,950 — 3,950 3,950 Mortgage banking income (1) — — 1,763 1,763 — — — 1,763 Interchange fee income 3,389 — — 3,389 72 — 72 3,461 Program fees (1) — — — — 736 3,149 3,885 3,885 Increase in cash surrender value of BOLI (1) 623 — — 623 — — — 623 Net losses on OREO (52) — — (52) — — — (52) Legal settlement — — — — 13,000 — 13,000 13,000 Other 416 — 46 462 111 — 111 573 Total noninterest income 7,731 12 1,809 9,552 17,865 3,149 21,014 30,566 Total net revenue $ 46,889 $ 3,898 $ 1,962 $ 52,749 $ 19,503 $ 9,546 $ 29,049 $ 81,798 Net-revenue concentration (2) 57 % 5 % 2 % 64 % 24 % 12 % 36 % 100 % Three Months Ended June 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 38,278 $ 6,324 $ 140 $ 44,742 $ 623 $ 4,939 $ 5,562 $ 50,304 Noninterest income: Service charges on deposit accounts 3,061 14 — 3,075 (4) — (4) 3,071 Net refund transfer fees 2 — — 2 5,921 — 5,921 5,923 Mortgage banking income (1) — — 4,182 4,182 — — — 4,182 Interchange fee income 3,367 — — 3,367 114 — 114 3,481 Program fees (1) — — — — 715 2,627 3,342 3,342 Increase in cash surrender value of BOLI (1) 600 — — 600 — — — 600 Net losses on OREO (44) — — (44) — — — (44) Other 986 — 50 1,036 57 — 57 1,093 Total noninterest income 7,972 14 4,232 12,218 6,803 2,627 9,430 21,648 Total net revenue $ 46,250 $ 6,338 $ 4,372 $ 56,960 $ 7,426 $ 7,566 $ 14,992 $ 71,952 Net-revenue concentration (2) 64 % 9 % 6 % 79 % 10 % 11 % 21 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 75,306 $ 8,401 $ 357 $ 84,064 $ 17,042 $ 12,738 $ 29,780 $ 113,844 Noninterest income: Service charges on deposit accounts 6,574 25 — 6,599 (10) — (10) 6,589 Net refund transfer fees — — — — 16,001 — 16,001 16,001 Mortgage banking income (1) — — 4,420 4,420 — — — 4,420 Interchange fee income 6,401 — — 6,401 130 — 130 6,531 Program fees (1) — — — — 1,463 6,276 7,739 7,739 Increase in cash surrender value of BOLI (1) 1,235 — — 1,235 — — — 1,235 Net losses on OREO (105) — — (105) — — — (105) Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — 13,000 — 13,000 13,000 Other 860 — 80 940 217 — 217 1,157 Total noninterest income 14,965 25 4,500 19,490 35,801 6,276 42,077 61,567 Total net revenue $ 90,271 $ 8,426 $ 4,857 $ 103,554 $ 52,843 $ 19,014 $ 71,857 $ 175,411 Net-revenue concentration (2) 51 % 5 % 3 % 59 % 30 % 11 % 41 % 100 % Six Months Ended June 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 79,380 $ 13,096 $ 549 $ 93,025 $ 15,299 $ 9,846 $ 25,145 $ 118,170 Noninterest income: Service charges on deposit accounts 5,926 28 — 5,954 (10) — (10) 5,944 Net refund transfer fees 2 — — 2 18,642 — 18,642 18,644 Mortgage banking income (1) — — 11,375 11,375 — — — 11,375 Interchange fee income 6,336 — — 6,336 172 — 172 6,508 Program fees (1) — — — — 1,611 3,940 5,551 5,551 Increase in cash surrender value of BOLI (1) 990 — — 990 — — — 990 Net losses on OREO (55) — — (55) — — — (55) Other 1,557 — 78 1,635 77 — 77 1,712 Total noninterest income 14,756 28 11,453 26,237 20,492 3,940 24,432 50,669 Total net revenue $ 94,136 $ 13,124 $ 12,002 $ 119,262 $ 35,791 $ 13,786 $ 49,577 $ 168,839 Net-revenue concentration (2) 56 % 8 % 7 % 71 % 21 % 8 % 29 % 100 % (3) This revenue is not subject to ASC 606. (4) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT INFORMATION | |
Segment Information | Three Months Ended June 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 39,158 $ 3,886 $ 153 $ 43,197 $ 1,638 $ 6,397 $ 8,035 $ 51,232 Provision for expected credit loss expense 146 (234) — (88) 360 3,433 3,793 3,705 Net refund transfer fees — — — — 3,950 — 3,950 3,950 Mortgage banking income — — 1,763 1,763 — — — 1,763 Program fees — — — — 736 3,149 3,885 3,885 Legal settlement — — — — 13,000 — 13,000 13,000 Other noninterest income 7,731 12 46 7,789 179 — 179 7,968 Total noninterest income 7,731 12 1,809 9,552 17,865 3,149 21,014 30,566 Total noninterest expense 38,314 1,035 2,832 42,181 3,533 1,939 5,472 47,653 Income (loss) before income tax expense 8,429 3,097 (870) 10,656 15,610 4,174 19,784 30,440 Income tax expense (benefit) 1,647 692 (191) 2,148 3,465 926 4,391 6,539 Net income (loss) $ 6,782 $ 2,405 $ (679) $ 8,508 $ 12,145 $ 3,248 $ 15,393 $ 23,901 Period-end assets $ 4,997,734 $ 596,031 $ 22,342 $ 5,616,107 $ 382,156 $ 114,213 $ 496,369 $ 6,112,476 Net interest margin 3.06 % 2.69 % NM 3.02 % NM NM NM 3.51 % Net-revenue concentration* 57 % 5 % 2 % 64 % 24 % 12 % 36 % 100 % Three Months Ended June 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 38,278 $ 6,324 $ 140 $ 44,742 $ 623 $ 4,939 $ 5,562 $ 50,304 Provision for expected credit loss expense (77) (65) — (142) (5,773) 1,592 (4,181) (4,323) Net refund transfer fees 2 — — 2 5,921 — 5,921 5,923 Mortgage banking income — — 4,182 4,182 — — — 4,182 Program fees — — — — 715 2,627 3,342 3,342 Other noninterest income 7,970 14 50 8,034 167 — 167 8,201 Total noninterest income 7,972 14 4,232 12,218 6,803 2,627 9,430 21,648 Total noninterest expense 36,939 1,066 3,006 41,011 3,697 1,006 4,703 45,714 Income before income tax expense 9,388 5,337 1,366 16,091 9,502 4,968 14,470 30,561 Income tax expense 1,555 1,227 301 3,083 2,326 1,230 3,556 6,639 Net income $ 7,833 $ 4,110 $ 1,065 $ 13,008 $ 7,176 $ 3,738 $ 10,914 $ 23,922 Period-end assets $ 4,774,765 $ 840,083 $ 46,816 $ 5,661,664 $ 389,999 $ 131,647 $ 521,646 $ 6,183,310 Net interest margin 2.97 % 3.48 % NM 3.03 % NM NM NM 3.33 % Net-revenue concentration* 64 % 9 % 6 % 79 % 10 % 11 % 21 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 75,306 $ 8,401 $ 357 $ 84,064 $ 17,042 $ 12,738 $ 29,780 $ 113,844 Provision for expected credit loss expense 466 (635) — (169) 8,272 4,828 13,100 12,931 Net refund transfer fees — — — — 16,001 — 16,001 16,001 Mortgage banking income — — 4,420 4,420 — — — 4,420 Program fees — — — — 1,463 6,276 7,739 7,739 Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — 13,000 — 13,000 13,000 Other noninterest income 14,965 25 80 15,070 337 — 337 15,407 Total noninterest income 14,965 25 4,500 19,490 35,801 6,276 42,077 61,567 Total noninterest expense 76,533 1,987 5,522 84,042 8,678 3,506 12,184 96,226 Income (loss) before income tax expense 13,272 7,074 (665) 19,681 35,893 10,680 46,573 66,254 Income tax expense (benefit) 2,119 1,596 (146) 3,569 8,371 2,487 10,858 14,427 Net income (loss) $ 11,153 $ 5,478 $ (519) $ 16,112 $ 27,522 $ 8,193 $ 35,715 $ 51,827 Period-end assets $ 4,997,734 $ 596,031 $ 22,342 $ 5,616,107 $ 382,156 $ 114,213 $ 496,369 $ 6,112,476 Net interest margin 2.98 % 2.89 % NM 2.97 % NM NM NM 3.90 % Net-revenue concentration* 51 % 5 % 3 % 59 % 30 % 11 % 41 % 100 % Six Months Ended June 30, 2021 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 79,380 $ 13,096 $ 549 $ 93,025 $ 15,299 $ 9,846 $ 25,145 $ 118,170 Provision for expected credit loss expense (82) (307) — (389) 10,111 1,217 11,328 10,939 Net refund transfer fees 2 — — 2 18,642 — 18,642 18,644 Mortgage banking income — — 11,375 11,375 — — — 11,375 Program fees — — — — 1,611 3,940 5,551 5,551 Other noninterest income 14,754 28 78 14,860 239 — 239 15,099 Total noninterest income 14,756 28 11,453 26,237 20,492 3,940 24,432 50,669 Total noninterest expense 74,267 2,094 6,127 82,488 8,999 2,108 11,107 93,595 Income before income tax expense 19,951 11,337 5,875 37,163 16,681 10,461 27,142 64,305 Income tax expense 3,680 2,661 1,293 7,634 4,096 2,600 6,696 14,330 Net income $ 16,271 $ 8,676 $ 4,582 $ 29,529 $ 12,585 $ 7,861 $ 20,446 $ 49,975 Period-end assets $ 4,774,765 $ 840,083 $ 46,816 $ 5,661,664 $ 389,999 $ 131,647 $ 521,646 $ 6,183,310 Net interest margin 3.21 % 3.45 % NM 3.24 % NM NM NM 3.98 % Net-revenue concentration* 56 % 8 % 7 % 71 % 21 % 8 % 29 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details) | 6 Months Ended |
Jun. 30, 2022 segment item | |
Basis of Presentation | |
Number of reportable segments | segment | 5 |
Number of banking centers | 42 |
Kentucky | |
Basis of Presentation | |
Number of banking centers | 28 |
Metropolitan Louisville | |
Basis of Presentation | |
Number of banking centers | 18 |
Central Kentucky | |
Basis of Presentation | |
Number of banking centers | 7 |
Georgetown | |
Basis of Presentation | |
Number of banking centers | 1 |
Lexington | |
Basis of Presentation | |
Number of banking centers | 5 |
Shelbyville | |
Basis of Presentation | |
Number of banking centers | 1 |
Northern Kentucky | |
Basis of Presentation | |
Number of banking centers | 3 |
Covington | |
Basis of Presentation | |
Number of banking centers | 1 |
Crestview Hills | |
Basis of Presentation | |
Number of banking centers | 1 |
Florence | |
Basis of Presentation | |
Number of banking centers | 1 |
Southern Indiana | |
Basis of Presentation | |
Number of banking centers | 3 |
Floyds Knobs | |
Basis of Presentation | |
Number of banking centers | 1 |
Jeffersonville | |
Basis of Presentation | |
Number of banking centers | 1 |
New Albany | |
Basis of Presentation | |
Number of banking centers | 1 |
Metropolitan Tampa, Florida | |
Basis of Presentation | |
Number of banking centers | 7 |
Metropolitan Cincinnati, Ohio | |
Basis of Presentation | |
Number of banking centers | 2 |
Metropolitan Nashville, Tennessee | |
Basis of Presentation | |
Number of banking centers | 2 |
Core Banking 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 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENTS (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 06, 2022 USD ($) | Jan. 31, 2021 | Dec. 31, 2019 | Feb. 28, 2022 | Feb. 28, 2021 | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) item | |
Contract termination fee | ||||||||
Basis of Presentation | ||||||||
Revenue recognized | $ 5,000,000 | |||||||
Contract termination fee | Green Dot | ||||||||
Basis of Presentation | ||||||||
Revenue recognized | $ 5,000,000 | |||||||
Legal settlement | ||||||||
Basis of Presentation | ||||||||
Revenue recognized | $ 13,000,000 | 13,000,000 | ||||||
Legal settlement | Green Dot | ||||||||
Basis of Presentation | ||||||||
Revenue recognized | $ 13,000,000 | 13,000,000 | ||||||
Republic Processing Group | Contract termination fee | ||||||||
Basis of Presentation | ||||||||
Revenue recognized | 5,000,000 | |||||||
Republic Processing Group | Legal settlement | ||||||||
Basis of Presentation | ||||||||
Revenue recognized | $ 13,000,000 | $ 13,000,000 | ||||||
Republic Credit Solutions | Line of credit | ||||||||
Basis of Presentation | ||||||||
Number of service products | item | 2 | |||||||
Republic Credit Solutions | LOC 1 | ||||||||
Basis of Presentation | ||||||||
Percentage of loan receivable held for sale (as a percent) | 90% | |||||||
Percentage of ownership maintained with each borrower | 100% | |||||||
Interest retained (as a percent) | 10% | |||||||
Loan held-for-sale term | 3 days | 3 days | ||||||
Republic Credit Solutions | LOC II | ||||||||
Basis of Presentation | ||||||||
Percentage of loan receivable held for sale (as a percent) | 95% | |||||||
Percentage of ownership maintained with each borrower | 100% | |||||||
Interest retained (as a percent) | 5% | |||||||
Loan held-for-sale term | 3 days | |||||||
Republic Credit Solutions | Installment loan | ||||||||
Basis of Presentation | ||||||||
Term for intent to sell loans | 16 days | |||||||
Republic Credit Solutions | Installment loan | Minimum | ||||||||
Basis of Presentation | ||||||||
Loan held-for-sale term | 12 months | |||||||
Republic Credit Solutions | Installment loan | Maximum | ||||||||
Basis of Presentation | ||||||||
Loan held-for-sale term | 60 months | |||||||
Republic Credit Solutions | Healthcare receivables | ||||||||
Basis of Presentation | ||||||||
Percentage of loan receivable held for sale (as a percent) | 100% | |||||||
Number of third party relationship | item | 2 | |||||||
Interest retained - Third party relationship one (as a percent) | 100% | |||||||
Interest retained - Third party relationship two (as a percent) | 100% | |||||||
Percentage of loan receivable held for sale - Third party relationship two (as a percent) | 100% | |||||||
Tax Refund Solutions | Easy Advances | ||||||||
Basis of Presentation | ||||||||
Advance amount per customer | $ 6,250 | |||||||
Fee charged | $ 0 | |||||||
Period Easy Advance tax credit product offered | 2 months | 2 months | ||||||
EA's repayment term | 32 days | |||||||
Maximum repayment period before Easy Advances considered delinquent | 35 days | |||||||
Tax Refund Solutions | Contract termination fee | ||||||||
Basis of Presentation | ||||||||
Revenue recognized | $ 5,000,000 | |||||||
Tax Refund Solutions | Legal settlement | ||||||||
Basis of Presentation | ||||||||
Revenue recognized | $ 13,000,000 | $ 13,000,000 | ||||||
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 |
INVESTMENT SECURITIES - AFS (De
INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 651,048 | $ 492,626 |
Gross Unrealized Gains | 1,566 | 5,897 |
Gross Unrealized Losses | (30,439) | (3,397) |
Allowance for Credit Losses | (30) | 0 |
Total available-for-sale debt securities | 622,145 | 495,126 |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 400,771 | 239,880 |
Gross Unrealized Gains | 1 | 473 |
Gross Unrealized Losses | (17,680) | (2,894) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 383,092 | 237,459 |
Private label mortgage backed security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 1,156 | 1,418 |
Gross Unrealized Gains | 1,322 | 1,313 |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 2,478 | 2,731 |
Mortgage backed securities - residential | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 210,571 | 207,697 |
Gross Unrealized Gains | 83 | 3,525 |
Gross Unrealized Losses | (12,384) | (473) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 198,270 | 210,749 |
Collateralized mortgage obligations | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 24,838 | 29,947 |
Gross Unrealized Gains | 48 | 377 |
Gross Unrealized Losses | (341) | (30) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 24,545 | 30,294 |
Corporate bonds | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 10,000 | 10,000 |
Gross Unrealized Gains | 46 | |
Gross Unrealized Losses | (34) | |
Allowance for Credit Losses | (30) | 0 |
Total available-for-sale debt securities | 9,936 | 10,046 |
Trust Preferred Securities | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 3,712 | 3,684 |
Gross Unrealized Gains | 112 | 163 |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | $ 3,824 | $ 3,847 |
INVESTMENT SECURITIES - HTM (De
INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Held-to-Maturity Debt Securities | ||
Amortized Cost | $ 33,012 | $ 44,346 |
Gross Unrecognized Gains | 78 | 424 |
Gross Unrecognized Losses | (112) | (6) |
Fair Value | 32,978 | 44,764 |
Allowance for credit losses | (50) | (47) |
Mortgage backed securities - residential | ||
Held-to-Maturity Debt Securities | ||
Amortized Cost | 29 | 46 |
Fair Value | 29 | 46 |
Collateralized mortgage obligations | ||
Held-to-Maturity Debt Securities | ||
Amortized Cost | 7,772 | 9,080 |
Gross Unrecognized Gains | 70 | 158 |
Gross Unrecognized Losses | (20) | |
Fair Value | 7,822 | 9,238 |
Corporate bonds | ||
Held-to-Maturity Debt Securities | ||
Amortized Cost | 24,966 | 34,975 |
Gross Unrecognized Gains | 8 | 263 |
Gross Unrecognized Losses | (92) | (6) |
Fair Value | 24,882 | 35,232 |
Allowance for credit losses | (50) | (47) |
Obligations of state and political subdivisions | ||
Held-to-Maturity Debt Securities | ||
Amortized Cost | 245 | 245 |
Gross Unrecognized Gains | 3 | |
Fair Value | $ 245 | $ 248 |
