Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
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 | Mar. 31, 2023 | |
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 | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 17,588,374 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,159,495 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 249,289 | $ 313,689 |
Available-for-sale debt securities, at fair value (amortized cost of $650,379 in 2023 and $663,003 in 2022, allowance for credit losses of $3 in 2023 and 2022) | 612,948 | 620,365 |
Held-to-maturity debt securities (fair value of $111,796 in 2023 and $87,357 in 2022, allowance for credit losses of $10 in 2023 and $10 in 2022) | 112,108 | 87,386 |
Equity securities with readily determinable fair value | 107 | 111 |
Mortgage loans held for sale, at fair value | 1,034 | 1,302 |
Consumer loans held for sale, at fair value | 4,688 | 4,706 |
Consumer loans held for sale, at the lower of cost or fair value | 12,744 | 13,169 |
Loans (loans carried at fair value of $0 in 2023 and $2 in 2022) | 4,774,234 | 4,515,802 |
Allowance for credit losses | (96,121) | (70,413) |
Loans, net | 4,678,113 | 4,445,389 |
Federal Home Loan Bank stock, at cost | 25,939 | 9,146 |
Premises and equipment, net | 33,672 | 31,978 |
Right-of-use assets | 36,245 | 37,017 |
Goodwill | 41,618 | 16,300 |
Other real estate owned | 1,529 | 1,581 |
Bank owned life insurance | 102,322 | 101,687 |
Low-income housing tax credit investments | 73,901 | 75,324 |
Other assets and accrued interest receivable | 87,834 | 76,393 |
TOTAL ASSETS | 6,074,091 | 5,835,543 |
Deposits: | ||
Noninterest-bearing | 2,013,957 | 1,908,768 |
Interest-bearing | 2,785,711 | 2,629,077 |
Total deposits | 4,799,668 | 4,537,845 |
Securities sold under agreements to repurchase and other short-term borrowings | 134,412 | 216,956 |
Operating lease liabilities | 37,031 | 37,809 |
Federal Home Loan Bank advances | 108,000 | 95,000 |
Low-income housing tax credit obligations | 42,437 | 43,609 |
Other liabilities and accrued interest payable | 70,341 | 47,711 |
Total liabilities | 5,191,889 | 4,978,930 |
Commitments and contingent liabilities (Footnote 10) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value | ||
Class A and Class B Common Stock | 4,648 | 4,648 |
Additional paid in capital | 142,601 | 141,694 |
Retained earnings | 763,027 | 742,250 |
Accumulated other comprehensive (loss) income | (28,074) | (31,979) |
Total stockholders' equity | 882,202 | 856,613 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,074,091 | $ 5,835,543 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale debt securities | $ 650,379 | $ 663,003 |
Available-for-sale debt securities, allowance for credit losses | 3 | 0 |
Held-to-maturity debt securities | 111,796 | 87,357 |
Held-to-maturity debt securities, allowance for credit losses | 10 | 10 |
Loans held for investment fair value | $ 0 | $ 2 |
Preferred stock, no par value | $ 0 | $ 0 |
Class A Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, issued | 17,597,874 | 17,584,928 |
Common Stock, outstanding | 17,597,874 | 17,584,928 |
Class B Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
Common Stock, shares authorized | 5,000,000 | 5,000,000 |
Common Stock, issued | 2,159,495 | 2,159,495 |
Common Stock, outstanding | 2,159,495 | 2,159,495 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
INTEREST INCOME: | ||
Loans, including fees | $ 92,609 | $ 61,570 |
Taxable investment securities | 4,603 | 2,059 |
Federal Home Loan Bank stock and other | 3,144 | 481 |
Total interest income | 100,356 | 64,110 |
INTEREST EXPENSE: | ||
Deposits | 4,878 | 879 |
Securities sold under agreements to repurchase and other short-term borrowings | 248 | 28 |
Federal Home Loan Bank advances | 2,588 | 36 |
Total interest expense | 7,714 | 943 |
NET INTEREST INCOME | 92,642 | 63,167 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 26,766 | 9,226 |
NET INTEREST INCOME AFTER PROVISION | 65,876 | 53,941 |
NONINTEREST INCOME: | ||
Mortgage banking income | 800 | 2,657 |
Program fees | 3,241 | 3,854 |
Increase in cash surrender value of bank owned life insurance | 635 | 612 |
Total noninterest income | 22,681 | 31,009 |
NONINTEREST EXPENSE: | ||
Salaries and employee benefits | 29,961 | 29,312 |
Technology, equipment, and communication | 7,228 | 7,214 |
Occupancy | 3,406 | 3,440 |
Marketing and development | 1,574 | 1,348 |
FDIC insurance expense | 637 | 419 |
Interchange related expense | 1,499 | 1,117 |
Legal and professional fees | 1,061 | 1,365 |
Merger expense | 2,073 | |
Other | 5,004 | 4,366 |
Total noninterest expense | 52,443 | 48,581 |
INCOME BEFORE INCOME TAX EXPENSE | 36,114 | 36,369 |
INCOME TAX EXPENSE | 8,022 | 8,019 |
NET INCOME | 28,092 | 28,350 |
Service charges on deposit accounts | ||
NONINTEREST INCOME: | ||
Revenue under 606 | 3,299 | 3,226 |
Net refund transfer fees | ||
NONINTEREST INCOME: | ||
Revenue under 606 | 10,807 | 12,051 |
Interchange fee income | ||
NONINTEREST INCOME: | ||
Revenue under 606 | 3,051 | 3,070 |
Net losses on other real estate owned | ||
NONINTEREST INCOME: | ||
Revenue under 606 | (53) | (53) |
Contract termination fee | ||
NONINTEREST INCOME: | ||
Revenue under 606 | 5,000 | |
Other | ||
NONINTEREST INCOME: | ||
Revenue under 606 | $ 901 | $ 592 |
Class A Common Stock | ||
BASIC EARNINGS PER SHARE: | ||
Basic earnings per share (in dollars per share) | $ 1.42 | $ 1.42 |
DILUTED EARNINGS PER SHARE: | ||
Diluted earnings per share (in dollars per share) | 1.42 | 1.42 |
Class B Common Stock | ||
BASIC EARNINGS PER SHARE: | ||
Basic earnings per share (in dollars per share) | 1.30 | 1.29 |
DILUTED EARNINGS PER SHARE: | ||
Diluted earnings per share (in dollars per share) | $ 1.29 | $ 1.29 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 28,092 | $ 28,350 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Unrealized gain (loss) on AFS debt securities | 5,205 | (21,249) |
Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings | 5 | 24 |
Total other comprehensive loss before income tax | 5,210 | (21,225) |
Tax effect | (1,305) | 5,308 |
Total other comprehensive loss, net of tax | 3,905 | (15,917) |
COMPREHENSIVE INCOME | $ 31,997 | $ 12,433 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS 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, 2021 | $ 4,702 | $ 139,956 | $ 688,522 | $ 1,874 | $ 835,054 | ||||||
Balance (in shares) at Dec. 31, 2021 | 17,816 | 2,165 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 28,350 | 28,350 | |||||||||
Net change in accumulated other comprehensive income (loss) | (15,917) | (15,917) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (6,081) | $ (671) | $ (6,081) | $ (671) | |||||||
Stock options exercised, net of shares withheld | (48) | (48) | |||||||||
Stock options exercised, net of shares withheld (in shares) | 1 | ||||||||||
Net change in notes receivable on Class A Common Stock | 60 | 60 | |||||||||
Deferred director compensation expense - Class A Common Stock | 129 | 129 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 6 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 179 | 179 | |||||||||
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 | 38 | 38 | |||||||||
Stock-based awards, Restricted stock | 163 | 163 | |||||||||
Stock-based awards, Restricted stock (in shares) | 7 | ||||||||||
Stock options | 156 | 156 | |||||||||
Balance at end of period at Mar. 31, 2022 | 4,703 | 140,795 | 710,120 | (14,043) | 841,575 | ||||||
Balance (in shares) at Mar. 31, 2022 | 17,834 | 2,165 | |||||||||
Balance at beginning of period at Dec. 31, 2022 | 4,648 | 141,694 | 742,250 | (31,979) | 856,613 | ||||||
Balance (in shares) at Dec. 31, 2022 | 17,585 | 2,160 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 28,092 | 28,092 | |||||||||
Net change in accumulated other comprehensive income (loss) | 3,905 | 3,905 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (6,581) | $ (734) | $ (6,581) | $ (734) | |||||||
Stock options exercised, net of shares withheld | (84) | (84) | |||||||||
Net change in notes receivable on Class A Common Stock | 84 | 84 | |||||||||
Deferred director compensation expense - Class A Common Stock | 110 | 110 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 7 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 221 | 221 | |||||||||
Employee stock purchase plan - Class A Common Stock | 162 | 162 | |||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 4 | ||||||||||
Stock-based awards, Performance stock units | 39 | 39 | |||||||||
Stock-based awards, Restricted stock | 173 | 173 | |||||||||
Stock-based awards, Restricted stock (in shares) | 2 | ||||||||||
Stock options | 202 | 202 | |||||||||
Balance at end of period at Mar. 31, 2023 | $ 4,648 | $ 142,601 | $ 763,027 | $ (28,074) | $ 882,202 | ||||||
Balance (in shares) at Mar. 31, 2023 | 17,598 | 2,160 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Class A Common Stock | ||
Dividend declared common stock, per share (in dollars per share) | $ 0.374 | $ 0.341 |
Class B Common Stock | ||
Dividend declared common stock, per share (in dollars per share) | $ 0.340 | $ 0.310 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
OPERATING ACTIVITIES: | |||
Net income | $ 28,092 | $ 28,350 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization on investment securities and low-income housing investments | 1,438 | 1,391 | |
Net accretion and amortization on loans | (618) | (1,256) | |
Unrealized and realized losses on equity securities with readily determinable fair value | 4 | 118 | |
Depreciation of premises and equipment | 1,594 | 2,038 | |
Amortization of mortgage servicing rights | 490 | 668 | |
(Recovery) loss of mortgage servicing rights | 0 | 0 | |
Provision for on-balance sheet exposures | 26,766 | 9,226 | |
Provision for off-balance sheet exposures | 210 | (12) | |
Net gain on sale of mortgage loans held for sale | (420) | (2,460) | |
Origination of mortgage loans held for sale | (15,942) | (100,661) | |
Proceeds from sale of mortgage loans held for sale | 16,630 | 119,212 | |
Net gain on sale of consumer loans held for sale | (2,534) | (3,117) | |
Origination of consumer loans held for sale | (207,222) | (245,214) | |
Proceeds from sale of consumer loans held for sale | 210,199 | 256,280 | |
Writedowns of other real estate owned | 52 | 52 | |
Deferred compensation expense - Class A Common Stock | 331 | 308 | |
Stock-based awards and ESPP expense - Class A Common Stock | 438 | 381 | |
Increase in cash surrender value of bank owned life insurance | (635) | (612) | |
Net change in other assets and liabilities: | |||
Accrued interest receivable | (2,502) | 451 | |
Accrued interest payable | 103 | 33 | |
Other assets | (3,858) | 795 | |
Other liabilities | 18,120 | 14,897 | |
Net cash provided by operating activities | 70,736 | 80,868 | |
INVESTING ACTIVITIES: | |||
Net cash proceeds paid in acquisition | (40,970) | ||
Purchases of available-for-sale debt securities | (25,000) | (115,777) | |
Purchases of held-to-maturity debt securities | (25,000) | ||
Proceeds from calls, maturities and paydowns of equity and available-for-sale debt securities | 54,066 | 15,944 | |
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities | 278 | 5,508 | |
Net change in outstanding warehouse lines of credit | (53,805) | 160,350 | |
Net change in other loans | 10,939 | (54,869) | |
Purchase of Federal Home Loan Bank stock | (16,793) | ||
Investments in low-income housing tax partnerships | (1,172) | (3,645) | |
Net purchases of premises and equipment | (1,688) | (323) | |
Net cash (used in) provided by investing activities | (99,145) | 7,188 | |
FINANCING ACTIVITIES: | |||
Net change in deposits | 40,145 | 246,688 | |
Net change in securities sold under agreements to repurchase and other short-term borrowings | (82,544) | (3,149) | |
Payments of Federal Home Loan Bank advances | (25,000) | ||
Proceeds from Federal Home Loan Bank advances | 13,000 | 20,000 | |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 138 | 139 | |
Net proceeds from option exercises and equity awards vested - Class A Common Stock | (84) | (48) | |
Cash dividends paid | (6,646) | (6,075) | |
Net cash (used in) provided by financing activities | (35,991) | 232,555 | |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (64,400) | 320,611 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 313,689 | 756,971 | $ 756,971 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 249,289 | 1,077,582 | $ 313,689 |
Cash paid during the period for: | |||
Interest | 7,611 | 910 | |
Income taxes | 471 | 470 | |
SUPPLEMENTAL NONCASH DISCLOSURES: | |||
Mortgage servicing rights capitalized | 127 | 974 | |
Right-of-use assets recorded | $ 772 | $ 4,538 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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, 2022. As of March 31, 2023, 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 — 29 ● Metropolitan Louisville — 18 ● Central Kentucky — 7 ● Georgetown — 1 ● Lexington — 5 ● Shelbyville — 1 ● Northern Kentucky — 4 ● Bellevue — 1 ● 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 — 4 ● 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 . Advances for Reverse mortgage loans and construction loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual advance during the time the advance 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 — As part of the sale of loans with servicing retained, the Bank records MSRs. MSRs represent an estimate of the present value of future cash servicing income, net of estimated costs, which the Bank expects to receive on loans sold with servicing retained by the Bank. MSRs are capitalized as separate assets. This transaction is posted to net gain on sale of loans, a component of “Mortgage Banking income” in the income statement. Management considers all relevant factors, in addition to pricing considerations from other servicers, to estimate the fair value of the MSRs to be recorded when the loans are initially sold with servicing retained by the Bank. The carrying value of MSRs is initially amortized in proportion to and over the estimated period of net servicing income and subsequently adjusted quarterly based on the weighted average remaining life of the underlying loans. The MSR amortization is recorded as a reduction to net servicing income, a component of Mortgage Banking income. With the assistance of an independent third-party, the MSRs asset is reviewed at least quarterly for impairment based on the fair value of the MSRs using groupings of the underlying loans based on predominant risk characteristics. Any impairment of a grouping is reported as a valuation allowance. A primary factor influencing the fair value is the estimated life of the underlying loans serviced. The estimated life of the loans serviced is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs is expected to decline due to increased anticipated prepayment speeds within the portfolio. Alternatively, during a period of rising interest rates, the fair value of MSRs would be expected to increase as prepayment speeds on the underlying loans would be expected to decline. Republic Processing Group Tax Refund Solutions segment — , the Bank is one of a limited number of financial institutions that facilitates the receipt and payment of federal and state tax refund products and offers a credit product through third-party tax preparers located throughout the U.S., as well as tax-preparation software providers (collectively, the “Tax Providers”). The majority of all the business generated by the TRS business occurs during the first half of each year. During the second half of each year, TRS generates limited revenue and incurs costs preparing for the next year’s tax season. TRS also originated 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 RA credit product is a loan made in conjunction with the filing of a taxpayer’s federal tax return, which allows the taxpayer to borrow funds as an advance of a portion of their tax refund. The RA product had the following features during the first quarters of 2023 and 2022: ● 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 disbursement methods were available with most Tax Providers, including direct deposit, prepaid card, or check, based on the taxpayer-customer’s election; ● Repayment of the RA to the Bank is deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the RA 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 ERA credit product is also a loan that allows a taxpayer to borrow funds as an advance of a portion of their tax refund. Unlike the RA product described immediately above, however, which is originated in conjunction with the filing of the taxpayer’s federal tax return, an ERA is originated prior to the filing of the taxpayer’s federal tax return and prior to the taxpayer receiving their year-end taxable income documentation, e.g., W-2. As such, the Company generally uses paystub information to estimate the potential tax refund and to underwrite the ERA. The repayment of the ERA is incumbent upon the taxpayer client returning to the Bank’s Tax Provider for the filing of their federal tax return in order for the tax refund to potentially be received by the Bank from the federal government to pay off the advance. The ERA product related to the first quarter 2023 tax filing season had the following features: ● Offered only during December 2022 and January 2023; ● The taxpayer had the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $1,000 ; ● No requirement that the taxpayer pays for another bank product, such as an RT; ● Multiple disbursement methods were available with most Tax Providers, including direct deposit or prepaid card, based on the taxpayer-customer’s election; ● Repayment of the ERA to the Bank is deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the ERA occurs, including the failure to file a federal tax return through a Republic Tax Provider: 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 RAs, including ERAs, as interest income on loans. RAs that were originated related to the first quarter 2022 tax season were repaid, on average, within 32 days after the taxpayer’s tax return was submitted to the applicable taxing authority. RAs do not have a contractual due date but the Company considered a RA, related to the first quarter 2022 tax season, delinquent 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 RAs are estimated when advances are made. Unpaid RAs, including ERAs, related to the first quarter tax season of a given year are charged-off by June 30th of that year, with RAs collected during the second half of that year recorded as recoveries of previously charged-off loans. Related to the overall credit losses on RAs, including ERAs, 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 RA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the RA volume occurs each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes made, credit losses during a current year could be higher than management’s predictions if tax refund payment patterns change materially between years. In response to changes in the legal, regulatory, and competitive environment, management annually reviews and revises the RA, including the ERA, product parameters. Further changes in the RA product parameters do not ensure positive results and could have an overall material negative impact on the performance of all RA product offerings and therefore on the Company’s financial condition and results of operations. Cancelled Sale Transaction Republic Payment Solutions division RPS is currently managed and operated within the TRS segment. The RPS division offers general-purpose reloadable prepaid cards, payroll debit cards, and limited-purpose demand deposit accounts with linked debit cards as an issuing bank through third-party service providers. Until the operating results of the RPS division are material to the Company’s overall results of operations, they will be reported as part of the TRS segment. The Company does not expect to report the RPS division as a separate reportable segment until such time, if any, that it meets quantitative reporting thresholds . The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.” Republic Credit Solutions segment — clients considered subprime or near-prime borrowers. The Bank uses third-party service providers for certain services such as marketing and loan servicing of RCS loans. Additional information regarding consumer loan products offered through RCS follows: ● 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. o RCS’s LOC I represented the substantial majority of RCS activity during 2022 and 2023. 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, up to a maximum amount of $3,500 . Furthermore, 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 One of RCS’s 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, up to a maximum advance amount of $10,000 . 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 – Through RCS, the Bank offers 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 three different third-party service providers. o For two of the programs, the Bank retains 100% of the receivables, with recourse in the event of default. o For the remaining program, in some instances the Bank retains 100% of the receivables originated, with recourse in the event of default, and in other instances, the Bank sells 100% of the receivables generally 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 three months ended March 31, 2023: Method of Financial ASU. No. Topic Nature of Update Date Adopted Adoption Statement 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 Immaterial 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 This ASU extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. January 1, 2023 Prospectively Immaterial. The Company ceased making new loans and renewing loans indexed to LIBOR on January 1, 2022. 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 2022-03 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 2023-02 Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force) This ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-01 Leases (Topic 842): Common Control Arrangements This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. |
ACQUISITION OF CBANK
ACQUISITION OF CBANK | 3 Months Ended |
Mar. 31, 2023 | |
ACQUISITION OF CBANK | |
ACQUISITION OF CBANK | 2. ACQUISITION OF CBANK OVERVIEW On March 15, 2023, the Company completed its acquisition of CBank (“CBank”), and its wholly owned bank subsidiary Commercial Industrial Finance (“CIF”), for approximately ACQUISITION SUMMARY The following table provides a summary of the assets acquired and liabilities assumed as recorded by CBank, the preliminary fair value adjustments necessary to adjust those acquired assets and assumed liabilities to fair value, and the preliminary fair values of those assets and liabilities as recorded by the Company. As provided for under GAAP, management has up to 12 months following the date of acquisition to finalize the fair values of the acquired assets and assumed liabilities. The preliminary fair value adjustments and the preliminary resultant fair values shown in the following table continue to be evaluated by management and may be subject to further adjustment. March 15, 2023 As Recorded Fair Value As Recorded (in thousands) by CBank Adjustments (1) by Republic (1) Assets acquired: Cash and cash equivalents $ 10,030 $ — $ 10,030 Investment securities 16,463 (4) a 16,459 Loans 221,707 (4,219) b 217,488 Allowance for loan and lease losses (2,953) 1,353 c (1,600) Loans, net 218,754 (2,866) 215,888 Goodwill 954 (954) d — Core deposit intangible — 2,844 e 2,844 Premises and equipment, net 162 35 f 197 Other assets and accrued interest receivable 7,067 (320) g 6,747 Total assets acquired $ 253,430 $ (1,265) $ 252,165 Liabilities assumed: Deposits: Noninterest-bearing $ 42,160 $ — $ 42,160 Interest-bearing 179,487 31 h 179,518 Total deposits 221,647 31 221,678 Other liabilities and accrued interest payable 4,709 96 i 4,805 Total liabilities assumed 226,356 127 226,483 Net assets acquired $ 27,074 $ (1,392) 25,682 Cash consideration paid (51,000) Goodwill $ 25,318 (1) The Company’s acquisition of CBank closed on March 15, 2023. Accordingly, the fair value adjustments shown are preliminary estimates of the purchase accounting adjustments. Management is continuing to evaluate each of these fair value adjustments and may revise one or more of such fair value adjustments in future periods based on this continuing evaluation. To the extent that any of these preliminary fair value adjustments are revised in future periods, the resultant fair values and the amount of goodwill recorded by the Company will change. Explanation of preliminary fair value adjustments: a. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the investment securities. b. Adjustments to loans to reflect estimated fair value adjustments, include the following: Fair Value (in thousands) Adjustments Fair value adjustment - acquired non PCD loans $ (4,251) Fair value adjustment - acquired PCD loans 75 Eliminate unrecognized loan fees on acquired loans (43) Net loan fair value adjustments $ (4,219) c. The net adjustment to the allowance for credit losses includes the following: Fair Value (in thousands) Adjustments Reversal of historical CBank allowance for credit losses on loans $ 2,953 Estimate of lifetime credit losses for PCD loans (1,600) Net change in allowance for credit losses $ 1,353 d. Adjustment reflects the fair value adjustment to eliminate the recorded goodwill. e. Adjustment reflects the fair value adjustment for the core deposit intangible asset recorded as a result of the acquisition. f. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the premises and equipment, net. g. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other assets and accrued interest receivable. h. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the assumed time deposits. i. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other liabilities and accrued interest payable. Goodwill of approximately $25 million, which is the excess of the merger consideration over the fair value of net assets acquired, is expected to be recorded in the CBank acquisition and is the result of expected operational synergies and other factors. This goodwill is all attributable to the Company’s Traditional Banking segment and is expected to be deductible for tax purposes. To the extent that management revises any of the above fair value adjustments as a result of its continuing evaluation, the amount of goodwill recorded in the CBank acquisition will change. CBANK CONTRIBUTION FOR THE REPORTING PERIOD The Company’s consolidated statements of income include the impact of the Company’s CBank acquisition for the three months ended March 31, 2023. Because the current levels of revenue and net earnings for CBank are not material to the Company’s consolidated statements of income, supplemental pro forma disclosures have been omitted. The results of operations of the assets acquired and liabilities assumed in the Company’s CBank acquisition, inclusive of any pre-acquisition related costs, are summarized in the following table: Three Months Ended March 31, 2023 Non-Acquisition Acquisition (in thousands) Related Related Total INTEREST INCOME: Loans, including fees $ 625 $ — $ 625 Taxable investment securities 47 — 47 Federal Home Loan Bank stock and other 13 — 13 Total interest income 685 — 685 INTEREST EXPENSE: Deposits 295 — 295 Total interest expense 295 — 295 NET INTEREST INCOME 390 — 390 Provision for expected credit loss expense — 2,684 a 2,684 NET INTEREST INCOME AFTER PROVISION 390 (2,684) (2,294) NONINTEREST INCOME: Service charges on deposit accounts 8 — 8 Other 32 — 32 Total noninterest income 40 — 40 NONINTEREST EXPENSE: Salaries and employee benefits 76 106 c 182 Technology, equipment, and communication 51 — 51 Occupancy 55 — 55 FDIC insurance expense 8 — 8 Interchange related expense 12 — 12 Legal and professional fees — (81) b (81) Other 31 2,199 b,d 2,230 Total noninterest expense 233 2,224 2,457 INCOME BEFORE INCOME TAX EXPENSE 197 (4,908) (4,711) INCOME TAX EXPENSE 7 (171) (164) NET INCOME $ 190 $ (4,737) $ (4,547) Explanation of acquisition-related items: a. The initial recognition of the allowance for credit losses on non-PCD loans through an increase to the Provision for expected credit loss expense. b. Includes legal, audit, tax and other acquisition related consulting costs. c. Retention bonuses for CBank employees. d. Core systems conversion-related costs. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2023 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 3. 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 March 31, 2023 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 416,388 $ — $ (21,771) $ — $ 394,617 Private label mortgage-backed security 721 1,289 — — 2,010 Mortgage-backed securities - residential 192,614 134 (16,066) — 176,682 Collateralized mortgage obligations 24,884 69 (1,302) — 23,651 Corporate bonds 12,017 — (27) (3) 11,987 Trust preferred security 3,755 246 — — 4,001 Total available-for-sale debt securities $ 650,379 $ 1,738 $ (39,166) $ (3) $ 612,948 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2022 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 436,333 $ 1 $ (25,193) $ — $ 411,141 Private label mortgage-backed security 843 1,284 — — 2,127 Mortgage-backed securities - residential 189,312 16 (17,455) — 171,873 Collateralized mortgage obligations 22,774 21 (1,427) — 21,368 Corporate bonds 10,000 1 — — 10,001 Trust preferred security 3,741 114 — — 3,855 Total available-for-sale debt securities $ 663,003 $ 1,437 $ (44,075) $ — $ 620,365 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 March 31, 2023 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 100,000 $ 6 $ (234) $ 99,772 $ — Mortgage-backed securities - residential 27 — (1) 26 — Collateralized mortgage obligations 6,989 58 (133) 6,914 — Corporate bonds 4,977 — (18) 4,959 (10) Obligations of state and political subdivisions 125 — — 125 — Total held-to-maturity debt securities $ 112,118 $ 64 $ (386) $ 111,796 $ (10) Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for December 31, 2022 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 75,000 $ 106 $ — $ 75,106 $ — Mortgage-backed securities - residential 27 — (1) 26 — Collateralized mortgage obligations 7,270 54 (148) 7,176 — Corporate bonds 4,974 — (49) 4,925 (10) Obligations of state and political subdivisions 125 — (1) 124 — Total held-to-maturity debt securities $ 87,396 $ 160 $ (199) $ 87,357 $ (10) Sales of Available-for-Sale Debt Securities During the three months ended March 31, 2023 and 2022, there were no gains or losses on sales or calls of AFS debt securities. Debt Securities by Contractual Maturity The amortized cost and fair value of debt securities by contractual maturity as of March 31, 2023 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 March 31, 2023 (in thousands) Cost Value Cost Value Due in one year or less $ 50,468 $ 49,327 $ 125 $ 125 Due from one year to five years 377,937 357,277 104,977 104,731 Due from five years to ten years — — — — Due beyond ten years 3,755 4,001 — — Private label mortgage-backed security 721 2,010 — — Mortgage-backed securities - residential 192,614 176,682 27 26 Collateralized mortgage obligations 24,884 23,651 6,989 6,914 Total debt securities $ 650,379 $ 612,948 $ 112,118 $ 111,796 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 March 31, 2023 and December 31, 2022, 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 March 31, 2023 (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 $ 204,723 $ (6,741) $ 189,895 $ (15,030) $ 394,618 $ (21,771) Mortgage-backed securities - residential 62,400 (6,174) 101,703 (9,892) 164,103 (16,066) Collateralized mortgage obligations 11,444 (750) 8,151 (552) 19,595 (1,302) Corporate bonds 1,986 (27) — — 1,986 (27) Total available-for-sale debt securities $ 280,553 $ (13,692) $ 299,749 $ (25,474) $ 580,302 $ (39,166) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2023 (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 $ 229,372 $ (7,139) $ 171,676 $ (18,054) $ 401,048 $ (25,193) Mortgage-backed securities - residential 105,274 (7,434) 65,520 (10,021) 170,794 (17,455) Collateralized mortgage obligations 20,418 (1,426) 6 (1) 20,424 (1,427) Total available-for-sale debt securities $ 355,064 $ (15,999) $ 237,202 $ (28,076) $ 592,266 $ (44,075) As of March 31, 2023, the Bank’s security portfolio consisted of 198 securities, 162 of which were in an unrealized loss position. As of December 31, 2022, the Bank’s security portfolio consisted of 179 securities, 163 of which were in an unrealized loss position. As of March 31, 2023 and December 31, 2022, 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 million as of March 31, 2023. 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. transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support for this investment. See additional discussion regarding the Bank’s private label mortgage-backed security under Footnote 11 “Fair Value” in this section of the filing. Mortgage-Backed Securities and Collateralized Mortgage Obligations As of March 31, 2023, with the exception of the $2 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 March 31, 2023 and December 31, 2022, there were gross unrealized losses of $17.4 million and $18.9 million 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. Roll-forward of the Allowance for Credit Losses on Debt Securities The table below presents a roll-forward for the three months ended March 31, 2023 and 2022 of the ACLS on AFS and HTM debt securities: ACLS Roll-forward Three Months Ended March 31, 2023 2022 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ 3 $ — $ — $ 3 $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 10 — — — 10 47 (7) — — 40 Total $ 10 $ 3 $ — $ — $ 13 $ 47 $ (7) $ — $ — $ 40 The Company’s ACLS on its HTM corporate bonds during the three months ended March 31, 2023 remains unchanged from December 31, 2022. There were no HTM debt securities on nonaccrual or past due 90 days or more as of March 31, 2023 and December 31, 2022. All of the Company’s HTM corporate bonds were rated investment grade as of March 31, 2023 and December 31, 2022. There were no HTM debt securities considered collateral dependent as of March 31, 2023 and December 31, 2022. 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 $3 million and $2 million as of March 31, 2023 and December 31, 2022. Accrued interest receivable on HTM debt securities totaled $1 million and $92,000 as of March 31, 2023 and December 31, 2022. 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) March 31, 2023 December 31, 2022 Amortized cost $ 146,011 $ 236,047 Fair value 133,652 217,562 Carrying amount 133,652 217,562 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 March 31, 2023 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 107 $ — $ 107 Total equity securities with readily determinable fair values $ — $ 107 $ — $ 107 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2022 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 111 $ — $ 111 Total equity securities with readily determinable fair values $ — $ 111 $ — $ 111 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 March 31, 2023 Three Months Ended March 31, 2022 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (4) $ (4) $ — $ (6) $ (6) Community Reinvestment Act mutual fund — — — — (112) (112) Total equity securities with readily determinable fair value $ — $ (4) $ (4) $ — $ (118) $ (118) |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2023 | |
LOANS HELD FOR SALE. | |
LOANS HELD FOR SALE | 4. LOANS HELD FOR SALE In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Mortgage Banking 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 12 “Mortgage Banking Activities” of this section of the filing. Consumer Loans Held for Sale, at Fair Value The Bank offers 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 March 31, (in thousands) 2023 2022 Balance, beginning of period $ 4,706 $ 19,747 Origination of consumer loans held for sale 22,797 96,732 Proceeds from the sale of consumer loans held for sale (23,560) (106,648) Net gain on sale of consumer loans held for sale 745 1,878 Balance, end of period $ 4,688 $ 11,709 Consumer Loans Held for Sale, at the Lower of Cost or Fair Value RCS originates for sale 90% or 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 March 31, (in thousands) 2023 2022 Balance, beginning of period $ 13,169 $ 2,937 Origination of consumer loans held for sale 184,425 148,482 Proceeds from the sale of consumer loans held for sale (186,639) (149,632) Net gain on sale of consumer loans held for sale 1,789 1,239 Balance, end of period $ 12,744 $ 3,026 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio follows: (in thousands) March 31, 2023 December 31, 2022 Traditional Banking: Residential real estate: Owner occupied $ 972,214 $ 911,427 Nonowner occupied 328,529 321,358 Commercial real estate 1,682,573 1,599,510 Construction & land development 167,829 153,875 Commercial & industrial 478,101 413,387 Lease financing receivables 73,270 10,505 Aircraft 184,344 179,785 Home equity 250,050 241,739 Consumer: Credit cards 16,775 15,473 Overdrafts 775 726 Automobile loans 5,267 6,731 Other consumer 5,450 626 Total Traditional Banking 4,165,177 3,855,142 Warehouse lines of credit* 457,365 403,560 Total Core Banking 4,622,542 4,258,702 Republic Processing Group*: Tax Refund Solutions: Refund Advances 31,665 97,505 Other TRS commercial & industrial loans 8,327 51,767 Republic Credit Solutions 111,700 107,828 Total Republic Processing Group 151,692 257,100 Total loans** 4,774,234 4,515,802 Allowance for credit losses (96,121) (70,413) Total loans, net $ 4,678,113 $ 4,445,389 *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) March 31, 2023 December 31, 2022 Contractually receivable $ 4,781,284 $ 4,519,136 Unearned income (714) (835) Unamortized premiums 169 99 Unaccreted discounts (4,100) (479) PPP net unamortized deferred origination (fees) and costs (84) (91) Other net unamortized deferred origination (fees) and costs (2,321) (2,028) Carrying value of loans $ 4,774,234 $ 4,515,802 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 March 31, 2023 remain unchanged from those defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Regarding origination year, loan extensions and renewals are generally considered originated in the year extended or renewed unless the loan is classified as a loan modification (formerly TDR.) Loan extensions and renewals classified as loan modifications (formerly 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 March 31, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 71,391 $ 221,178 $ 189,378 $ 186,685 $ 280,428 $ — $ 749 $ 949,809 Special Mention 47 — — — 7,002 — — 7,049 Substandard — 1,297 1,361 1,160 11,538 — — 15,356 Doubtful — — — — — — — — Total $ 71,438 $ 222,475 $ 190,739 $ 187,845 $ 298,968 $ — $ 749 $ 972,214 YTD Gross Charge-offs $ — $ — $ 6 $ — $ — $ — $ — $ 6 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 19,017 $ 74,848 $ 88,212 $ 51,821 $ 86,161 $ — $ 8,364 $ 328,423 Special Mention — — — — 30 — — 30 Substandard — — 27 — 49 — — 76 Doubtful — — — — — — — — Total $ 19,017 $ 74,848 $ 88,239 $ 51,821 $ 86,240 $ — $ 8,364 $ 328,529 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 57,928 $ 457,789 $ 389,353 $ 213,912 $ 377,754 $ 22,947 $ 113,157 $ 1,632,840 Special Mention 586 10,897 4,000 — 30,808 142 — 46,433 Substandard — — — — 3,300 — — 3,300 Doubtful — — — — — — — — Total $ 58,514 $ 468,686 $ 393,353 $ 213,912 $ 411,862 $ 23,089 $ 113,157 $ 1,682,573 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development: Risk Rating Pass or not rated $ 28,475 $ 106,203 $ 29,978 $ 1,958 $ 642 $ 275 $ 298 $ 167,829 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 28,475 $ 106,203 $ 29,978 $ 1,958 $ 642 $ 275 $ 298 $ 167,829 YTD Gross Charge-offs — — — — — — — — Commercial and industrial: Risk Rating Pass or not rated $ 47,157 $ 112,078 $ 89,610 $ 20,170 $ 73,499 $ 115,529 $ 3,707 $ 461,750 Special Mention — 508 12,817 — 1,752 255 — 15,332 Substandard — — — — 1,019 — — 1,019 Doubtful — — — — — — — — Total $ 47,157 $ 112,586 $ 102,427 $ 20,170 $ 76,270 $ 115,784 $ 3,707 $ 478,101 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 12,346 $ 31,683 $ 14,896 $ 7,298 $ 6,229 $ — $ — $ 72,452 Special Mention — — — — — — — — Substandard — — — — 818 — — 818 Doubtful — — — — — — — — Total $ 12,346 $ 31,683 $ 14,896 $ 7,298 $ 7,047 $ — $ — $ 73,270 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Aircraft: Risk Rating Pass or not rated $ 13,640 $ 62,951 $ 51,083 $ 33,033 $ 23,432 $ — $ — $ 184,139 Special Mention — — — — — — — — Substandard — — — — 205 — — 205 Doubtful — — — — — — — — Total $ 13,640 $ 62,951 $ 51,083 $ 33,033 $ 23,637 $ — $ — $ 184,344 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 248,978 $ — $ 248,978 Special Mention — — — — — 106 — 106 Substandard — — — — — 966 — 966 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 250,050 $ — $ 250,050 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of March 31, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 563 $ 1,864 $ 868 $ 133 $ 5,272 $ 19,528 $ — $ 28,228 Special Mention — — — — — — — — Substandard — — 10 — 29 — — 39 Doubtful — — — — — — — — Total $ 563 $ 1,864 $ 878 $ 133 $ 5,301 $ 19,528 $ — $ 28,267 YTD Gross Charge-offs $ — $ 9 $ 7 $ — $ 4 $ 305 $ — $ 325 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 457,365 $ — $ 457,365 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 457,365 $ — $ 457,365 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 39,992 $ — $ 39,992 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 39,992 $ — $ 39,992 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — RCS: Risk Rating Pass or not rated $ 10,577 $ 18,530 $ 1,668 $ 1,059 $ 29,120 $ 49,864 $ — $ 110,818 Special Mention — — — — — — — — Substandard — — — — — 882 — 882 Doubtful — — — — — — — — Total $ 10,577 $ 18,530 $ 1,668 $ 1,059 $ 29,120 $ 50,746 $ — $ 111,700 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 3,099 $ — $ 3,099 Grand Total: Risk Rating Pass or not rated $ 261,094 $ 1,087,124 $ 855,046 $ 516,069 $ 882,537 $ 954,478 $ 126,275 $ 4,682,623 Special Mention 633 11,405 16,817 — 39,592 503 — 68,950 Substandard — 1,297 1,398 1,160 16,958 1,848 — 22,661 Doubtful — — — — — — — — Grand Total $ 261,727 $ 1,099,826 $ 873,261 $ 517,229 $ 939,087 $ 956,829 $ 126,275 $ 4,774,234 YTD Gross Charge-offs $ — $ 9 $ 13 $ — $ 4 $ 3,404 $ — $ 3,430 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 231,638 $ 189,495 $ 188,004 $ 71,306 $ 208,296 $ — $ — $ 888,739 Special Mention — 160 — — 7,240 — — 7,400 Substandard 1,230 1,103 1,501 1,460 9,994 — — 15,288 Doubtful — — — — — — — — Total $ 232,868 $ 190,758 $ 189,505 $ 72,766 $ 225,530 $ — $ — $ 911,427 YTD Gross Charge-offs $ 21 $ — $ — $ — $ — $ — $ — $ 21 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 78,337 $ 91,778 $ 55,058 $ 32,803 $ 57,053 $ — $ 6,147 $ 321,176 Special Mention — — — — 32 — — 32 Substandard — 30 — — 120 — — 150 Doubtful — — — — — — — — Total $ 78,337 $ 91,808 $ 55,058 $ 32,803 $ 57,205 $ — $ 6,147 $ 321,358 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 451,327 $ 394,317 $ 210,055 $ 117,928 $ 253,213 $ 25,499 $ 99,791 $ 1,552,130 Special Mention 3,124 11,870 — 21,296 9,967 318 — 46,575 Substandard — — — — 805 — — 805 Doubtful — — — — — — — — Total $ 454,451 $ 406,187 $ 210,055 $ 139,224 $ 263,985 $ 25,817 $ 99,791 $ 1,599,510 YTD Gross Charge-offs $ — $ 9 $ — $ — $ — $ — $ — $ 9 Construction and land development: Risk Rating Pass or not rated $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial and industrial: Risk Rating Pass or not rated $ 116,483 $ 82,431 $ 17,944 $ 36,254 $ 36,367 $ 103,257 $ 4,865 $ 397,601 Special Mention 536 13,239 — — 1,756 255 — 15,786 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 117,019 $ 95,670 $ 17,944 $ 36,254 $ 38,123 $ 103,512 $ 4,865 $ 413,387 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Aircraft: Risk Rating Pass or not rated $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,454 $ — $ — $ 179,575 Special Mention — — — — — — — — Substandard — — — — 210 — — 210 Doubtful — — — — — — — — Total $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,664 $ — $ — $ 179,785 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 240,704 $ — $ 240,704 Special Mention — — — — — 171 — 171 Substandard — — — — — 864 — 864 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 241,739 $ — $ 241,739 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk Rating Pass or not rated $ 415 $ 499 $ 168 $ 2,531 $ 4,328 $ 15,573 $ — $ 23,514 Special Mention — — — — — — — — Substandard — — — 9 33 — — 42 Doubtful — — — — — — — — Total $ 415 $ 499 $ 168 $ 2,540 $ 4,361 $ 15,573 $ — $ 23,556 YTD Gross Charge-offs $ — $ 5 $ — $ 11 $ — $ 1,274 $ — $ 1,290 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 11,659 $ — $ 11,659 RCS: Risk Rating Pass or not rated $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 50,589 $ — $ 106,679 Special Mention — — — — — — — — Substandard — — — — — 1,149 — 1,149 Doubtful — — — — — — — — Total $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 51,738 $ — $ 107,828 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 11,390 $ — $ 11,390 Grand Total: Risk Rating Pass or not rated $ 1,078,578 $ 860,795 $ 508,758 $ 280,501 $ 597,660 $ 990,235 $ 110,803 $ 4,427,330 Special Mention 3,660 25,269 — 21,296 18,995 744 — 69,964 Substandard 1,230 1,133 1,501 1,469 11,162 2,013 — 18,508 Doubtful — — — — — — — — Grand Total $ 1,083,468 $ 887,197 $ 510,259 $ 303,266 $ 627,817 $ 992,992 $ 110,803 $ 4,515,802 YTD Gross Charge-offs $ 21 $ 14 $ — $ 11 $ — $ 24,323 $ — $ 24,369 Allowance for Credit Losses on Loans The following table presents the activity in the ACLL by portfolio class: ACLL Roll-forward Three Months Ended March 31, 2023 2022 Beginning CBank Charge- Ending Beginning Charge- Ending (in thousands) Balance Adjustment* Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 8,909 $ — $ (120) $ (6) $ 15 $ 8,798 $ 8,647 $ (331) $ — $ 42 $ 8,358 Nonowner occupied 2,831 — 64 — — 2,895 2,700 45 — 1 2,746 Commercial real estate 23,739 — 1,041 — 47 24,827 23,769 854 — 1 24,624 Construction & land development 4,123 — 329 — — 4,452 4,128 (235) — — 3,893 Commercial & industrial 3,976 1,008 602 — 90 5,676 3,487 (84) — 9 3,412 Lease financing receivables 110 592 648 — — 1,350 91 18 — — 109 Aircraft 449 — 12 — — 461 357 21 — — 378 Home equity 4,628 — 31 — 1 4,660 4,111 (70) — 3 4,044 Consumer: Credit cards 996 — 112 (40) 12 1,080 934 32 (39) 17 944 Overdrafts 726 — 52 (247) 64 595 683 188 (214) 59 716 Automobile loans 87 — (16) (7) 2 66 186 (36) — 1 151 Other consumer 135 — 229 (31) 23 356 314 (75) (10) 12 241 Total Traditional Banking 50,709 1,600 2,984 (331) 254 55,216 49,407 327 (263) 145 49,616 Warehouse lines of credit 1,009 — 135 — — 1,144 2,126 (401) — — 1,725 Total Core Banking 51,718 1,600 3,119 (331) 254 56,360 51,533 (74) (263) 145 51,341 Republic Processing Group: Tax Refund Solutions: Refund Advances 3,797 — 21,715 — 285 25,797 — 8,315 — — 8,315 Other TRS commercial & industrial loans 91 — 93 — — 184 96 (403) — 362 55 Republic Credit Solutions 14,807 — 1,839 (3,099) 233 13,780 12,948 1,395 (2,673) 275 11,945 Total Republic Processing Group 18,695 — 23,647 (3,099) 518 39,761 13,044 9,307 (2,673) 637 20,315 Total $ 70,413 $ 1,600 $ 26,766 $ (3,430) $ 772 $ 96,121 $ 64,577 $ 9,233 $ (2,936) $ 782 $ 71,656 * The net fair value adjustment to ACLL includes an estimate of lifetime credit losses for Purchased Credit Deteriorated loans. The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of March 31, 2023 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 2023, 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. , Loan Modifications. For its CRE loan pool, the Company employed a one-year forecast of CRE vacancy rates through March 31, 2022 but discontinued use of this forecast during the second quarter of 2022 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) March 31, 2023 December 31, 2022 Loans on nonaccrual status* $ 15,833 $ 15,562 Loans past due 90-days-or-more and still on accrual** 777 756 Total nonperforming loans 16,610 16,318 Other real estate owned 1,529 1,581 Total nonperforming assets $ 18,139 $ 17,899 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.35 % 0.36 % Nonperforming assets to total loans (including OREO) 0.38 0.40 Nonperforming assets to total assets 0.30 0.31 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.34 % 0.37 % Nonperforming assets to total loans (including OREO) 0.38 0.40 Nonperforming assets to total assets 0.32 0.32 * 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) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Traditional Banking: Residential real estate: Owner occupied $ 13,046 $ 13,388 $ — $ — Nonowner occupied 76 117 — — Commercial real estate 1,568 1,001 — — Construction & land development — — — — Commercial & industrial — — — — Lease financing receivables — — — — Aircraft — — — Home equity 904 815 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 33 31 — — Other consumer 206 210 — — Total Traditional Banking 15,833 15,562 — — Warehouse lines of credit — — — — Total Core Banking 15,833 15,562 — — Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — Other TRS commercial & industrial loans — — — — Republic Credit Solutions — — 777 756 Total Republic Processing Group — — 777 756 Total $ 15,833 $ 15,562 $ 777 $ 756 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended As of March 31, 2023 March 31, 2023 Nonaccrual Nonaccrual Total Interest Income Loans with Loans without Nonaccrual Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* Residential real estate: Owner occupied $ 222 $ 12,824 $ 13,046 $ 181 Nonowner occupied 24 52 76 1 Commercial real estate 966 602 1,568 23 Construction & land development — — — — Commercial & industrial — — — — Lease financing receivables — — — — Aircraft — — — — Home equity 1 903 904 23 Consumer — 239 239 3 Total $ 1,213 $ 14,620 $ 15,833 $ 231 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Three Months Ended As of December 31, 2022 December 31, 2022 Nonaccrual Nonaccrual Total Interest Income Loans with Loans without Nonaccrual Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* Residential real estate: Owner occupied $ 2,252 $ 11,136 $ 13,388 $ 230 Nonowner occupied 56 61 117 1 Commercial real estate 1,001 — 1,001 630 Construction & land development — — — — Commercial & industrial — — — — Lease financing receivables — — — — Aircraft — — — — Home equity — 815 815 44 Consumer 15 226 241 46 Total $ 3,324 $ 12,238 $ 15,562 $ 951 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Nonaccrual loans and loans past due 90-days-or-more and still on accrual both include smaller balance, primarily retail, homogeneous loans. Nonaccrual loans are typically returned to accrual status when all the principal and interest amounts contractually due are brought current and held current for six consecutive months and future contractual payments are reasonably assured. Loan Modifications (formerly TDRs prior to the adoption of ASU 2022-02) on nonaccrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance under the modified terms. Delinquent Loans The following tables present the aging of the recorded investment in loans by class of loans: 30 - 59 60 - 89 90 or More March 31, 2023 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 2,587 $ 1,195 $ 929 $ 4,711 $ 967,503 $ 972,214 Nonowner occupied — — — — 328,529 328,529 Commercial real estate — — 602 602 1,681,971 1,682,573 Construction & land development — — — — 167,829 167,829 Commercial & industrial — — — — 478,101 478,101 Lease financing receivables — — — — 73,270 73,270 Aircraft — — — — 184,344 184,344 Home equity 59 — 4 63 249,987 250,050 Consumer: Credit cards 24 6 — 30 16,745 16,775 Overdrafts 109 1 2 112 663 775 Automobile loans — — 13 13 5,254 5,267 Other consumer 5 1 — 6 5,444 5,450 Total Traditional Banking 2,784 1,203 1,550 5,537 4,159,640 4,165,177 Warehouse lines of credit — — — — 457,365 457,365 Total Core Banking 2,784 1,203 1,550 5,537 4,617,005 4,622,542 Republic Processing Group: Tax Refund Solutions: Refund Advances 18,450 — — 18,450 13,215 31,665 Other TRS commercial & industrial loans 406 — — 406 7,921 8,327 Republic Credit Solutions 7,685 3,269 777 11,731 99,969 111,700 Total Republic Processing Group 26,541 3,269 777 30,587 121,105 151,692 Total $ 29,325 $ 4,472 $ 2,327 $ 36,124 $ 4,738,110 $ 4,774,234 Delinquency ratio*** 0.61 % 0.09 % 0.05 % 0.76 % * 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 nu |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2023 | |
DEPOSITS | |
DEPOSITS | 6. DEPOSITS The composition of the deposit portfolio follows: (in thousands) March 31, 2023 December 31, 2022 Core Bank: Demand $ 1,272,086 $ 1,336,082 Money market accounts 794,710 707,272 Savings 316,947 323,015 Reciprocal money market 123,486 28,635 Individual retirement accounts (1) 36,334 38,640 Time deposits, $250 and over (1) 46,687 54,855 Other certificates of deposit (1) 176,257 129,324 Reciprocal time deposits (1) 13,273 7,405 Total Core Bank interest-bearing deposits 2,779,780 2,625,228 Total Core Bank noninterest-bearing deposits 1,471,180 1,464,493 Total Core Bank deposits 4,250,960 4,089,721 Republic Processing Group: Money market accounts 5,931 3,849 Total RPG interest-bearing deposits 5,931 3,849 Brokered prepaid card deposits 390,052 328,655 Other noninterest-bearing deposits 152,725 115,620 Total RPG noninterest-bearing deposits 542,777 444,275 Total RPG deposits 548,708 448,124 Total deposits $ 4,799,668 $ 4,537,845 (1) Includes time deposit . |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 3 Months Ended |
Mar. 31, 2023 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 7. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements, and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional securities. To mitigate the risk of under collateralization, the Bank typically pledges at least As of March 31, 2023 and December 31, 2022, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase follows: (dollars in thousands) March 31, 2023 December 31, 2022 Outstanding balance at end of period $ 134,412 $ 216,956 Weighted average interest rate at end of period 0.45 % 0.41 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 133,652 $ 254,296 Total securities pledged $ 133,652 $ 254,296 Three Months Ended March 31, (dollars in thousands) 2023 2022 Average outstanding balance during the period $ 202,910 $ 300,169 Weighted average interest rate during the period 0.49 % 0.04 % Maximum outstanding at any month end during the period $ 224,067 $ 299,376 |
RIGHT-OF-USE ASSETS AND OPERATI
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 8. 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 March 31, 2023, the Company was under 45 separate and distinct operating lease contracts to lease the land and/or buildings for 36 of its offices, with 12 such operating leases contracted with a related party of the Company. As of March 31, 2023, payments on The Company recorded a renewal to one of its third-party leases during the first quarter of 2023 with a total right-of-use asset value of $772,000 . The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within the “Occupancy” category for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, (dollars in thousands) 2023 2022 Operating lease expense: Related Party: Variable lease expense $ 1,224 $ 1,265 Fixed lease expense 59 35 Third-Party: Variable lease expense 311 197 Fixed lease expense 389 345 Total operating lease expense $ 1,983 $ 1,842 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,730 $ 1,705 Cash paid for variable rent payments not included in measurement of operating lease liabilities 151 151 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 March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Weighted average remaining term in years 8.19 8.44 Weighted average discount rate 2.13 % 2.10 % The following table presents a maturity schedule of the Company’s operating lease liabilities based on undiscounted cash flows, and a reconciliation of those undiscounted cash flows to the operating lease liabilities recognized on the Company’s balance sheet as of March 31, 2023: Year (in thousands) Related Party Third-Party Total 2023 $ 2,988 $ 1,932 $ 4,920 2024 3,726 2,316 6,042 2025 3,570 1,782 5,352 2026 3,640 1,483 5,123 2027 3,680 1,160 4,840 Thereafter 11,751 3,630 15,381 Total undiscounted cash flows $ 29,355 $ 12,303 $ 41,658 Discount applied to cash flows (3,143) (1,484) (4,627) Total discounted cash flows reported as operating lease liabilities $ 26,212 $ 10,819 $ 37,031 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 3 Months Ended |
Mar. 31, 2023 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 9. FEDERAL HOME LOAN BANK ADVANCES FHLB advances were as follows: (in thousands) March 31, 2023 December 31, 2022 Overnight advances $ 88,000 $ 75,000 Fixed interest rate advances 20,000 20,000 Total FHLB advances $ 108,000 $ 95,000 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 March 31, 2023 and December 31, 2022, Republic had available borrowing capacity of $930 million and $899 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 March 31, 2023 and December 31, 2022. 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 2023 $ 88,000 4.86 % 2024 — — 2025 — — 2026 — — 2027 20,000 1.89 Total $ 108,000 4.31 % 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 March 31, (dollars in thousands) 2023 2022 Average outstanding balance during the period $ 225,344 $ 1,711 Weighted average interest rate during the period 4.43 % 0.15 % Maximum outstanding at any month end during the period $ 485,000 $ 25,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: (in thousands) March 31, 2023 December 31, 2022 First lien, single family residential real estate $ 1,159,090 $ 1,106,287 Home equity lines of credit 223,472 219,644 |