INVESTMENT SECURITIES - AMORTIZ
INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities available for Sale - Amortized Cost | ||
Due in one year or less | $ 61,344 | |
Due from one year to five years | 349,427 | |
Due beyond ten years | 3,712 | |
Amortized Cost | 651,048 | $ 492,626 |
Securities available for Sale - Fair Value | ||
Due in one year or less | 61,128 | |
Due from one year to five years | 331,900 | |
Due beyond ten years | 3,824 | |
Total securities | 622,145 | 495,126 |
Securities held to maturity - Amortized Cost | ||
Due in one year or less | 120 | |
Due from one year to five years | 25,091 | |
Total securities | 33,012 | 44,346 |
Securities held to maturity - Fair Value | ||
Due in one year or less | 120 | |
Due from one year to five years | 25,007 | |
Fair Value | 32,978 | 44,764 |
Private label mortgage backed security | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 1,156 | |
Amortized Cost | 1,156 | 1,418 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 2,478 | |
Total securities | 2,478 | 2,731 |
Mortgage backed securities - residential | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 210,571 | |
Amortized Cost | 210,571 | 207,697 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 198,270 | |
Total securities | 198,270 | 210,749 |
Securities held to maturity - Amortized Cost | ||
Securities not due at a single maturity date | 29 | |
Total securities | 29 | 46 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 29 | |
Fair Value | 29 | 46 |
Collateralized mortgage obligations | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 24,838 | |
Amortized Cost | 24,838 | 29,947 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 24,545 | |
Total securities | 24,545 | 30,294 |
Securities held to maturity - Amortized Cost | ||
Securities not due at a single maturity date | 7,772 | |
Total securities | 7,772 | 9,080 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 7,822 | |
Fair Value | $ 7,822 | $ 9,238 |
INVESTMENT SECURITIES - INVESTM
INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 506,118 | $ 266,570 |
Less than 12 months Unrealized Losses | (25,307) | (3,125) |
12 months or more Fair Value | 64,902 | 9,728 |
12 months or more Unrealized Losses | (5,098) | (272) |
Total Fair Value | 571,020 | 276,298 |
Total Unrealized Losses | $ (30,405) | $ (3,397) |
Number of securities held | 179 | 173 |
Number of securities held in an unrealized loss position | 127 | 29 |
Maximum percentage of holdings of securities of any one issuer, other than the U.S. Government and its agencies | 10% | 10% |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 296,890 | $ 177,138 |
Less than 12 months Unrealized Losses | (12,582) | (2,622) |
12 months or more Fair Value | 64,902 | 9,728 |
12 months or more Unrealized Losses | (5,098) | (272) |
Total Fair Value | 361,792 | 186,866 |
Total Unrealized Losses | (17,680) | (2,894) |
Mortgage backed securities - residential | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 193,002 | 84,937 |
Less than 12 months Unrealized Losses | (12,384) | (473) |
Total Fair Value | 193,002 | 84,937 |
Total Unrealized Losses | (12,384) | (473) |
Collateralized mortgage obligations | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 16,226 | 4,495 |
Less than 12 months Unrealized Losses | (341) | (30) |
Total Fair Value | 16,226 | 4,495 |
Total Unrealized Losses | $ (341) | $ (30) |
INVESTMENT SECURITIES - PRIVATE
INVESTMENT SECURITIES - PRIVATE LABEL MORTGAGE-BACKED SECURITY (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Bank's private label mortgage backed security credit losses recognized in earnings | ||
Number of securities held | 179 | 173 |
Available-for-sale debt securities | $ 622,145 | $ 495,126 |
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 | $ 2,478 | $ 2,731 |
INVESTMENT SECURITIES - CORPORA
INVESTMENT SECURITIES - CORPORATE BONDS AND MORTGAGE BACKED SECURITIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Private label mortgage backed security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Securities | $ 2,478,000 | |
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 | $ 12,700,000 | $ 503,000 |
INVESTMENT SECURITIES - TRUST P
INVESTMENT SECURITIES - TRUST PREFERRED SECURITY (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2015 | |
Amortized cost and fair value of the investment securities portfolio by contractual maturity | |||
Amount of floating rate purchased | $ 189,820 | $ 111,664 | |
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% | ||
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 - ACLS RO
INVESTMENT SECURITIES - ACLS ROLLFORWARD (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Securities | |||||
Balance | $ 40,000 | $ 103,000 | $ 47,000 | $ 178,000 | |
Provision | 40,000 | (47,000) | 33,000 | (122,000) | |
Balance | 80,000 | 56,000 | 80,000 | 56,000 | |
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 HTM debt securities excluded from ACLS | 118,000 | 118,000 | 89,000 | ||
Accrued interest on AFS debt securities excluded from ACLS | 2,000,000 | 2,000,000 | $ 1,000,000 | ||
Corporate bonds | Available-for-Sale Securities | |||||
Debt Securities | |||||
Provision | 30,000 | 30,000 | |||
Balance | 30,000 | 30,000 | |||
Corporate bonds | Held-to-Maturity Securities | |||||
Debt Securities | |||||
Balance | 40,000 | 103,000 | 47,000 | 178,000 | |
Provision | 10,000 | (47,000) | 3,000 | (122,000) | |
Balance | $ 50,000 | $ 56,000 | $ 50,000 | $ 56,000 |
INVESTMENT SECURITIES - PLEDGED
INVESTMENT SECURITIES - PLEDGED DEBT SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
INVESTMENT SECURITIES | ||
Carrying amount | $ 415,244 | $ 319,650 |
Fair value | $ 415,244 | $ 319,808 |
INVESTMENT SECURITIES - EQUITY
INVESTMENT SECURITIES - EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Equity securities | |||||
Amortized Cost | $ 2,500 | ||||
Gross Unrealized Gains | $ 189 | 170 | |||
Gross Unrealized Losses | (50) | ||||
Fair Value | $ 189 | 189 | 2,620 | ||
Gains (Losses) Recognized on Equity securities, Realized | (97) | (209) | |||
Gains (Losses) Recognized on Equity securities, Unrealized | 25 | $ 207 | 19 | $ (482) | |
Gains (Losses) Recognized on Equity securities, Total | (72) | 207 | (190) | (482) | |
Freddie Mac preferred stock | |||||
Equity securities | |||||
Gross Unrealized Gains | 189 | 170 | |||
Fair Value | 189 | 189 | 170 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | 25 | 191 | 19 | (444) | |
Gains (Losses) Recognized on Equity securities, Total | 25 | 191 | 19 | (444) | |
Mutual fund | |||||
Equity securities | |||||
Amortized Cost | 2,500 | ||||
Gross Unrealized Losses | (50) | ||||
Fair Value | $ 2,450 | ||||
Gains (Losses) Recognized on Equity securities, Realized | (97) | (209) | |||
Gains (Losses) Recognized on Equity securities, Unrealized | 16 | (38) | |||
Gains (Losses) Recognized on Equity securities, Total | $ (97) | $ 16 | $ (209) | $ (38) |
LOANS HELD FOR SALE - CONSUMER
LOANS HELD FOR SALE - CONSUMER LOANS - HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consumer Loans Held For Sale At Fair Value [RollForward] | ||||
Balance, beginning of period | $ 11,709 | $ 3,970 | $ 19,747 | $ 3,298 |
Origination of consumer loans held for sale | 98,704 | 49,607 | 195,436 | 68,697 |
Proceeds from the sale of consumer loans held for sale | (94,435) | (41,974) | (201,083) | (60,904) |
Net gain on sale of consumer loans held for sale | 1,481 | 1,417 | 3,359 | 1,929 |
Balance, end of period | $ 17,459 | $ 13,020 | $ 17,459 | $ 13,020 |
LOANS HELD FOR SALE - CONSUME_2
LOANS HELD FOR SALE - CONSUMER LOANS - LOWER COST (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Carried at lower of cost or fair value | |||||
Balance, beginning of period | $ 3,026 | $ 11,701 | $ 2,937 | $ 1,478 | |
Origination of consumer loans held for sale | 184,078 | 137,164 | 332,560 | 235,348 | |
Proceeds from the sale of consumer loans held for sale | (174,994) | (138,852) | (324,626) | (227,606) | |
Net gain on sale of consumer loans held for sale | 1,667 | 1,399 | 2,906 | 2,192 | |
Balance, end of period | $ 13,777 | $ 11,412 | $ 13,777 | $ 11,412 | |
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% | ||||
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% | ||||
Republic Credit Solutions | Healthcare receivables | |||||
Loans held for sale | |||||
Percentage of loan receivable held for sale (as a percent) | 100% | ||||
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 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans disclosures | ||||||
Total loans | $ 4,362,233 | $ 4,496,562 | ||||
Allowance for credit losses | (64,449) | $ (71,656) | (64,577) | $ (60,291) | $ (75,336) | $ (61,067) |
Loans, net | 4,297,784 | 4,431,985 | ||||
Core Banking Activities | ||||||
Loans disclosures | ||||||
Total loans | 4,270,268 | 4,352,509 | ||||
Allowance for credit losses | (51,218) | (51,341) | (51,533) | (51,462) | (51,552) | (52,106) |
Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 3,673,590 | 3,501,959 | ||||
Allowance for credit losses | (49,727) | (49,616) | (49,407) | (49,362) | (49,387) | (49,699) |
Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 91,965 | 144,053 | ||||
Allowance for credit losses | (13,231) | (20,315) | (13,044) | (8,829) | (23,784) | (8,961) |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||||||
Loans disclosures | ||||||
Total loans | 832,137 | 820,731 | ||||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 832,137 | 820,731 | ||||
Allowance for credit losses | (8,445) | (8,358) | (8,647) | (8,977) | (9,489) | (9,715) |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||||||
Loans disclosures | ||||||
Total loans | 313,534 | 306,323 | ||||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 313,534 | 306,323 | ||||
Allowance for credit losses | (2,733) | (2,746) | (2,700) | (2,551) | (2,532) | (2,466) |
Residential Real Estate | Home equity | ||||||
Loans disclosures | ||||||
Total loans | 214,069 | 210,578 | ||||
Residential Real Estate | Home equity | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 214,069 | 210,578 | ||||
Allowance for credit losses | (4,113) | (4,044) | (4,111) | (4,305) | (4,615) | (4,990) |
Commercial Real Estate | ||||||
Loans disclosures | ||||||
Total loans | 1,569,119 | 1,456,009 | ||||
Commercial Real Estate | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 1,569,119 | 1,456,009 | ||||
Allowance for credit losses | (24,341) | (24,624) | (23,769) | (23,307) | (23,801) | (23,606) |
Construction & land development | ||||||
Loans disclosures | ||||||
Total loans | 137,452 | 129,337 | ||||
Construction & land development | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 137,452 | 129,337 | ||||
Allowance for credit losses | (3,591) | (3,893) | (4,128) | (3,299) | (3,593) | (3,274) |
Commercial | Commercial and Industrial | ||||||
Loans disclosures | ||||||
Total loans | 394,175 | 340,363 | ||||
Commercial | Commercial and Industrial | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 394,175 | 340,363 | ||||
Allowance for credit losses | (3,768) | (3,412) | (3,487) | (4,117) | (2,718) | (2,797) |
Commercial | Paycheck Protection Program | ||||||
Loans disclosures | ||||||
Total loans | 14,657 | 56,014 | ||||
Commercial | Paycheck Protection Program | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 14,657 | 56,014 | ||||
Loans, net | 15,000 | 56,000 | ||||
Lease Financing Receivables | ||||||
Loans disclosures | ||||||
Total loans | 11,345 | 8,637 | ||||
Lease Financing Receivables | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 11,345 | 8,637 | ||||
Allowance for credit losses | (119) | (109) | (91) | (97) | (104) | (106) |
Aircraft | ||||||
Loans disclosures | ||||||
Total loans | 159,958 | 142,894 | ||||
Aircraft | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 159,958 | 142,894 | ||||
Allowance for credit losses | (400) | (378) | (357) | (303) | (265) | (253) |
Consumer | ||||||
Loans disclosures | ||||||
Total loans | 27,144 | 31,073 | ||||
Consumer | Credit cards | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 15,419 | 14,510 | ||||
Allowance for credit losses | (994) | (944) | (934) | (949) | (930) | (929) |
Consumer | Overdrafts | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 901 | 683 | ||||
Allowance for credit losses | (901) | (716) | (683) | (717) | (473) | (587) |
Consumer | Automobile loans | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 9,579 | 14,448 | ||||
Allowance for credit losses | (122) | (151) | (186) | (273) | (334) | (399) |
Consumer | Other consumer | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 1,245 | 1,432 | ||||
Allowance for credit losses | (200) | (241) | (314) | (467) | (533) | (577) |
Warehouse lines of credit | ||||||
Loans disclosures | ||||||
Total loans | 596,678 | 850,550 | ||||
Warehouse lines of credit | Core Banking Activities | ||||||
Loans disclosures | ||||||
Total loans | 596,678 | 850,550 | ||||
Warehouse lines of credit | Warehouse Lending | ||||||
Loans disclosures | ||||||
Total loans | 596,678 | |||||
Allowance for credit losses | (1,491) | (1,725) | (2,126) | (2,100) | (2,165) | (2,407) |
Tax Refund Solution | ||||||
Loans disclosures | ||||||
Total loans | 149 | 50,987 | ||||
Tax Refund Solution | Easy Advances | Republic Processing Group | ||||||
Loans disclosures | ||||||
Allowance for credit losses | (8,315) | (16,019) | ||||
Tax Refund Solution | Other TRS loans | Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 149 | 50,987 | ||||
Allowance for credit losses | (55) | (96) | (10) | (158) | ||
Republic Credit Solution | ||||||
Loans disclosures | ||||||
Total loans | 91,816 | 93,066 | ||||
Republic Credit Solution | Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 91,816 | 93,066 | ||||
Allowance for credit losses | $ (13,231) | $ (11,945) | $ (12,948) | $ (8,829) | $ (7,755) | $ (8,803) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Contractually receivable | $ 4,364,937 | $ 4,498,671 |
Unearned income | (679) | (542) |
Unamortized premiums | 111 | 116 |
Unaccreted discounts | (574) | (641) |
PPP net unamortized deferred origination fees and costs | (303) | (1,203) |
Other net unamortized deferred origination (fees) and costs | (1,259) | 161 |
Carrying value of loans | $ 4,362,233 | $ 4,496,562 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - PAYCHECK PROTECTION PROGRAM (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, net | $ 4,297,784 | $ 4,431,985 | ||
Commercial | Paycheck Protection Program | Traditional Banking | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, net | 15,000 | 56,000 | ||
PPP fees recognized | $ 1,000 | $ 9,400 | $ 17,500 | $ 8,600 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RISK CATEGORY (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Risk category of rated loans | ||
Year One | $ 542,138 | $ 1,143,061 |
Year Two | 1,012,378 | 669,000 |
Year Three | 566,130 | 411,059 |
Year Four | 360,637 | 223,625 |
Prior | 757,728 | 670,768 |
Revolving Loans Amortized Cost Basis | 1,010,089 | 1,292,568 |
Revolving Loans Converted To Term Loans | 113,133 | 86,481 |
Loans | 4,362,233 | 4,496,562 |
Loans held for investment fair value | 45 | 170 |
Pass | ||
Risk category of rated loans | ||
Year One | 540,223 | 1,107,641 |
Year Two | 985,210 | 663,162 |
Year Three | 562,635 | 375,819 |
Year Four | 334,771 | 208,648 |
Prior | 718,712 | 626,424 |
Revolving Loans Amortized Cost Basis | 1,007,692 | 1,289,690 |