OFF BALANCE SHEET RISKS, COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 10. OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES 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) March 31, 2023 December 31, 2022 Unused warehouse lines of credit $ 540,135 $ 733,940 Unused home equity lines of credit 419,814 410,057 Unused loan commitments - other 1,027,617 951,021 Standby letters of credit 8,819 9,735 FHLB letter of credit 233 643 Total commitments $ 1,996,618 $ 2,105,396 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 roll-forward of the ACLC for the three months ended March 31, 2023 and 2022: ACLC Roll-forward Three Months Ended March 31, 2023 2022 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 $ 190 $ 8 $ — $ — $ 198 $ 154 $ (24) $ — $ — $ 130 Unused home equity lines of credit 332 9 — — 341 247 9 — — 256 Unused construction lines of credit 384 163 — — 547 383 (16) — — 367 Unused loan commitments - other 344 30 — — 374 268 19 — — 287 Total $ 1,250 $ 210 $ — $ — $ 1,460 $ 1,052 $ (12) $ — $ — $ 1,040 The Company increased its ACLC during the three months ended March 31, 2023 based on an increase in the expected loss rate for its unused commitments. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE | |
FAIR VALUE | 11. 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 3 “Investment Securities” for additional discussion regarding the Bank’s private label mortgage-backed security. The Company acquired its TRUP investment in 2015 and considered the most recent bid price for the same instrument to approximate market value as of March 31, 2023. The Company’s TRUP investment is considered highly illiquid and also valued using Level 3 inputs, as the most recent bid price for this instrument is not always considered generally observable. Equity securities with readily determinable fair value: The fair value of the Company’s Freddie Mac preferred stock is determined by matrix pricing, as described above (Level 2 inputs). Mortgage loans held for sale, at fair value: Consumer loans held for sale, at fair value: Consumer loans held for investment, at fair value: Mortgage Banking derivatives Interest rate swap agreements: Collateral-dependent loans: Other real estate owned: Appraisals for collateral-dependent loans, impaired premises and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g. Mortgage servicing rights: Assets and liabilities measured at fair value on a recurring basis Fair Value Measurements at March 31, 2023 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 $ 174,871 $ 219,746 $ — $ 394,617 Private label mortgage-backed security — — 2,010 2,010 Mortgage-backed securities - residential — 176,682 — 176,682 Collateralized mortgage obligations — 23,651 — 23,651 Corporate bonds — 11,987 — 11,987 Trust preferred security — — 4,001 4,001 Total available-for-sale debt securities $ 174,871 $ 432,066 $ 6,011 $ 612,948 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 107 $ — $ 107 Total equity securities with readily determinable fair value $ — $ 107 $ — $ 107 Mortgage loans held for sale $ — $ 1,034 $ — $ 1,034 Consumer loans held for sale — — 4,688 4,688 Rate lock loan commitments — 96 — 96 Mandatory forward contracts — 19 — 19 Interest rate swap agreements — 6,852 — 6,852 Financial liabilities: Interest rate swap agreements — 6,852 — 6,852 Fair Value Measurements at December 31, 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 $ 193,385 $ 217,756 $ — $ 411,141 Private label mortgage-backed security — — 2,127 2,127 Mortgage-backed securities - residential — 171,873 — 171,873 Collateralized mortgage obligations — 21,368 — 21,368 Corporate bonds — 10,001 — 10,001 Trust preferred security — — 3,855 3,855 Total available-for-sale debt securities $ 193,385 $ 420,998 $ 5,982 $ 620,365 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 111 $ — $ 111 Total equity securities with readily determinable fair value $ — $ 111 $ — $ 111 Mortgage loans held for sale $ — $ 1,302 $ — $ 1,302 Consumer loans held for sale — — 4,706 4,706 Consumer loans held for investment — — 2 2 Rate lock loan commitments — 2 — 2 Mandatory forward contracts — — — — Interest rate swap agreements — 8,127 — 8,127 Financial liabilities: Mandatory forward contracts $ — $ 67 $ — $ 67 Interest rate swap agreements — 8,127 — 8,127 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 ended March 31, 2023 and 2022. 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 March 31, (in thousands) 2023 2022 Balance, beginning of period $ 2,127 $ 2,731 Total gains or losses included in earnings: Net change in unrealized gain 5 24 Principal paydowns (122) (153) Balance, end of period $ 2,010 $ 2,602 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 March 31, 2023 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,010 Discounted cash flow (1) Constant prepayment rate 4.5% - 4.7% (2) Probability of default 1.8% - 9.3% (3) Loss severity 25% - 35% Fair Valuation December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,127 Discounted cash flow (1) Constant prepayment rate 4.5% - 4.7% (2) Probability of default 1.8% - 9.3% (3) Loss severity 25% - 35% 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 March 31, (in thousands) 2023 2022 Balance, beginning of period $ 3,855 $ 3,847 Total gains or losses included in earnings: Discount accretion 14 14 Net change in unrealized gain 132 (136) Balance, end of period $ 4,001 $ 3,725 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 March 31, 2023 and December 31, 2022. The aggregate fair value, contractual balance, and unrealized gain were as follows: (in thousands) March 31, 2023 December 31, 2022 Aggregate fair value $ 1,034 $ 1,302 Contractual balance 1,005 1,265 Unrealized (loss) gain 29 37 The total amount of gains and losses from changes in fair value included in earnings for the three months ended March 31, 2023 and 2022 for mortgage loans held for sale are presented in the following table: Three Months Ended March 31, (in thousands) 2023 2022 Interest income $ 61 $ 204 Change in fair value (8) (706) Total included in earnings $ 53 $ (502) 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 March 31, 2023 and December 31, 2022. 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 March 31, 2023 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 4,688 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% Fair Valuation December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 4,706 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% The aggregate fair value, contractual balance, and unrealized gain on consumer loans held for sale, at fair value, were as follows: (in thousands) March 31, 2023 December 31, 2022 Aggregate fair value $ 4,688 $ 4,706 Contractual balance 4,713 4,734 Unrealized (loss) gain (25) (28) 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 March 31, (in thousands) 2023 2022 Interest income $ 765 $ 2,890 Change in fair value 3 (37) Total included in earnings $ 768 $ 2,853 Assets measured at fair value on a non-recurring basis Fair Value Measurements at March 31, 2023 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 $ — $ — $ 1,270 $ 1,270 Commercial real estate — — 879 879 Total collateral-dependent loans* $ — $ — $ 2,149 $ 2,149 Other real estate owned: Commercial real estate $ — $ — $ 1,529 $ 1,529 Total other real estate owned $ — $ — $ 1,529 $ 1,529 Fair Value Measurements at December 31, 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 $ — $ — $ 1,456 $ 1,456 Commercial real estate — — 906 906 Total collateral-dependent loans* $ — $ — $ 2,362 $ 2,362 Other real estate owned: Residential real estate $ — $ — $ 1,581 $ 1,581 Total other real estate owned $ — $ — $ 1,581 $ 1,581 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 March 31, 2023 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,270 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 22% (5%) Collateral-dependent loans - commercial real estate $ 879 Sales comparison approach Adjustments determined for differences between comparable sales 16% (16%) Other real estate owned - commercial real estate $ 1,529 Sales comparison approach Adjustments determined for differences between comparable sales 39% Range Fair Valuation Unobservable (Weighted December 31, 2022 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,456 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 41% (11%) Collateral-dependent loans - commercial real estate $ 906 Sales comparison approach Adjustments determined for differences between comparable sales 16% (16%) Other real estate owned - commercial real estate $ 1,581 Sales comparison approach Adjustments determined for differences between comparable sales 39% 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: Three Months Ended March 31, (in thousands) 2023 2022 Provision on collateral-dependent loans $ (19) $ (4) Other Real Estate Owned Details of other real estate owned carrying value and write downs follows: (in thousands) March 31, 2023 December 31, 2022 Other real estate owned carried at fair value $ 1,529 $ 1,581 Total carrying value of other real estate owned $ 1,529 $ 1,581 Other real estate owned write-downs during the years ended $ 52 $ 211 Three Months Ended March 31, (in thousands) 2023 2022 Other real estate owned write-downs during the period $ 52 $ 52 The carrying amounts and estimated exit price fair values of all financial instruments follow: Fair Value Measurements at March 31, 2023: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 249,289 $ 249,289 $ — $ — $ 249,289 Available-for-sale debt securities 612,948 174,871 432,066 6,011 612,948 Held-to-maturity debt securities 112,108 — 111,796 — 111,796 Equity securities with readily determinable fair values 107 — 107 — 107 Mortgage loans held for sale, at fair value 1,034 — 1,034 — 1,034 Consumer loans held for sale, at fair value 4,688 — — 4,688 4,688 Consumer loans held for sale, at the lower of cost or fair value 12,744 — — 12,744 12,744 Loans, net 4,678,113 — — 4,488,620 4,488,620 Federal Home Loan Bank stock 25,939 — — — NA Accrued interest receivable 16,074 — 5,316 10,758 16,074 Mortgage servicing rights 8,406 — 16,554 — 16,554 Rate lock loan commitments 96 — 96 — 96 Mandatory forward contracts 19 — 19 — 19 Interest rate swap agreements 6,852 — 6,852 — 6,852 Liabilities: Noninterest-bearing deposits $ 2,013,957 $ — $ 2,013,957 $ — $ 2,013,957 Transaction deposits 2,513,160 — 2,513,160 — 2,513,160 Time deposits 272,551 — 259,421 — 259,421 Securities sold under agreements to repurchase and other short-term borrowings 134,412 — 134,412 — 134,412 Federal Home Loan Bank advances 108,000 — 106,490 — 106,490 Accrued interest payable 342 — 342 — 342 Rate lock loan commitments 96 — 96 — 96 Mandatory forward contracts 19 — 19 — 19 Interest rate swap agreements 6,852 — 6,852 — 6,852 Fair Value Measurements at December 31, 2022: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 313,689 $ 313,689 $ — $ — $ 313,689 Available-for-sale debt securities 620,365 193,385 420,998 5,982 620,365 Held-to-maturity debt securities 87,386 — 87,357 — 87,357 Equity securities with readily determinable fair values 111 — 111 — 111 Mortgage loans held for sale, at fair value 1,302 — 1,302 — 1,302 Consumer loans held for sale, at fair value 4,706 — — 4,706 4,706 Consumer loans held for sale, at the lower of cost or fair value 13,169 — — 13,169 13,169 Loans, net 4,445,389 — — 4,276,423 4,276,423 Federal Home Loan Bank stock 9,146 — — — NA Accrued interest receivable 13,572 — 2,462 11,110 13,572 Mortgage servicing rights 8,769 — 17,592 — 17,592 Rate lock loan commitments 2 — 2 — 2 Interest rate swap agreements 8,127 — 8,127 — 8,127 Liabilities: Noninterest-bearing deposits $ 1,908,768 $ — $ 1,908,768 $ — $ 1,908,768 Transaction deposits 2,398,853 — 2,398,853 — 2,398,853 Time deposits 230,224 — 223,912 — 223,912 Securities sold under agreements to repurchase and other short-term borrowings 216,956 — 216,956 — 216,956 Federal Home Loan Bank advances 95,000 — 93,044 — 93,044 Accrued interest payable 239 — 239 — 239 Interest rate swap agreements 8,127 — 8,127 — 8,127 |
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 3 Months Ended |
Mar. 31, 2023 | |
MORTGAGE BANKING ACTIVITIES | |
MORTGAGE BANKING ACTIVITIES | 12. 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 March 31, (in thousands) 2023 2022 Balance, beginning of period $ 1,302 $ 29,393 Origination of mortgage loans held for sale 15,942 100,661 Proceeds from the sale of mortgage loans held for sale (16,630) (119,212) Net gain on sale of mortgage loans held for sale 420 2,460 Balance, end of period $ 1,034 $ 13,302 The following table presents the components of Mortgage Banking income: Three Months Ended March 31, (in thousands) 2023 2022 Net gain realized on sale of mortgage loans held for sale $ 248 $ 2,733 Net change in fair value recognized on loans held for sale (8) (706) Net change in fair value recognized on rate lock loan commitments 94 (962) Net change in fair value recognized on forward contracts 86 1,395 Net gain recognized 420 2,460 Loan servicing income 870 865 Amortization of mortgage servicing rights (490) (668) Change in mortgage servicing rights valuation allowance — — Net servicing income recognized 380 197 Total Mortgage Banking income $ 800 $ 2,657 Activity for capitalized mortgage servicing rights was as follows: Three Months Ended March 31, (in thousands) 2023 2022 Balance, beginning of period $ 8,769 $ 9,196 Additions 127 974 Amortized to expense (490) (668) Change in valuation allowance — — Balance, end of period $ 8,406 $ 9,502 There was no valuation allowance for capitalized mortgage servicing rights for the three months ended March 31, 2023 and 2022. Other information relating to mortgage servicing rights follows: (dollars in thousands) March 31, 2023 December 31, 2022 Fair value of mortgage servicing rights portfolio $ 16,554 $ 17,145 Monthly weighted average prepayment rate of unpaid principal balance* 125 % 127 % Discount rate 10.22 % 10.21 % Weighted average foreclosure rate 0.08 % 0.10 % Weighted average life in years 7.64 7.54 * 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 or to purchase TBA securities 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 or purchase TBA securities. The fair value of these mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate loan lock commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before expiration; and the time period required to close and sell loans. The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives as of the period ends presented: March 31, 2023 December 31, 2022 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 $ 1,005 $ 1,034 $ 1,265 $ 1,302 Included in other assets: Rate lock loan commitments $ 5,174 $ 96 $ 4,118 $ 2 Mandatory forward contracts 2,936 19 — — Included in other liabilities: Mandatory forward contracts — — 4,009 67 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 3 Months Ended |
Mar. 31, 2023 | |
INTEREST RATE SWAPS | |
INTEREST RATE SWAPS | 13. 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, 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: March 31, 2023 December 31, 2022 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 50,941 $ 2,131 $ 40,032 $ 1,386 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 77,830 (4,721) 91,636 (6,742) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 128,771 $ (2,590) $ 131,668 $ (5,356) Offsetting interest rate swaps with institutional swap dealer - Assets Pay fixed/receive variable 77,830 4,721 91,636 6,742 Offsetting interest rate swaps with institutional swap dealer - Liabilities Pay fixed/receive variable 50,941 (2,131) 40,032 (1,386) Offsetting interest rate swaps with institutional swap dealer - Total Pay fixed/receive variable $ 128,771 $ 2,590 $ 131,668 $ 5,356 Total $ 257,542 $ — $ 263,336 $ — 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 $590,000 and $560,000 as of March 31, 2023 and December 31, 2022. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 14. 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 March 31, (in thousands, except per share data) 2023 2022 Net income $ 28,092 $ 28,350 Dividends declared on Common Stock: Class A Shares (6,581) (6,081) Class B Shares (734) (671) Undistributed net income for basic earnings per share 20,777 21,598 Weighted average potential dividends on Class A shares upon exercise of dilutive options (21) (27) Undistributed net income for diluted earnings per share $ 20,756 $ 21,571 Weighted average shares outstanding: Class A Shares 17,776 17,980 Class B Shares 2,159 2,165 Effect of dilutive securities on Class A Shares outstanding 55 80 Weighted average shares outstanding including dilutive securities 19,990 20,225 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.37 $ 0.34 Undistributed earnings per share* 1.05 1.08 Total basic earnings per share - Class A Common Stock $ 1.42 $ 1.42 Class B Common Stock: Per share dividends distributed $ 0.34 $ 0.31 Undistributed earnings per share* 0.96 0.98 Total basic earnings per share - Class B Common Stock $ 1.30 $ 1.29 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.37 $ 0.34 Undistributed earnings per share* 1.05 1.08 Total diluted earnings per share - Class A Common Stock $ 1.42 $ 1.42 Class B Common Stock: Per share dividends distributed $ 0.34 $ 0.31 Undistributed earnings per share* 0.95 0.98 Total diluted earnings per share - Class B Common Stock $ 1.29 $ 1.29 * 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 March 31, 2023 2022 Antidilutive stock options 245,898 186,000 Average antidilutive stock options 245,898 175,000 |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2023 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 15. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Three Months Ended March 31, (in thousands) 2023 2022 Available-for-Sale Debt Securities: Unrealized gain (loss) on AFS debt securities $ 5,205 $ (21,249) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 5 24 Net gains (losses) 5,210 (21,225) Tax effect (1,305) 5,308 Net of tax $ 3,905 $ (15,917) The following is a summary of the AOCI balances, net of tax: 2023 (in thousands) December 31, 2022 Change March 31, 2023 Unrealized gain (loss) on AFS debt securities $ (32,934) $ 3,900 $ (29,034) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 955 5 960 Total unrealized gain (loss) $ (31,979) $ 3,905 $ (28,074) 2022 (in thousands) December 31, 2021 Change March 31, 2022 Unrealized gain (loss) on AFS debt securities $ 890 $ (15,935) $ (15,045) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 984 18 1,002 Total unrealized gain (loss) $ 1,874 $ (15,917) $ (14,043) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 16. REVENUE FROM CONTRACTS WITH CUSTOMERS The following tables present the Company’s net revenue and net revenue concentration by reportable segment: Three Months Ended March 31, 2023 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) $ 50,107 $ 2,087 $ 61 $ 52,255 $ 31,765 $ 8,622 $ 40,387 $ 92,642 Noninterest income: Service charges on deposit accounts 3,288 11 — 3,299 — — — 3,299 Net refund transfer fees — — — — 10,807 — 10,807 10,807 Mortgage banking income (1) — — 800 800 — — — 800 Interchange fee income 3,006 — — 3,006 45 — 45 3,051 Program fees (1) — — — — 707 2,534 3,241 3,241 Increase in cash surrender value of BOLI (1) 635 — — 635 — — — 635 Net losses on OREO (53) — — (53) — — — (53) Other 778 — 17 795 81 25 106 901 Total noninterest income 7,654 11 817 8,482 11,640 2,559 14,199 22,681 Total net revenue $ 57,761 $ 2,098 $ 878 $ 60,737 $ 43,405 $ 11,181 $ 54,586 $ 115,323 Net-revenue concentration (2) 49 % 2 % 1 % 52 % 38 % 10 % 48 % 100 % Three Months Ended March 31, 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) $ 36,148 $ 4,515 $ 204 $ 40,867 $ 15,404 $ 6,896 $ 22,300 $ 63,167 Noninterest income: Service charges on deposit accounts 3,219 13 — 3,232 (6) — (6) 3,226 Net refund transfer fees — — — — 12,051 — 12,051 12,051 Mortgage banking income (1) — — 2,657 2,657 — — — 2,657 Interchange fee income 3,012 — — 3,012 58 — 58 3,070 Program fees (1) — — — — 727 3,127 3,854 3,854 Increase in cash surrender value of BOLI (1) 612 — — 612 — — — 612 Net losses on OREO (53) — — (53) — — — (53) Contract termination fee — — — — 5,000 — 5,000 5,000 Other 452 — 34 486 106 — 106 592 Total noninterest income 7,242 13 2,691 9,946 17,936 3,127 21,063 31,009 Total net revenue $ 43,390 $ 4,528 $ 2,895 $ 50,813 $ 33,340 $ 10,023 $ 43,363 $ 94,176 Net-revenue concentration (2) 46 % 5 % 3 % 54 % 35 % 11 % 46 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. The following represents information for significant revenue streams subject to ASC 606: Service charges on deposit accounts Net refund transfer fees fees and all applicable tax preparation, transmitter, audit, and any other taxpayer authorized amounts are deducted from the tax refund by either the Bank or the Bank’s service provider and automatically forwarded to the appropriate party as authorized by the taxpayer. RT fees generally receive first priority when applying fees against the taxpayer’s refund, with the Bank’s share of RT fees generally superior to the claims of other third-party service providers, including the Tax Providers. The remainder of the refund is disbursed to the taxpayer by a Bank check, 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 fulfilment 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 generally recognizes gains or losses on OREO at the time of an executed deed, although gains may be recognized over a financing period if the Company finances the sale. For financed OREO sales, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. Mark-to-market write-downs taken by the Company during the property’s holding period are generally at least 10% per year but may be higher based on updated real estate appraisals or BPOs. Incremental expenditures to bring OREO to salable condition are generally expensed as-incurred. 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 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 17. 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 March 31, 2023, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending, 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 2022 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 March 31, 2023 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 $ 50,107 $ 2,087 $ 61 $ 52,255 $ 31,765 $ 8,622 $ 40,387 $ 92,642 Provision for expected credit loss expense 2,984 135 — 3,119 21,808 1,839 23,647 26,766 Net refund transfer fees — — — — 10,807 — 10,807 10,807 Mortgage banking income — — 800 800 — — — 800 Program fees — — — — 707 2,534 3,241 3,241 Contract termination fee — — — — — — — — Legal settlement — — — — — — — — Other noninterest income 7,654 11 17 7,682 126 25 151 7,833 Total noninterest income 7,654 11 817 8,482 11,640 2,559 14,199 22,681 Total noninterest expense 40,852 968 2,554 44,374 5,648 2,421 8,069 52,443 Income (loss) before income tax expense 13,925 995 (1,676) 13,244 15,949 6,921 22,870 36,114 Income tax expense (benefit) 3,082 223 (369) 2,936 3,541 1,545 5,086 8,022 Net income (loss) $ 10,843 $ 772 $ (1,307) $ 10,308 $ 12,408 $ 5,376 $ 17,784 $ 28,092 Period-end assets $ 4,974,002 $ 458,675 $ 13,421 $ 5,446,098 $ 511,150 $ 116,843 $ 627,993 $ 6,074,091 Net interest margin 4.07 % 2.53 % NM 3.98 % NM NM NM 6.52 % Net-revenue concentration* 49 % 2 % 1 % 52 % 38 % 10 % 48 % 100 % Three Months Ended March 31, 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 $ 36,148 $ 4,515 $ 204 $ 40,867 $ 15,404 $ 6,896 $ 22,300 $ 63,167 Provision for expected credit loss expense 320 (401) — (81) 7,912 1,395 9,307 9,226 Net refund transfer fees — — — — 12,051 — 12,051 12,051 Mortgage banking income — — 2,657 2,657 — — — 2,657 Program fees — — — — 727 3,127 3,854 3,854 Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — — — — — Other noninterest income 7,242 13 34 7,289 158 — 158 7,447 Total noninterest income 7,242 13 2,691 9,946 17,936 3,127 21,063 31,009 Total noninterest expense 38,227 952 2,690 41,869 5,145 1,567 6,712 48,581 Income before income tax expense 4,843 3,977 205 9,025 20,283 7,061 27,344 36,369 Income tax expense 468 904 45 1,417 4,906 1,696 6,602 8,019 Net income $ 4,375 $ 3,073 $ 160 $ 7,608 $ 15,377 $ 5,365 $ 20,742 $ 28,350 Period-end assets $ 4,984,918 $ 689,204 $ 28,573 $ 5,702,695 $ 552,101 $ 95,073 $ 647,174 $ 6,349,869 Net interest margin 2.90 % 3.09 % NM 2.92 % NM NM NM 4.34 % Net-revenue concentration* 46 % 5 % 3 % 54 % 35 % 11 % 46 % 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. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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, 2022. As of March 31, 2023, 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 — 29 ● Metropolitan Louisville — 18 ● Central Kentucky — 7 ● Georgetown — 1 ● Lexington — 5 ● Shelbyville — 1 ● Northern Kentucky — 4 ● Bellevue — 1 ● 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 — 4 ● 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 . Advances for Reverse mortgage loans and construction loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual advance during the time the advance 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 — As part of the sale of loans with servicing retained, the Bank records MSRs. MSRs represent an estimate of the present value of future cash servicing income, net of estimated costs, which the Bank expects to receive on loans sold with servicing retained by the Bank. MSRs are capitalized as separate assets. This transaction is posted to net gain on sale of loans, a component of “Mortgage Banking income” in the income statement. Management considers all relevant factors, in addition to pricing considerations from other servicers, to estimate the fair value of the MSRs to be recorded when the loans are initially sold with servicing retained by the Bank. The carrying value of MSRs is initially amortized in proportion to and over the estimated period of net servicing income and subsequently adjusted quarterly based on the weighted average remaining life of the underlying loans. The MSR amortization is recorded as a reduction to net servicing income, a component of Mortgage Banking income. With the assistance of an independent third-party, the MSRs asset is reviewed at least quarterly for impairment based on the fair value of the MSRs using groupings of the underlying loans based on predominant risk characteristics. Any impairment of a grouping is reported as a valuation allowance. A primary factor influencing the fair value is the estimated life of the underlying loans serviced. The estimated life of the loans serviced is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs is expected to decline due to increased anticipated prepayment speeds within the portfolio. Alternatively, during a period of rising interest rates, the fair value of MSRs would be expected to increase as prepayment speeds on the underlying loans would be expected to decline. Republic Processing Group Tax Refund Solutions segment — , the Bank is one of a limited number of financial institutions that facilitates the receipt and payment of federal and state tax refund products and offers a credit product through third-party tax preparers located throughout the U.S., as well as tax-preparation software providers (collectively, the “Tax Providers”). The majority of all the business generated by the TRS business occurs during the first half of each year. During the second half of each year, TRS generates limited revenue and incurs costs preparing for the next year’s tax season. TRS also originated 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 RA credit product is a loan made in conjunction with the filing of a taxpayer’s federal tax return, which allows the taxpayer to borrow funds as an advance of a portion of their tax refund. The RA product had the following features during the first quarters of 2023 and 2022: ● 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 disbursement methods were available with most Tax Providers, including direct deposit, prepaid card, or check, based on the taxpayer-customer’s election; ● Repayment of the RA to the Bank is deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the RA 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 ERA credit product is also a loan that allows a taxpayer to borrow funds as an advance of a portion of their tax refund. Unlike the RA product described immediately above, however, which is originated in conjunction with the filing of the taxpayer’s federal tax return, an ERA is originated prior to the filing of the taxpayer’s federal tax return and prior to the taxpayer receiving their year-end taxable income documentation, e.g., W-2. As such, the Company generally uses paystub information to estimate the potential tax refund and to underwrite the ERA. The repayment of the ERA is incumbent upon the taxpayer client returning to the Bank’s Tax Provider for the filing of their federal tax return in order for the tax refund to potentially be received by the Bank from the federal government to pay off the advance. The ERA product related to the first quarter 2023 tax filing season had the following features: ● Offered only during December 2022 and January 2023; ● The taxpayer had the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $1,000 ; ● No requirement that the taxpayer pays for another bank product, such as an RT; ● Multiple disbursement methods were available with most Tax Providers, including direct deposit or prepaid card, based on the taxpayer-customer’s election; ● Repayment of the ERA to the Bank is deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the ERA occurs, including the failure to file a federal tax return through a Republic Tax Provider: 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 RAs, including ERAs, as interest income on loans. RAs that were originated related to the first quarter 2022 tax season were repaid, on average, within 32 days after the taxpayer’s tax return was submitted to the applicable taxing authority. RAs do not have a contractual due date but the Company considered a RA, related to the first quarter 2022 tax season, delinquent 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 RAs are estimated when advances are made. Unpaid RAs, including ERAs, related to the first quarter tax season of a given year are charged-off by June 30th of that year, with RAs collected during the second half of that year recorded as recoveries of previously charged-off loans. Related to the overall credit losses on RAs, including ERAs, 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 RA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the RA volume occurs each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes made, credit losses during a current year could be higher than management’s predictions if tax refund payment patterns change materially between years. In response to changes in the legal, regulatory, and competitive environment, management annually reviews and revises the RA, including the ERA, product parameters. Further changes in the RA product parameters do not ensure positive results and could have an overall material negative impact on the performance of all RA product offerings and therefore on the Company’s financial condition and results of operations. Cancelled Sale Transaction Republic Payment Solutions division RPS is currently managed and operated within the TRS segment. The RPS division offers general-purpose reloadable prepaid cards, payroll debit cards, and limited-purpose demand deposit accounts with linked debit cards as an issuing bank through third-party service providers. Until the operating results of the RPS division are material to the Company’s overall results of operations, they will be reported as part of the TRS segment. The Company does not expect to report the RPS division as a separate reportable segment until such time, if any, that it meets quantitative reporting thresholds . The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.” Republic Credit Solutions segment — clients considered subprime or near-prime borrowers. The Bank uses third-party service providers for certain services such as marketing and loan servicing of RCS loans. Additional information regarding consumer loan products offered through RCS follows: ● 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. o RCS’s LOC I represented the substantial majority of RCS activity during 2022 and 2023. 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, up to a maximum amount of $3,500 . Furthermore, 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 One of RCS’s 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, up to a maximum advance amount of $10,000 . 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 – Through RCS, the Bank offers 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 three different third-party service providers. o For two of the programs, the Bank retains 100% of the receivables, with recourse in the event of default. o For the remaining program, in some instances the Bank retains 100% of the receivables originated, with recourse in the event of default, and in other instances, the Bank sells 100% of the receivables generally 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 Accounting Standards Adoption and Updates | Recently Adopted Accounting Standards The following ASUs were adopted by the Company during the three months ended March 31, 2023: Method of Financial ASU. No. Topic Nature of Update Date Adopted Adoption Statement 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 Immaterial 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 This ASU extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. January 1, 2023 Prospectively Immaterial. The Company ceased making new loans and renewing loans indexed to LIBOR on January 1, 2022. 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 2022-03 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 2023-02 Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force) This ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-01 Leases (Topic 842): Common Control Arrangements This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedules of Accounting Standards Updates | Date Adoption Adoption Expected ASU. No. Topic Nature of Update Required Method Financial Impact 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 2023-02 Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force) This ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-01 Leases (Topic 842): Common Control Arrangements This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. |
ACQUISITION OF CBANK (Tables)
ACQUISITION OF CBANK (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
ACQUISITION OF CBANK | |
Summary of Assets Acquired and Liabilities Assumed | March 15, 2023 As Recorded Fair Value As Recorded (in thousands) by CBank Adjustments (1) by Republic (1) Assets acquired: Cash and cash equivalents $ 10,030 $ — $ 10,030 Investment securities 16,463 (4) a 16,459 Loans 221,707 (4,219) b 217,488 Allowance for loan and lease losses (2,953) 1,353 c (1,600) Loans, net 218,754 (2,866) 215,888 Goodwill 954 (954) d — Core deposit intangible — 2,844 e 2,844 Premises and equipment, net 162 35 f 197 Other assets and accrued interest receivable 7,067 (320) g 6,747 Total assets acquired $ 253,430 $ (1,265) $ 252,165 Liabilities assumed: Deposits: Noninterest-bearing $ 42,160 $ — $ 42,160 Interest-bearing 179,487 31 h 179,518 Total deposits 221,647 31 221,678 Other liabilities and accrued interest payable 4,709 96 i 4,805 Total liabilities assumed 226,356 127 226,483 Net assets acquired $ 27,074 $ (1,392) 25,682 Cash consideration paid (51,000) Goodwill $ 25,318 (1) The Company’s acquisition of CBank closed on March 15, 2023. Accordingly, the fair value adjustments shown are preliminary estimates of the purchase accounting adjustments. Management is continuing to evaluate each of these fair value adjustments and may revise one or more of such fair value adjustments in future periods based on this continuing evaluation. To the extent that any of these preliminary fair value adjustments are revised in future periods, the resultant fair values and the amount of goodwill recorded by the Company will change. Explanation of preliminary fair value adjustments: a. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the investment securities. b. Adjustments to loans to reflect estimated fair value adjustments, include the following: Fair Value (in thousands) Adjustments Fair value adjustment - acquired non PCD loans $ (4,251) Fair value adjustment - acquired PCD loans 75 Eliminate unrecognized loan fees on acquired loans (43) Net loan fair value adjustments $ (4,219) c. The net adjustment to the allowance for credit losses includes the following: Fair Value (in thousands) Adjustments Reversal of historical CBank allowance for credit losses on loans $ 2,953 Estimate of lifetime credit losses for PCD loans (1,600) Net change in allowance for credit losses $ 1,353 d. Adjustment reflects the fair value adjustment to eliminate the recorded goodwill. e. Adjustment reflects the fair value adjustment for the core deposit intangible asset recorded as a result of the acquisition. f. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the premises and equipment, net. g. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other assets and accrued interest receivable. h. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the assumed time deposits. i. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other liabilities and accrued interest payable. |
Summary of results of operations of the assets acquired and liabilities assumed in the Company's Cornerstone acquisition, inclusive of any pre-acquisition related costs | Three Months Ended March 31, 2023 Non-Acquisition Acquisition (in thousands) Related Related Total INTEREST INCOME: Loans, including fees $ 625 $ — $ 625 Taxable investment securities 47 — 47 Federal Home Loan Bank stock and other 13 — 13 Total interest income 685 — 685 INTEREST EXPENSE: Deposits 295 — 295 Total interest expense 295 — 295 NET INTEREST INCOME 390 — 390 Provision for expected credit loss expense — 2,684 a 2,684 NET INTEREST INCOME AFTER PROVISION 390 (2,684) (2,294) NONINTEREST INCOME: Service charges on deposit accounts 8 — 8 Other 32 — 32 Total noninterest income 40 — 40 NONINTEREST EXPENSE: Salaries and employee benefits 76 106 c 182 Technology, equipment, and communication 51 — 51 Occupancy 55 — 55 FDIC insurance expense 8 — 8 Interchange related expense 12 — 12 Legal and professional fees — (81) b (81) Other 31 2,199 b,d 2,230 Total noninterest expense 233 2,224 2,457 INCOME BEFORE INCOME TAX EXPENSE 197 (4,908) (4,711) INCOME TAX EXPENSE 7 (171) (164) NET INCOME $ 190 $ (4,737) $ (4,547) Explanation of acquisition-related items: a. The initial recognition of the allowance for credit losses on non-PCD loans through an increase to the Provision for expected credit loss expense. b. Includes legal, audit, tax and other acquisition related consulting costs. c. Retention bonuses for CBank employees. d. Core systems conversion-related costs. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 416,388 $ — $ (21,771) $ — $ 394,617 Private label mortgage-backed security 721 1,289 — — 2,010 Mortgage-backed securities - residential 192,614 134 (16,066) — 176,682 Collateralized mortgage obligations 24,884 69 (1,302) — 23,651 Corporate bonds 12,017 — (27) (3) 11,987 Trust preferred security 3,755 246 — — 4,001 Total available-for-sale debt securities $ 650,379 $ 1,738 $ (39,166) $ (3) $ 612,948 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2022 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 436,333 $ 1 $ (25,193) $ — $ 411,141 Private label mortgage-backed security 843 1,284 — — 2,127 Mortgage-backed securities - residential 189,312 16 (17,455) — 171,873 Collateralized mortgage obligations 22,774 21 (1,427) — 21,368 Corporate bonds 10,000 1 — — 10,001 Trust preferred security 3,741 114 — — 3,855 Total available-for-sale debt securities $ 663,003 $ 1,437 $ (44,075) $ — $ 620,365 |
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 March 31, 2023 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 100,000 $ 6 $ (234) $ 99,772 $ — Mortgage-backed securities - residential 27 — (1) 26 — Collateralized mortgage obligations 6,989 58 (133) 6,914 — Corporate bonds 4,977 — (18) 4,959 (10) Obligations of state and political subdivisions 125 — — 125 — Total held-to-maturity debt securities $ 112,118 $ 64 $ (386) $ 111,796 $ (10) Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for December 31, 2022 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 75,000 $ 106 $ — $ 75,106 $ — Mortgage-backed securities - residential 27 — (1) 26 — Collateralized mortgage obligations 7,270 54 (148) 7,176 — Corporate bonds 4,974 — (49) 4,925 (10) Obligations of state and political subdivisions 125 — (1) 124 — Total held-to-maturity debt securities $ 87,396 $ 160 $ (199) $ 87,357 $ (10) |
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 March 31, 2023 (in thousands) Cost Value Cost Value Due in one year or less $ 50,468 $ 49,327 $ 125 $ 125 Due from one year to five years 377,937 357,277 104,977 104,731 Due from five years to ten years — — — — Due beyond ten years 3,755 4,001 — — Private label mortgage-backed security 721 2,010 — — Mortgage-backed securities - residential 192,614 176,682 27 26 Collateralized mortgage obligations 24,884 23,651 6,989 6,914 Total debt securities $ 650,379 $ 612,948 $ 112,118 $ 111,796 |
Schedule of debt securities with unrealized losses | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized March 31, 2023 (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 $ 204,723 $ (6,741) $ 189,895 $ (15,030) $ 394,618 $ (21,771) Mortgage-backed securities - residential 62,400 (6,174) 101,703 (9,892) 164,103 (16,066) Collateralized mortgage obligations 11,444 (750) 8,151 (552) 19,595 (1,302) Corporate bonds 1,986 (27) — — 1,986 (27) Total available-for-sale debt securities $ 280,553 $ (13,692) $ 299,749 $ (25,474) $ 580,302 $ (39,166) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2023 (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 $ 229,372 $ (7,139) $ 171,676 $ (18,054) $ 401,048 $ (25,193) Mortgage-backed securities - residential 105,274 (7,434) 65,520 (10,021) 170,794 (17,455) Collateralized mortgage obligations 20,418 (1,426) 6 (1) 20,424 (1,427) Total available-for-sale debt securities $ 355,064 $ (15,999) $ 237,202 $ (28,076) $ 592,266 $ (44,075) |
Schedule of allowance for credit losses on investment | ACLS Roll-forward Three Months Ended March 31, 2023 2022 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ 3 $ — $ — $ 3 $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 10 — — — 10 47 (7) — — 40 Total $ 10 $ 3 $ — $ — $ 13 $ 47 $ (7) $ — $ — $ 40 |
Schedule of pledged investment securities | (in thousands) March 31, 2023 December 31, 2022 Amortized cost $ 146,011 $ 236,047 Fair value 133,652 217,562 Carrying amount 133,652 217,562 |
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 March 31, 2023 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 107 $ — $ 107 Total equity securities with readily determinable fair values $ — $ 107 $ — $ 107 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2022 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 111 $ — $ 111 Total equity securities with readily determinable fair values $ — $ 111 $ — $ 111 |
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 March 31, 2023 Three Months Ended March 31, 2022 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ (4) $ (4) $ — $ (6) $ (6) Community Reinvestment Act mutual fund — — — — (112) (112) Total equity securities with readily determinable fair value $ — $ (4) $ (4) $ — $ (118) $ (118) |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
LOANS HELD FOR SALE. | |
Schedule of activity of consumer loans held for sale and carried at fair value | Three Months Ended March 31, (in thousands) 2023 2022 Balance, beginning of period $ 4,706 $ 19,747 Origination of consumer loans held for sale 22,797 96,732 Proceeds from the sale of consumer loans held for sale (23,560) (106,648) Net gain on sale of consumer loans held for sale 745 1,878 Balance, end of period $ 4,688 $ 11,709 |
Schedule of activity of consumer loans held for sale and carried at lower of cost or fair value | Three Months Ended March 31, (in thousands) 2023 2022 Balance, beginning of period $ 13,169 $ 2,937 Origination of consumer loans held for sale 184,425 148,482 Proceeds from the sale of consumer loans held for sale (186,639) (149,632) Net gain on sale of consumer loans held for sale 1,789 1,239 Balance, end of period $ 12,744 $ 3,026 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Schedule of composition of loan portfolio | (in thousands) March 31, 2023 December 31, 2022 Traditional Banking: Residential real estate: Owner occupied $ 972,214 $ 911,427 Nonowner occupied 328,529 321,358 Commercial real estate 1,682,573 1,599,510 Construction & land development 167,829 153,875 Commercial & industrial 478,101 413,387 Lease financing receivables 73,270 10,505 Aircraft 184,344 179,785 Home equity 250,050 241,739 Consumer: Credit cards 16,775 15,473 Overdrafts 775 726 Automobile loans 5,267 6,731 Other consumer 5,450 626 Total Traditional Banking 4,165,177 3,855,142 Warehouse lines of credit* 457,365 403,560 Total Core Banking 4,622,542 4,258,702 Republic Processing Group*: Tax Refund Solutions: Refund Advances 31,665 97,505 Other TRS commercial & industrial loans 8,327 51,767 Republic Credit Solutions 111,700 107,828 Total Republic Processing Group 151,692 257,100 Total loans** 4,774,234 4,515,802 Allowance for credit losses (96,121) (70,413) Total loans, net $ 4,678,113 $ 4,445,389 *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) March 31, 2023 December 31, 2022 Contractually receivable $ 4,781,284 $ 4,519,136 Unearned income (714) (835) Unamortized premiums 169 99 Unaccreted discounts (4,100) (479) PPP net unamortized deferred origination (fees) and costs (84) (91) Other net unamortized deferred origination (fees) and costs (2,321) (2,028) Carrying value of loans $ 4,774,234 $ 4,515,802 |
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 March 31, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 71,391 $ 221,178 $ 189,378 $ 186,685 $ 280,428 $ — $ 749 $ 949,809 Special Mention 47 — — — 7,002 — — 7,049 Substandard — 1,297 1,361 1,160 11,538 — — 15,356 Doubtful — — — — — — — — Total $ 71,438 $ 222,475 $ 190,739 $ 187,845 $ 298,968 $ — $ 749 $ 972,214 YTD Gross Charge-offs $ — $ — $ 6 $ — $ — $ — $ — $ 6 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 19,017 $ 74,848 $ 88,212 $ 51,821 $ 86,161 $ — $ 8,364 $ 328,423 Special Mention — — — — 30 — — 30 Substandard — — 27 — 49 — — 76 Doubtful — — — — — — — — Total $ 19,017 $ 74,848 $ 88,239 $ 51,821 $ 86,240 $ — $ 8,364 $ 328,529 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 57,928 $ 457,789 $ 389,353 $ 213,912 $ 377,754 $ 22,947 $ 113,157 $ 1,632,840 Special Mention 586 10,897 4,000 — 30,808 142 — 46,433 Substandard — — — — 3,300 — — 3,300 Doubtful — — — — — — — — Total $ 58,514 $ 468,686 $ 393,353 $ 213,912 $ 411,862 $ 23,089 $ 113,157 $ 1,682,573 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development: Risk Rating Pass or not rated $ 28,475 $ 106,203 $ 29,978 $ 1,958 $ 642 $ 275 $ 298 $ 167,829 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 28,475 $ 106,203 $ 29,978 $ 1,958 $ 642 $ 275 $ 298 $ 167,829 YTD Gross Charge-offs — — — — — — — — Commercial and industrial: Risk Rating Pass or not rated $ 47,157 $ 112,078 $ 89,610 $ 20,170 $ 73,499 $ 115,529 $ 3,707 $ 461,750 Special Mention — 508 12,817 — 1,752 255 — 15,332 Substandard — — — — 1,019 — — 1,019 Doubtful — — — — — — — — Total $ 47,157 $ 112,586 $ 102,427 $ 20,170 $ 76,270 $ 115,784 $ 3,707 $ 478,101 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 12,346 $ 31,683 $ 14,896 $ 7,298 $ 6,229 $ — $ — $ 72,452 Special Mention — — — — — — — — Substandard — — — — 818 — — 818 Doubtful — — — — — — — — Total $ 12,346 $ 31,683 $ 14,896 $ 7,298 $ 7,047 $ — $ — $ 73,270 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Aircraft: Risk Rating Pass or not rated $ 13,640 $ 62,951 $ 51,083 $ 33,033 $ 23,432 $ — $ — $ 184,139 Special Mention — — — — — — — — Substandard — — — — 205 — — 205 Doubtful — — — — — — — — Total $ 13,640 $ 62,951 $ 51,083 $ 33,033 $ 23,637 $ — $ — $ 184,344 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 248,978 $ — $ 248,978 Special Mention — — — — — 106 — 106 Substandard — — — — — 966 — 966 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 250,050 $ — $ 250,050 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of March 31, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 563 $ 1,864 $ 868 $ 133 $ 5,272 $ 19,528 $ — $ 28,228 Special Mention — — — — — — — — Substandard — — 10 — 29 — — 39 Doubtful — — — — — — — — Total $ 563 $ 1,864 $ 878 $ 133 $ 5,301 $ 19,528 $ — $ 28,267 YTD Gross Charge-offs $ — $ 9 $ 7 $ — $ 4 $ 305 $ — $ 325 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 457,365 $ — $ 457,365 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 457,365 $ — $ 457,365 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 39,992 $ — $ 39,992 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 39,992 $ — $ 39,992 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — RCS: Risk Rating Pass or not rated $ 10,577 $ 18,530 $ 1,668 $ 1,059 $ 29,120 $ 49,864 $ — $ 110,818 Special Mention — — — — — — — — Substandard — — — — — 882 — 882 Doubtful — — — — — — — — Total $ 10,577 $ 18,530 $ 1,668 $ 1,059 $ 29,120 $ 50,746 $ — $ 111,700 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 3,099 $ — $ 3,099 Grand Total: Risk Rating Pass or not rated $ 261,094 $ 1,087,124 $ 855,046 $ 516,069 $ 882,537 $ 954,478 $ 126,275 $ 4,682,623 Special Mention 633 11,405 16,817 — 39,592 503 — 68,950 Substandard — 1,297 1,398 1,160 16,958 1,848 — 22,661 Doubtful — — — — — — — — Grand Total $ 261,727 $ 1,099,826 $ 873,261 $ 517,229 $ 939,087 $ 956,829 $ 126,275 $ 4,774,234 YTD Gross Charge-offs $ — $ 9 $ 13 $ — $ 4 $ 3,404 $ — $ 3,430 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 231,638 $ 189,495 $ 188,004 $ 71,306 $ 208,296 $ — $ — $ 888,739 Special Mention — 160 — — 7,240 — — 7,400 Substandard 1,230 1,103 1,501 1,460 9,994 — — 15,288 Doubtful — — — — — — — — Total $ 232,868 $ 190,758 $ 189,505 $ 72,766 $ 225,530 $ — $ — $ 911,427 YTD Gross Charge-offs $ 21 $ — $ — $ — $ — $ — $ — $ 21 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 78,337 $ 91,778 $ 55,058 $ 32,803 $ 57,053 $ — $ 6,147 $ 321,176 Special Mention — — — — 32 — — 32 Substandard — 30 — — 120 — — 150 Doubtful — — — — — — — — Total $ 78,337 $ 91,808 $ 55,058 $ 32,803 $ 57,205 $ — $ 6,147 $ 321,358 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 451,327 $ 394,317 $ 210,055 $ 117,928 $ 253,213 $ 25,499 $ 99,791 $ 1,552,130 Special Mention 3,124 11,870 — 21,296 9,967 318 — 46,575 Substandard — — — — 805 — — 805 Doubtful — — — — — — — — Total $ 454,451 $ 406,187 $ 210,055 $ 139,224 $ 263,985 $ 25,817 $ 99,791 $ 1,599,510 YTD Gross Charge-offs $ — $ 9 $ — $ — $ — $ — $ — $ 9 Construction and land development: Risk Rating Pass or not rated $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial and industrial: Risk Rating Pass or not rated $ 116,483 $ 82,431 $ 17,944 $ 36,254 $ 36,367 $ 103,257 $ 4,865 $ 397,601 Special Mention 536 13,239 — — 1,756 255 — 15,786 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 117,019 $ 95,670 $ 17,944 $ 36,254 $ 38,123 $ 103,512 $ 4,865 $ 413,387 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Aircraft: Risk Rating Pass or not rated $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,454 $ — $ — $ 179,575 Special Mention — — — — — — — — Substandard — — — — 210 — — 210 Doubtful — — — — — — — — Total $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,664 $ — $ — $ 179,785 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 240,704 $ — $ 240,704 Special Mention — — — — — 171 — 171 Substandard — — — — — 864 — 864 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 241,739 $ — $ 241,739 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk Rating Pass or not rated $ 415 $ 499 $ 168 $ 2,531 $ 4,328 $ 15,573 $ — $ 23,514 Special Mention — — — — — — — — Substandard — — — 9 33 — — 42 Doubtful — — — — — — — — Total $ 415 $ 499 $ 168 $ 2,540 $ 4,361 $ 15,573 $ — $ 23,556 YTD Gross Charge-offs $ — $ 5 $ — $ 11 $ — $ 1,274 $ — $ 1,290 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 11,659 $ — $ 11,659 RCS: Risk Rating Pass or not rated $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 50,589 $ — $ 106,679 Special Mention — — — — — — — — Substandard — — — — — 1,149 — 1,149 Doubtful — — — — — — — — Total $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 51,738 $ — $ 107,828 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 11,390 $ — $ 11,390 Grand Total: Risk Rating Pass or not rated $ 1,078,578 $ 860,795 $ 508,758 $ 280,501 $ 597,660 $ 990,235 $ 110,803 $ 4,427,330 Special Mention 3,660 25,269 — 21,296 18,995 744 — 69,964 Substandard 1,230 1,133 1,501 1,469 11,162 2,013 — 18,508 Doubtful — — — — — — — — Grand Total $ 1,083,468 $ 887,197 $ 510,259 $ 303,266 $ 627,817 $ 992,992 $ 110,803 $ 4,515,802 YTD Gross Charge-offs $ 21 $ 14 $ — $ 11 $ — $ 24,323 $ — $ 24,369 |
Schedule of activity in the ACLL for loan and lease losses | ACLL Roll-forward Three Months Ended March 31, 2023 2022 Beginning CBank Charge- Ending Beginning Charge- Ending (in thousands) Balance Adjustment* Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 8,909 $ — $ (120) $ (6) $ 15 $ 8,798 $ 8,647 $ (331) $ — $ 42 $ 8,358 Nonowner occupied 2,831 — 64 — — 2,895 2,700 45 — 1 2,746 Commercial real estate 23,739 — 1,041 — 47 24,827 23,769 854 — 1 24,624 Construction & land development 4,123 — 329 — — 4,452 4,128 (235) — — 3,893 Commercial & industrial 3,976 1,008 602 — 90 5,676 3,487 (84) — 9 3,412 Lease financing receivables 110 592 648 — — 1,350 91 18 — — 109 Aircraft 449 — 12 — — 461 357 21 — — 378 Home equity 4,628 — 31 — 1 4,660 4,111 (70) — 3 4,044 Consumer: Credit cards 996 — 112 (40) 12 1,080 934 32 (39) 17 944 Overdrafts 726 — 52 (247) 64 595 683 188 (214) 59 716 Automobile loans 87 — (16) (7) 2 66 186 (36) — 1 151 Other consumer 135 — 229 (31) 23 356 314 (75) (10) 12 241 Total Traditional Banking 50,709 1,600 2,984 (331) 254 55,216 49,407 327 (263) 145 49,616 Warehouse lines of credit 1,009 — 135 — — 1,144 2,126 (401) — — 1,725 Total Core Banking 51,718 1,600 3,119 (331) 254 56,360 51,533 (74) (263) 145 51,341 Republic Processing Group: Tax Refund Solutions: Refund Advances 3,797 — 21,715 — 285 25,797 — 8,315 — — 8,315 Other TRS commercial & industrial loans 91 — 93 — — 184 96 (403) — 362 55 Republic Credit Solutions 14,807 — 1,839 (3,099) 233 13,780 12,948 1,395 (2,673) 275 11,945 Total Republic Processing Group 18,695 — 23,647 (3,099) 518 39,761 13,044 9,307 (2,673) 637 20,315 Total $ 70,413 $ 1,600 $ 26,766 $ (3,430) $ 772 $ 96,121 $ 64,577 $ 9,233 $ (2,936) $ 782 $ 71,656 * The net fair value adjustment to ACLL includes an estimate of lifetime credit losses for Purchased Credit Deteriorated loans. |
Schedule of non-performing loans and non-performing assets and select credit quality ratios | (dollars in thousands) March 31, 2023 December 31, 2022 Loans on nonaccrual status* $ 15,833 $ 15,562 Loans past due 90-days-or-more and still on accrual** 777 756 Total nonperforming loans 16,610 16,318 Other real estate owned 1,529 1,581 Total nonperforming assets $ 18,139 $ 17,899 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.35 % 0.36 % Nonperforming assets to total loans (including OREO) 0.38 0.40 Nonperforming assets to total assets 0.30 0.31 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.34 % 0.37 % Nonperforming assets to total loans (including OREO) 0.38 0.40 Nonperforming assets to total assets 0.32 0.32 * 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) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Traditional Banking: Residential real estate: Owner occupied $ 13,046 $ 13,388 $ — $ — Nonowner occupied 76 117 — — Commercial real estate 1,568 1,001 — — Construction & land development — — — — Commercial & industrial — — — — Lease financing receivables — — — — Aircraft — — — Home equity 904 815 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 33 31 — — Other consumer 206 210 — — Total Traditional Banking 15,833 15,562 — — Warehouse lines of credit — — — — Total Core Banking 15,833 15,562 — — Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — Other TRS commercial & industrial loans — — — — Republic Credit Solutions — — 777 756 Total Republic Processing Group — — 777 756 Total $ 15,833 $ 15,562 $ 777 $ 756 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended As of March 31, 2023 March 31, 2023 Nonaccrual Nonaccrual Total Interest Income Loans with Loans without Nonaccrual Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* Residential real estate: Owner occupied $ 222 $ 12,824 $ 13,046 $ 181 Nonowner occupied 24 52 76 1 Commercial real estate 966 602 1,568 23 Construction & land development — — — — Commercial & industrial — — — — Lease financing receivables — — — — Aircraft — — — — Home equity 1 903 904 23 Consumer — 239 239 3 Total $ 1,213 $ 14,620 $ 15,833 $ 231 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Three Months Ended As of December 31, 2022 December 31, 2022 Nonaccrual Nonaccrual Total Interest Income Loans with Loans without Nonaccrual Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* Residential real estate: Owner occupied $ 2,252 $ 11,136 $ 13,388 $ 230 Nonowner occupied 56 61 117 1 Commercial real estate 1,001 — 1,001 630 Construction & land development — — — — Commercial & industrial — — — — Lease financing receivables — — — — Aircraft — — — — Home equity — 815 815 44 Consumer 15 226 241 46 Total $ 3,324 $ 12,238 $ 15,562 $ 951 * 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 March 31, 2023 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 2,587 $ 1,195 $ 929 $ 4,711 $ 967,503 $ 972,214 Nonowner occupied — — — — 328,529 328,529 Commercial real estate — — 602 602 1,681,971 1,682,573 Construction & land development — — — — 167,829 167,829 Commercial & industrial — — — — 478,101 478,101 Lease financing receivables — — — — 73,270 73,270 Aircraft — — — — 184,344 184,344 Home equity 59 — 4 63 249,987 250,050 Consumer: Credit cards 24 6 — 30 16,745 16,775 Overdrafts 109 1 2 112 663 775 Automobile loans — — 13 13 5,254 5,267 Other consumer 5 1 — 6 5,444 5,450 Total Traditional Banking 2,784 1,203 1,550 5,537 4,159,640 4,165,177 Warehouse lines of credit — — — — 457,365 457,365 Total Core Banking 2,784 1,203 1,550 5,537 4,617,005 4,622,542 Republic Processing Group: Tax Refund Solutions: Refund Advances 18,450 — — 18,450 13,215 31,665 Other TRS commercial & industrial loans 406 — — 406 7,921 8,327 Republic Credit Solutions 7,685 3,269 777 11,731 99,969 111,700 Total Republic Processing Group 26,541 3,269 777 30,587 121,105 151,692 Total $ 29,325 $ 4,472 $ 2,327 $ 36,124 $ 4,738,110 $ 4,774,234 Delinquency ratio*** 0.61 % 0.09 % 0.05 % 0.76 % * 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, 2022 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 2,382 $ 1,185 $ 1,267 $ 4,834 $ 906,593 $ 911,427 Nonowner occupied — — — — 321,358 321,358 Commercial real estate 604 — — 604 1,598,906 1,599,510 Construction & land development — — — — 153,875 153,875 Commercial & industrial 177 — — 177 413,210 413,387 Lease financing receivables — — — — 10,505 10,505 Aircraft — — — — 179,785 179,785 Home equity 56 93 26 175 241,564 241,739 Consumer: Credit cards 50 5 — 55 15,418 15,473 Overdrafts 158 1 1 160 566 726 Automobile loans 8 — 3 11 6,720 6,731 Other consumer 43 1 — 44 582 626 Total Traditional Banking 3,478 1,285 1,297 6,060 3,849,082 3,855,142 Warehouse lines of credit — — — — 403,560 403,560 Total Core Banking 3,478 1,285 1,297 6,060 4,252,642 4,258,702 Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — 97,505 97,505 Other TRS commercial & industrial loans — — — — 51,767 51,767 Republic Credit Solutions 6,488 1,956 756 9,200 98,628 107,828 Total Republic Processing Group 6,488 1,956 756 9,200 247,900 257,100 Total $ 9,966 $ 3,241 $ 2,053 $ 15,260 $ 4,500,542 $ 4,515,802 Delinquency ratio*** 0.22 % 0.07 % 0.05 % 0.34 % * 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 | March 31, 2023 December 31, 2022 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 $ 17,011 $ — $ 18,057 $ — Nonowner occupied 77 — 150 — Commercial real estate 1,602 — 1,041 — Construction & land development — — — — Commercial & industrial — — — — Lease financing receivables — — — — Aircraft — 205 — 210 Home equity 967 — 967 — Consumer — 38 — 26 Total Traditional Banking $ 19,657 $ 243 $ 20,215 $ 236 |