Revolving Loans Converted To Term Loans | 113,133 | 86,481 |
Loans | 4,262,376 | 4,357,865 |
Special Mention | ||
Risk category of rated loans | ||
Year One | 1,915 | 35,375 |
Year Two | 27,126 | 4,844 |
Year Three | 2,406 | 34,094 |
Year Four | 24,377 | 11,274 |
Prior | 25,069 | 29,075 |
Revolving Loans Amortized Cost Basis | 898 | 629 |
Loans | 81,791 | 115,291 |
Substandard | ||
Risk category of rated loans | ||
Year One | 45 | |
Year Two | 42 | 994 |
Year Three | 1,089 | 1,146 |
Year Four | 1,489 | 3,703 |
Prior | 13,947 | 15,269 |
Revolving Loans Amortized Cost Basis | 1,499 | 2,249 |
Loans | 18,066 | 23,406 |
Core Banking Activities | ||
Risk category of rated loans | ||
Loans | 4,270,268 | 4,352,509 |
Traditional Banking | ||
Risk category of rated loans | ||
Loans | 3,673,590 | 3,501,959 |
Republic Processing Group | ||
Risk category of rated loans | ||
Loans | 91,965 | 144,053 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Year One | 95,596 | 219,327 |
Year Two | 201,222 | 213,880 |
Year Three | 201,221 | 89,865 |
Year Four | 79,942 | 51,523 |
Prior | 254,156 | 246,136 |
Loans | 832,137 | 820,731 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Pass | ||
Risk category of rated loans | ||
Year One | 95,596 | 218,981 |
Year Two | 201,218 | 213,010 |
Year Three | 200,132 | 89,186 |
Year Four | 78,397 | 50,301 |
Prior | 235,958 | 226,852 |
Loans | 811,301 | 798,330 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Special Mention | ||
Risk category of rated loans | ||
Year One | 301 | |
Year Four | 189 | 33 |
Prior | 7,681 | 8,209 |
Loans | 7,870 | 8,543 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Substandard | ||
Risk category of rated loans | ||
Year One | 45 | |
Year Two | 4 | 870 |
Year Three | 1,089 | 679 |
Year Four | 1,356 | 1,189 |
Prior | 10,517 | 11,075 |
Loans | 12,966 | 13,858 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 832,137 | 820,731 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Year One | 45,525 | 107,041 |
Year Two | 98,457 | 65,786 |
Year Three | 58,325 | 44,376 |
Year Four | 36,582 | 29,292 |
Prior | 68,782 | 56,099 |
Revolving Loans Converted To Term Loans | 5,863 | 3,729 |
Loans | 313,534 | 306,323 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Pass | ||
Risk category of rated loans | ||
Year One | 45,525 | 107,041 |
Year Two | 98,419 | 65,786 |
Year Three | 58,325 | 44,376 |
Year Four | 36,582 | 29,292 |
Prior | 68,566 | 55,872 |
Revolving Loans Converted To Term Loans | 5,863 | 3,729 |
Loans | 313,280 | 306,096 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Special Mention | ||
Risk category of rated loans | ||
Prior | 126 | 132 |
Loans | 126 | 132 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Substandard | ||
Risk category of rated loans | ||
Year Two | 38 | |
Prior | 90 | 95 |
Loans | 128 | 95 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 313,534 | 306,323 |
Residential Real Estate | Home equity | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 214,069 | 210,578 |
Loans | 214,069 | 210,578 |
Residential Real Estate | Home equity | Pass | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 212,580 | 208,429 |
Loans | 212,580 | 208,429 |
Residential Real Estate | Home equity | Special Mention | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 348 | 279 |
Loans | 348 | 279 |
Residential Real Estate | Home equity | Substandard | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 1,141 | 1,870 |
Loans | 1,141 | 1,870 |
Residential Real Estate | Home equity | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 214,069 | 210,578 |
Commercial Real Estate | ||
Risk category of rated loans | ||
Year One | 253,974 | 492,154 |
Year Two | 452,688 | 258,549 |
Year Three | 230,876 | 183,129 |
Year Four | 169,187 | 107,872 |
Prior | 333,658 | 308,906 |
Revolving Loans Amortized Cost Basis | 24,290 | 25,188 |
Revolving Loans Converted To Term Loans | 104,446 | 80,211 |
Loans | 1,569,119 | 1,456,009 |
Commercial Real Estate | Pass | ||
Risk category of rated loans | ||
Year One | 252,650 | 472,095 |
Year Two | 439,645 | 256,039 |
Year Three | 228,470 | 153,224 |
Year Four | 145,692 | 94,212 |
Prior | 315,211 | 286,223 |
Revolving Loans Amortized Cost Basis | 24,040 | 25,188 |
Revolving Loans Converted To Term Loans | 104,446 | 80,211 |
Loans | 1,510,154 | 1,367,192 |
Commercial Real Estate | Special Mention | ||
Risk category of rated loans | ||
Year One | 1,324 | 20,059 |
Year Two | 13,043 | 2,399 |
Year Three | 2,406 | 29,639 |
Year Four | 23,495 | 11,207 |
Prior | 15,431 | 18,778 |
Revolving Loans Amortized Cost Basis | 250 | |
Loans | 55,949 | 82,082 |
Commercial Real Estate | Substandard | ||
Risk category of rated loans | ||
Year Two | 111 | |
Year Three | 266 | |
Year Four | 2,453 | |
Prior | 3,016 | 3,905 |
Loans | 3,016 | 6,735 |
Commercial Real Estate | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 1,569,119 | 1,456,009 |
Construction & land development | ||
Risk category of rated loans | ||
Year One | 50,812 | 88,743 |
Year Two | 76,293 | 31,117 |
Year Three | 5,013 | 6,269 |
Year Four | 770 | 1,155 |
Prior | 2,744 | 128 |
Revolving Loans Amortized Cost Basis | 1,820 | 1,925 |
Loans | 137,452 | 129,337 |
Construction & land development | Pass | ||
Risk category of rated loans | ||
Year One | 50,812 | 88,743 |
Year Two | 76,293 | 30,593 |
Year Three | 5,013 | 2,599 |
Year Four | 770 | 1,155 |
Prior | 2,744 | 128 |
Revolving Loans Amortized Cost Basis | 1,820 | 1,925 |
Loans | 137,452 | 125,143 |
Construction & land development | Special Mention | ||
Risk category of rated loans | ||
Year Two | 524 | |
Year Three | 3,670 | |
Loans | 4,194 | |
Construction & land development | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 137,452 | 129,337 |
Commercial | Commercial and Industrial | ||
Risk category of rated loans | ||
Year One | 53,637 | 120,163 |
Year Two | 105,991 | 36,295 |
Year Three | 26,068 | 55,488 |
Year Four | 46,968 | 18,144 |
Prior | 54,290 | 46,928 |
Revolving Loans Amortized Cost Basis | 104,397 | 60,804 |
Revolving Loans Converted To Term Loans | 2,824 | 2,541 |
Loans | 394,175 | 340,363 |
Commercial | Commercial and Industrial | Pass | ||
Risk category of rated loans | ||
Year One | 53,046 | 105,148 |
Year Two | 91,908 | 34,361 |
Year Three | 26,068 | 54,524 |
Year Four | 46,155 | 18,110 |
Prior | 52,459 | 44,972 |
Revolving Loans Amortized Cost Basis | 104,097 | 60,454 |
Revolving Loans Converted To Term Loans | 2,824 | 2,541 |
Loans | 376,557 | 320,110 |
Commercial | Commercial and Industrial | Special Mention | ||
Risk category of rated loans | ||
Year One | 591 | 15,015 |
Year Two | 14,083 | 1,921 |
Year Three | 785 | |
Year Four | 693 | 34 |
Prior | 1,831 | 1,956 |
Revolving Loans Amortized Cost Basis | 300 | 350 |
Loans | 17,498 | 20,061 |
Commercial | Commercial and Industrial | Substandard | ||
Risk category of rated loans | ||
Year Two | 13 | |
Year Three | 179 | |
Year Four | 120 | |
Loans | 120 | 192 |
Commercial | Commercial and Industrial | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 394,175 | 340,363 |
Commercial | Paycheck Protection Program | ||
Risk category of rated loans | ||
Year One | 40,607 | |
Year Two | 12,207 | 15,407 |
Year Three | 2,450 | |
Loans | 14,657 | 56,014 |
Commercial | Paycheck Protection Program | Pass | ||
Risk category of rated loans | ||
Year One | 40,607 | |
Year Two | 12,207 | 15,407 |
Year Three | 2,450 | |
Loans | 14,657 | 56,014 |
Commercial | Paycheck Protection Program | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 14,657 | 56,014 |
Aircraft | ||
Risk category of rated loans | ||
Year One | 32,905 | 65,886 |
Year Two | 59,236 | 43,301 |
Year Three | 39,231 | 22,933 |
Year Four | 20,316 | 9,119 |
Prior | 8,270 | 1,655 |
Loans | 159,958 | 142,894 |
Aircraft | Pass | ||
Risk category of rated loans | ||
Year One | 32,905 | 65,886 |
Year Two | 59,236 | 43,301 |
Year Three | 39,231 | 22,933 |
Year Four | 20,316 | 9,119 |
Prior | 8,270 | 1,655 |
Loans | 159,958 | 142,894 |
Aircraft | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 159,958 | 142,894 |
Lease Financing Receivables | ||
Risk category of rated loans | ||
Year One | 4,423 | 2,638 |
Year Two | 2,283 | 839 |
Year Three | 617 | 2,641 |
Year Four | 2,231 | 1,264 |
Prior | 1,791 | 1,255 |
Loans | 11,345 | 8,637 |
Lease Financing Receivables | Pass | ||
Risk category of rated loans | ||
Year One | 4,423 | 2,638 |
Year Two | 2,283 | 839 |
Year Three | 617 | 2,641 |
Year Four | 2,231 | 1,264 |
Prior | 1,791 | 1,255 |
Loans | 11,345 | 8,637 |
Lease Financing Receivables | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 11,345 | 8,637 |
Consumer | ||
Risk category of rated loans | ||
Year One | 828 | 978 |
Year Two | 682 | 417 |
Year Three | 280 | 4,716 |
Year Four | 3,443 | 4,387 |
Prior | 6,389 | 5,962 |
Revolving Loans Amortized Cost Basis | 15,522 | 14,613 |
Loans | 27,144 | 31,073 |
Consumer | Pass | ||
Risk category of rated loans | ||
Year One | 828 | 978 |
Year Two | 682 | 417 |
Year Three | 280 | 4,694 |
Year Four | 3,430 | 4,326 |
Prior | 6,065 | 5,768 |
Revolving Loans Amortized Cost Basis | 15,522 | 14,613 |
Loans | 26,807 | 30,796 |
Consumer | Substandard | ||
Risk category of rated loans | ||
Year Three | 22 | |
Year Four | 13 | 61 |
Prior | 324 | 194 |
Loans | 337 | 277 |
Consumer | Credit cards | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 15,419 | 14,510 |
Consumer | Overdrafts | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 901 | 683 |
Consumer | Automobile loans | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 9,579 | 14,448 |
Consumer | Other consumer | Traditional Banking | ||
Risk category of rated loans | ||
Loans | 1,245 | 1,432 |
Warehouse lines of credit | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 596,678 | 850,550 |
Loans | 596,678 | 850,550 |
Warehouse lines of credit | Pass | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 596,678 | 850,550 |
Loans | 596,678 | 850,550 |
Warehouse lines of credit | Core Banking Activities | ||
Risk category of rated loans | ||
Loans | 596,678 | 850,550 |
Warehouse lines of credit | Warehouse Lending | ||
Risk category of rated loans | ||
Loans | 596,678 | |
Tax Refund Solution | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 149 | 50,987 |
Loans | 149 | 50,987 |
Tax Refund Solution | Pass | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 149 | 50,987 |
Loans | 149 | 50,987 |
Tax Refund Solution | Other TRS loans | Republic Processing Group | ||
Risk category of rated loans | ||
Loans | 149 | 50,987 |
Republic Credit Solution | ||
Risk category of rated loans | ||
Year One | 4,438 | 5,524 |
Year Two | 3,319 | 3,409 |
Year Three | 2,049 | 1,642 |
Year Four | 1,198 | 869 |
Prior | 27,648 | 3,699 |
Revolving Loans Amortized Cost Basis | 53,164 | 77,923 |
Loans | 91,816 | 93,066 |
Republic Credit Solution | Pass | ||
Risk category of rated loans | ||
Year One | 4,438 | 5,524 |
Year Two | 3,319 | 3,409 |
Year Three | 2,049 | 1,642 |
Year Four | 1,198 | 869 |
Prior | 27,648 | 3,699 |
Revolving Loans Amortized Cost Basis | 52,806 | 77,544 |
Loans | 91,458 | 92,687 |
Republic Credit Solution | Substandard | ||
Risk category of rated loans | ||
Revolving Loans Amortized Cost Basis | 358 | 379 |
Loans | 358 | 379 |
Republic Credit Solution | Republic Processing Group | ||
Risk category of rated loans | ||
Loans | $ 91,816 | $ 93,066 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Allowance for loan losses rollforward | |||||
Beginning Balance | $ 71,656 | $ 75,336 | $ 64,577 | $ 60,291 | $ 61,067 |
Provision | 3,665 | (4,276) | 12,898 | 11,061 | |
Charge-offs | (14,314) | (11,044) | (17,250) | (12,467) | |
Recoveries | 3,442 | 275 | 4,224 | 630 | |
Ending Balance | 64,449 | 60,291 | $ 64,449 | $ 64,577 | 60,291 |
Forecast period for unemployment and general CRE values | 1 year | 1 year | |||
Core Banking Activities | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 51,341 | 51,552 | $ 51,533 | $ 51,462 | 52,106 |
Provision | (128) | (95) | (202) | (267) | |
Charge-offs | (245) | (161) | (508) | (798) | |
Recoveries | 250 | 166 | 395 | 421 | |
Ending Balance | 51,218 | 51,462 | 51,218 | 51,533 | 51,462 |
Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 49,616 | 49,387 | 49,407 | 49,362 | 49,699 |
Provision | 106 | (30) | 433 | 40 | |
Charge-offs | (245) | (161) | (508) | (798) | |
Recoveries | 250 | 166 | 395 | 421 | |
Ending Balance | 49,727 | 49,362 | 49,727 | 49,407 | 49,362 |
Republic Processing Group | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 20,315 | 23,784 | 13,044 | 8,829 | 8,961 |
Provision | 3,793 | (4,181) | 13,100 | 11,328 | |
Charge-offs | (14,069) | (10,883) | (16,742) | (11,669) | |
Recoveries | 3,192 | 109 | 3,829 | 209 | |
Ending Balance | 13,231 | 8,829 | 13,231 | 13,044 | 8,829 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 8,358 | 9,489 | 8,647 | 8,977 | 9,715 |
Provision | 62 | (530) | (269) | (783) | |
Recoveries | 25 | 18 | 67 | 45 | |
Ending Balance | 8,445 | 8,977 | 8,445 | 8,647 | 8,977 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 2,746 | 2,532 | 2,700 | 2,551 | 2,466 |
Provision | (14) | 18 | 31 | 84 | |
Recoveries | 1 | 1 | 2 | 1 | |
Ending Balance | 2,733 | 2,551 | 2,733 | 2,700 | 2,551 |
Residential Real Estate | Home equity | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 4,044 | 4,615 | 4,111 | 4,305 | 4,990 |
Provision | (40) | (344) | (110) | (726) | |
Recoveries | 109 | 34 | 112 | 41 | |
Ending Balance | 4,113 | 4,305 | 4,113 | 4,111 | 4,305 |
Commercial Real Estate | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 24,624 | 23,801 | 23,769 | 23,307 | 23,606 |
Provision | (284) | (506) | 570 | 49 | |
Charge-offs | (428) | ||||
Recoveries | 1 | 12 | 2 | 80 | |
Ending Balance | 24,341 | 23,307 | 24,341 | 23,769 | 23,307 |
Construction & land development | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 3,893 | 3,593 | 4,128 | 3,299 | 3,274 |
Provision | (302) | (294) | (537) | 25 | |
Ending Balance | 3,591 | 3,299 | 3,591 | 4,128 | 3,299 |
Commercial | Commercial and Industrial | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 3,412 | 2,718 | 3,487 | 4,117 | 2,797 |
Provision | 348 | 1,395 | 264 | 1,309 | |
Recoveries | 8 | 4 | 17 | 11 | |
Ending Balance | 3,768 | 4,117 | 3,768 | 3,487 | 4,117 |
Lease Financing Receivables | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 109 | 104 | 91 | 97 | 106 |
Provision | 10 | (7) | 28 | (9) | |
Ending Balance | 119 | 97 | 119 | 91 | 97 |
Aircraft | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 378 | 265 | 357 | 303 | 253 |
Provision | 22 | 38 | 43 | 50 | |
Ending Balance | 400 | 303 | 400 | 357 | 303 |
Consumer | Credit cards | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 944 | 930 | 934 | 949 | 929 |
Provision | 59 | 42 | 91 | 86 | |
Charge-offs | (31) | (33) | (70) | (90) | |
Recoveries | 22 | 10 | 39 | 24 | |
Ending Balance | 994 | 949 | 994 | 934 | 949 |
Consumer | Overdrafts | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 716 | 473 | 683 | 717 | 587 |
Provision | 315 | 281 | 503 | 208 | |
Charge-offs | (194) | (111) | (408) | (249) | |
Recoveries | 64 | 74 | 123 | 171 | |
Ending Balance | 901 | 717 | 901 | 683 | 717 |
Consumer | Automobile loans | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 151 | 334 | 186 | 273 | 399 |
Provision | (32) | (66) | (68) | (144) | |
Recoveries | 3 | 5 | 4 | 18 | |
Ending Balance | 122 | 273 | 122 | 186 | 273 |