Schedule of financing receivable, modified, subsequent default | Amortized Cost Basis of Modified Financing Receivables March 31, 2023 (dollars in thousands) Loans (#) Rate Reduction ($) Loans (#) Term Extension ($) Loans (#) Principal Deferral ($) Residential real estate: Owner occupied — $ — 2 $ 265 4 $ 344 Nonowner occupied — — — — — — Home equity — — — — 1 72 Republic Processing Group — — — — 537 105 Total Loan Modifications — $ — 2 $ 265 542 $ 521 |
Schedule of financing receivable, loan modification | Total Loan Modification by Type Accruing Nonaccruing March 31, 2023 (dollars in thousands) Loans (#) Recorded investment ($) Loans (#) Recorded investment ($) Term extension — $ — 2 $ 265 Principal deferral 537 105 5 416 Total Loan Modifications 537 $ 105 7 $ 681 |
Schedule of percentage of the amortized cost of loans and leases that were modified | Accruing Loan Modifications Three Months Ended March 31, 2023 % of Total Amortized of Financing (dollars in thousands) Loans (#) Cost Basis ($) Receivable Republic Processing Group 537 $ 105 0.07 % Total Accruing Loan Modifications 537 $ 105 NM Nonaccruing Loan Modifications Three Months Ended March 31, 2023 % of Total Amortized of Financing (dollars in thousands) Loans (#) Cost Basis ($) Receivable Residential real estate: Owner occupied 6 $ 609 0.06 % Home equity 1 72 0.03 Total Nonaccruing Loan Modifications 7 $ 681 0.01 % |
Schedule of financing receivable modified past due | Accruing Loan Modifications Three Months Ended March 31, 2023 30-89 Days 90+ Days (in thousands) Current Past Due Past Due Republic Processing Group $ 105 $ — $ — Total Accruing Loan Modifications $ 105 $ — $ — Nonaccruing Loan Modifications Three Months Ended March 31, 2023 30-89 Days 90+ Days (in thousands) Current Past Due Past Due Residential real estate: Owner occupied $ 609 $ — $ — Nonowner occupied — — — Home equity 72 — — Total Nonaccruing Loan Modifications $ 681 $ — $ — |
Schedule of TDRs differentiated by loan type and accrual status | 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 March 31, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Legal modification 6 $ 772 — $ — 6 $ 772 Total residential TDRs 6 772 — — 6 772 Consumer loans: Principal deferral 258 42 — — 258 42 Total consumer TDRs 258 42 — — 258 42 Total troubled debt restructurings 264 $ 814 — $ — 264 $ 814 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, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Rate reduction 67 $ 6,305 3 $ 242 70 $ 6,547 Principal deferral 7 699 — — 7 699 Legal modification 67 3,149 6 377 73 3,526 Total residential TDRs 141 10,153 9 619 150 10,772 Commercial related and construction/land development loans: Rate reduction 1 847 — — 1 847 Principal deferral 1 1 — — 1 1 Total commercial TDRs 2 848 — — 2 848 Consumer loans: Principal deferral 2,320 393 — — 2,320 393 Legal modification 3 13 — — 3 13 Total consumer TDRs 2,323 406 — — 2,323 406 Total troubled debt restructurings 2,466 $ 11,407 9 $ 619 2,475 $ 12,026 |
Schedule of carrying amount of foreclosed properties held | (in thousands) March 31, 2023 December 31, 2022 Commercial real estate $ 1,529 $ 1,581 Total other real estate owned $ 1,529 $ 1,581 |
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties | (in thousands) March 31, 2023 December 31, 2022 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure $ 546 $ 909 |
Schedule of Easy Advances | Three Months Ended March 31, (dollars in thousands) 2023 2022 Refund Advances originated $ 737,047 $ 311,207 Net charge to the Provision for RAs, including ERAs 21,715 8,315 Provision as a percentage of RAs, including ERAs, originated during the first quarter 2.95 % 2.67 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
DEPOSITS | |
Composition of deposit portfolio | The composition of the deposit portfolio follows: (in thousands) March 31, 2023 December 31, 2022 Core Bank: Demand $ 1,272,086 $ 1,336,082 Money market accounts 794,710 707,272 Savings 316,947 323,015 Reciprocal money market 123,486 28,635 Individual retirement accounts (1) 36,334 38,640 Time deposits, $250 and over (1) 46,687 54,855 Other certificates of deposit (1) 176,257 129,324 Reciprocal time deposits (1) 13,273 7,405 Total Core Bank interest-bearing deposits 2,779,780 2,625,228 Total Core Bank noninterest-bearing deposits 1,471,180 1,464,493 Total Core Bank deposits 4,250,960 4,089,721 Republic Processing Group: Money market accounts 5,931 3,849 Total RPG interest-bearing deposits 5,931 3,849 Brokered prepaid card deposits 390,052 328,655 Other noninterest-bearing deposits 152,725 115,620 Total RPG noninterest-bearing deposits 542,777 444,275 Total RPG deposits 548,708 448,124 Total deposits $ 4,799,668 $ 4,537,845 (1) Includes time deposit . |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |
Schedule of securities sold under agreements to repurchase | (dollars in thousands) March 31, 2023 December 31, 2022 Outstanding balance at end of period $ 134,412 $ 216,956 Weighted average interest rate at end of period 0.45 % 0.41 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 133,652 $ 254,296 Total securities pledged $ 133,652 $ 254,296 Three Months Ended March 31, (dollars in thousands) 2023 2022 Average outstanding balance during the period $ 202,910 $ 300,169 Weighted average interest rate during the period 0.49 % 0.04 % Maximum outstanding at any month end during the period $ 224,067 $ 299,376 |
RIGHT-OF-USE ASSETS AND OPERA_2
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Summary of operating lease expense | Three Months Ended March 31, (dollars in thousands) 2023 2022 Operating lease expense: Related Party: Variable lease expense $ 1,224 $ 1,265 Fixed lease expense 59 35 Third-Party: Variable lease expense 311 197 Fixed lease expense 389 345 Total operating lease expense $ 1,983 $ 1,842 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,730 $ 1,705 Cash paid for variable rent payments not included in measurement of operating lease liabilities 151 151 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 | March 31, 2023 December 31, 2022 Weighted average remaining term in years 8.19 8.44 Weighted average discount rate 2.13 % 2.10 % |
Schedule of operating lease liabilities | Year (in thousands) Related Party Third-Party Total 2023 $ 2,988 $ 1,932 $ 4,920 2024 3,726 2,316 6,042 2025 3,570 1,782 5,352 2026 3,640 1,483 5,123 2027 3,680 1,160 4,840 Thereafter 11,751 3,630 15,381 Total undiscounted cash flows $ 29,355 $ 12,303 $ 41,658 Discount applied to cash flows (3,143) (1,484) (4,627) Total discounted cash flows reported as operating lease liabilities $ 26,212 $ 10,819 $ 37,031 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Federal Home Loan Bank Advances | (in thousands) March 31, 2023 December 31, 2022 Overnight advances $ 88,000 $ 75,000 Fixed interest rate advances 20,000 20,000 Total FHLB advances $ 108,000 $ 95,000 |
Aggregate Future Principal Payments on FHLB Advances | Weighted Average Year (dollars in thousands) Principal Rate 2023 $ 88,000 4.86 % 2024 — — 2025 — — 2026 — — 2027 20,000 1.89 Total $ 108,000 4.31 % |
Information Regarding Overnight FHLB Advances | Three Months Ended March 31, (dollars in thousands) 2023 2022 Average outstanding balance during the period $ 225,344 $ 1,711 Weighted average interest rate during the period 4.43 % 0.15 % Maximum outstanding at any month end during the period $ 485,000 $ 25,000 |
Real Estate Loans Pledged | (in thousands) March 31, 2023 December 31, 2022 First lien, single family residential real estate $ 1,159,090 $ 1,106,287 Home equity lines of credit 223,472 219,644 |
OFF BALANCE SHEET RISKS, COMM_2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
Commitments Exclusive of Mortgage Bank Loan Commitments | (in thousands) March 31, 2023 December 31, 2022 Unused warehouse lines of credit $ 540,135 $ 733,940 Unused home equity lines of credit 419,814 410,057 Unused loan commitments - other 1,027,617 951,021 Standby letters of credit 8,819 9,735 FHLB letter of credit 233 643 Total commitments $ 1,996,618 $ 2,105,396 |
Schedule of rollforward of the Off Balance Sheet risks ACLC | ACLC Roll-forward Three Months Ended March 31, 2023 2022 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 $ 190 $ 8 $ — $ — $ 198 $ 154 $ (24) $ — $ — $ 130 Unused home equity lines of credit 332 9 — — 341 247 9 — — 256 Unused construction lines of credit 384 163 — — 547 383 (16) — — 367 Unused loan commitments - other 344 30 — — 374 268 19 — — 287 Total $ 1,250 $ 210 $ — $ — $ 1,460 $ 1,052 $ (12) $ — $ — $ 1,040 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at March 31, 2023 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 $ 174,871 $ 219,746 $ — $ 394,617 Private label mortgage-backed security — — 2,010 2,010 Mortgage-backed securities - residential — 176,682 — 176,682 Collateralized mortgage obligations — 23,651 — 23,651 Corporate bonds — 11,987 — 11,987 Trust preferred security — — 4,001 4,001 Total available-for-sale debt securities $ 174,871 $ 432,066 $ 6,011 $ 612,948 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 107 $ — $ 107 Total equity securities with readily determinable fair value $ — $ 107 $ — $ 107 Mortgage loans held for sale $ — $ 1,034 $ — $ 1,034 Consumer loans held for sale — — 4,688 4,688 Rate lock loan commitments — 96 — 96 Mandatory forward contracts — 19 — 19 Interest rate swap agreements — 6,852 — 6,852 Financial liabilities: Interest rate swap agreements — 6,852 — 6,852 Fair Value Measurements at December 31, 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 $ 193,385 $ 217,756 $ — $ 411,141 Private label mortgage-backed security — — 2,127 2,127 Mortgage-backed securities - residential — 171,873 — 171,873 Collateralized mortgage obligations — 21,368 — 21,368 Corporate bonds — 10,001 — 10,001 Trust preferred security — — 3,855 3,855 Total available-for-sale debt securities $ 193,385 $ 420,998 $ 5,982 $ 620,365 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 111 $ — $ 111 Total equity securities with readily determinable fair value $ — $ 111 $ — $ 111 Mortgage loans held for sale $ — $ 1,302 $ — $ 1,302 Consumer loans held for sale — — 4,706 4,706 Consumer loans held for investment — — 2 2 Rate lock loan commitments — 2 — 2 Mandatory forward contracts — — — — Interest rate swap agreements — 8,127 — 8,127 Financial liabilities: Mandatory forward contracts $ — $ 67 $ — $ 67 Interest rate swap agreements — 8,127 — 8,127 |
Assets Measured at Fair Value on a Non-Recurring Basis | Fair Value Measurements at March 31, 2023 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 $ — $ — $ 1,270 $ 1,270 Commercial real estate — — 879 879 Total collateral-dependent loans* $ — $ — $ 2,149 $ 2,149 Other real estate owned: Commercial real estate $ — $ — $ 1,529 $ 1,529 Total other real estate owned $ — $ — $ 1,529 $ 1,529 Fair Value Measurements at December 31, 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 $ — $ — $ 1,456 $ 1,456 Commercial real estate — — 906 906 Total collateral-dependent loans* $ — $ — $ 2,362 $ 2,362 Other real estate owned: Residential real estate $ — $ — $ 1,581 $ 1,581 Total other real estate owned $ — $ — $ 1,581 $ 1,581 |
Provisions for loss on collateral dependent impaired loans | Three Months Ended March 31, (in thousands) 2023 2022 Provision on collateral-dependent loans $ (19) $ (4) |
Other Real Estate Owned | (in thousands) March 31, 2023 December 31, 2022 Other real estate owned carried at fair value $ 1,529 $ 1,581 Total carrying value of other real estate owned $ 1,529 $ 1,581 Other real estate owned write-downs during the years ended $ 52 $ 211 Three Months Ended March 31, (in thousands) 2023 2022 Other real estate owned write-downs during the period $ 52 $ 52 |
Carrying amount and estimated fair values of financial instruments | Fair Value Measurements at March 31, 2023: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 249,289 $ 249,289 $ — $ — $ 249,289 Available-for-sale debt securities 612,948 174,871 432,066 6,011 612,948 Held-to-maturity debt securities 112,108 — 111,796 — 111,796 Equity securities with readily determinable fair values 107 — 107 — 107 Mortgage loans held for sale, at fair value 1,034 — 1,034 — 1,034 Consumer loans held for sale, at fair value 4,688 — — 4,688 4,688 Consumer loans held for sale, at the lower of cost or fair value 12,744 — — 12,744 12,744 Loans, net 4,678,113 — — 4,488,620 4,488,620 Federal Home Loan Bank stock 25,939 — — — NA Accrued interest receivable 16,074 — 5,316 10,758 16,074 Mortgage servicing rights 8,406 — 16,554 — 16,554 Rate lock loan commitments 96 — 96 — 96 Mandatory forward contracts 19 — 19 — 19 Interest rate swap agreements 6,852 — 6,852 — 6,852 Liabilities: Noninterest-bearing deposits $ 2,013,957 $ — $ 2,013,957 $ — $ 2,013,957 Transaction deposits 2,513,160 — 2,513,160 — 2,513,160 Time deposits 272,551 — 259,421 — 259,421 Securities sold under agreements to repurchase and other short-term borrowings 134,412 — 134,412 — 134,412 Federal Home Loan Bank advances 108,000 — 106,490 — 106,490 Accrued interest payable 342 — 342 — 342 Rate lock loan commitments 96 — 96 — 96 Mandatory forward contracts 19 — 19 — 19 Interest rate swap agreements 6,852 — 6,852 — 6,852 Fair Value Measurements at December 31, 2022: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 313,689 $ 313,689 $ — $ — $ 313,689 Available-for-sale debt securities 620,365 193,385 420,998 5,982 620,365 Held-to-maturity debt securities 87,386 — 87,357 — 87,357 Equity securities with readily determinable fair values 111 — 111 — 111 Mortgage loans held for sale, at fair value 1,302 — 1,302 — 1,302 Consumer loans held for sale, at fair value 4,706 — — 4,706 4,706 Consumer loans held for sale, at the lower of cost or fair value 13,169 — — 13,169 13,169 Loans, net 4,445,389 — — 4,276,423 4,276,423 Federal Home Loan Bank stock 9,146 — — — NA Accrued interest receivable 13,572 — 2,462 11,110 13,572 Mortgage servicing rights 8,769 — 17,592 — 17,592 Rate lock loan commitments 2 — 2 — 2 Interest rate swap agreements 8,127 — 8,127 — 8,127 Liabilities: Noninterest-bearing deposits $ 1,908,768 $ — $ 1,908,768 $ — $ 1,908,768 Transaction deposits 2,398,853 — 2,398,853 — 2,398,853 Time deposits 230,224 — 223,912 — 223,912 Securities sold under agreements to repurchase and other short-term borrowings 216,956 — 216,956 — 216,956 Federal Home Loan Bank advances 95,000 — 93,044 — 93,044 Accrued interest payable 239 — 239 — 239 Interest rate swap agreements 8,127 — 8,127 — 8,127 |
Nonrecurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Range Fair Valuation Unobservable (Weighted March 31, 2023 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,270 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 22% (5%) Collateral-dependent loans - commercial real estate $ 879 Sales comparison approach Adjustments determined for differences between comparable sales 16% (16%) Other real estate owned - commercial real estate $ 1,529 Sales comparison approach Adjustments determined for differences between comparable sales 39% Range Fair Valuation Unobservable (Weighted December 31, 2022 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 1,456 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 41% (11%) Collateral-dependent loans - commercial real estate $ 906 Sales comparison approach Adjustments determined for differences between comparable sales 16% (16%) Other real estate owned - commercial real estate $ 1,581 Sales comparison approach Adjustments determined for differences between comparable sales 39% |
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 March 31, (in thousands) 2023 2022 Balance, beginning of period $ 2,127 $ 2,731 Total gains or losses included in earnings: Net change in unrealized gain 5 24 Principal paydowns (122) (153) Balance, end of period $ 2,010 $ 2,602 |
Private label mortgage backed security | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation March 31, 2023 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,010 Discounted cash flow (1) Constant prepayment rate 4.5% - 4.7% (2) Probability of default 1.8% - 9.3% (3) Loss severity 25% - 35% Fair Valuation December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,127 Discounted cash flow (1) Constant prepayment rate 4.5% - 4.7% (2) Probability of default 1.8% - 9.3% (3) Loss severity 25% - 35% |
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 March 31, (in thousands) 2023 2022 Balance, beginning of period $ 3,855 $ 3,847 Total gains or losses included in earnings: Discount accretion 14 14 Net change in unrealized gain 132 (136) Balance, end of period $ 4,001 $ 3,725 |
Mortgage Loans Held for Sale | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) March 31, 2023 December 31, 2022 Aggregate fair value $ 1,034 $ 1,302 Contractual balance 1,005 1,265 Unrealized (loss) gain 29 37 |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended March 31, (in thousands) 2023 2022 Interest income $ 61 $ 204 Change in fair value (8) (706) Total included in earnings $ 53 $ (502) |
Consumer loans | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) March 31, 2023 December 31, 2022 Aggregate fair value $ 4,688 $ 4,706 Contractual balance 4,713 4,734 Unrealized (loss) gain (25) (28) |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended March 31, (in thousands) 2023 2022 Interest income $ 765 $ 2,890 Change in fair value 3 (37) Total included in earnings $ 768 $ 2,853 |
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 March 31, 2023 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 4,688 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% Fair Valuation December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 4,706 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% |
MORTGAGE BANKING ACTIVITIES (Ta
MORTGAGE BANKING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
MORTGAGE BANKING ACTIVITIES | |
Activity for Mortgage Loans Held for Sale, at fair value | Three Months Ended March 31, (in thousands) 2023 2022 Balance, beginning of period $ 1,302 $ 29,393 Origination of mortgage loans held for sale 15,942 100,661 Proceeds from the sale of mortgage loans held for sale (16,630) (119,212) Net gain on sale of mortgage loans held for sale 420 2,460 Balance, end of period $ 1,034 $ 13,302 |
Components of Mortgage Banking Income | Three Months Ended March 31, (in thousands) 2023 2022 Net gain realized on sale of mortgage loans held for sale $ 248 $ 2,733 Net change in fair value recognized on loans held for sale (8) (706) Net change in fair value recognized on rate lock loan commitments 94 (962) Net change in fair value recognized on forward contracts 86 1,395 Net gain recognized 420 2,460 Loan servicing income 870 865 Amortization of mortgage servicing rights (490) (668) Change in mortgage servicing rights valuation allowance — — Net servicing income recognized 380 197 Total Mortgage Banking income $ 800 $ 2,657 |
Activity for capitalized mortgage servicing rights | Three Months Ended March 31, (in thousands) 2023 2022 Balance, beginning of period $ 8,769 $ 9,196 Additions 127 974 Amortized to expense (490) (668) Change in valuation allowance — — Balance, end of period $ 8,406 $ 9,502 |
Schedule of activity in the valuation allowance for capitalized mortgage servicing rights | |
Other information relating to mortgage servicing rights | (dollars in thousands) March 31, 2023 December 31, 2022 Fair value of mortgage servicing rights portfolio $ 16,554 $ 17,145 Monthly weighted average prepayment rate of unpaid principal balance* 125 % 127 % Discount rate 10.22 % 10.21 % Weighted average foreclosure rate 0.08 % 0.10 % Weighted average life in years 7.64 7.54 * 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 | March 31, 2023 December 31, 2022 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 $ 1,005 $ 1,034 $ 1,265 $ 1,302 Included in other assets: Rate lock loan commitments $ 5,174 $ 96 $ 4,118 $ 2 Mandatory forward contracts 2,936 19 — — Included in other liabilities: Mandatory forward contracts — — 4,009 67 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
INTEREST RATE SWAPS | |
Summary of interest rate swaps related to clients | March 31, 2023 December 31, 2022 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 50,941 $ 2,131 $ 40,032 $ 1,386 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 77,830 (4,721) 91,636 (6,742) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 128,771 $ (2,590) $ 131,668 $ (5,356) Offsetting interest rate swaps with institutional swap dealer - Assets Pay fixed/receive variable 77,830 4,721 91,636 6,742 Offsetting interest rate swaps with institutional swap dealer - Liabilities Pay fixed/receive variable 50,941 (2,131) 40,032 (1,386) Offsetting interest rate swaps with institutional swap dealer - Total Pay fixed/receive variable $ 128,771 $ 2,590 $ 131,668 $ 5,356 Total $ 257,542 $ — $ 263,336 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE | |
Earnings Per Share and Diluted Earnings Per Share | Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Net income $ 28,092 $ 28,350 Dividends declared on Common Stock: Class A Shares (6,581) (6,081) Class B Shares (734) (671) Undistributed net income for basic earnings per share 20,777 21,598 Weighted average potential dividends on Class A shares upon exercise of dilutive options (21) (27) Undistributed net income for diluted earnings per share $ 20,756 $ 21,571 Weighted average shares outstanding: Class A Shares 17,776 17,980 Class B Shares 2,159 2,165 Effect of dilutive securities on Class A Shares outstanding 55 80 Weighted average shares outstanding including dilutive securities 19,990 20,225 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.37 $ 0.34 Undistributed earnings per share* 1.05 1.08 Total basic earnings per share - Class A Common Stock $ 1.42 $ 1.42 Class B Common Stock: Per share dividends distributed $ 0.34 $ 0.31 Undistributed earnings per share* 0.96 0.98 Total basic earnings per share - Class B Common Stock $ 1.30 $ 1.29 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.37 $ 0.34 Undistributed earnings per share* 1.05 1.08 Total diluted earnings per share - Class A Common Stock $ 1.42 $ 1.42 Class B Common Stock: Per share dividends distributed $ 0.34 $ 0.31 Undistributed earnings per share* 0.95 0.98 Total diluted earnings per share - Class B Common Stock $ 1.29 $ 1.29 * 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 March 31, 2023 2022 Antidilutive stock options 245,898 186,000 Average antidilutive stock options 245,898 175,000 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
OTHER COMPREHENSIVE INCOME | |
Summary of OCI components and related tax effects | Three Months Ended March 31, (in thousands) 2023 2022 Available-for-Sale Debt Securities: Unrealized gain (loss) on AFS debt securities $ 5,205 $ (21,249) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 5 24 Net gains (losses) 5,210 (21,225) Tax effect (1,305) 5,308 Net of tax $ 3,905 $ (15,917) |
Summary of the AOCI balances, net of tax | 2023 (in thousands) December 31, 2022 Change March 31, 2023 Unrealized gain (loss) on AFS debt securities $ (32,934) $ 3,900 $ (29,034) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 955 5 960 Total unrealized gain (loss) $ (31,979) $ 3,905 $ (28,074) 2022 (in thousands) December 31, 2021 Change March 31, 2022 Unrealized gain (loss) on AFS debt securities $ 890 $ (15,935) $ (15,045) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 984 18 1,002 Total unrealized gain (loss) $ 1,874 $ (15,917) $ (14,043) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of net revenues by reportable segments | Three Months Ended March 31, 2023 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) $ 50,107 $ 2,087 $ 61 $ 52,255 $ 31,765 $ 8,622 $ 40,387 $ 92,642 Noninterest income: Service charges on deposit accounts 3,288 11 — 3,299 — — — 3,299 Net refund transfer fees — — — — 10,807 — 10,807 10,807 Mortgage banking income (1) — — 800 800 — — — 800 Interchange fee income 3,006 — — 3,006 45 — 45 3,051 Program fees (1) — — — — 707 2,534 3,241 3,241 Increase in cash surrender value of BOLI (1) 635 — — 635 — — — 635 Net losses on OREO (53) — — (53) — — — (53) Other 778 — 17 795 81 25 106 901 Total noninterest income 7,654 11 817 8,482 11,640 2,559 14,199 22,681 Total net revenue $ 57,761 $ 2,098 $ 878 $ 60,737 $ 43,405 $ 11,181 $ 54,586 $ 115,323 Net-revenue concentration (2) 49 % 2 % 1 % 52 % 38 % 10 % 48 % 100 % Three Months Ended March 31, 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) $ 36,148 $ 4,515 $ 204 $ 40,867 $ 15,404 $ 6,896 $ 22,300 $ 63,167 Noninterest income: Service charges on deposit accounts 3,219 13 — 3,232 (6) — (6) 3,226 Net refund transfer fees — — — — 12,051 — 12,051 12,051 Mortgage banking income (1) — — 2,657 2,657 — — — 2,657 Interchange fee income 3,012 — — 3,012 58 — 58 3,070 Program fees (1) — — — — 727 3,127 3,854 3,854 Increase in cash surrender value of BOLI (1) 612 — — 612 — — — 612 Net losses on OREO (53) — — (53) — — — (53) Contract termination fee — — — — 5,000 — 5,000 5,000 Other 452 — 34 486 106 — 106 592 Total noninterest income 7,242 13 2,691 9,946 17,936 3,127 21,063 31,009 Total net revenue $ 43,390 $ 4,528 $ 2,895 $ 50,813 $ 33,340 $ 10,023 $ 43,363 $ 94,176 Net-revenue concentration (2) 46 % 5 % 3 % 54 % 35 % 11 % 46 % 100 % (1) This revenue is not subject to ASC 606. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SEGMENT INFORMATION | |
Segment Information | Three Months Ended March 31, 2023 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 $ 50,107 $ 2,087 $ 61 $ 52,255 $ 31,765 $ 8,622 $ 40,387 $ 92,642 Provision for expected credit loss expense 2,984 135 — 3,119 21,808 1,839 23,647 26,766 Net refund transfer fees — — — — 10,807 — 10,807 10,807 Mortgage banking income — — 800 800 — — — 800 Program fees — — — — 707 2,534 3,241 3,241 Contract termination fee — — — — — — — — Legal settlement — — — — — — — — Other noninterest income 7,654 11 17 7,682 126 25 151 7,833 Total noninterest income 7,654 11 817 8,482 11,640 2,559 14,199 22,681 Total noninterest expense 40,852 968 2,554 44,374 5,648 2,421 8,069 52,443 Income (loss) before income tax expense 13,925 995 (1,676) 13,244 15,949 6,921 22,870 36,114 Income tax expense (benefit) 3,082 223 (369) 2,936 3,541 1,545 5,086 8,022 Net income (loss) $ 10,843 $ 772 $ (1,307) $ 10,308 $ 12,408 $ 5,376 $ 17,784 $ 28,092 Period-end assets $ 4,974,002 $ 458,675 $ 13,421 $ 5,446,098 $ 511,150 $ 116,843 $ 627,993 $ 6,074,091 Net interest margin 4.07 % 2.53 % NM 3.98 % NM NM NM 6.52 % Net-revenue concentration* 49 % 2 % 1 % 52 % 38 % 10 % 48 % 100 % Three Months Ended March 31, 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 $ 36,148 $ 4,515 $ 204 $ 40,867 $ 15,404 $ 6,896 $ 22,300 $ 63,167 Provision for expected credit loss expense 320 (401) — (81) 7,912 1,395 9,307 9,226 Net refund transfer fees — — — — 12,051 — 12,051 12,051 Mortgage banking income — — 2,657 2,657 — — — 2,657 Program fees — — — — 727 3,127 3,854 3,854 Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — — — — — Other noninterest income 7,242 13 34 7,289 158 — 158 7,447 Total noninterest income 7,242 13 2,691 9,946 17,936 3,127 21,063 31,009 Total noninterest expense 38,227 952 2,690 41,869 5,145 1,567 6,712 48,581 Income before income tax expense 4,843 3,977 205 9,025 20,283 7,061 27,344 36,369 Income tax expense 468 904 45 1,417 4,906 1,696 6,602 8,019 Net income $ 4,375 $ 3,073 $ 160 $ 7,608 $ 15,377 $ 5,365 $ 20,742 $ 28,350 Period-end assets $ 4,984,918 $ 689,204 $ 28,573 $ 5,702,695 $ 552,101 $ 95,073 $ 647,174 $ 6,349,869 Net interest margin 2.90 % 3.09 % NM 2.92 % NM NM NM 4.34 % Net-revenue concentration* 46 % 5 % 3 % 54 % 35 % 11 % 46 % 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_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details) | 3 Months Ended |
Mar. 31, 2023 item segment | |
Basis of Presentation | |
Number of reportable segments | segment | 5 |
Number of banking centers | 45 |
Kentucky | |
Basis of Presentation | |
Number of banking centers | 29 |
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 | 4 |
Bellevue [Member] | |
Basis of Presentation | |
Number of banking centers | 1 |
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 | 4 |
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_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENTS (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | |||
Dec. 31, 2022 USD ($) | Feb. 28, 2023 | Jan. 31, 2023 USD ($) | Feb. 28, 2022 | Mar. 31, 2023 USD ($) item | Mar. 31, 2022 USD ($) | |
Contract termination fee | ||||||
Basis of Presentation | ||||||
Revenue recognized | $ 5,000,000 | |||||
Contract termination fee | Green Dot | ||||||
Basis of Presentation | ||||||
Revenue recognized | 5,000,000 | |||||
Republic Processing Group | Contract termination fee | ||||||
Basis of Presentation | ||||||
Revenue recognized | 5,000,000 | |||||
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 (as percentage) | 100% | |||||
Interest retained (as a percent) | 10% | |||||
Loan held-for-sale term | 3 days | |||||
Maximum advance amount | $ 3,500 | |||||
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 (as percentage) | 100% | |||||
Interest retained (as a percent) | 5% | |||||
Loan held-for-sale term | 3 days | |||||
Maximum advance amount | $ 10,000 | |||||
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 | ||||||
Term for intent to sell loans | 16 days | |||||
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 | 3 | |||||
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 | Refund Advances | ||||||
Basis of Presentation | ||||||
Advance amount per customer | $ 6,250 | 6,250 | ||||
Period Refund 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 | |||||
Amount of credit risk associated with refund transfers | $ 0 | |||||
Tax Refund Solutions | ERA Product | ||||||
Basis of Presentation | ||||||
Advance amount per customer | $ 1,000 | |||||
Early Season Refund Advances originated | $ 98,000,000 | |||||
Tax Refund Solutions | Contract termination fee | ||||||
Basis of Presentation | ||||||
Revenue recognized | $ 5,000,000 |
ACQUISITION OF CBANK (Details)
ACQUISITION OF CBANK (Details) $ in Thousands | Mar. 15, 2023 USD ($) |
CBank | |
Business Acquisition [Line Items] | |
Cash payment for acquisition | $ 51,000 |
ACQUISITION OF CBANK - ASSETS A
ACQUISITION OF CBANK - ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Thousands | Mar. 15, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | |||||
Cash and cash equivalents | $ 249,289 | $ 313,689 | |||
Loans (loans carried at fair value of $0 in 2023 and $2 in 2022) | 4,774,234 | 4,515,802 | |||
Allowance for credit losses | (96,121) | (70,413) | $ (71,656) | $ (64,577) | |
Loans, net | 4,678,113 | 4,445,389 | |||
Goodwill | 41,618 | 16,300 | |||
Premises and equipment, net | 33,672 | 31,978 | |||
Other assets and accrued interest receivable | 87,834 | 76,393 | |||
TOTAL ASSETS | 6,074,091 | 5,835,543 | $ 6,349,869 | ||
Deposits: | |||||
Noninterest-bearing | 2,013,957 | 1,908,768 | |||
Interest-bearing | 2,785,711 | 2,629,077 | |||
Total deposits | 4,799,668 | 4,537,845 | |||
Other liabilities and accrued interest payable | 70,341 | 47,711 | |||
Total liabilities | 5,191,889 | 4,978,930 | |||
Assets acquired: | |||||
Goodwill | 41,618 | 16,300 | |||
Liabilities acquired: | |||||
Goodwill | $ 41,618 | $ 16,300 | |||
CBank | |||||
ASSETS | |||||
Cash and cash equivalents | $ 10,030 | ||||
Investment securities | 16,463 | ||||
Loans (loans carried at fair value of $0 in 2023 and $2 in 2022) | 221,707 | ||||
Allowance for credit losses | (2,953) | ||||
Loans, net | 218,754 | ||||
Goodwill | 954 | ||||
Premises and equipment, net | 162 | ||||
Other assets and accrued interest receivable | 7,067 | ||||
TOTAL ASSETS | 253,430 | ||||
Deposits: | |||||
Noninterest-bearing | 42,160 | ||||
Interest-bearing | 179,487 | ||||
Total deposits | 221,647 | ||||
Other liabilities and accrued interest payable | 4,709 | ||||
Total liabilities | 226,356 | ||||
Net assets acquired | 27,074 | ||||
Assets acquired: | |||||
Goodwill | 954 | ||||
Liabilities acquired: | |||||
Goodwill | 954 | ||||
CBank | |||||
ASSETS | |||||
Goodwill | 25,318 | ||||
Fair Value Adjustments | |||||
Fair value adjustments, Investment securities | (4) | ||||
Fair value adjustments, Loans | (4,219) | ||||
Fair value adjustments, Allowance for loan and lease losses | (1,353) | ||||
Fair value adjustments, Loans, net | (2,866) | ||||
Fair value adjustments, Goodwill | (954) | ||||
Fair value adjustments, Core deposit intangible | 2,844 | ||||
Fair value adjustments, Premises and equipment, net | 35 | ||||
Fair value adjustments, Other assets and accrued interest receivable | (320) | ||||
Fair value adjustments, Total assets acquired | (1,265) | ||||
Fair value adjustments, Interest-bearing | 31 | ||||
Fair value adjustments, Total deposits | 31 | ||||
Fair value adjustments, Other liabilities and accrued interest payable | 96 | ||||
Fair value adjustments, Total liabilities assumed | 127 | ||||
Fair value adjustments, Net assets acquired | (1,392) | ||||
Assets acquired: | |||||
Cash and cash equivalents | 10,030 | ||||
Investment securities | 16,459 | ||||
Loans | 217,488 | ||||
Allowance for loan and lease losses | (1,600) | ||||
Loans, net | 215,888 | ||||
Goodwill | 25,318 | ||||
Core deposit intangible | 2,844 | ||||
Premises and equipment, net | 197 | ||||
Other assets and accrued interest receivable | 6,747 | ||||
Total assets acquired | 252,165 | ||||
Liabilities acquired: | |||||
Noninterest-bearing | 42,160 | ||||
Interest-bearing | 179,518 | ||||
Total deposits | 221,678 | ||||
Other liabilities and accrued interest payable | 4,805 | ||||
Total liabilities assumed | 226,483 | ||||
Net assets acquired | 25,682 | ||||
Cash consideration paid | (51,000) | ||||
Goodwill | $ 25,318 |
ACQUISITION OF CBANK - FAIR VAL
ACQUISITION OF CBANK - FAIR VALUE ADJUSTMENTS (Details) - CBank $ in Thousands | Mar. 15, 2023 USD ($) |
Acquisition | |
Eliminate unrecognized loan fees on acquired loans | $ (43) |
Fair value adjustments, Loans | (4,219) |
Reversal of historical CBank allowance for credit losses on loans | 2,953 |
Estimate of lifetime credit losses for PCD loans | (1,600) |
Net change in allowance for credit losses | 1,353 |
Non PCD loans | |
Acquisition | |
Fair value adjustments, Loans acquired | (4,251) |
PCD loan | |
Acquisition | |
Fair value adjustments, Loans acquired | $ 75 |
ACQUISITION OF CBANK - STATEMEN
ACQUISITION OF CBANK - STATEMENT OF INCOME (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Mar. 31, 2023 | Mar. 14, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 92,609 | $ 61,570 | ||
Taxable investment securities | 4,603 | 2,059 | ||
Federal Home Loan Bank stock and other | 3,144 | 481 | ||
Total interest income | 100,356 | 64,110 | ||
INTEREST EXPENSE: | ||||
Deposits | 4,878 | 879 | ||
Total interest expense | 7,714 | 943 | ||
Net interest Income | 92,642 | 63,167 | ||
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 26,766 | 9,226 | ||
NET INTEREST INCOME AFTER PROVISION | 65,876 | 53,941 | ||
Noninterest income: | ||||
Total noninterest income | 22,681 | 31,009 | ||
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 29,961 | 29,312 | ||
Technology, equipment, and communication | 7,228 | 7,214 | ||
Occupancy | 3,406 | 3,440 | ||
FDIC insurance expense | 637 | 419 | ||
Interchange related expense | 1,499 | 1,117 | ||
Other | 5,004 | 4,366 | ||
Total noninterest expense | 52,443 | 48,581 | ||
INCOME BEFORE INCOME TAX EXPENSE | 36,114 | 36,369 | ||
Income tax expense | (8,022) | (8,019) | ||
Net income | 28,092 | 28,350 | ||
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Revenue under 606 | 3,299 | 3,226 | ||
Net refund transfer fees | ||||
Noninterest income: | ||||
Revenue under 606 | 10,807 | 12,051 | ||
Interchange fee income | ||||
Noninterest income: | ||||
Revenue under 606 | 3,051 | 3,070 | ||
Net losses on other real estate owned | ||||
Noninterest income: | ||||
Revenue under 606 | (53) | (53) | ||
Contract termination fee | ||||
Noninterest income: | ||||
Revenue under 606 | 5,000 | |||
Other | ||||
Noninterest income: | ||||
Revenue under 606 | 901 | $ 592 | ||
CBank | ||||
INTEREST INCOME: | ||||
Loans, including fees | $ 625 | 625 | ||
Taxable investment securities | 47 | 47 | ||
Federal Home Loan Bank stock and other | 13 | 13 | ||
Total interest income | 685 | 685 | ||
INTEREST EXPENSE: | ||||
Deposits | 295 | 295 | ||
Total interest expense | 295 | 295 | ||
Net interest Income | 390 | 390 | ||
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | $ 2,684 | 2,684 | ||
NET INTEREST INCOME AFTER PROVISION | (2,684) | 390 | (2,294) | |
Noninterest income: | ||||
Total noninterest income | 40 | 40 | ||
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 106 | 76 | 182 | |
Technology, equipment, and communication | 51 | 51 | ||
Occupancy | 55 | 55 | ||
FDIC insurance expense | 8 | 8 | ||
Interchange related expense | 12 | 12 | ||
Legal and professional fees | (81) | (81) | ||
Other | 2,199 | 31 | 2,230 | |
Total noninterest expense | 2,224 | 233 | 2,457 | |
INCOME BEFORE INCOME TAX EXPENSE | (4,908) | 197 | (4,711) | |
Income tax expense | (171) | 7 | (164) | |
Net income | $ (4,737) | 190 | (4,547) | |
CBank | Service charges on deposit accounts | ||||
Noninterest income: | ||||
Revenue under 606 | 8 | 8 | ||
CBank | Other | ||||
Noninterest income: | ||||
Revenue under 606 | $ 32 | $ 32 |
INVESTMENT SECURITIES - AFS (De
INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 650,379 | $ 663,003 |
Gross Unrealized Gains | 1,738 | 1,437 |
Gross Unrealized Losses | (39,166) | (44,075) |
Allowance for Credit Losses | (3) | 0 |
Total available-for-sale debt securities | 612,948 | 620,365 |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 416,388 | 436,333 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (21,771) | (25,193) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 394,617 | 411,141 |
Private label mortgage backed security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 721 | 843 |
Gross Unrealized Gains | 1,289 | 1,284 |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 2,010 | 2,127 |
Mortgage-backed securities - residential | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 192,614 | 189,312 |
Gross Unrealized Gains | 134 | 16 |
Gross Unrealized Losses | (16,066) | (17,455) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 176,682 | 171,873 |
Collateralized mortgage obligations | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 24,884 | 22,774 |
Gross Unrealized Gains | 69 | 21 |
Gross Unrealized Losses | (1,302) | (1,427) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 23,651 | 21,368 |
Corporate bonds | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 12,017 | 10,000 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (27) | |
Allowance for Credit Losses | (3) | 0 |
Total available-for-sale debt securities | 11,987 | 10,001 |
Trust preferred security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 3,755 | 3,741 |
Gross Unrealized Gains | 246 | 114 |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | $ 4,001 | $ 3,855 |
INVESTMENT SECURITIES - HTM (De
INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Held-to-Maturity Debt Securities | ||||
Amortized Cost | $ 112,118 | $ 87,396 | ||
Gross Unrecognized Gains | 64 | 160 | ||
Gross Unrecognized Losses | (386) | (199) | ||
Fair Value | 111,796 | 87,357 | ||
Allowance for credit losses | (10) | (10) | ||
U.S. Treasury securities and U.S. Government agencies | ||||
Held-to-Maturity Debt Securities | ||||
Amortized Cost | 100,000 | 75,000 | ||
Gross Unrecognized Gains | 6 | 106 | ||
Gross Unrecognized Losses | (234) | |||
Fair Value | 99,772 | 75,106 | ||
Mortgage-backed securities - residential | ||||
Held-to-Maturity Debt Securities | ||||
Amortized Cost | 27 | 27 | ||
Gross Unrecognized Losses | (1) | (1) | ||
Fair Value | 26 | 26 | ||
Collateralized mortgage obligations | ||||
Held-to-Maturity Debt Securities | ||||
Amortized Cost | 6,989 | 7,270 | ||
Gross Unrecognized Gains | 58 | 54 | ||
Gross Unrecognized Losses | (133) | (148) | ||
Fair Value | 6,914 | 7,176 | ||
Corporate bonds | ||||
Held-to-Maturity Debt Securities | ||||
Amortized Cost | 4,977 | 4,974 | ||
Gross Unrecognized Losses | (18) | (49) | ||
Fair Value | 4,959 | 4,925 | ||
Allowance for credit losses | (10) | (10) | $ (40) | $ (47) |
Obligations of state and political subdivisions | ||||
Held-to-Maturity Debt Securities | ||||
Amortized Cost | 125 | 125 | ||
Gross Unrecognized Losses | (1) | |||
Fair Value | $ 125 | $ 124 |
INVESTMENT SECURITIES - SALES A
INVESTMENT SECURITIES - SALES AND CALLS OF AFS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
INVESTMENT SECURITIES | ||
Net gains (losses) on securities available for sale | $ 0 | $ 0 |
INVESTMENT SECURITIES - AMORTIZ
INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Securities available for Sale - Amortized Cost | ||
Due in one year or less | $ 50,468 | |
Due from one year to five years | 377,937 | |
Due beyond ten years | 3,755 | |
Amortized Cost | 650,379 | $ 663,003 |
Securities available for Sale - Fair Value | ||
Due in one year or less | 49,327 | |
Due from one year to five years | 357,277 | |
Due beyond ten years | 4,001 | |
Total securities | 612,948 | 620,365 |
Securities held to maturity - Amortized Cost | ||
Due in one year or less | 125 | |
Due from one year to five years | 104,977 | |
Total securities | 112,118 | 87,396 |
Securities held to maturity - Fair Value | ||
Due in one year or less | 125 | |
Due from one year to five years | 104,731 | |
Fair Value | 111,796 | 87,357 |
Private label mortgage backed security | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 721 | |
Amortized Cost | 721 | 843 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 2,010 | |
Total securities | 2,010 | 2,127 |
Mortgage-backed securities - residential | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 192,614 | |
Amortized Cost | 192,614 | 189,312 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 176,682 | |
Total securities | 176,682 | 171,873 |
Securities held to maturity - Amortized Cost | ||
Securities not due at a single maturity date | 27 | |
Total securities | 27 | 27 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 26 | |
Fair Value | 26 | 26 |
Collateralized mortgage obligations | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 24,884 | |
Amortized Cost | 24,884 | 22,774 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 23,651 | |
Total securities | 23,651 | 21,368 |
Securities held to maturity - Amortized Cost | ||
Securities not due at a single maturity date | 6,989 | |
Total securities | 6,989 | 7,270 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 6,914 | |
Fair Value | $ 6,914 | $ 7,176 |
INVESTMENT SECURITIES - INVESTM
INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 280,553 | $ 355,064 |
Less than 12 months Unrealized Losses | (13,692) | (15,999) |
12 months or more Fair Value | 299,749 | 237,202 |
12 months or more Unrealized Losses | (25,474) | (28,076) |
Total Fair Value | 580,302 | 592,266 |
Total Unrealized Losses | $ (39,166) | $ (44,075) |
Number of securities held | 198 | 179 |
Number of securities held in an unrealized loss position | 162 | 163 |
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 | $ 204,723 | $ 229,372 |
Less than 12 months Unrealized Losses | (6,741) | (7,139) |
12 months or more Fair Value | 189,895 | 171,676 |
12 months or more Unrealized Losses | (15,030) | (18,054) |
Total Fair Value | 394,618 | 401,048 |
Total Unrealized Losses | (21,771) | (25,193) |
Mortgage backed securities - residential | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 62,400 | 105,274 |
Less than 12 months Unrealized Losses | (6,174) | (7,434) |
12 months or more Fair Value | 101,703 | 65,520 |
12 months or more Unrealized Losses | (9,892) | (10,021) |
Total Fair Value | 164,103 | 170,794 |
Total Unrealized Losses | (16,066) | (17,455) |
Collateralized mortgage obligations | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 11,444 | 20,418 |
Less than 12 months Unrealized Losses | (750) | (1,426) |
12 months or more Fair Value | 8,151 | 6 |
12 months or more Unrealized Losses | (552) | (1) |
Total Fair Value | 19,595 | 20,424 |
Total Unrealized Losses | (1,302) | $ (1,427) |
Corporate bonds | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 1,986 | |
Less than 12 months Unrealized Losses | (27) | |
Total Fair Value | 1,986 | |
Total Unrealized Losses | $ (27) |
INVESTMENT SECURITIES - PRIVATE
INVESTMENT SECURITIES - PRIVATE LABEL MORTGAGE-BACKED SECURITY (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities | ||
Number of securities held | 198 | 179 |
Private label mortgage backed security | ||
Debt Securities | ||
Number of securities held | 1 | |
Securities | $ 2,010 |
INVESTMENT SECURITIES - CORPORA
INVESTMENT SECURITIES - CORPORATE BONDS AND MORTGAGE BACKED SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Private label mortgage backed security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Securities | $ 2,010 | |
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 | $ 17,400 | $ 18,900 |
INVESTMENT SECURITIES - ACLS RO
INVESTMENT SECURITIES - ACLS ROLLFORWARD (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Securities | |||
Beginning Balance - AFS | $ 0 | ||
Beginning Balance - HTM | 10 | ||
Balance - Total | 10 | $ 47 | |
Provision - Total | 3 | (7) | |
Ending Balance - AFS | 3 | ||
Ending Balance - HTM | 10 | ||
Balance - Total | 13 | 40 | |
Debt Securities, Held-to-maturity, Nonaccrual | 0 | $ 0 | |
Debt Securities, Held To Maturity, Collateral Dependent | 0 | $ 0 | |
Corporate bonds | |||
Debt Securities | |||
Beginning Balance - AFS | 0 | ||
Beginning Balance - HTM | 10 | 47 | |
Provision - AFS | 3 | ||
Provision - HTM | (7) | ||
Ending Balance - AFS | 3 | ||
Ending Balance - HTM | 10 | $ 40 | |
Trust Preferred Securities | |||
Debt Securities | |||
Beginning Balance - AFS | 0 | ||
Ending Balance - AFS | $ 0 |
INVESTMENT SECURITIES - ACCRUED
INVESTMENT SECURITIES - ACCRUED INTEREST (Details) - Other Assets. - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Accounting Pronouncements | ||
Accrued interest on AFS debt securities excluded from ACLS | $ 3,000,000 | $ 2,000,000 |
Accrued interest on HTM debt securities excluded from ACLS | $ 1,000,000 | $ 92,000 |
INVESTMENT SECURITIES - PLEDGED
INVESTMENT SECURITIES - PLEDGED DEBT SECURITIES (Details) - Asset Pledged as Collateral [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 146,011 | $ 236,047 |
Carrying Value | ||
Schedule of Investments [Line Items] | ||
Fair value | 133,652 | 217,562 |
Total Fair Value | ||
Schedule of Investments [Line Items] | ||
Fair value | $ 133,652 | $ 217,562 |
INVESTMENT SECURITIES - EQUITY
INVESTMENT SECURITIES - EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Equity securities | |||
Gross Unrealized Gains | $ 107 | $ 111 | |
Fair Value | 107 | 111 | |
Gains (Losses) Recognized on Equity securities, Unrealized | (4) | $ (118) | |
Gains (Losses) Recognized on Equity securities, Total | (4) | (118) | |
Freddie Mac preferred stock | |||
Equity securities | |||
Gross Unrealized Gains | 107 | 111 | |
Fair Value | 107 | $ 111 | |
Gains (Losses) Recognized on Equity securities, Unrealized | (4) | (6) | |
Gains (Losses) Recognized on Equity securities, Total | $ (4) | (6) | |
Mutual fund | |||
Equity securities | |||
Gains (Losses) Recognized on Equity securities, Unrealized | (112) | ||
Gains (Losses) Recognized on Equity securities, Total | $ (112) |
LOANS HELD FOR SALE - CONSUMER
LOANS HELD FOR SALE - CONSUMER LOANS - HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Consumer Loans Held For Sale At Fair Value [RollForward] | ||
Balance, beginning of period | $ 4,706 | $ 19,747 |
Origination of consumer loans held for sale | 22,797 | 96,732 |
Proceeds from the sale of consumer loans held for sale | (23,560) | (106,648) |
Net gain on sale of consumer loans held for sale | 745 | 1,878 |
Balance, end of period | $ 4,688 | $ 11,709 |
LOANS HELD FOR SALE - CONSUME_2
LOANS HELD FOR SALE - CONSUMER LOANS - LOWER COST (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Carried at lower of cost or fair value | ||
Balance, beginning of period | $ 13,169 | $ 2,937 |
Origination of consumer loans held for sale | 184,425 | 148,482 |
Proceeds from the sale of consumer loans held for sale | (186,639) | (149,632) |
Net gain on sale of consumer loans held for sale | 1,789 | 1,239 |
Balance, end of period | $ 12,744 | $ 3,026 |
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 | |
Term for intent to sell loans | 16 days |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COMPOSITION OF LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loans disclosures | ||||
Total Loans | $ 73,270 | $ 10,505 | ||
Loans | 4,774,234 | 4,515,802 | ||
Allowance for credit losses | (96,121) | (70,413) | $ (71,656) | $ (64,577) |
Loans, net | 4,678,113 | 4,445,389 | ||
Core Banking Activities | ||||
Loans disclosures | ||||
Loans | 4,622,542 | 4,258,702 | ||
Allowance for credit losses | (56,360) | (51,718) | (51,341) | (51,533) |
Traditional Banking | ||||
Loans disclosures | ||||
Total Loans | 73,270 | 10,505 | ||
Loans | 4,165,177 | 3,855,142 | ||
Allowance for credit losses | (55,216) | (50,709) | $ (49,616) | $ (49,407) |
Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | 151,692 | 257,100 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | ||||
Loans disclosures | ||||
Total loans | 972,214 | 911,427 | ||
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 972,214 | 911,427 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||||
Loans disclosures | ||||
Total loans | 328,529 | 321,358 | ||
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 328,529 | 321,358 | ||
Residential Real Estate | Home equity | ||||
Loans disclosures | ||||
Total loans | 250,050 | 241,739 | ||
Residential Real Estate | Home equity | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 250,050 | 241,739 | ||
Commercial Real Estate | ||||
Loans disclosures | ||||
Total loans | 1,682,573 | 1,599,510 | ||
Commercial Real Estate | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 1,682,573 | 1,599,510 | ||
Construction & land development | ||||
Loans disclosures | ||||
Total loans | 167,829 | 153,875 | ||
Construction & land development | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 167,829 | 153,875 | ||
Commercial | Commercial and Industrial | ||||
Loans disclosures | ||||
Total loans | 478,101 | 413,387 | ||
Commercial | Commercial and Industrial | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 478,101 | 413,387 | ||
Aircraft | ||||
Loans disclosures | ||||
Total loans | 184,344 | 179,785 | ||
Aircraft | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 184,344 | 179,785 | ||
Consumer | ||||
Loans disclosures | ||||
Total loans | 28,267 | 23,556 | ||
Consumer | Credit cards | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 16,775 | 15,473 | ||
Consumer | Overdrafts | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 775 | 726 | ||
Consumer | Automobile loans | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 5,267 | 6,731 | ||
Consumer | Other consumer | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 5,450 | 626 | ||
Warehouse lines of credit | ||||
Loans disclosures | ||||
Total loans | 457,365 | 403,560 | ||
Warehouse lines of credit | Core Banking Activities | ||||
Loans disclosures | ||||
Total loans | 457,365 | 403,560 | ||
Warehouse lines of credit | Warehouse Lending | ||||
Loans disclosures | ||||
Total loans | 457,365 | |||
Tax Refund Solution | ||||
Loans disclosures | ||||
Total loans | 39,992 | 149,272 | ||
Tax Refund Solution | Refund Advances | Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | 31,665 | 97,505 | ||
Tax Refund Solution | Other TRS commercial and industrial loans | Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | 8,327 | 51,767 | ||
Republic Credit Solution | ||||
Loans disclosures | ||||
Total loans | 111,700 | 107,828 | ||
Republic Credit Solution | Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | $ 111,700 | $ 107,828 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Contractually receivable | $ 4,781,284 | $ 4,519,136 |
Unearned income | (714) | (835) |
Unamortized premiums | 169 | 99 |
Unaccreted discounts | (4,100) | (479) |
PPP net unamortized deferred origination (fees) and costs | (84) | (91) |
Other net unamortized deferred origination (fees) and costs | (2,321) | (2,028) |
Loans | $ 4,774,234 | $ 4,515,802 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RISK CATEGORY (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Risk category of rated loans | |||
Year One, YTD Gross Charge-offs | $ 21 | ||
Year Two, YTD Gross Charge-offs | $ 9 | 14 | |
Year Three, YTD Gross Charge-offs | 13 | ||
Year Four, YTD Gross Charge-offs | 11 | ||
Prior, YTD Gross Charge-offs | 4 | ||
Revolving Loans Amortized Cost Basis, YTD Gross Charge-offs | 3,404 | 24,323 | |
Total, YTD Gross Charge-offs | 3,430 | $ 2,936 | 24,369 |
Year One | 12,346 | 5,469 | |
Year Two | 31,683 | 1,964 | |
Year Three | 14,896 | 542 | |
Year Four | 7,298 | 1,548 | |
Prior | 7,047 | 982 | |
Year One - Total | 261,727 | 1,083,468 | |
Year Two - Total | 1,099,826 | 887,197 | |
Year Three - Total | 873,261 | 510,259 | |
Year Four - Total | 517,229 | 303,266 | |
Prior - Total | 939,087 | 627,817 | |
Revolving Loans Amortized Cost Basis | 956,829 | 992,992 | |
Revolving Loans Converted To Term Loans | 126,275 | 110,803 | |
Total Loans | 73,270 | 10,505 | |
Loans | 4,774,234 | 4,515,802 | |
Pass | |||
Risk category of rated loans | |||
Year One | 12,346 | 5,469 | |
Year Two | 31,683 | 1,964 | |
Year Three | 14,896 | 542 | |
Year Four | 7,298 | 1,548 | |
Prior | 6,229 | 982 | |
Year One - Total | 261,094 | 1,078,578 | |
Year Two - Total | 1,087,124 | 860,795 | |
Year Three - Total | 855,046 | 508,758 | |
Year Four - Total | 516,069 | 280,501 | |
Prior - Total | 882,537 | 597,660 | |
Revolving Loans Amortized Cost Basis | 954,478 | 990,235 | |
Revolving Loans Converted To Term Loans | 126,275 | 110,803 | |
Total Loans | 72,452 | 10,505 | |
Loans | 4,682,623 | 4,427,330 | |
Special Mention | |||
Risk category of rated loans | |||
Year One - Total | 633 | 3,660 | |
Year Two - Total | 11,405 | 25,269 | |
Year Three - Total | 16,817 | ||
Year Four - Total | 21,296 | ||
Prior - Total | 39,592 | 18,995 | |
Revolving Loans Amortized Cost Basis | 503 | 744 | |
Loans | 68,950 | 69,964 | |
Substandard | |||
Risk category of rated loans | |||
Prior | 818 | ||
Year One - Total | 1,230 | ||
Year Two - Total | 1,297 | 1,133 | |
Year Three - Total | 1,398 | 1,501 | |
Year Four - Total | 1,160 | 1,469 | |
Prior - Total | 16,958 | 11,162 | |
Revolving Loans Amortized Cost Basis | 1,848 | 2,013 | |
Total Loans | 818 | ||
Loans | 22,661 | 18,508 | |
Core Banking Activities | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 331 | 263 | |
Loans | 4,622,542 | 4,258,702 | |
Traditional Banking | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 331 | 263 | |
Total Loans | 73,270 | 10,505 | |
Loans | 4,165,177 | 3,855,142 | |
Republic Processing Group | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 3,099 | 2,673 | |
Loans | 151,692 | 257,100 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | |||
Risk category of rated loans | |||
Year One | 71,438 | 232,868 | |
Year Two | 222,475 | 190,758 | |
Year Three | 190,739 | 189,505 | |
Year Four | 187,845 | 72,766 | |
Prior | 298,968 | 225,530 | |
Year One, YTD Gross Charge-offs | 21 | ||
Year Three, YTD Gross Charge-offs | 6 | ||
Total, YTD Gross Charge-offs | 6 | 21 | |
Revolving Loans Converted To Term Loans | 749 | ||
Loans | 972,214 | 911,427 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Pass | |||
Risk category of rated loans | |||
Year One | 71,391 | 231,638 | |
Year Two | 221,178 | 189,495 | |
Year Three | 189,378 | 188,004 | |
Year Four | 186,685 | 71,306 | |
Prior | 280,428 | 208,296 | |
Revolving Loans Converted To Term Loans | 749 | ||
Loans | 949,809 | 888,739 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Special Mention | |||
Risk category of rated loans | |||
Year One | 47 | ||
Year Two | 160 | ||
Prior | 7,002 | 7,240 | |
Loans | 7,049 | 7,400 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Substandard | |||
Risk category of rated loans | |||
Year One | 1,230 | ||
Year Two | 1,297 | 1,103 | |
Year Three | 1,361 | 1,501 | |
Year Four | 1,160 | 1,460 | |
Prior | 11,538 | 9,994 | |
Loans | 15,356 | 15,288 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 6 | ||
Loans | 972,214 | 911,427 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | |||
Risk category of rated loans | |||
Year One | 19,017 | 78,337 | |
Year Two | 74,848 | 91,808 | |
Year Three | 88,239 | 55,058 | |
Year Four | 51,821 | 32,803 | |
Prior | 86,240 | 57,205 | |
Revolving Loans Converted To Term Loans | 8,364 | 6,147 | |