Consumer | Other consumer | Traditional Banking | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 241 | 533 | 314 | 467 | 577 |
Provision | (38) | (57) | (113) | (109) | |
Charge-offs | (20) | (17) | (30) | (31) | |
Recoveries | 17 | 8 | 29 | 30 | |
Ending Balance | 200 | 467 | 200 | 314 | 467 |
Warehouse lines of credit | Warehouse Lending | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 1,725 | 2,165 | 2,126 | 2,100 | 2,407 |
Provision | (234) | (65) | (635) | (307) | |
Ending Balance | 1,491 | 2,100 | 1,491 | 2,126 | 2,100 |
Tax Refund Solution | Easy Advances | Republic Processing Group | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 8,315 | 16,019 | |||
Provision | 564 | (5,793) | 8,879 | 10,226 | |
Charge-offs | (11,505) | (10,256) | (11,505) | (10,256) | |
Recoveries | 2,626 | 30 | 2,626 | 30 | |
Tax Refund Solution | Other TRS loans | Republic Processing Group | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 55 | 10 | 96 | 158 | |
Provision | (204) | 20 | (607) | (115) | |
Charge-offs | (153) | (30) | (153) | (51) | |
Recoveries | 302 | 664 | 8 | ||
Ending Balance | 96 | ||||
Republic Credit Solution | Republic Processing Group | |||||
Allowance for loan losses rollforward | |||||
Beginning Balance | 11,945 | 7,755 | 12,948 | 8,829 | 8,803 |
Provision | 3,433 | 1,592 | 4,828 | 1,217 | |
Charge-offs | (2,411) | (597) | (5,084) | (1,362) | |
Recoveries | 264 | 79 | 539 | 171 | |
Ending Balance | $ 13,231 | $ 8,829 | $ 13,231 | $ 12,948 | $ 8,829 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 16,168 | $ 20,504 |
Loans past due 90 days or more and still on accrual | 42 | 48 |
Total nonperforming loans | 16,210 | 20,552 |
Other real estate owned | 1,687 | 1,792 |
Total nonperforming assets | $ 17,897 | $ 22,344 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.37% | 0.46% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.41% | 0.50% |
Nonperforming assets to total assets (as percent) | 0.29% | 0.37% |
Core Banking Activities | ||
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 16,168 | $ 20,504 |
Loans past due 90 days or more and still on accrual | $ 1 | |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.38% | 0.47% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.42% | 0.51% |
Nonperforming assets to total assets (as percent) | 0.32% | 0.40% |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | $ 3,294 | $ 3,294 | $ 6,097 | ||
Nonaccrual with no ACLL | 12,874 | 12,874 | 14,407 | ||
Nonaccrual | 16,168 | 16,168 | 20,504 | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 42 | 42 | 48 | ||
Interest Income Recognized on Nonaccrual Loans | 301 | $ 232 | $ 1,100 | $ 539 | |
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 | 16,168 | $ 16,168 | 20,504 | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 1 | ||||
Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 16,168 | 16,168 | 20,504 | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 1 | ||||
Republic Processing Group | |||||
Aging or recorded investments in loans | |||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 42 | 42 | 47 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 18 | 18 | 1,944 | ||
Nonaccrual with no ACLL | 11,520 | 11,520 | 10,095 | ||
Nonaccrual | 11,538 | 11,538 | 12,039 | ||
Interest Income Recognized on Nonaccrual Loans | 154 | 166 | 257 | 414 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 11,538 | 11,538 | 12,039 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 37 | 37 | 31 | ||
Nonaccrual with no ACLL | 91 | 91 | 64 | ||
Nonaccrual | 128 | 128 | 95 | ||
Interest Income Recognized on Nonaccrual Loans | 1 | 2 | 1 | 3 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 128 | 128 | 95 | ||
Residential Real Estate | Home equity | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with no ACLL | 1,016 | 1,016 | 1,700 | ||
Nonaccrual | 1,016 | 1,016 | 1,700 | ||
Interest Income Recognized on Nonaccrual Loans | 84 | 26 | 146 | 66 | |
Residential Real Estate | Home equity | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 1,016 | 1,016 | 1,700 | ||
Commercial Real Estate | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 3,228 | 3,228 | 4,105 | ||
Nonaccrual with no ACLL | 2,452 | ||||
Nonaccrual | 3,228 | 3,228 | 6,557 | ||
Interest Income Recognized on Nonaccrual Loans | 14 | 36 | 644 | 51 | |
Commercial Real Estate | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 3,228 | 3,228 | 6,557 | ||
Commercial | Commercial and Industrial | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with no ACLL | 13 | ||||
Nonaccrual | 13 | ||||
Interest Income Recognized on Nonaccrual Loans | 1 | ||||
Commercial | Commercial and Industrial | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 13 | ||||
Consumer | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 11 | 11 | 17 | ||
Nonaccrual with no ACLL | 247 | 247 | 83 | ||
Nonaccrual | 258 | 258 | 100 | ||
Interest Income Recognized on Nonaccrual Loans | 48 | $ 2 | 52 | $ 4 | |
Consumer | Overdrafts | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 1 | ||||
Consumer | Automobile loans | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 36 | 36 | 97 | ||
Consumer | Other consumer | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 222 | 222 | 3 | ||
Republic Credit Solution | Republic Processing Group | |||||
Aging or recorded investments in loans | |||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 42 | $ 42 | $ 47 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Aging or recorded investments in loans | ||
Carrying value of loans | $ 4,362,233 | $ 4,496,562 |
30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 6,477 | $ 5,842 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.15% | 0.13% |
60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 2,278 | $ 1,410 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.05% | 0.03% |
90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 2,696 | $ 6,213 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.06% | 0.14% |
Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 11,451 | $ 13,465 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.26% | 0.30% |
Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 4,350,782 | $ 4,483,097 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 832,137 | 820,731 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 313,534 | 306,323 |
Residential Real Estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 214,069 | 210,578 |
Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,569,119 | 1,456,009 |
Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 137,452 | 129,337 |
Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 394,175 | 340,363 |
Commercial | Paycheck Protection Program | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 14,657 | 56,014 |
Lease Financing Receivables | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 11,345 | 8,637 |
Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 159,958 | 142,894 |
Consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 27,144 | 31,073 |
Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 596,678 | 850,550 |
Tax Refund Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 149 | 50,987 |
Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 91,816 | 93,066 |
Core Banking Activities | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,270,268 | 4,352,509 |
Core Banking Activities | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,563 | 832 |
Core Banking Activities | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,135 | 432 |
Core Banking Activities | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,654 | 6,166 |
Core Banking Activities | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,352 | 7,430 |
Core Banking Activities | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,264,916 | 4,345,079 |
Core Banking Activities | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 596,678 | 850,550 |
Core Banking Activities | Warehouse lines of credit | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 850,550 | |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,673,590 | 3,501,959 |
Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,563 | 832 |
Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,135 | 432 |
Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,654 | 6,166 |
Traditional Banking | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,352 | 7,430 |
Traditional Banking | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,668,238 | 3,494,529 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 832,137 | 820,731 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,340 | 606 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 796 | 383 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 333 | 610 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,469 | 1,599 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 829,668 | 819,132 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 313,534 | 306,323 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 41 | |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 41 | |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 313,493 | 306,323 |
Traditional Banking | Residential Real Estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 214,069 | 210,578 |
Traditional Banking | Residential Real Estate | Home equity | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 8 | 38 |
Traditional Banking | Residential Real Estate | Home equity | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 10 | 35 |
Traditional Banking | Residential Real Estate | Home equity | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 132 | 241 |
Traditional Banking | Residential Real Estate | Home equity | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 150 | 314 |
Traditional Banking | Residential Real Estate | Home equity | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 213,919 | 210,264 |
Traditional Banking | Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,569,119 | 1,456,009 |
Traditional Banking | Commercial Real Estate | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,142 | 5,292 |
Traditional Banking | Commercial Real Estate | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,142 | 5,292 |
Traditional Banking | Commercial Real Estate | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,566,977 | 1,450,717 |
Traditional Banking | Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 137,452 | 129,337 |
Traditional Banking | Construction & land development | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 137,452 | 129,337 |
Traditional Banking | Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 394,175 | 340,363 |
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 | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 321 | |
Traditional Banking | Commercial | Commercial and Industrial | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 13 | |
Traditional Banking | Commercial | Commercial and Industrial | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 321 | 21 |
Traditional Banking | Commercial | Commercial and Industrial | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 393,854 | 340,342 |
Traditional Banking | Commercial | Paycheck Protection Program | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 14,657 | 56,014 |
Traditional Banking | Commercial | Paycheck Protection Program | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 14,657 | 56,014 |
Traditional Banking | Lease Financing Receivables | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 11,345 | 8,637 |
Traditional Banking | Lease Financing Receivables | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 11,345 | 8,637 |
Traditional Banking | Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 159,958 | 142,894 |
Traditional Banking | Aircraft | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 159,958 | 142,894 |
Traditional Banking | Consumer | Credit cards | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 15,419 | 14,510 |
Traditional Banking | Consumer | Credit cards | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 19 | 19 |
Traditional Banking | Consumer | Credit cards | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5 | 11 |
Traditional Banking | Consumer | Credit cards | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 24 | 30 |
Traditional Banking | Consumer | Credit cards | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 15,395 | 14,480 |
Traditional Banking | Consumer | Overdrafts | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 901 | 683 |
Traditional Banking | Consumer | Overdrafts | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 196 | 160 |
Traditional Banking | Consumer | Overdrafts | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3 | 3 |
Traditional Banking | Consumer | Overdrafts | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Traditional Banking | Consumer | Overdrafts | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 199 | 164 |
Traditional Banking | Consumer | Overdrafts | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 702 | 519 |
Traditional Banking | Consumer | Automobile loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,579 | 14,448 |
Traditional Banking | Consumer | Automobile loans | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6 | 9 |
Traditional Banking | Consumer | Automobile loans | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6 | 9 |
Traditional Banking | Consumer | Automobile loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,573 | 14,439 |
Traditional Banking | Consumer | Other consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,245 | 1,432 |
Traditional Banking | Consumer | Other consumer | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Traditional Banking | Consumer | Other consumer | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Traditional Banking | Consumer | Other consumer | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,245 | 1,431 |
Warehouse Lending | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 596,678 | |
Warehouse Lending | Warehouse lines of credit | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 596,678 | |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 91,965 | 144,053 |
Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,914 | 5,010 |
Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,143 | 978 |
Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 42 | 47 |
Republic Processing Group | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6,099 | 6,035 |
Republic Processing Group | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 85,866 | 138,018 |
Republic Processing Group | Tax Refund Solution | Other TRS loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 149 | 50,987 |
Republic Processing Group | Tax Refund Solution | Other TRS loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 149 | 50,987 |
Republic Processing Group | Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 91,816 | 93,066 |
Republic Processing Group | Republic Credit Solution | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,914 | 5,010 |
Republic Processing Group | Republic Credit Solution | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,143 | 978 |
Republic Processing Group | Republic Credit Solution | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 42 | 47 |
Republic Processing Group | Republic Credit Solution | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6,099 | 6,035 |