Loans | 328,529 | 321,358 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Pass | |||
Risk category of rated loans | |||
Year One | 19,017 | 78,337 | |
Year Two | 74,848 | 91,778 | |
Year Three | 88,212 | 55,058 | |
Year Four | 51,821 | 32,803 | |
Prior | 86,161 | 57,053 | |
Revolving Loans Converted To Term Loans | 8,364 | 6,147 | |
Loans | 328,423 | 321,176 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Special Mention | |||
Risk category of rated loans | |||
Prior | 30 | 32 | |
Loans | 30 | 32 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Substandard | |||
Risk category of rated loans | |||
Year Two | 30 | ||
Year Three | 27 | ||
Prior | 49 | 120 | |
Loans | 76 | 150 | |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 328,529 | 321,358 | |
Residential Real Estate | Home equity | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 250,050 | 241,739 | |
Loans | 250,050 | 241,739 | |
Residential Real Estate | Home equity | Pass | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 248,978 | 240,704 | |
Loans | 248,978 | 240,704 | |
Residential Real Estate | Home equity | Special Mention | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 106 | 171 | |
Loans | 106 | 171 | |
Residential Real Estate | Home equity | Substandard | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 966 | 864 | |
Loans | 966 | 864 | |
Residential Real Estate | Home equity | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 250,050 | 241,739 | |
Commercial Real Estate | |||
Risk category of rated loans | |||
Year One | 58,514 | 454,451 | |
Year Two | 468,686 | 406,187 | |
Year Three | 393,353 | 210,055 | |
Year Four | 213,912 | 139,224 | |
Prior | 411,862 | 263,985 | |
Year Two, YTD Gross Charge-offs | 9 | ||
Total, YTD Gross Charge-offs | 9 | ||
Revolving Loans Amortized Cost Basis | 23,089 | 25,817 | |
Revolving Loans Converted To Term Loans | 113,157 | 99,791 | |
Loans | 1,682,573 | 1,599,510 | |
Commercial Real Estate | Pass | |||
Risk category of rated loans | |||
Year One | 57,928 | 451,327 | |
Year Two | 457,789 | 394,317 | |
Year Three | 389,353 | 210,055 | |
Year Four | 213,912 | 117,928 | |
Prior | 377,754 | 253,213 | |
Revolving Loans Amortized Cost Basis | 22,947 | 25,499 | |
Revolving Loans Converted To Term Loans | 113,157 | 99,791 | |
Loans | 1,632,840 | 1,552,130 | |
Commercial Real Estate | Special Mention | |||
Risk category of rated loans | |||
Year One | 586 | 3,124 | |
Year Two | 10,897 | 11,870 | |
Year Three | 4,000 | ||
Year Four | 21,296 | ||
Prior | 30,808 | 9,967 | |
Revolving Loans Amortized Cost Basis | 142 | 318 | |
Loans | 46,433 | 46,575 | |
Commercial Real Estate | Substandard | |||
Risk category of rated loans | |||
Prior | 3,300 | 805 | |
Loans | 3,300 | 805 | |
Commercial Real Estate | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 1,682,573 | 1,599,510 | |
Construction & land development | |||
Risk category of rated loans | |||
Year One | 28,475 | 107,153 | |
Year Two | 106,203 | 43,289 | |
Year Three | 29,978 | 638 | |
Year Four | 1,958 | 641 | |
Prior | 642 | 373 | |
Revolving Loans Amortized Cost Basis | 275 | 1,781 | |
Revolving Loans Converted To Term Loans | 298 | ||
Loans | 167,829 | 153,875 | |
Construction & land development | Pass | |||
Risk category of rated loans | |||
Year One | 28,475 | 107,153 | |
Year Two | 106,203 | 43,289 | |
Year Three | 29,978 | 638 | |
Year Four | 1,958 | 641 | |
Prior | 642 | 373 | |
Revolving Loans Amortized Cost Basis | 275 | 1,781 | |
Revolving Loans Converted To Term Loans | 298 | ||
Loans | 167,829 | 153,875 | |
Construction & land development | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 167,829 | 153,875 | |
Commercial | Commercial and Industrial | |||
Risk category of rated loans | |||
Year One | 47,157 | 117,019 | |
Year Two | 112,586 | 95,670 | |
Year Three | 102,427 | 17,944 | |
Year Four | 20,170 | 36,254 | |
Prior | 76,270 | 38,123 | |
Revolving Loans Amortized Cost Basis | 115,784 | 103,512 | |
Revolving Loans Converted To Term Loans | 3,707 | 4,865 | |
Loans | 478,101 | 413,387 | |
Commercial | Commercial and Industrial | Pass | |||
Risk category of rated loans | |||
Year One | 47,157 | 116,483 | |
Year Two | 112,078 | 82,431 | |
Year Three | 89,610 | 17,944 | |
Year Four | 20,170 | 36,254 | |
Prior | 73,499 | 36,367 | |
Revolving Loans Amortized Cost Basis | 115,529 | 103,257 | |
Revolving Loans Converted To Term Loans | 3,707 | 4,865 | |
Loans | 461,750 | 397,601 | |
Commercial | Commercial and Industrial | Special Mention | |||
Risk category of rated loans | |||
Year One | 536 | ||
Year Two | 508 | 13,239 | |
Year Three | 12,817 | ||
Prior | 1,752 | 1,756 | |
Revolving Loans Amortized Cost Basis | 255 | 255 | |
Loans | 15,332 | 15,786 | |
Commercial | Commercial and Industrial | Substandard | |||
Risk category of rated loans | |||
Prior | 1,019 | ||
Loans | 1,019 | ||
Commercial | Commercial and Industrial | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 478,101 | 413,387 | |
Aircraft | |||
Risk category of rated loans | |||
Year One | 13,640 | 65,399 | |
Year Two | 62,951 | 54,749 | |
Year Three | 51,083 | 35,085 | |
Year Four | 33,033 | 16,888 | |
Prior | 23,637 | 7,664 | |
Loans | 184,344 | 179,785 | |
Aircraft | Pass | |||
Risk category of rated loans | |||
Year One | 13,640 | 65,399 | |
Year Two | 62,951 | 54,749 | |
Year Three | 51,083 | 35,085 | |
Year Four | 33,033 | 16,888 | |
Prior | 23,432 | 7,454 | |
Loans | 184,139 | 179,575 | |
Aircraft | Substandard | |||
Risk category of rated loans | |||
Prior | 205 | 210 | |
Loans | 205 | 210 | |
Aircraft | Traditional Banking | |||
Risk category of rated loans | |||
Loans | 184,344 | 179,785 | |
Consumer | |||
Risk category of rated loans | |||
Year One | 563 | 415 | |
Year Two | 1,864 | 499 | |
Year Three | 878 | 168 | |
Year Four | 133 | 2,540 | |
Prior | 5,301 | 4,361 | |
Year Two, YTD Gross Charge-offs | 9 | 5 | |
Year Three, YTD Gross Charge-offs | 7 | ||
Year Four, YTD Gross Charge-offs | 11 | ||
Prior, YTD Gross Charge-offs | 4 | ||
Revolving Loans Amortized Cost Basis, YTD Gross Charge-offs | 305 | 1,274 | |
Total, YTD Gross Charge-offs | 325 | 1,290 | |
Revolving Loans Amortized Cost Basis | 19,528 | 15,573 | |
Loans | 28,267 | 23,556 | |
Consumer | Pass | |||
Risk category of rated loans | |||
Year One | 563 | 415 | |
Year Two | 1,864 | 499 | |
Year Three | 868 | 168 | |
Year Four | 133 | 2,531 | |
Prior | 5,272 | 4,328 | |
Revolving Loans Amortized Cost Basis | 19,528 | 15,573 | |
Loans | 28,228 | 23,514 | |
Consumer | Substandard | |||
Risk category of rated loans | |||
Year Three | 10 | ||
Year Four | 9 | ||
Prior | 29 | 33 | |
Loans | 39 | 42 | |
Consumer | Credit cards | Traditional Banking | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 40 | 39 | |
Loans | 16,775 | 15,473 | |
Consumer | Overdrafts | Traditional Banking | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 247 | 214 | |
Loans | 775 | 726 | |
Consumer | Automobile loans | Traditional Banking | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 7 | ||
Loans | 5,267 | 6,731 | |
Consumer | Other consumer | Traditional Banking | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 31 | 10 | |
Loans | 5,450 | 626 | |
Warehouse lines of credit | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 457,365 | 403,560 | |
Loans | 457,365 | 403,560 | |
Warehouse lines of credit | Pass | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 457,365 | 403,560 | |
Loans | 457,365 | 403,560 | |
Warehouse lines of credit | Core Banking Activities | |||
Risk category of rated loans | |||
Loans | 457,365 | 403,560 | |
Warehouse lines of credit | Warehouse Lending | |||
Risk category of rated loans | |||
Loans | 457,365 | ||
Tax Refund Solution | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis, YTD Gross Charge-offs | 11,659 | ||
Total, YTD Gross Charge-offs | 11,659 | ||
Revolving Loans Amortized Cost Basis | 39,992 | 149,272 | |
Loans | 39,992 | 149,272 | |
Tax Refund Solution | Pass | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 39,992 | 149,272 | |
Loans | 39,992 | 149,272 | |
Tax Refund Solution | Refund Advances | Republic Processing Group | |||
Risk category of rated loans | |||
Loans | 31,665 | 97,505 | |
Tax Refund Solution | Other TRS commercial and industrial loans | Republic Processing Group | |||
Risk category of rated loans | |||
Loans | 8,327 | 51,767 | |
Republic Credit Solution | |||
Risk category of rated loans | |||
Year One | 10,577 | 22,357 | |
Year Two | 18,530 | 2,273 | |
Year Three | 1,668 | 1,264 | |
Year Four | 1,059 | 602 | |
Prior | 29,120 | 29,594 | |
Revolving Loans Amortized Cost Basis, YTD Gross Charge-offs | 3,099 | 11,390 | |
Total, YTD Gross Charge-offs | 3,099 | 11,390 | |
Revolving Loans Amortized Cost Basis | 50,746 | 51,738 | |
Loans | 111,700 | 107,828 | |
Republic Credit Solution | Pass | |||
Risk category of rated loans | |||
Year One | 10,577 | 22,357 | |
Year Two | 18,530 | 2,273 | |
Year Three | 1,668 | 1,264 | |
Year Four | 1,059 | 602 | |
Prior | 29,120 | 29,594 | |
Revolving Loans Amortized Cost Basis | 49,864 | 50,589 | |
Loans | 110,818 | 106,679 | |
Republic Credit Solution | Substandard | |||
Risk category of rated loans | |||
Revolving Loans Amortized Cost Basis | 882 | 1,149 | |
Loans | 882 | 1,149 | |
Republic Credit Solution | Republic Processing Group | |||
Risk category of rated loans | |||
Total, YTD Gross Charge-offs | 3,099 | $ 2,673 | |
Loans | $ 111,700 | $ 107,828 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 70,413 | $ 64,577 | $ 64,577 |
Provision | 26,766 | 9,233 | |
Charge-offs | (3,430) | (2,936) | (24,369) |
Recoveries | 772 | 782 | |
Ending Balance | $ 96,121 | $ 71,656 | 70,413 |
Forecast period for unemployment and general CRE values | 1 year | 1 year | |
Adjustment | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 1,600 | ||
Ending Balance | 1,600 | ||
Core Banking Activities | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 51,718 | $ 51,533 | 51,533 |
Provision | 3,119 | (74) | |
Charge-offs | (331) | (263) | |
Recoveries | 254 | 145 | |
Ending Balance | 56,360 | 51,341 | 51,718 |
Core Banking Activities | Adjustment | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 1,600 | ||
Ending Balance | 1,600 | ||
Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 110 | 91 | 91 |
Beginning Balance | 50,709 | 49,407 | 49,407 |
Provision | 648 | 18 | |
Provision | 2,984 | 327 | |
Charge-offs | (331) | (263) | |
Recoveries | 254 | 145 | |
Ending balance | 1,350 | 109 | 110 |
Ending Balance | 55,216 | 49,616 | 50,709 |
Traditional Banking | Adjustment | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 592 | ||
Beginning Balance | 1,600 | ||
Ending balance | 592 | ||
Ending Balance | 1,600 | ||
Republic Processing Group | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 18,695 | 13,044 | 13,044 |
Provision | 23,647 | 9,307 | |
Charge-offs | (3,099) | (2,673) | |
Recoveries | 518 | 637 | |
Ending balance | 39,761 | 20,315 | 18,695 |
Residential Real Estate | Residential Real Estate - Owner Occupied | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (6) | (21) | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 8,909 | 8,647 | 8,647 |
Provision | (120) | (331) | |
Charge-offs | (6) | ||
Recoveries | 15 | 42 | |
Ending balance | 8,798 | 8,358 | 8,909 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2,831 | 2,700 | 2,700 |
Provision | 64 | 45 | |
Recoveries | 1 | ||
Ending balance | 2,895 | 2,746 | 2,831 |
Residential Real Estate | Home equity | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,628 | 4,111 | 4,111 |
Provision | 31 | (70) | |
Recoveries | 1 | 3 | |
Ending balance | 4,660 | 4,044 | 4,628 |
Commercial Real Estate | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (9) | ||
Commercial Real Estate | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 23,739 | 23,769 | 23,769 |
Provision | 1,041 | 854 | |
Recoveries | 47 | 1 | |
Ending balance | 24,827 | 24,624 | 23,739 |
Construction & land development | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,123 | 4,128 | 4,128 |
Provision | 329 | (235) | |
Ending balance | 4,452 | 3,893 | 4,123 |
Commercial | Commercial and Industrial | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,976 | 3,487 | 3,487 |
Provision | 602 | (84) | |
Recoveries | 90 | 9 | |
Ending balance | 5,676 | 3,412 | 3,976 |
Commercial | Commercial and Industrial | Traditional Banking | Adjustment | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,008 | ||
Ending balance | 1,008 | ||
Aircraft | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 449 | 357 | 357 |
Provision | 12 | 21 | |
Ending balance | 461 | 378 | 449 |
Consumer | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (325) | (1,290) | |
Consumer | Credit cards | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 996 | 934 | 934 |
Provision | 112 | 32 | |
Charge-offs | (40) | (39) | |
Recoveries | 12 | 17 | |
Ending balance | 1,080 | 944 | 996 |
Consumer | Overdrafts | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 726 | 683 | 683 |
Provision | 52 | 188 | |
Charge-offs | (247) | (214) | |
Recoveries | 64 | 59 | |
Ending balance | 595 | 716 | 726 |
Consumer | Automobile loans | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 87 | 186 | 186 |
Provision | (16) | (36) | |
Charge-offs | (7) | ||
Recoveries | 2 | 1 | |
Ending balance | 66 | 151 | 87 |
Consumer | Other consumer | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 135 | 314 | 314 |
Provision | 229 | (75) | |
Charge-offs | (31) | (10) | |
Recoveries | 23 | 12 | |
Ending balance | 356 | 241 | 135 |
Warehouse lines of credit | Warehouse Lending | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,009 | 2,126 | 2,126 |
Provision | 135 | (401) | |
Ending balance | 1,144 | 1,725 | 1,009 |
Tax Refund Solution | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (11,659) | ||
Tax Refund Solution | Refund Advances | Republic Processing Group | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,797 | ||
Provision | 21,715 | 8,315 | |
Recoveries | 285 | ||
Ending balance | 25,797 | 8,315 | 3,797 |
Tax Refund Solution | Other TRS commercial and industrial loans | Republic Processing Group | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 91 | 96 | 96 |
Provision | 93 | (403) | |
Recoveries | 362 | ||
Ending balance | 184 | 55 | 91 |
Republic Credit Solution | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (3,099) | (11,390) | |
Republic Credit Solution | Republic Processing Group | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 14,807 | 12,948 | 12,948 |
Provision | 1,839 | 1,395 | |
Charge-offs | (3,099) | (2,673) | |
Recoveries | 233 | 275 | |
Ending balance | $ 13,780 | $ 11,945 | $ 14,807 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 15,833 | $ 15,562 |
Loans past due 90 days or more and still on accrual | 777 | 756 |
Total nonperforming loans | 16,610 | 16,318 |
Other real estate owned | 1,529 | 1,581 |
Total nonperforming assets | $ 18,139 | $ 17,899 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.35% | 0.36% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.38% | 0.40% |
Nonperforming assets to total assets (as percent) | 0.30% | 0.31% |
Core Banking Activities | ||
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 15,833 | $ 15,562 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.34% | 0.37% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.38% | 0.40% |
Nonperforming assets to total assets (as percent) | 0.32% | 0.32% |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | $ 1,213 | $ 3,324 |
Nonaccrual with no ACLL | 14,620 | 12,238 |
Nonaccrual | 15,833 | 15,562 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 777 | 756 |
Interest Income Recognized on Nonaccrual Loans | $ 231 | 951 |
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 | $ 15,833 | 15,562 |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 15,833 | 15,562 |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 777 | 756 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 222 | 2,252 |
Nonaccrual with no ACLL | 12,824 | 11,136 |
Nonaccrual | 13,046 | 13,388 |
Interest Income Recognized on Nonaccrual Loans | 181 | 230 |
Residential Real Estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 13,046 | 13,388 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 24 | 56 |
Nonaccrual with no ACLL | 52 | 61 |
Nonaccrual | 76 | 117 |
Interest Income Recognized on Nonaccrual Loans | 1 | 1 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 76 | 117 |
Residential Real Estate | Home equity | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 1 | |
Nonaccrual with no ACLL | 903 | 815 |
Nonaccrual | 904 | 815 |
Interest Income Recognized on Nonaccrual Loans | 23 | 44 |
Residential Real Estate | Home equity | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 904 | 815 |
Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 966 | 1,001 |
Nonaccrual with no ACLL | 602 | |
Nonaccrual | 1,568 | 1,001 |
Interest Income Recognized on Nonaccrual Loans | 23 | 630 |
Commercial Real Estate | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 1,568 | 1,001 |
Consumer | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 15 | |
Nonaccrual with no ACLL | 239 | 226 |
Nonaccrual | 239 | 241 |
Interest Income Recognized on Nonaccrual Loans | 3 | 46 |
Consumer | Automobile loans | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 33 | 31 |
Consumer | Other consumer | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 206 | 210 |
Republic Credit Solution | Republic Processing Group | ||
Aging or recorded investments in loans | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 777 | $ 756 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Aging or recorded investments in loans | ||
Lease financing receivables | $ 73,270 | $ 10,505 |
Loans | 4,774,234 | 4,515,802 |
30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | $ 29,325 | $ 9,966 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.61% | 0.22% |
60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | $ 4,472 | $ 3,241 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.09% | 0.07% |
90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | $ 2,327 | $ 2,053 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.05% | 0.05% |
Past Due | ||
Aging or recorded investments in loans | ||
Loans | $ 36,124 | $ 15,260 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.76% | 0.34% |
Current | ||
Aging or recorded investments in loans | ||
Loans | $ 4,738,110 | $ 4,500,542 |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 972,214 | 911,427 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 328,529 | 321,358 |
Residential Real Estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 250,050 | 241,739 |
Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,682,573 | 1,599,510 |
Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 167,829 | 153,875 |
Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 478,101 | 413,387 |
Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 184,344 | 179,785 |
Consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 28,267 | 23,556 |
Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 457,365 | 403,560 |
Tax Refund Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 39,992 | 149,272 |
Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 111,700 | 107,828 |
Core Banking Activities | ||
Aging or recorded investments in loans | ||
Loans | 4,622,542 | 4,258,702 |
Core Banking Activities | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 2,784 | 3,478 |
Core Banking Activities | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 1,203 | 1,285 |
Core Banking Activities | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 1,550 | 1,297 |
Core Banking Activities | Past Due | ||
Aging or recorded investments in loans | ||
Loans | 5,537 | 6,060 |
Core Banking Activities | Current | ||
Aging or recorded investments in loans | ||
Loans | 4,617,005 | 4,252,642 |
Core Banking Activities | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 457,365 | 403,560 |
Core Banking Activities | Warehouse lines of credit | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 403,560 | |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 73,270 | 10,505 |
Loans | 4,165,177 | 3,855,142 |
Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 2,784 | 3,478 |
Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 1,203 | 1,285 |
Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 1,550 | 1,297 |
Traditional Banking | Past Due | ||
Aging or recorded investments in loans | ||
Loans | 5,537 | 6,060 |
Traditional Banking | Current | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 73,270 | 10,505 |
Loans | 4,159,640 | 3,849,082 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 972,214 | 911,427 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,587 | 2,382 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,195 | 1,185 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 929 | 1,267 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,711 | 4,834 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 967,503 | 906,593 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 328,529 | 321,358 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 328,529 | 321,358 |
Traditional Banking | Residential Real Estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 250,050 | 241,739 |
Traditional Banking | Residential Real Estate | Home equity | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 59 | 56 |
Traditional Banking | Residential Real Estate | Home equity | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 93 | |
Traditional Banking | Residential Real Estate | Home equity | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4 | 26 |
Traditional Banking | Residential Real Estate | Home equity | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 63 | 175 |
Traditional Banking | Residential Real Estate | Home equity | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 249,987 | 241,564 |
Traditional Banking | Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,682,573 | 1,599,510 |
Traditional Banking | Commercial Real Estate | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 604 | |
Traditional Banking | Commercial Real Estate | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 602 | |
Traditional Banking | Commercial Real Estate | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 602 | 604 |
Traditional Banking | Commercial Real Estate | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,681,971 | 1,598,906 |
Traditional Banking | Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 167,829 | 153,875 |
Traditional Banking | Construction & land development | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 167,829 | 153,875 |
Traditional Banking | Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 478,101 | 413,387 |
Traditional Banking | Commercial | Commercial and Industrial | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 177 | |
Traditional Banking | Commercial | Commercial and Industrial | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 177 | |
Traditional Banking | Commercial | Commercial and Industrial | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 478,101 | 413,210 |
Traditional Banking | Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 184,344 | 179,785 |
Traditional Banking | Aircraft | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 184,344 | 179,785 |
Traditional Banking | Consumer | Credit cards | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 16,775 | 15,473 |
Traditional Banking | Consumer | Credit cards | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 24 | 50 |
Traditional Banking | Consumer | Credit cards | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6 | 5 |
Traditional Banking | Consumer | Credit cards | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 30 | 55 |
Traditional Banking | Consumer | Credit cards | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 16,745 | 15,418 |
Traditional Banking | Consumer | Overdrafts | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 775 | 726 |
Traditional Banking | Consumer | Overdrafts | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 109 | 158 |
Traditional Banking | Consumer | Overdrafts | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | 1 |
Traditional Banking | Consumer | Overdrafts | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2 | 1 |
Traditional Banking | Consumer | Overdrafts | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 112 | 160 |
Traditional Banking | Consumer | Overdrafts | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 663 | 566 |
Traditional Banking | Consumer | Automobile loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,267 | 6,731 |
Traditional Banking | Consumer | Automobile loans | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 8 | |
Traditional Banking | Consumer | Automobile loans | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 13 | 3 |
Traditional Banking | Consumer | Automobile loans | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 13 | 11 |
Traditional Banking | Consumer | Automobile loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,254 | 6,720 |
Traditional Banking | Consumer | Other consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,450 | 626 |
Traditional Banking | Consumer | Other consumer | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5 | 43 |
Traditional Banking | Consumer | Other consumer | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | 1 |
Traditional Banking | Consumer | Other consumer | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 6 | 44 |
Traditional Banking | Consumer | Other consumer | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,444 | 582 |
Warehouse Lending | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 457,365 | |
Warehouse Lending | Warehouse lines of credit | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 457,365 | |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 151,692 | 257,100 |
Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 26,541 | 6,488 |
Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,269 | 1,956 |
Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 777 | 756 |
Republic Processing Group | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 30,587 | 9,200 |
Republic Processing Group | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 121,105 | 247,900 |
Republic Processing Group | Tax Refund Solution | Refund Advances | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 31,665 | 97,505 |
Republic Processing Group | Tax Refund Solution | Refund Advances | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 18,450 | |
Republic Processing Group | Tax Refund Solution | Refund Advances | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 18,450 | |
Republic Processing Group | Tax Refund Solution | Refund Advances | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 13,215 | 97,505 |
Republic Processing Group | Tax Refund Solution | Other TRS commercial and industrial loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 8,327 | 51,767 |
Republic Processing Group | Tax Refund Solution | Other TRS commercial and industrial loans | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 406 | |
Republic Processing Group | Tax Refund Solution | Other TRS commercial and industrial loans | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 406 | |
Republic Processing Group | Tax Refund Solution | Other TRS commercial and industrial loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 7,921 | 51,767 |
Republic Processing Group | Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 111,700 | 107,828 |
Republic Processing Group | Republic Credit Solution | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 7,685 | 6,488 |
Republic Processing Group | Republic Credit Solution | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,269 | 1,956 |
Republic Processing Group | Republic Credit Solution | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 777 | 756 |
Republic Processing Group | Republic Credit Solution | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 11,731 | 9,200 |
Republic Processing Group | Republic Credit Solution | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 99,969 | $ 98,628 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COLLATERAL DEPENDENT LOANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 73,270 | $ 10,505 |
Loans | $ 4,774,234 | 4,515,802 |
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% | |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 972,214 | 911,427 |
Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 328,529 | 321,358 |
Residential Real Estate | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 250,050 | 241,739 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,682,573 | 1,599,510 |
Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 167,829 | 153,875 |
Commercial | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 478,101 | 413,387 |
Aircraft | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 184,344 | 179,785 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 28,267 | 23,556 |
Traditional Banking | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 73,270 | 10,505 |
Loans | 4,165,177 | 3,855,142 |
Traditional Banking | Real Estate | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 19,657 | 20,215 |