Republic Processing Group | Republic Credit Solution | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 85,717 | $ 87,031 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COLLATERAL DEPENDENT LOANS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of selling cost on collateral | 10% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of selling cost on collateral | 13% | |
Traditional Banking | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | $ 18,444 | $ 23,605 |
Traditional Banking | Personal Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 401 | 466 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 14,050 | 14,798 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 128 | 95 |
Traditional Banking | Residential Real Estate | Home equity | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 1,246 | 1,976 |
Traditional Banking | Commercial Real Estate | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 3,020 | 6,736 |
Traditional Banking | Commercial | Commercial and Industrial | Personal Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | 120 | 192 |
Traditional Banking | Consumer | Personal Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured Loans | $ 281 | $ 274 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR ACCRUAL STATUS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Troubled Debt Restructurings disclosures | ||||
Number of Loans | 494 | 292 | 2,590 | 2,429 |
Recorded Investment | $ 136,000 | $ 330,000 | $ 13,612,000 | $ 15,386,000 |
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 | 68 | ||
Recorded Investment | $ 5,258,000 | $ 5,811,000 | ||
Accrual Loans | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 2,523 | 2,361 | ||
Recorded Investment | $ 8,354,000 | $ 9,575,000 | ||
Residential Real Estate | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | 5 | 5 | 139 | 152 |
Recorded Investment | $ 59,000 | $ 292,000 | $ 10,148,000 | $ 11,035,000 |
Residential Real Estate | Loans on non-accrual status | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 64 | 63 | ||
Recorded Investment | $ 3,102,000 | $ 3,179,000 | ||
Residential Real Estate | Accrual Loans | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 75 | 89 | ||
Recorded Investment | $ 7,046,000 | $ 7,856,000 | ||
Commercial Real Estate | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 2 | 4 | ||
Recorded Investment | $ 3,025,000 | $ 3,814,000 | ||
Commercial Real Estate | Loans on non-accrual status | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 1 | 2 | ||
Recorded Investment | $ 2,142,000 | $ 2,575,000 | ||
Commercial Real Estate | Accrual Loans | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 1 | 2 | ||
Recorded Investment | $ 883,000 | $ 1,239,000 | ||
Commercial | Commercial and Industrial | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 1 | 3 | ||
Recorded Investment | $ 1,000 | $ 46,000 | ||
Commercial | Commercial and Industrial | Loans on non-accrual status | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 2 | |||
Recorded Investment | $ 45,000 | |||
Commercial | Commercial and Industrial | Accrual Loans | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 1 | 1 | ||
Recorded Investment | $ 1,000 | $ 1,000 | ||
Consumer | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | 489 | 287 | 2,448 | 2,270 |
Recorded Investment | $ 77,000 | $ 38,000 | $ 438,000 | $ 491,000 |
Consumer | Loans on non-accrual status | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 2 | 1 | ||
Recorded Investment | $ 14,000 | $ 12,000 | ||
Consumer | Accrual Loans | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans | loan | 2,446 | 2,269 | ||
Recorded Investment | $ 424,000 | $ 479,000 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFICATIONS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Troubled Debt Restructurings disclosures | |||||
Period of time loans are not past due in which TDR loans are performing | 30 days | ||||
Number of Loans | 494 | 292 | 2,590 | 2,429 | |
Recorded Investment | $ 136,000 | $ 330,000 | $ 13,612,000 | $ 15,386,000 | |
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 | 497 | 600 | |||
Recorded Investment | $ 605,000 | $ 767,000 | |||
Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 492 | 291 | 2,575 | 2,413 | |
Recorded Investment | $ 112,000 | $ 280,000 | $ 10,765,000 | $ 12,177,000 | |
Percentage of troubled debt restructurings performing as per terms of modifications | 79% | 79% | 79% | ||
Specific reserve allocations made to customers | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||
Percentage of Bank's TDRs that occurred during period, which were performing according to their modified terms | 82% | 85% | 92% | 67% | |
Specific ACLL allocations made to customers whose loan terms were modified in TDRs during period | $ 36,000 | $ 18,000 | $ 36,000 | $ 35,000 | |
Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 494 | 597 | |||
Recorded Investment | $ 554,000 | $ 512,000 | |||
Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 2 | 1 | 15 | 16 | |
Recorded Investment | $ 24,000 | $ 50,000 | $ 2,847,000 | $ 3,209,000 | |
Nonperforming Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 3 | |||
Recorded Investment | $ 51,000 | $ 255,000 | |||
Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 5 | 5 | 139 | 152 | |
Recorded Investment | $ 59,000 | $ 292,000 | $ 10,148,000 | $ 11,035,000 | |
Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 75 | 86 | |||
Recorded Investment | $ 6,868,000 | $ 7,764,000 | |||
Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 7 | 7 | ||
Recorded Investment | $ 16,000 | $ 715,000 | $ 729,000 | ||
Residential Real Estate | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 5 | 4 | 57 | 59 | |
Recorded Investment | $ 59,000 | $ 276,000 | $ 2,565,000 | $ 2,542,000 | |
Residential Real Estate | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 8 | 9 | |||
Recorded Investment | $ 528,000 | $ 695,000 | |||
Residential Real Estate | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 161,000 | ||||
Residential Real Estate | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 8 | 8 | |||
Recorded Investment | $ 528,000 | $ 534,000 | |||
Residential Real Estate | Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 3 | 4 | 125 | 137 | |
Recorded Investment | $ 35,000 | $ 242,000 | $ 9,443,000 | $ 10,290,000 | |
Residential Real Estate | Performing Financing Receivable | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 71 | 82 | |||
Recorded Investment | $ 6,541,000 | $ 7,461,000 | |||
Residential Real Estate | Performing Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 6 | 7 | ||
Recorded Investment | $ 16,000 | $ 558,000 | $ 729,000 | ||
Residential Real Estate | Performing Financing Receivable | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 3 | 3 | 48 | 48 | |
Recorded Investment | $ 35,000 | $ 226,000 | $ 2,344,000 | $ 2,100,000 | |
Residential Real Estate | Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 5 | 6 | |||
Recorded Investment | $ 477,000 | $ 440,000 | |||
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 161,000 | ||||
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 5 | 5 | |||
Recorded Investment | $ 477,000 | $ 279,000 | |||
Residential Real Estate | Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 2 | 1 | 14 | 15 | |
Recorded Investment | $ 24,000 | $ 50,000 | $ 705,000 | $ 745,000 | |
Residential Real Estate | Nonperforming Financing Receivable | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 4 | |||
Recorded Investment | $ 327,000 | $ 303,000 | |||
Residential Real Estate | Nonperforming Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 157,000 | ||||
Residential Real Estate | Nonperforming Financing Receivable | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 2 | 1 | 9 | 11 | |
Recorded Investment | $ 24,000 | $ 50,000 | $ 221,000 | $ 442,000 | |
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 3 | |||
Recorded Investment | $ 51,000 | $ 255,000 | |||
Residential Real Estate | Nonperforming Financing Receivable | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 3 | |||
Recorded Investment | $ 51,000 | $ 255,000 | |||
Commercial Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 4 | |||
Recorded Investment | $ 3,025,000 | $ 3,814,000 | |||
Commercial related and construction/land development | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 7 | |||
Recorded Investment | $ 3,026,000 | $ 3,860,000 | |||
Commercial related and construction/land development | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 883,000 | $ 919,000 | |||
Commercial related and construction/land development | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 6 | |||
Recorded Investment | $ 2,143,000 | $ 2,941,000 | |||
Commercial related and construction/land development | Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 6 | |||
Recorded Investment | $ 884,000 | $ 1,396,000 | |||
Commercial related and construction/land development | Performing Financing Receivable | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 883,000 | $ 919,000 | |||
Commercial related and construction/land development | Performing Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 5 | |||
Recorded Investment | $ 1,000 | $ 477,000 | |||
Commercial related and construction/land development | Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 2,142,000 | $ 2,464,000 | |||
Commercial related and construction/land development | Nonperforming Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 2,142,000 | $ 2,464,000 | |||
Consumer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 489 | 287 | 2,448 | 2,270 | |
Recorded Investment | $ 77,000 | $ 38,000 | $ 438,000 | $ 491,000 | |
Consumer | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 489 | 286 | 2,444 | 2,266 | |
Recorded Investment | $ 77,000 | $ 38,000 | $ 420,000 | $ 470,000 | |
Consumer | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 4 | 4 | ||
Recorded Investment | $ 18,000 | $ 21,000 | |||
Consumer | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 489 | 591 | |||
Recorded Investment | $ 77,000 | $ 72,000 | |||
Consumer | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 489 | 589 | |||
Recorded Investment | $ 77,000 | $ 69,000 | |||
Consumer | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 3,000 | ||||
Consumer | Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 489 | 287 | 2,448 | 2,270 | |
Recorded Investment | $ 77,000 | $ 38,000 | $ 438,000 | $ 491,000 | |
Consumer | Performing Financing Receivable | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | 489 | 286 | 2,444 | 2,266 | |
Recorded Investment | $ 77,000 | $ 38,000 | $ 420,000 | $ 470,000 | |
Consumer | Performing Financing Receivable | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 4 | 4 | ||
Recorded Investment | $ 18,000 | $ 21,000 | |||
Consumer | Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 489 | 591 | |||
Recorded Investment | $ 77,000 | $ 72,000 | |||
Consumer | Performing Financing Receivable | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 489 | 589 | |||
Recorded Investment | $ 77,000 | $ 69,000 | |||
Consumer | Performing Financing Receivable | Modified During The Period | Bankrupt customer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 3,000 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFIED CLASS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 3 | 3 | 4 | 7 |
Recorded Investment with payment default | $ | $ 51 | $ 248 | $ 64 | $ 420 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 2 | 2 | 2 | 6 |
Recorded Investment with payment default | $ | $ 40 | $ 121 | $ 40 | $ 293 |
Residential Real Estate | Home equity | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | 2 | ||
Recorded Investment with payment default | $ | $ 11 | $ 24 | ||
Commercial Real Estate | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | 1 | ||
Recorded Investment with payment default | $ | $ 127 | $ 127 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,687 | $ 1,792 |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,687 | $ 1,792 |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable Gross Carrying Amount | $ 4,362,233 | $ 4,496,562 |
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 | $ 751 | $ 508 |
LOANS AND ALLOWANCE FOR CRED_17
LOANS AND ALLOWANCE FOR CREDIT LOSSES - EASY ADVANCES (Details) - Tax Refund Solutions - Easy Advances - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Period Easy Advance tax credit product offered | 2 months | 2 months | ||||
Easy Advances originated | $ 311,207 | $ 250,045 | ||||
Net charge to the Provision for Easy Advances | $ 564 | $ (5,793) | $ 8,879 | $ 10,226 | ||
Provision to total Easy Advances originated | 2.85% | 4.09% | ||||
Easy Advances net charge-offs (recoveries) | $ 8,879 | $ 10,226 | $ 8,879 | $ 10,226 | ||
Easy Advances net charge-offs (recoveries) to total Easy Advances originated | 2.85% | 4.09% |
DEPOSITS - Balances (Details)
DEPOSITS - Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deposit Liabilities | ||
Total interest-bearing deposits | $ 2,733,093 | $ 2,849,637 |
Total non interest-bearing deposits | 2,094,436 | 1,990,781 |
Total deposits | 4,827,529 | 4,840,418 |
Core Banking Activities | ||
Deposit Liabilities | ||
Demand | 1,338,061 | 1,381,522 |
Money market accounts | 775,560 | 789,876 |
Savings | 331,508 | 311,624 |
Individual retirement accounts | 41,305 | 43,724 |
Time deposits, $250 and over | 51,976 | 81,050 |
Other certificates of deposit | 132,536 | 154,174 |
Reciprocal money market and time deposits | 52,862 | 77,950 |
Total interest-bearing deposits | 2,723,808 | 2,839,920 |
Total non interest-bearing deposits | 1,676,974 | 1,579,173 |
Total deposits | 4,400,782 | 4,419,093 |
Republic Processing Group | ||
Deposit Liabilities | ||
Money market accounts | 9,285 | 9,717 |
Total interest-bearing deposits | 9,285 | 9,717 |
Brokered prepaid cards deposits | 319,455 | 320,907 |
Other noninterest-bearing deposits | 98,007 | 90,701 |
Total non interest-bearing deposits | 417,462 | 411,608 |
Total deposits | $ 426,747 | $ 421,325 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Securities sold under agreements to repurchase | |||||
Outstanding balance at end of period | $ 303,315 | $ 303,315 | $ 290,967 | ||
Securities sold under agreements to repurchase | |||||
Securities sold under agreements to repurchase | |||||
Securities pledged more than repurchase agreements (as a percent) | 2% | 2% | |||
Outstanding balance at end of period | $ 303,315 | $ 303,315 | $ 290,967 | ||
Weighted average interest rate at end of period (as a percent) | 0.09% | 0.09% | 0.04% | ||
Fair Value of securities pledged | $ 347,815 | $ 347,815 | $ 309,815 | ||
Average outstanding balance during the period | $ 294,388 | $ 169,888 | $ 297,263 | $ 181,216 | |
Average interest rate during the period (as a percent) | 0.07% | 0.02% | 0.05% | 0.02% | |
Maximum outstanding at any month end during the period | $ 303,315 | $ 174,928 | $ 303,315 | $ 200,704 | |
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 | 304,203 | 304,203 | 108,813 | ||
Securities sold under agreements to repurchase | Mortgage backed securities - residential | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | 42,422 | 42,422 | 167,561 | ||
Securities sold under agreements to repurchase | Collateralized mortgage obligations | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | $ 1,190 | $ 1,190 | $ 33,441 |
RIGHT-OF-USE ASSETS AND OPERA_3
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) item contract | |
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 | 37 |
Number of operating leases contracted with a related party of the Company | contract | 12 |
Number of operating leases considered variable | 22 |
Related party lease right-of-use asset upon commencement of lease | $ | $ 5 |
Number of related party leases renewed | 1 |
Number of third party lease extensions | 4 |
RIGHT-OF-USE ASSETS AND OPERA_4
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Operating lease expense: | |||||
Total operating lease expense | $ 1,895 | $ 1,791 | $ 3,737 | $ 3,583 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 1,707 | 1,799 | 3,412 | 3,597 | |
Cash paid for variable rent payments not included in measurement of operating lease liabilities | $ 151 | $ 302 | |||
Weighted average remaining term in years | 8 years 4 months 20 days | 8 years 4 months 20 days | 7 years 6 months 25 days | ||
Weighted average discount rate | 2.64% | 2.64% | 3.05% | ||
Related Party | |||||
Operating lease expense: | |||||
Variable lease expense | $ 1,269 | 1,218 | $ 2,535 | 2,438 | |
Fixed lease expense | 57 | 34 | 92 | 68 | |
Third Party | |||||
Operating lease expense: | |||||
Variable lease expense | 220 | 197 | 417 | 393 | |
Fixed lease expense | $ 349 | $ 342 | $ 693 | $ 684 |
RIGHT-OF-USE ASSETS AND OPERA_5
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating lease liabilities | ||
2022 | $ 3,432 | |
2023 | 6,703 | |
2024 | 6,117 | |
2025 | 5,449 | |
2026 | 5,224 | |
Thereafter | 20,688 | |
Total undiscounted cash flows | 47,613 | |
Discount applied to cash flows | (5,450) | |
Total discounted cash flows reported as operating lease liabilities | 42,163 | $ 39,672 |
Related Party | ||
Operating lease liabilities | ||
2022 | 2,123 | |
2023 | 4,274 | |
2024 | 4,189 | |
2025 | 4,053 | |
2026 | 4,124 | |
Thereafter | 16,375 | |
Total undiscounted cash flows | 35,138 | |
Discount applied to cash flows | (3,398) | |
Total discounted cash flows reported as operating lease liabilities | 31,740 | |
Third Party | ||
Operating lease liabilities | ||
2022 | 1,309 | |
2023 | 2,429 | |
2024 | 1,928 | |
2025 | 1,396 | |
2026 | 1,100 | |
Thereafter | 4,313 | |
Total undiscounted cash flows | 12,475 | |
Discount applied to cash flows | (2,052) | |
Total discounted cash flows reported as operating lease liabilities | $ 10,423 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
FHLB advances | ||
Total FHLB advances | $ 20,000 | $ 25,000 |
Additional collateralized advances available | 905,000 | 900,000 |
Overnight advance with an interest rate of 0.11% due on July 1, 2014 | ||
FHLB advances | ||
Total FHLB advances | 25,000 | |
Fixed interest rate advances with a weighted average interest rate of 1.91% due through 2021 | ||
FHLB advances | ||
Total FHLB advances | 20,000 | |
Various other unsecured lines of credit | ||
FHLB advances | ||
Unsecured lines of credit | $ 125,000 | $ 125,000 |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - MATURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
FEDERAL HOME LOAN BANK ADVANCES | ||
2027 | $ 20,000 | |
Total | $ 20,000 | $ 25,000 |
Weighted Average Rate | ||
2027 | 1.89% | |
Total | 1.89% |
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 | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
FHLB advances | ||
Average outstanding balance during the period | $ 25,000 | $ 32,597 |
Average interest rate during the period (as percent) | 0.16% | 0.16% |
Maximum outstanding at any month end during the period | $ 25,000 | $ 25,000 |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
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 | $ 1,036,228 | $ 1,041,461 |
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 | $ 193,447 | $ 186,396 |
OFF BALANCE SHEET RISKS, COMM_3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Commitments and letters of credit | |||||
Loan commitment, line credit | $ 2,074,819 | $ 2,074,819 | $ 1,754,808 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 1,040 | $ 1,015 | 1,052 | $ 989 | |
Provision | 60 | (81) | 48 | (55) | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 1,100 | 934 | 1,100 | 934 | |
Unused warehouse lines of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 865,822 | 865,822 | 565,950 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 130 | 116 | 154 | 79 | |
Provision | 32 | 24 | 8 | 61 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 162 | 140 | 162 | 140 | |
Unused home equity lines of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 368,820 | 368,820 | 348,681 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 256 | 194 | 247 | 173 | |
Provision | 21 | 19 | 30 | 40 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 277 | 213 | 277 | 213 | |
Unused loan commitments - other | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 828,583 | 828,583 | 828,229 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 654 | 705 | 651 | 737 | |
Provision | 7 | (124) | 10 | (156) | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 661 | $ 581 | 661 | $ 581 | |
Standby letters of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 10,951 | 10,951 | 11,305 | ||
FHLB letters of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | $ 643 | $ 643 | $ 643 |
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 | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Financial assets: | ||||||||
Total available-for-sale debt securities | $ 622,145 | $ 622,145 | $ 495,126 | |||||
Mortgage loans held for sale, at fair value | 8,491 | $ 32,401 | 8,491 | $ 32,401 | $ 13,302 | 29,393 | $ 63,636 | $ 46,867 |
Consumer loans held for sale | 17,459 | 13,020 | 17,459 | 13,020 | $ 11,709 | 19,747 | $ 3,970 | $ 3,298 |
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 189 | 189 | 2,620 | |||||
U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 383,092 | 383,092 | 237,459 | |||||
Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 2,478 | 2,478 | 2,731 | |||||
Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 198,270 | 198,270 | 210,749 | |||||
Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 24,545 | 24,545 | 30,294 | |||||
Corporate bonds | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 9,936 | 9,936 | 10,046 | |||||
Trust Preferred Securities | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 3,824 | 3,824 | 3,847 | |||||
Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 189 | 189 | 170 | |||||
Mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,450 | |||||||
Recurring basis | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 622,145 | 622,145 | 495,126 | |||||
Mortgage loans held for sale, at fair value | 8,491 | 8,491 | 29,393 | |||||
Consumer loans held for sale | 17,459 | 17,459 | 19,747 | |||||
Consumer loans held for investment | 45 | 45 | 170 | |||||
Rate lock loan commitments | 220 | 220 | 1,404 | |||||
Mandatory forward contracts | 359 | 359 | 66 | |||||
Interest rate swap agreements | 4,501 | 4,501 | 5,786 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 189 | 189 | 2,620 | |||||
Financial Liabilities: | ||||||||
Interest rate swap agreements | 4,501 | 4,501 | 5,786 | |||||
Transfers between Level 1, 2 or 3 | 0 | $ 0 | 0 | $ 0 | ||||
Recurring basis | U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 383,092 | 383,092 | 237,459 | |||||
Recurring basis | Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 2,478 | 2,478 | 2,731 | |||||
Recurring basis | Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 198,270 | 198,270 | 210,749 | |||||
Recurring basis | Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 24,545 | 24,545 | 30,294 | |||||
Recurring basis | Corporate bonds | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 9,936 | 9,936 | 10,046 | |||||
Recurring basis | Trust Preferred Securities | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 3,824 | 3,824 | 3,847 | |||||
Recurring basis | Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 189 | 189 | 170 | |||||
Recurring basis | Mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,450 | |||||||
Recurring basis | Fair Value, Inputs, Level 1 | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 230,771 | 230,771 | 70,112 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,450 | |||||||
Recurring basis | Fair Value, Inputs, Level 1 | U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 230,771 | 230,771 | 70,112 | |||||
Recurring basis | Fair Value, Inputs, Level 1 | Mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,450 | |||||||
Recurring basis | Fair Value, Inputs, Level 2 | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 385,072 | 385,072 | 418,436 | |||||
Mortgage loans held for sale, at fair value | 8,491 | 8,491 | 29,393 | |||||
Rate lock loan commitments | 220 | 220 | 1,404 | |||||
Mandatory forward contracts | 359 | 359 | 66 | |||||
Interest rate swap agreements | 4,501 | 4,501 | 5,786 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 189 | 189 | 170 | |||||
Financial Liabilities: | ||||||||
Interest rate swap agreements | 4,501 | 4,501 | 5,786 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 152,321 | 152,321 | 167,347 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 198,270 | 198,270 | 210,749 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 24,545 | 24,545 | 30,294 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 9,936 | 9,936 | 10,046 | |||||
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 | 189 | 189 | 170 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 6,302 | 6,302 | 6,578 | |||||
Consumer loans held for sale | 17,459 | 17,459 | 19,747 | |||||
Consumer loans held for investment | 45 | 45 | 170 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | 2,478 | 2,478 | 2,731 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | Trust Preferred Securities | ||||||||
Financial assets: | ||||||||
Total available-for-sale debt securities | $ 3,824 | $ 3,824 | $ 3,847 |
FAIR VALUE - RECONCILIATION USI
FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Private label mortgage backed security | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | $ 2,602 | $ 2,863 | $ 2,731 | $ 2,957 |
Net change in unrealized gain | (15) | 34 | 9 | 49 |
Principal paydowns | (109) | (73) | (262) | (182) |
Balance, end of period | 2,478 | 2,824 | 2,478 | 2,824 |
Trust Preferred Securities | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | 3,725 | 3,650 | 3,847 | 3,800 |
Discount accretion | 14 | 13 | 28 | 26 |
Net change in unrealized gain | 85 | 37 | (51) | (126) |
Balance, end of period | $ 3,824 | $ 3,700 | $ 3,824 | $ 3,700 |
FAIR VALUE - RECURRING LEVEL 3
FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Private label mortgage backed security | Recurring basis | ||
Fair value inputs quantitative information | ||
Mortgage backed security fair value | $ 2,478 | $ 2,731 |
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 | 0.054 | 0.057 |
Private label mortgage backed security | Maximum | Recurring basis | Probability of default | ||
Fair value inputs quantitative information | ||
Measurable input | 0.093 | 0.093 |
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 | $ 17,459 | $ 19,747 |
Consumer Loans Held For Sale | Nonrecurring basis | Net Premium | ||
Fair value inputs quantitative information | ||
Loans Held-for-sale, Measurement Input | 0.0015 | 0.014 |
Consumer Loans Held For Sale | Nonrecurring basis | Discount sales | ||
Fair value inputs quantitative information | ||
Loans Held-for-sale, Measurement Input | 0.1000 | 0.0500 |
FAIR VALUE - GAINS AND LOSSES (
FAIR VALUE - GAINS AND LOSSES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) loan | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Fair Value, Option | ||||||||
Aggregate fair value | $ 8,491 | $ 32,401 | $ 8,491 | $ 32,401 | $ 13,302 | $ 29,393 | $ 63,636 | $ 46,867 |
Contractual balance | $ 4,364,937 | $ 4,364,937 | $ 4,498,671 | |||||
Mortgage loans held for sale | ||||||||
Fair Value, Option | ||||||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | 0 | |||||
Aggregate fair value | $ 8,491 | $ 8,491 | $ 29,393 | |||||
Contractual balance | 8,363 | 8,363 | 28,668 | |||||
Unrealized gain | 128 | 128 | $ 725 | |||||
Total included in earnings | 262 | (3) | (240) | (605) | ||||
Mortgage loans held for sale | Interest Income | ||||||||
Fair Value, Option | ||||||||
Total included in earnings | 153 | 140 | 357 | 549 | ||||
Mortgage loans held for sale | Change In Fair Value | ||||||||
Fair Value, Option | ||||||||
Total included in earnings | $ 109 | (143) | $ (597) | (1,154) | ||||
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 | $ 17,459 | $ 17,459 | $ 19,747 | |||||
Contractual balance | 17,563 | 17,563 | 19,633 | |||||
Unrealized gain | (104) | (104) | $ 114 | |||||
Total included in earnings | 2,809 | 1,460 | 5,662 | 2,046 | ||||
Consumer Loans Held For Sale | Interest Income | ||||||||
Fair Value, Option | ||||||||
Total included in earnings | 2,990 | 1,397 | 5,880 | 1,968 | ||||
Consumer Loans Held For Sale | Change In Fair Value | ||||||||
Fair Value, Option | ||||||||
Total included in earnings | $ (181) | $ 63 | $ (218) | $ 78 |
FAIR VALUE - ASSETS MEASURED ON
FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 3,820 | $ 4,845 |
Other real estate owned | 1,687 | 1,792 |
Residential Real Estate | ||
Fair Value Disclosures | ||
Other real estate owned | 1,792 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,345 | 1,626 |
Residential Real Estate | Home equity | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 378 | |
Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 2,475 | 2,841 |
Other real estate owned | 1,687 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 3,820 | 4,845 |
Other real estate owned | 1,687 | 1,792 |
Fair Value, Inputs, Level 3 | Residential Real Estate | ||
Fair Value Disclosures | ||
Other real estate owned | 1,792 | |
Fair Value, Inputs, Level 3 | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,345 | 1,626 |
Fair Value, Inputs, Level 3 | Residential Real Estate | Home equity | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 378 | |
Fair Value, Inputs, Level 3 | Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 2,475 | $ 2,841 |
Other real estate owned | $ 1,687 |
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 | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Collateral Dependent Loans | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,345 | $ 1,626 |
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 | 0.41 | 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 | 0.11 | 0.10 |
Collateral Dependent Loans | Residential Real Estate | Home equity | ||
Fair value inputs quantitative information | ||
Fair Value | $ 378 | |
Collateral Dependent Loans | Residential Real Estate | Home equity | Comparability Adjustment | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 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 | 0.04 | |
Collateral Dependent Loans | Residential Real Estate | Home equity | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.03 | |
Collateral Dependent Loans | Commercial Real Estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 2,475 | $ 2,841 |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.12 | 0.12 |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.13 | 0.13 |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.12 | 0.12 |
Other Real Estate Owned | Commercial Real Estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,687 | $ 1,792 |
Other Real Estate Owned | Commercial Real Estate | Comparability Adjustment | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.37 | 0.33 |
Other Real Estate Owned | Commercial Real Estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.37 | 0.33 |
FAIR VALUE - IMPAIRED LOANS (De
FAIR VALUE - IMPAIRED LOANS (Details) - Nonrecurring basis - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Impaired loans | |||||
Total fair value | $ 3,820 | $ 3,820 | $ 4,845 | ||
Fair Value, Inputs, Level 3 | |||||
Impaired loans | |||||
Carrying amount of loans measured at fair value | 4,024 | 4,024 | 4,928 | ||
Estimated selling costs considered in carrying amount | 714 | 714 | 842 | ||
Valuation allowance | (918) | (918) | (925) | ||
Total fair value | 3,820 | 3,820 | $ 4,845 | ||
Provision for impairment on loan, lease and other losses | |||||
Provisions on collateral-dependent, impaired loans | $ (7) | $ 45 | $ (4) | $ 45 |
FAIR VALUE - OTHER REAL ESTATE
FAIR VALUE - OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value Disclosures | |||||
Total Carrying value of other real estate owned | $ 1,687 | $ 1,687 | $ 1,792 | ||
Other real estate owned write-downs during the years ended | 105 | $ 105 | |||
Nonrecurring basis | |||||
Fair Value Disclosures | |||||
Other real estate owned write-downs during the years ended | 54 | $ 52 | 105 | $ 105 | |
Nonrecurring basis | Other Real Estate Owned | |||||
Fair Value Disclosures | |||||
Other real estate owned carried at fair value | 1,687 | 1,687 | 1,792 | ||
Total Carrying value of other real estate owned | $ 1,687 | $ 1,687 | $ 1,792 |
FAIR VALUE - CARRYING AMOUNTS A
FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||||
Available-for-sale debt securities | $ 622,145 | $ 495,126 | ||||
Held-to-maturity debt securities | 32,978 | 44,764 | ||||
Equity securities with readily determinable fair value | 189 | 2,620 | ||||
Mortgage loans held for sale, at fair value | 8,491 | $ 13,302 | 29,393 | $ 32,401 | $ 63,636 | $ 46,867 |
Consumer loans held for sale, at fair value | 17,459 | 11,709 | 19,747 | 13,020 | 3,970 | 3,298 |
Consumer loans held for sale, at the lower of cost or fair value | 13,777 | $ 3,026 | 2,937 | $ 11,412 | $ 11,701 | $ 1,478 |
Carrying Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 795,143 | 756,971 | ||||
Available-for-sale debt securities | 622,145 | 495,126 | ||||
Held-to-maturity debt securities | 32,962 | 44,299 | ||||
Equity securities with readily determinable fair value | 189 | 2,620 | ||||
Mortgage loans held for sale, at fair value | 8,491 | 29,393 | ||||
Consumer loans held for sale, at fair value | 17,459 | 19,747 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 13,777 | 2,937 | ||||
Loans, net | 4,297,784 | 4,431,985 | ||||
Federal Home Loan Bank stock | 10,311 | 10,311 | ||||
Accrued interest receivable | 9,872 | 9,877 | ||||
Mortgage servicing rights | 9,407 | 9,196 | ||||
Rate lock loan commitments | 220 | 1,404 | ||||
Mandatory forward contracts | 359 | 66 | ||||
Interest rate swap agreements | 4,501 | 5,786 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 303,315 | 290,967 | ||||
Federal Home Loan Bank advances | 20,000 | 25,000 | ||||
Accrued interest payable | 162 | 159 | ||||
Interest rate swap agreements | 4,501 | 5,786 | ||||
Carrying Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,094,436 | 1,990,781 | ||||
Carrying Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,499,250 | 2,553,423 | ||||
Carrying Value | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 233,843 | 296,214 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 795,143 | 756,971 | ||||
Available-for-sale debt securities | 622,145 | 495,126 | ||||
Held-to-maturity debt securities | 32,978 | 44,764 | ||||
Equity securities with readily determinable fair value | 189 | 2,620 | ||||
Mortgage loans held for sale, at fair value | 8,491 | 29,393 | ||||
Consumer loans held for sale, at fair value | 17,459 | 19,747 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 13,777 | 2,937 | ||||
Loans, net | 4,165,381 | 4,445,244 | ||||
Accrued interest receivable | 9,872 | 9,877 | ||||
Mortgage servicing rights | 16,568 | 11,540 | ||||
Rate lock loan commitments | 220 | 1,404 | ||||
Mandatory forward contracts | 359 | 66 | ||||
Interest rate swap agreements | 4,501 | 5,786 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 303,315 | 290,967 | ||||
Federal Home Loan Bank advances | 21,766 | 25,000 | ||||
Accrued interest payable | 162 | 159 | ||||
Interest rate swap agreements | 4,501 | 5,786 | ||||
Total Fair Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,094,436 | 1,990,781 | ||||
Total Fair Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,499,250 | 2,553,423 | ||||
Total Fair Value | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 230,849 | 298,236 | ||||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||||
Assets: | ||||||
Cash and cash equivalents | 795,143 | 756,971 | ||||
Available-for-sale debt securities | 230,771 | 70,112 | ||||
Equity securities with readily determinable fair value | 2,450 | |||||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 385,072 | 418,436 | ||||
Held-to-maturity debt securities | 32,978 | 44,764 | ||||
Equity securities with readily determinable fair value | 189 | 170 | ||||
Mortgage loans held for sale, at fair value | 8,491 | 29,393 | ||||
Accrued interest receivable | 9,872 | 9,877 | ||||
Mortgage servicing rights | 16,568 | 11,540 | ||||
Rate lock loan commitments | 220 | 1,404 | ||||
Mandatory forward contracts | 359 | 66 | ||||
Interest rate swap agreements | 4,501 | 5,786 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 303,315 | 290,967 | ||||
Federal Home Loan Bank advances | 21,766 | 25,000 | ||||
Accrued interest payable | 162 | 159 | ||||
Interest rate swap agreements | 4,501 | 5,786 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,094,436 | 1,990,781 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,499,250 | 2,553,423 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 230,849 | 298,236 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 6,302 | 6,578 | ||||
Consumer loans held for sale, at fair value | 17,459 | 19,747 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 13,777 | 2,937 | ||||
Loans, net | $ 4,165,381 | $ 4,445,244 |
MORTGAGE BANKING ACTIVITIES - M
MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 13,302 | $ 63,636 | $ 29,393 | $ 46,867 |
Origination of mortgage loans held for sale | 61,489 | 141,177 | 162,150 | 354,764 |
Proceeds from the sale of mortgage loans held for sale | (67,759) | (176,424) | (186,971) | (380,239) |
Net gain on sale of mortgage loans held for sale | 1,459 | 4,012 | 3,919 | 11,009 |
Balance, end of period | $ 8,491 | $ 32,401 | $ 8,491 | $ 32,401 |
MORTGAGE BANKING ACTIVITIES - C
MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Mortgage servicing rights | ||||
Net gain realized on sale of mortgage loans held for sale | $ 2,674 | $ 5,711 | $ 5,407 | $ 13,756 |
Net gain recognized | 1,459 | 4,012 | 3,919 | 11,009 |
Loan servicing income | 884 | 808 | 1,749 | 1,601 |
Amortization of mortgage servicing rights | (580) | (738) | (1,248) | (1,735) |
Change in mortgage servicing rights valuation allowance | 100 | 500 | ||
Net servicing income recognized | 304 | 170 | 501 | 366 |
Total Mortgage banking income | 1,763 | 4,182 | 4,420 | 11,375 |
Mortgage Loans Held for Sale | ||||
Mortgage servicing rights | ||||
Net change in fair value | 109 | (143) | (597) | (1,154) |
Rate lock loan commitments | ||||
Mortgage servicing rights | ||||
Net change in fair value | (222) | 299 | (1,184) | (2,338) |
Mandatory forward contracts | ||||
Mortgage servicing rights | ||||
Net change in fair value | $ (1,102) | $ (1,855) | $ 293 | $ 745 |
MORTGAGE BANKING ACTIVITIES -_2
MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 9,502 | $ 7,711 | $ 9,196 | $ 7,095 |
Additions | 485 | 1,262 | 1,459 | 2,475 |
Amortized to expense | (580) | (738) | (1,248) | (1,735) |
Change in valuation allowance | 100 | 500 | ||
Balance, end of period | $ 9,407 | $ 8,335 | $ 9,407 | $ 8,335 |
MORTGAGE BANKING ACTIVITIES - V
MORTGAGE BANKING ACTIVITIES - VALUATION OF CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | ||||
Beginning valuation allowance | $ 0 | $ 100 | $ 0 | $ 500 |
Charge during the period | 0 | (100) | 0 | (500) |
Ending valuation allowance | $ 0 | $ 0 | $ 0 | $ 0 |
MORTGAGE BANKING ACTIVITIES - O
MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
MORTGAGE BANKING ACTIVITIES | ||
Fair value of mortgage servicing rights portfolio | $ 16,568 | $ 11,540 |
Monthly weighted average prepayment rate of unpaid principle balance (as percent) | 128% | 208% |
Discount rate (as percent) | 10.17% | 10.15% |
Weighted average foreclosure rate | 0.15% | 0.19% |
Weighted average life in years | 7 years 6 months 18 days | 5 years 11 months 4 days |
MORTGAGE BANKING ACTIVITIES - N
MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Mortgage servicing rights | ||
Derivative instruments expiration period | 90 days | |
Mortgage loans held for sale | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | $ 8,363 | $ 28,668 |
Fair Value, Assets | 8,491 | 29,393 |
Rate lock loan commitments | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 28,072 | 56,736 |
Fair Value, Assets | 220 | 1,404 |
Mandatory forward contracts | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 29,812 | 70,812 |
Fair Value, Assets | $ 359 | $ 66 |
INTEREST RATE SWAPS - NON-HEDGE
INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | $ 415,244,000 | $ 319,808,000 |
Counterparty | ||
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | 0 | 6,800,000 |
Counterparty | Minimum | ||
Information about derivatives and swaps | ||
Net loss position in which pledged securities as collateral are required | 250,000 | |
Interest rate swap | Non-Hedge | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 231,532,000 | 247,850,000 |
Interest rate swap | Non-Hedge | Bank Clients | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 22,009,000 | 107,502,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 93,757,000 | 16,423,000 |
Interest rate swaps with Bank clients - Total, Notional Amount | 115,766,000 | 123,925,000 |
Interest rate swaps with Bank clients - Assets, Fair Value | 595,000 | 5,786,000 |
Interest rate swaps with Bank clients - Liabilities, Fair Value | (4,501,000) | (298,000) |
Interest rate swaps with Bank clients - Total, Fair Value | (3,906,000) | 5,488,000 |
Interest rate swap | Non-Hedge | Counterparty | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 115,766,000 | 123,925,000 |
Interest rate swaps with Bank clients - Total, Fair Value | $ 3,906,000 | $ (5,488,000) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
EARNINGS PER SHARE | ||||
Net income | $ 23,901 | $ 23,922 | $ 51,827 | $ 49,975 |
Dividends declared on Common Stock: | ||||
Undistributed net income for basic earnings per share | 17,184 | 17,634 | 38,358 | 37,328 |
Weighted average potential dividends on Class A shares upon exercise of dilutive options | (21) | (17) | (49) | (40) |
Undistributed net income for diluted earnings per share | $ 17,163 | $ 17,617 | $ 38,309 | $ 37,288 |
Weighted average shares outstanding: | ||||
Effect of dilutive securities on Class A Shares outstanding | 62,000 | 55,000 | 71,000 | 65,000 |
Weighted average shares outstanding including dilutive securities | 20,169,000 | 20,949,000 | 20,202,000 | 21,016,000 |
Stock option | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 187,000 | 149,000 | 186,000 | 169,000 |
Stock option | Weighted Average | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 184,000 | 149,000 | 178,000 | 166,000 |
Class A Common Stock | ||||
EARNINGS PER SHARE | ||||
Cash dividend premium per share (as a percent) | 10% | |||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (6,047) | $ (5,680) | $ (12,128) | $ (11,423) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 17,946,000 | 18,712,000 | 17,968,000 | 18,761,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.34 | $ 0.31 | $ 0.68 | $ 0.62 |
Undistributed earnings per share | 0.86 | 0.85 | 1.92 | 1.80 |
Total basic earnings per share | 1.20 | 1.16 | 2.60 | 2.42 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.34 | 0.31 | 0.68 | 0.62 |
Undistributed earnings per share | 0.86 | 0.85 | 1.91 | 1.79 |
Total diluted earnings per share | $ 1.20 | $ 1.16 | $ 2.59 | $ 2.41 |
Class B Common Stock | ||||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (670) | $ (608) | $ (1,341) | $ (1,224) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 2,161,000 | 2,182,000 | 2,163,000 | 2,190,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.31 | $ 0.28 | $ 0.62 | $ 0.56 |
Undistributed earnings per share | 0.78 | 0.77 | 1.75 | 1.64 |
Total basic earnings per share | 1.09 | 1.05 | 2.37 | 2.20 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.31 | 0.28 | 0.62 | 0.56 |
Undistributed earnings per share | 0.78 | 0.77 | 1.74 | 1.63 |
Total diluted earnings per share | $ 1.09 | $ 1.05 | $ 2.36 | $ 2.19 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Available-for-Sale Debt Securities: | ||||
Unrealized losses on AFS debt securities | $ (10,133) | $ (614) | $ (31,382) | $ (2,643) |
Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | (15) | 34 | 9 | 49 |
Total other comprehensive loss before income tax | (10,148) | (580) | (31,373) | (2,594) |
Tax effect | 2,537 | 145 | 7,845 | 648 |
Total other comprehensive loss, net of tax | $ (7,611) | $ (435) | $ (23,528) | $ (1,946) |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | $ 840,329 | $ 837,709 | $ 834,232 | $ 823,323 |
Current Year Change | (7,611) | (435) | (23,528) | (1,946) |
Balance at end of period | 842,174 | 845,090 | 842,174 | 845,090 |
Accumulated Other Comprehensive Income | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | (14,043) | 6,998 | 1,874 | 8,509 |
Current Year Change | (23,528) | (1,946) | ||
Balance at end of period | (21,654) | 6,563 | (21,654) | 6,563 |
Unrealized gain (loss) on AFS debt securities | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 890 | 7,571 | ||
Current Year Change | (23,535) | (1,982) | ||
Balance at end of period | (22,645) | 5,589 | (22,645) | 5,589 |
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 | 984 | 938 | ||
Current Year Change | 7 | 36 | ||
Balance at end of period | $ 991 | $ 974 | $ 991 | $ 974 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 06, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue recognition | ||||||
Net interest income | $ 51,232 | $ 50,304 | $ 113,844 | $ 118,170 | ||
Noninterest income: | ||||||
Mortgage banking income | 1,763 | 4,182 | 4,420 | 11,375 | ||
Program fees | 3,885 | 3,342 | 7,739 | 5,551 | ||
Increase in cash surrender value of BOLI | 623 | 600 | 1,235 | 990 | ||
Total noninterest income | 30,566 | 21,648 | 61,567 | 50,669 | ||
Total net revenue | $ 81,798 | $ 71,952 | $ 175,411 | $ 168,839 | ||
Net-revenue concentration (as percent) | 100% | 100% | 100% | 100% | ||
Writedowns during entity's holding of property (as a percent) | 10% | |||||
Core Banking Activities | ||||||
Revenue recognition | ||||||
Net interest income | $ 43,197 | $ 44,742 | $ 84,064 | $ 93,025 | ||
Noninterest income: | ||||||
Mortgage banking income | 1,763 | 4,182 | 4,420 | 11,375 | ||
Increase in cash surrender value of BOLI | 623 | 600 | 1,235 | 990 | ||
Total noninterest income | 9,552 | 12,218 | 19,490 | 26,237 | ||
Total net revenue | $ 52,749 | $ 56,960 | $ 103,554 | $ 119,262 | ||
Net-revenue concentration (as percent) | 64% | 79% | 59% | 71% | ||
Traditional Banking | ||||||
Revenue recognition | ||||||
Net interest income | $ 39,158 | $ 38,278 | $ 75,306 | $ 79,380 | ||
Noninterest income: | ||||||
Increase in cash surrender value of BOLI | 623 | 600 | 1,235 | 990 | ||
Total noninterest income | 7,731 | 7,972 | 14,965 | 14,756 | ||
Total net revenue | $ 46,889 | $ 46,250 | $ 90,271 | $ 94,136 | ||
Net-revenue concentration (as percent) | 57% | 64% | 51% | 56% | ||
Warehouse Lending | ||||||
Revenue recognition | ||||||
Net interest income | $ 3,886 | $ 6,324 | $ 8,401 | $ 13,096 | ||
Noninterest income: | ||||||
Total noninterest income | 12 | 14 | 25 | 28 | ||
Total net revenue | $ 3,898 | $ 6,338 | $ 8,426 | $ 13,124 | ||
Net-revenue concentration (as percent) | 5% | 9% | 5% | 8% | ||
Mortgage Banking | ||||||
Revenue recognition | ||||||
Net interest income | $ 153 | $ 140 | $ 357 | $ 549 | ||
Noninterest income: | ||||||
Mortgage banking income | 1,763 | 4,182 | 4,420 | 11,375 | ||
Total noninterest income | 1,809 | 4,232 | 4,500 | 11,453 | ||
Total net revenue | $ 1,962 | $ 4,372 | $ 4,857 | $ 12,002 | ||
Net-revenue concentration (as percent) | 2% | 6% | 3% | 7% | ||
Republic Processing Group | ||||||
Revenue recognition | ||||||
Net interest income | $ 8,035 | $ 5,562 | $ 29,780 | $ 25,145 | ||
Noninterest income: | ||||||
Program fees | 3,885 | 3,342 | 7,739 | 5,551 | ||
Total noninterest income | 21,014 | 9,430 | 42,077 | 24,432 | ||
Total net revenue | $ 29,049 | $ 14,992 | $ 71,857 | $ 49,577 | ||
Net-revenue concentration (as percent) | 36% | 21% | 41% | 29% | ||
Tax Refund Solutions | ||||||
Revenue recognition | ||||||
Net interest income | $ 1,638 | $ 623 | $ 17,042 | $ 15,299 | ||
Noninterest income: | ||||||
Program fees | 736 | 715 | 1,463 | 1,611 | ||
Total noninterest income | 17,865 | 6,803 | 35,801 | 20,492 | ||
Total net revenue | $ 19,503 | $ 7,426 | $ 52,843 | $ 35,791 | ||
Net-revenue concentration (as percent) | 24% | 10% | 30% | 21% | ||
Republic Credit Solutions | ||||||
Revenue recognition | ||||||
Net interest income | $ 6,397 | $ 4,939 | $ 12,738 | $ 9,846 | ||
Noninterest income: | ||||||
Program fees | 3,149 | 2,627 | 6,276 | 3,940 | ||
Total noninterest income | 3,149 | 2,627 | 6,276 | 3,940 | ||
Total net revenue | $ 9,546 | $ 7,566 | $ 19,014 | $ 13,786 | ||
Net-revenue concentration (as percent) | 12% | 11% | 11% | 8% | ||
Service charges on deposit accounts | ||||||
Noninterest income: | ||||||
Revenue under 606 | $ 3,363 | $ 3,071 | $ 6,589 | $ 5,944 | ||
Service charges on deposit accounts | Core Banking Activities | ||||||
Noninterest income: | ||||||
Revenue under 606 | 3,367 | 3,075 | 6,599 | 5,954 | ||
Service charges on deposit accounts | Traditional Banking | ||||||
Noninterest income: | ||||||
Revenue under 606 | 3,355 | 3,061 | 6,574 | 5,926 | ||
Service charges on deposit accounts | Warehouse Lending | ||||||
Noninterest income: | ||||||
Revenue under 606 | 12 | 14 | 25 | 28 | ||
Service charges on deposit accounts | Republic Processing Group | ||||||
Noninterest income: | ||||||
Revenue under 606 | (4) | (4) | (10) | (10) | ||
Service charges on deposit accounts | Tax Refund Solutions | ||||||
Noninterest income: | ||||||
Revenue under 606 | (4) | (4) | (10) | (10) | ||
Net refund transfer fees | ||||||
Noninterest income: | ||||||
Revenue under 606 | 3,950 | 5,923 | 16,001 | 18,644 | ||
Net refund transfer fees | Core Banking Activities | ||||||
Noninterest income: | ||||||
Revenue under 606 | 2 | 2 | ||||
Net refund transfer fees | Traditional Banking | ||||||
Noninterest income: | ||||||
Revenue under 606 | 2 | 2 | ||||
Net refund transfer fees | Republic Processing Group | ||||||
Noninterest income: | ||||||
Revenue under 606 | 3,950 | 5,921 | 16,001 | 18,642 | ||
Net refund transfer fees | Tax Refund Solutions | ||||||
Noninterest income: | ||||||
Revenue under 606 | 3,950 | 5,921 | 16,001 | 18,642 | ||
Interchange fee income | ||||||
Noninterest income: | ||||||
Revenue under 606 | 3,461 | 3,481 | 6,531 | 6,508 | ||
Interchange fee income | Core Banking Activities | ||||||
Noninterest income: | ||||||
Revenue under 606 | 3,389 | 3,367 | 6,401 | 6,336 | ||
Interchange fee income | Traditional Banking | ||||||
Noninterest income: | ||||||
Revenue under 606 | 3,389 | 3,367 | 6,401 | 6,336 | ||
Interchange fee income | Republic Processing Group | ||||||
Noninterest income: | ||||||
Revenue under 606 | 72 | 114 | 130 | 172 | ||
Interchange fee income | Tax Refund Solutions | ||||||
Noninterest income: | ||||||
Revenue under 606 | 72 | 114 | 130 | 172 | ||
Net gains (losses) on other real estate owned | ||||||
Noninterest income: | ||||||
Revenue under 606 | (52) | (44) | (105) | (55) | ||
Net gains (losses) on other real estate owned | Core Banking Activities | ||||||
Noninterest income: | ||||||
Revenue under 606 | (52) | (44) | (105) | (55) | ||
Net gains (losses) on other real estate owned | Traditional Banking | ||||||
Noninterest income: | ||||||
Revenue under 606 | (52) | (44) | (105) | (55) | ||
Contract termination fee | ||||||
Noninterest income: | ||||||
Revenue under 606 | 5,000 | |||||
Contract termination fee | Republic Processing Group | ||||||
Noninterest income: | ||||||
Revenue under 606 | 5,000 | |||||
Contract termination fee | Tax Refund Solutions | ||||||
Noninterest income: | ||||||
Revenue under 606 | 5,000 | |||||
Contract termination fee | Green Dot | ||||||
Noninterest income: | ||||||
Revenue under 606 | $ 5,000 | |||||
Other | ||||||
Noninterest income: | ||||||
Revenue under 606 | 573 | 1,093 | 1,157 | 1,712 | ||
Other | Core Banking Activities | ||||||
Noninterest income: | ||||||
Revenue under 606 | 462 | 1,036 | 940 | 1,635 | ||
Other | Traditional Banking | ||||||
Noninterest income: | ||||||
Revenue under 606 | 416 | 986 | 860 | 1,557 | ||
Other | Mortgage Banking | ||||||
Noninterest income: | ||||||
Revenue under 606 | 46 | 50 | 80 | 78 | ||
Other | Republic Processing Group | ||||||
Noninterest income: | ||||||
Revenue under 606 | 111 | 57 | 217 | 77 | ||
Other | Tax Refund Solutions | ||||||
Noninterest income: | ||||||
Revenue under 606 | 111 | $ 57 | 217 | $ 77 | ||
Legal settlement | ||||||
Noninterest income: | ||||||
Revenue under 606 | 13,000 | 13,000 | ||||
Legal settlement | Republic Processing Group | ||||||
Noninterest income: | ||||||
Revenue under 606 | 13,000 | 13,000 | ||||
Legal settlement | Tax Refund Solutions | ||||||
Noninterest income: | ||||||
Revenue under 606 | 13,000 | $ 13,000 | ||||
Legal settlement | Green Dot | ||||||
Noninterest income: | ||||||
Revenue under 606 | $ 13,000 | $ 13,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Disclosure information | |||||
Number of reportable segments | segment | 5 | ||||
Segment information | |||||
Net interest income | $ 51,232 | $ 50,304 | $ 113,844 | $ 118,170 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 3,705 | (4,323) | 12,931 | 10,939 | |
Mortgage banking income | 1,763 | 4,182 | 4,420 | 11,375 | |
Program fees | 3,885 | 3,342 | 7,739 | 5,551 | |
Other noninterest income | 7,968 | 8,201 | 15,407 | 15,099 | |
Total noninterest income | 30,566 | 21,648 | 61,567 | 50,669 | |
Total noninterest expense | 47,653 | 45,714 | 96,226 | 93,595 | |
INCOME BEFORE INCOME TAX EXPENSE | 30,440 | 30,561 | 66,254 | 64,305 | |
Income (loss) from continuing operations before income tax expense | 30,440 | 30,561 | 66,254 | 64,305 | |
Income tax expense (benefit) | 6,539 | 6,639 | 14,427 | 14,330 | |
NET INCOME | 23,901 | 23,922 | 51,827 | 49,975 | |
Period-end assets | $ 6,112,476 | $ 6,183,310 | $ 6,112,476 | $ 6,183,310 | $ 6,093,632 |
Net interest margin (as percent) | 3.51% | 3.33% | 3.90% | 3.98% | |
Net-revenue concentration (as percent) | 100% | 100% | 100% | 100% | |
Core Banking Activities | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 3 | ||||
Segment information | |||||
Net interest income | $ 43,197 | $ 44,742 | $ 84,064 | $ 93,025 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | (88) | (142) | (169) | (389) | |
Mortgage banking income | 1,763 | 4,182 | 4,420 | 11,375 | |
Other noninterest income | 7,789 | 8,034 | 15,070 | 14,860 | |
Total noninterest income | 9,552 | 12,218 | 19,490 | 26,237 | |
Total noninterest expense | 42,181 | 41,011 | 84,042 | 82,488 | |
INCOME BEFORE INCOME TAX EXPENSE | 10,656 | 16,091 | 19,681 | 37,163 | |
Income (loss) from continuing operations before income tax expense | 10,656 | 16,091 | 19,681 | 37,163 | |
Income tax expense (benefit) | 2,148 | 3,083 | 3,569 | 7,634 | |
NET INCOME | 8,508 | 13,008 | 16,112 | 29,529 | |
Period-end assets | $ 5,616,107 | $ 5,661,664 | $ 5,616,107 | $ 5,661,664 | |
Net interest margin (as percent) | 3.02% | 3.03% | 2.97% | 3.24% | |
Net-revenue concentration (as percent) | 64% | 79% | 59% | 71% | |
Traditional Banking | |||||
Segment information | |||||
Net interest income | $ 39,158 | $ 38,278 | $ 75,306 | $ 79,380 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 146 | (77) | 466 | (82) | |
Other noninterest income | 7,731 | 7,970 | 14,965 | 14,754 | |
Total noninterest income | 7,731 | 7,972 | 14,965 | 14,756 | |
Total noninterest expense | 38,314 | 36,939 | 76,533 | 74,267 | |
INCOME BEFORE INCOME TAX EXPENSE | 8,429 | 9,388 | 13,272 | 19,951 | |
Income (loss) from continuing operations before income tax expense | 8,429 | 9,388 | 13,272 | 19,951 | |
Income tax expense (benefit) | 1,647 | 1,555 | 2,119 | 3,680 | |
NET INCOME | 6,782 | 7,833 | 11,153 | 16,271 | |
Period-end assets | $ 4,997,734 | $ 4,774,765 | $ 4,997,734 | $ 4,774,765 | |
Net interest margin (as percent) | 3.06% | 2.97% | 2.98% | 3.21% | |
Net-revenue concentration (as percent) | 57% | 64% | 51% | 56% | |
Warehouse Lending | |||||
Segment information | |||||
Net interest income | $ 3,886 | $ 6,324 | $ 8,401 | $ 13,096 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | (234) | (65) | (635) | (307) | |
Other noninterest income | 12 | 14 | 25 | 28 | |
Total noninterest income | 12 | 14 | 25 | 28 | |
Total noninterest expense | 1,035 | 1,066 | 1,987 | 2,094 | |
INCOME BEFORE INCOME TAX EXPENSE | 3,097 | 5,337 | 7,074 | 11,337 | |
Income (loss) from continuing operations before income tax expense | 3,097 | 5,337 | 7,074 | 11,337 | |
Income tax expense (benefit) | 692 | 1,227 | 1,596 | 2,661 | |
NET INCOME | 2,405 | 4,110 | 5,478 | 8,676 | |
Period-end assets | $ 596,031 | $ 840,083 | $ 596,031 | $ 840,083 | |
Net interest margin (as percent) | 2.69% | 3.48% | 2.89% | 3.45% | |
Net-revenue concentration (as percent) | 5% | 9% | 5% | 8% | |
Mortgage Banking | |||||
Segment information | |||||
Net interest income | $ 153 | $ 140 | $ 357 | $ 549 | |
Mortgage banking income | 1,763 | 4,182 | 4,420 | 11,375 | |
Other noninterest income | 46 | 50 | 80 | 78 | |
Total noninterest income | 1,809 | 4,232 | 4,500 | 11,453 | |
Total noninterest expense | 2,832 | 3,006 | 5,522 | 6,127 | |
INCOME BEFORE INCOME TAX EXPENSE | (870) | 1,366 | (665) | 5,875 | |
Income (loss) from continuing operations before income tax expense | (870) | 1,366 | (665) | 5,875 | |
Income tax expense (benefit) | (191) | 301 | (146) | 1,293 | |
NET INCOME | (679) | 1,065 | (519) | 4,582 | |
Period-end assets | $ 22,342 | $ 46,816 | $ 22,342 | $ 46,816 | |
Net-revenue concentration (as percent) | 2% | 6% | 3% | 7% | |
Republic Processing Group | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 2 | ||||
Segment information | |||||
Net interest income | $ 8,035 | $ 5,562 | $ 29,780 | $ 25,145 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 3,793 | (4,181) | 13,100 | 11,328 | |
Program fees | 3,885 | 3,342 | 7,739 | 5,551 | |
Other noninterest income | 179 | 167 | 337 | 239 | |
Total noninterest income | 21,014 | 9,430 | 42,077 | 24,432 | |
Total noninterest expense | 5,472 | 4,703 | 12,184 | 11,107 | |
INCOME BEFORE INCOME TAX EXPENSE | 19,784 | 14,470 | 46,573 | 27,142 | |
Income (loss) from continuing operations before income tax expense | 19,784 | 14,470 | 46,573 | 27,142 | |
Income tax expense (benefit) | 4,391 | 3,556 | 10,858 | 6,696 | |
NET INCOME | 15,393 | 10,914 | 35,715 | 20,446 | |
Period-end assets | $ 496,369 | $ 521,646 | $ 496,369 | $ 521,646 | |
Net-revenue concentration (as percent) | 36% | 21% | 41% | 29% | |
Tax Refund Solutions | |||||
Segment information | |||||
Net interest income | $ 1,638 | $ 623 | $ 17,042 | $ 15,299 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 360 | (5,773) | 8,272 | 10,111 | |
Program fees | 736 | 715 | 1,463 | 1,611 | |
Other noninterest income | 179 | 167 | 337 | 239 | |
Total noninterest income | 17,865 | 6,803 | 35,801 | 20,492 | |
Total noninterest expense | 3,533 | 3,697 | 8,678 | 8,999 | |
INCOME BEFORE INCOME TAX EXPENSE | 15,610 | 9,502 | 35,893 | 16,681 | |
Income (loss) from continuing operations before income tax expense | 15,610 | 9,502 | 35,893 | 16,681 | |
Income tax expense (benefit) | 3,465 | 2,326 | 8,371 | 4,096 | |
NET INCOME | 12,145 | 7,176 | 27,522 | 12,585 | |
Period-end assets | $ 382,156 | $ 389,999 | $ 382,156 | $ 389,999 | |
Net-revenue concentration (as percent) | 24% | 10% | 30% | 21% | |
Republic Credit Solutions | |||||
Segment information | |||||
Net interest income | $ 6,397 | $ 4,939 | $ 12,738 | $ 9,846 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 3,433 | 1,592 | 4,828 | 1,217 | |
Program fees | 3,149 | 2,627 | 6,276 | 3,940 | |
Total noninterest income | 3,149 | 2,627 | 6,276 | 3,940 | |
Total noninterest expense | 1,939 | 1,006 | 3,506 | 2,108 | |
INCOME BEFORE INCOME TAX EXPENSE | 4,174 | 4,968 | 10,680 | 10,461 | |
Income (loss) from continuing operations before income tax expense | 4,174 | 4,968 | 10,680 | 10,461 | |
Income tax expense (benefit) | 926 | 1,230 | 2,487 | 2,600 | |
NET INCOME | 3,248 | 3,738 | 8,193 | 7,861 | |
Period-end assets | $ 114,213 | $ 131,647 | $ 114,213 | $ 131,647 | |
Net-revenue concentration (as percent) | 12% | 11% | 11% | 8% | |
Net refund transfer fees | |||||
Segment information | |||||
Revenue under 606 | $ 3,950 | $ 5,923 | $ 16,001 | $ 18,644 | |
Net refund transfer fees | Core Banking Activities | |||||
Segment information | |||||
Revenue under 606 | 2 | 2 | |||
Net refund transfer fees | Traditional Banking | |||||
Segment information | |||||
Revenue under 606 | 2 | 2 | |||
Net refund transfer fees | Republic Processing Group | |||||
Segment information | |||||
Revenue under 606 | 3,950 | 5,921 | 16,001 | 18,642 | |
Net refund transfer fees | Tax Refund Solutions | |||||
Segment information | |||||
Revenue under 606 | 3,950 | $ 5,921 | 16,001 | $ 18,642 | |
Contract termination fee | |||||
Segment information | |||||
Revenue under 606 | 5,000 | ||||
Contract termination fee | Republic Processing Group | |||||
Segment information | |||||
Revenue under 606 | 5,000 | ||||
Contract termination fee | Tax Refund Solutions | |||||
Segment information | |||||
Revenue under 606 | 5,000 | ||||
Legal settlement | |||||
Segment information | |||||
Revenue under 606 | 13,000 | 13,000 | |||
Legal settlement | Republic Processing Group | |||||
Segment information | |||||
Revenue under 606 | 13,000 | 13,000 | |||
Legal settlement | Tax Refund Solutions | |||||
Segment information | |||||
Revenue under 606 | $ 13,000 | $ 13,000 |