Traditional Banking | Personal Property | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 243 | 236 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 972,214 | 911,427 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Owner Occupied | Real Estate | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 17,011 | 18,057 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 328,529 | 321,358 |
Traditional Banking | Residential Real Estate | Residential Real Estate - Non Owner Occupied | Real Estate | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 77 | 150 |
Traditional Banking | Residential Real Estate | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 250,050 | 241,739 |
Traditional Banking | Residential Real Estate | Home equity | Real Estate | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 967 | 967 |
Traditional Banking | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,682,573 | 1,599,510 |
Traditional Banking | Commercial Real Estate | Real Estate | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,602 | 1,041 |
Traditional Banking | Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 167,829 | 153,875 |
Traditional Banking | Commercial | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 478,101 | 413,387 |
Traditional Banking | Aircraft | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 184,344 | 179,785 |
Traditional Banking | Aircraft | Personal Property | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 205 | 210 |
Traditional Banking | Consumer | Personal Property | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 38 | $ 26 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - AMORTIZED COST OF LOANS AND LEASES (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) loan item | Dec. 31, 2022 loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans with payment default | loan | 0 | |
Accruing number of contracts | 537 | |
Accruing recorded investments | $ 105 | |
Nonaccruing number of contracts | 7 | |
Nonaccruing recorded investments | $ 681 | |
Nonaccruing percentage of total financing receivables | 0.01% | |
Number of Loans | 0 | 2,475 |
Current | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing recorded investments | $ 105 | |
Nonaccruing recorded investments | $ 681 | |
Republic Processing Group | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing number of contracts | 537 | |
Accruing recorded investments | $ 105 | |
Accruing percentage of total financing receivables | 0.07% | |
Republic Processing Group | Current | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing recorded investments | $ 105 | |
Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 150 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing number of contracts | 6 | |
Nonaccruing recorded investments | $ 609 | |
Nonaccruing percentage of total financing receivables | 0.06% | |
Residential Real Estate | Residential Real Estate - Owner Occupied | Current | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | $ 609 | |
Residential Real Estate | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing number of contracts | 1 | |
Nonaccruing recorded investments | $ 72 | |
Nonaccruing percentage of total financing receivables | 0.03% | |
Residential Real Estate | Home equity | Current | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | $ 72 | |
Rate reduction | Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 70 | |
Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans with payment default | 2 | |
Recorded Investment with payment default | $ 265 | |
Nonaccruing number of contracts | 2 | |
Nonaccruing recorded investments | $ 265 | |
Term Extension | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans with payment default | 2 | |
Recorded Investment with payment default | $ 265 | |
Principal deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans with payment default | 542 | |
Recorded Investment with payment default | $ 521 | |
Accruing number of contracts | 537 | |
Accruing recorded investments | $ 105 | |
Nonaccruing number of contracts | 5 | |
Nonaccruing recorded investments | $ 416 | |
Principal deferral | Republic Processing Group | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans with payment default | 537 | |
Recorded Investment with payment default | $ 105 | |
Principal deferral | Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 7 | |
Principal deferral | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans with payment default | 4 | |
Recorded Investment with payment default | $ 344 | |
Principal deferral | Residential Real Estate | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans with payment default | 1 | |
Recorded Investment with payment default | $ 72 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFICATIONS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 item | Mar. 31, 2022 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Troubled Debt Restructurings disclosures | |||
Number of Loans | 0 | 2,475 | |
Recorded Investment | $ 12,026 | ||
Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 264 | ||
Recorded Investment | $ 814 | ||
Performing Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,466 | ||
Recorded Investment | $ 11,407 | ||
Performing Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 264 | ||
Recorded Investment | $ 814 | ||
Nonperforming Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 9 | ||
Recorded Investment | $ 619 | ||
Residential Real Estate | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 150 | ||
Recorded Investment | $ 10,772 | ||
Residential Real Estate | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 70 | ||
Recorded Investment | $ 6,547 | ||
Residential Real Estate | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 7 | ||
Recorded Investment | $ 699 | ||
Residential Real Estate | Legal Modification [Member] | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 73 | ||
Recorded Investment | $ 3,526 | ||
Residential Real Estate | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 6 | ||
Recorded Investment | $ 772 | ||
Residential Real Estate | Modified During The Period | Legal Modification [Member] | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 6 | ||
Recorded Investment | $ 772 | ||
Residential Real Estate | Performing Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 141 | ||
Recorded Investment | $ 10,153 | ||
Residential Real Estate | Performing Financing Receivable | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 67 | ||
Recorded Investment | $ 6,305 | ||
Residential Real Estate | Performing Financing Receivable | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 7 | ||
Recorded Investment | $ 699 | ||
Residential Real Estate | Performing Financing Receivable | Legal Modification [Member] | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 67 | ||
Recorded Investment | $ 3,149 | ||
Residential Real Estate | Performing Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 6 | ||
Recorded Investment | $ 772 | ||
Residential Real Estate | Performing Financing Receivable | Modified During The Period | Legal Modification [Member] | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 6 | ||
Recorded Investment | $ 772 | ||
Residential Real Estate | Nonperforming Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 9 | ||
Recorded Investment | $ 619 | ||
Residential Real Estate | Nonperforming Financing Receivable | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 3 | ||
Recorded Investment | $ 242 | ||
Residential Real Estate | Nonperforming Financing Receivable | Legal Modification [Member] | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 6 | ||
Recorded Investment | $ 377 | ||
Commercial related and construction/land development | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 848 | ||
Commercial related and construction/land development | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | ||
Recorded Investment | $ 847 | ||
Commercial related and construction/land development | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | ||
Recorded Investment | $ 1 | ||
Commercial related and construction/land development | Performing Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 848 | ||
Commercial related and construction/land development | Performing Financing Receivable | Rate reduction | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | ||
Recorded Investment | $ 847 | ||
Commercial related and construction/land development | Performing Financing Receivable | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 1 | ||
Recorded Investment | $ 1 | ||
Consumer | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,323 | ||
Recorded Investment | $ 406 | ||
Consumer | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,320 | ||
Recorded Investment | $ 393 | ||
Consumer | Legal Modification [Member] | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 3 | ||
Recorded Investment | $ 13 | ||
Consumer | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 258 | ||
Recorded Investment | $ 42 | ||
Consumer | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 258 | ||
Recorded Investment | $ 42 | ||
Consumer | Performing Financing Receivable | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,323 | ||
Recorded Investment | $ 406 | ||
Consumer | Performing Financing Receivable | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 2,320 | ||
Recorded Investment | $ 393 | ||
Consumer | Performing Financing Receivable | Legal Modification [Member] | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 3 | ||
Recorded Investment | $ 13 | ||
Consumer | Performing Financing Receivable | Modified During The Period | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 258 | ||
Recorded Investment | $ 42 | ||
Consumer | Performing Financing Receivable | Modified During The Period | Principal deferral | |||
Troubled Debt Restructurings disclosures | |||
Number of Loans | loan | 258 | ||
Recorded Investment | $ 42 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR MODIFIED CLASS (Details) | 3 Months Ended |
Mar. 31, 2023 loan | |
Troubled Debt Restructurings disclosures | |
Number of Loans with payment default | 0 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,529 | $ 1,581 |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,529 | $ 1,581 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Residential Real Estate | Foreclosure Proceedings In Process | ||
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 546 | $ 909 |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - REFUND ADVANCES (Details) - Tax Refund Solutions - Refund Advances - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Period Refund Advance tax credit product offered | 2 months | 2 months | ||
Refund Advances originated. | $ 737,047 | $ 311,207 | ||
Net charge to the Provision for RAs, including ERAs | $ 21,715 | $ 8,315 | ||
Provision as a percentage of RAs, including ERAs, originated during the first quarter | 2.95% | 2.67% |
DEPOSITS - Balances (Details)
DEPOSITS - Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deposit Liabilities | ||
Total interest-bearing deposits | $ 2,785,711 | $ 2,629,077 |
Total non interest-bearing deposits | 2,013,957 | 1,908,768 |
Total deposits | 4,799,668 | 4,537,845 |
Core Banking Activities | ||
Deposit Liabilities | ||
Demand | 1,272,086 | 1,336,082 |
Money market accounts | 794,710 | 707,272 |
Savings | 316,947 | 323,015 |
Reciprocal money market | 123,486 | 28,635 |
Individual retirement accounts | 36,334 | 38,640 |
Time deposits, $250 and over | 46,687 | 54,855 |
Other certificates of deposit | 176,257 | 129,324 |
Reciprocal time deposits | 13,273 | 7,405 |
Total interest-bearing deposits | 2,779,780 | 2,625,228 |
Total non interest-bearing deposits | 1,471,180 | 1,464,493 |
Total deposits | 4,250,960 | 4,089,721 |
Republic Processing Group | ||
Deposit Liabilities | ||
Money market accounts | 5,931 | 3,849 |
Total interest-bearing deposits | 5,931 | 3,849 |
Brokered prepaid cards deposits | 390,052 | 328,655 |
Other noninterest-bearing deposits | 152,725 | 115,620 |
Total non interest-bearing deposits | 542,777 | 444,275 |
Total deposits | $ 548,708 | $ 448,124 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Securities sold under agreements to repurchase | |||
Outstanding balance at end of period | $ 134,412 | $ 216,956 | |
Securities sold under agreements to repurchase | |||
Securities sold under agreements to repurchase | |||
Securities pledged more than repurchase agreements (as a percent) | 2% | ||
Outstanding balance at end of period | $ 134,412 | $ 216,956 | |
Weighted average interest rate at end of period (as a percent) | 0.45% | 0.41% | |
Fair Value of securities pledged | $ 133,652 | $ 254,296 | |
Average outstanding balance during the period | 202,910 | $ 300,169 | |
Maximum outstanding at any month end during the period | $ 224,067 | $ 299,376 | |
Securities sold under agreements to repurchase | Weighted Average | |||
Securities sold under agreements to repurchase | |||
Average interest rate during the period (as a percent) | 0.49% | 0.04% | |
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 | $ 133,652 | $ 254,296 |
RIGHT-OF-USE ASSETS AND OPERA_3
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Details) | 3 Months Ended | |
Mar. 31, 2023 USD ($) contract item | Dec. 31, 2022 USD ($) | |
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 | 36 | |
Number of operating leases contracted with a related party of the Company | contract | 12 | |
Number of operating leases considered variable | 22 | |
Right-of-use assets | $ | $ 36,245,000 | $ 37,017,000 |
Third Party | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of third party lease extensions | 1 | |
Right-of-use assets | $ | $ 772,000 |
RIGHT-OF-USE ASSETS AND OPERA_4
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Operating lease expense: | |||
Total operating lease expense | $ 1,983 | $ 1,842 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 1,730 | 1,705 | |
Cash paid for variable rent payments not included in measurement of operating lease liabilities | $ 151 | 151 | |
Weighted average remaining term in years | 8 years 2 months 8 days | 8 years 5 months 8 days | |
Weighted average discount rate | 2.13% | 2.10% | |
Related Party | |||
Operating lease expense: | |||
Variable lease expense | $ 1,224 | 1,265 | |
Fixed lease expense | 59 | 35 | |
Third Party | |||
Operating lease expense: | |||
Variable lease expense | 311 | 197 | |
Fixed lease expense | $ 389 | $ 345 |
RIGHT-OF-USE ASSETS AND OPERA_5
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Operating lease liabilities | ||
2023 | $ 4,920 | |
2024 | 6,042 | |
2025 | 5,352 | |
2026 | 5,123 | |
2027 | 4,840 | |
Thereafter | 15,381 | |
Total undiscounted cash flows | 41,658 | |
Discount applied to cash flows | (4,627) | |
Total discounted cash flows reported as operating lease liabilities | 37,031 | $ 37,809 |
Related Party | ||
Operating lease liabilities | ||
2023 | 2,988 | |
2024 | 3,726 | |
2025 | 3,570 | |
2026 | 3,640 | |
2027 | 3,680 | |
Thereafter | 11,751 | |
Total undiscounted cash flows | 29,355 | |
Discount applied to cash flows | (3,143) | |
Total discounted cash flows reported as operating lease liabilities | 26,212 | |
Third Party | ||
Operating lease liabilities | ||
2023 | 1,932 | |
2024 | 2,316 | |
2025 | 1,782 | |
2026 | 1,483 | |
2027 | 1,160 | |
Thereafter | 3,630 | |
Total undiscounted cash flows | 12,303 | |
Discount applied to cash flows | (1,484) | |
Total discounted cash flows reported as operating lease liabilities | $ 10,819 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
FHLB advances | ||
Total FHLB advances | $ 108,000 | $ 95,000 |
Additional collateralized advances available | 930,000 | 899,000 |
Overnight advance with an interest rate of 0.11% due on July 1, 2014 | ||
FHLB advances | ||
Total FHLB advances | 88,000 | 75,000 |
Fixed interest rate advances with a weighted average interest rate of 1.91% due through 2021 | ||
FHLB advances | ||
Total FHLB advances | 20,000 | 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 | Mar. 31, 2023 | Dec. 31, 2022 |
FEDERAL HOME LOAN BANK ADVANCES | ||
2023 | $ 88,000 | |
2027 | 20,000 | |
Total | $ 108,000 | $ 95,000 |
Weighted Average Rate | ||
2023 | 4.86% | |
2027 | 1.89% | |
Total | 4.31% |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
FHLB advances | ||
Average outstanding balance during the period | $ 225,344 | $ 1,711 |
Average interest rate during the period (as percent) | 4.43% | 0.15% |
Maximum outstanding at any month end during the period | $ 485,000 | $ 25,000 |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
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 | $ 1,159,090 | $ 1,106,287 |
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 | $ 223,472 | $ 219,644 |
OFF BALANCE SHEET RISKS, COMM_3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Commitments and letters of credit | |||
Loan commitment, line credit | $ 1,996,618 | $ 2,105,396 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 1,250 | $ 1,052 | |
Provision | 210 | (12) | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 1,460 | 1,040 | |
Unused warehouse lines of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 540,135 | 733,940 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 190 | 154 | |
Provision | 8 | (24) | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 198 | 130 | |
Unused home equity lines of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 419,814 | 410,057 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 332 | 247 | |
Provision | 9 | 9 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 341 | 256 | |
Unused construction lines of credit | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 384 | 383 | |
Provision | 163 | (16) | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 547 | 367 | |
Unused loan commitments - other | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 1,027,617 | 951,021 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 344 | 268 | |
Provision | 30 | 19 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 374 | $ 287 | |
Standby letters of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 8,819 | 9,735 | |
FHLB letters of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | $ 233 | $ 643 |
FAIR VALUE - RECURRING BASIS (D
FAIR VALUE - RECURRING BASIS (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financial assets: | ||||
Total available-for-sale debt securities | $ 612,948 | $ 620,365 | ||
Mortgage loans held for sale, at fair value | 1,034 | $ 13,302 | 1,302 | $ 29,393 |
Consumer loans held for sale | 4,688 | 11,709 | 4,706 | $ 19,747 |
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 107 | 111 | ||
U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 394,617 | 411,141 | ||
Private label mortgage backed security | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 2,010 | 2,127 | ||
Mortgage backed securities - residential | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 176,682 | 171,873 | ||
Collateralized mortgage obligations | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 23,651 | 21,368 | ||
Corporate bonds | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 11,987 | 10,001 | ||
Trust Preferred Securities | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 4,001 | 3,855 | ||
Freddie Mac preferred stock | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 107 | 111 | ||
Recurring basis | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 612,948 | 620,365 | ||
Mortgage loans held for sale, at fair value | 1,034 | 1,302 | ||
Consumer loans held for sale | 4,688 | 4,706 | ||
Consumer loans held for investment | 2 | |||
Rate lock loan commitments | 96 | 2 | ||
Mandatory forward contracts | 19 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 107 | 111 | ||
Financial Liabilities: | ||||
Mandatory forward contracts | 67 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Transfers between Level 1, 2 or 3 | 0 | $ 0 | ||
Recurring basis | U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 394,617 | 411,141 | ||
Recurring basis | Private label mortgage backed security | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 2,010 | 2,127 | ||
Recurring basis | Mortgage backed securities - residential | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 176,682 | 171,873 | ||
Recurring basis | Collateralized mortgage obligations | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 23,651 | 21,368 | ||
Recurring basis | Corporate bonds | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 11,987 | 10,001 | ||
Recurring basis | Trust Preferred Securities | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 4,001 | 3,855 | ||
Recurring basis | Freddie Mac preferred stock | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 107 | 111 | ||
Recurring basis | Fair Value, Inputs, Level 1 | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 174,871 | 193,385 | ||
Recurring basis | Fair Value, Inputs, Level 1 | U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 174,871 | 193,385 | ||
Recurring basis | Fair Value, Inputs, Level 2 | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 432,066 | 420,998 | ||
Mortgage loans held for sale, at fair value | 1,034 | 1,302 | ||
Rate lock loan commitments | 96 | 2 | ||
Mandatory forward contracts | 19 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 107 | 111 | ||
Financial Liabilities: | ||||
Mandatory forward contracts | 67 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Recurring basis | Fair Value, Inputs, Level 2 | U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 219,746 | 217,756 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 176,682 | 171,873 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 23,651 | 21,368 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 11,987 | 10,001 | ||
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 | 107 | 111 | ||
Recurring basis | Fair Value, Inputs, Level 3 | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 6,011 | 5,982 | ||
Consumer loans held for sale | 4,688 | 4,706 | ||
Consumer loans held for investment | 2 | |||
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 2,010 | 2,127 | ||
Recurring basis | Fair Value, Inputs, Level 3 | Trust Preferred Securities | ||||
Financial assets: | ||||
Total available-for-sale debt securities | $ 4,001 | $ 3,855 |
FAIR VALUE - RECONCILIATION USI
FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Private label mortgage backed security | ||
Assets measured on recurring basis, unobservable input reconciliation | ||
Balance, beginning of period | $ 2,127 | $ 2,731 |
Net change in unrealized gain | 5 | 24 |
Principal paydowns | (122) | (153) |
Balance, end of period | 2,010 | 2,602 |
Trust Preferred Securities | ||
Assets measured on recurring basis, unobservable input reconciliation | ||
Balance, beginning of period | 3,855 | 3,847 |
Discount accretion | 14 | 14 |
Net change in unrealized gain | 132 | (136) |
Balance, end of period | $ 4,001 | $ 3,725 |
FAIR VALUE - RECURRING LEVEL 3
FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Private label mortgage backed security | Recurring basis | ||
Fair value inputs quantitative information | ||
Mortgage backed security fair value | $ 2,010 | $ 2,127 |
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 | 0.25 | 0.25 |
Private label mortgage backed security | Maximum | Recurring basis | Constant Prepayment Rate | ||
Fair value inputs quantitative information | ||
Measurable input | 0.047 | 0.047 |
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 | 0.35 | 0.35 |
Consumer Loans Held For Sale | Nonrecurring basis | ||
Fair value inputs quantitative information | ||
Consumer Loans Held for Sale Fair Value | $ 4,688 | $ 4,706 |
Consumer Loans Held For Sale | Nonrecurring basis | Net Premium | ||
Fair value inputs quantitative information | ||
Loans Held-for-sale, Measurement Input | 0.0015 | 0.0015 |
Consumer Loans Held For Sale | Nonrecurring basis | Discount sales | ||
Fair value inputs quantitative information | ||
Loans Held-for-sale, Measurement Input | 0.1000 | 0.1000 |
FAIR VALUE - GAINS AND LOSSES (
FAIR VALUE - GAINS AND LOSSES (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 USD ($) loan | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Fair Value, Option | ||||
Aggregate fair value | $ 1,034 | $ 13,302 | $ 1,302 | $ 29,393 |
Contractual balance | $ 4,781,284 | $ 4,519,136 | ||
Mortgage loans held for sale | ||||
Fair Value, Option | ||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | ||
Aggregate fair value | $ 1,034 | $ 1,302 | ||
Contractual balance | 1,005 | 1,265 | ||
Unrealized (loss) gain | 29 | $ 37 | ||
Total included in earnings | 53 | (502) | ||
Mortgage loans held for sale | Interest Income | ||||
Fair Value, Option | ||||
Total included in earnings | 61 | 204 | ||
Mortgage loans held for sale | Change In Fair Value | ||||
Fair Value, Option | ||||
Total included in earnings | $ (8) | (706) | ||
Consumer Loans Held For Sale | ||||
Fair Value, Option | ||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | ||
Aggregate fair value | $ 4,688 | $ 4,706 | ||
Contractual balance | 4,713 | 4,734 | ||
Unrealized (loss) gain | (25) | $ (28) | ||
Total included in earnings | 768 | 2,853 | ||
Consumer Loans Held For Sale | Interest Income | ||||
Fair Value, Option | ||||
Total included in earnings | 765 | 2,890 | ||
Consumer Loans Held For Sale | Change In Fair Value | ||||
Fair Value, Option | ||||
Total included in earnings | $ 3 | $ (37) |
FAIR VALUE - ASSETS MEASURED ON
FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 2,149 | $ 2,362 |
Other real estate owned | 1,529 | 1,581 |
Residential Real Estate | ||
Fair Value Disclosures | ||
Other real estate owned | 1,581 | |
Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,270 | 1,456 |
Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 879 | 906 |
Other real estate owned | 1,529 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 2,149 | 2,362 |
Other real estate owned | 1,529 | 1,581 |
Fair Value, Inputs, Level 3 | Residential Real Estate | ||
Fair Value Disclosures | ||
Other real estate owned | 1,581 | |
Fair Value, Inputs, Level 3 | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,270 | 1,456 |
Fair Value, Inputs, Level 3 | Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 879 | $ 906 |
Other real estate owned | $ 1,529 |
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 | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Collateral Dependent Loans | Residential Real Estate | Residential Real Estate - Owner Occupied | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,270 | $ 1,456 |
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 | 0.22 | 0.41 |
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 | 0.05 | 0.11 |
Collateral Dependent Loans | Commercial Real Estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 879 | $ 906 |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.16 | 0.16 |
Collateral Dependent Loans | Commercial Real Estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.16 | 0.16 |
Other Real Estate Owned | Commercial Real Estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,529 | $ 1,581 |
Other Real Estate Owned | Commercial Real Estate | Comparability Adjustment | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.39 | 0.39 |
Other Real Estate Owned | Commercial Real Estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.39 | 0.39 |
FAIR VALUE - COLLATERAL-DEPENDE
FAIR VALUE - COLLATERAL-DEPENDENT LOANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Inputs, Level 3 | Nonrecurring basis | ||
Provision for impairment on loan, lease and other losses | ||
Provisions on collateral-dependent loans | $ (19) | $ (4) |
FAIR VALUE - OTHER REAL ESTATE
FAIR VALUE - OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value Disclosures | |||
Total Carrying value of other real estate owned | $ 1,529 | $ 1,581 | |
Other real estate owned write-downs during the period | 52 | $ 52 | |
Nonrecurring basis | |||
Fair Value Disclosures | |||
Other real estate owned write-downs during the period | 52 | $ 52 | |
Nonrecurring basis | Other Real Estate Owned | |||
Fair Value Disclosures | |||
Other real estate owned carried at fair value | 1,529 | 1,581 | |
Total Carrying value of other real estate owned | 1,529 | 1,581 | |
Other real estate owned write-downs during the period | $ 52 | $ 211 |
FAIR VALUE - CARRYING AMOUNTS A
FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||||
Available-for-sale debt securities | $ 612,948 | $ 620,365 | ||
Held-to-maturity debt securities | 111,796 | 87,357 | ||
Equity securities with readily determinable fair value | 107 | 111 | ||
Mortgage loans held for sale, at fair value | 1,034 | 1,302 | $ 13,302 | $ 29,393 |
Consumer loans held for sale, at fair value | 4,688 | 4,706 | 11,709 | 19,747 |
Consumer loans held for sale, at the lower of cost or fair value | 12,744 | 13,169 | $ 3,026 | $ 2,937 |
Carrying Value | ||||
Assets: | ||||
Cash and cash equivalents | 249,289 | 313,689 | ||
Available-for-sale debt securities | 612,948 | 620,365 | ||
Held-to-maturity debt securities | 112,108 | 87,386 | ||
Equity securities with readily determinable fair value | 107 | 111 | ||
Mortgage loans held for sale, at fair value | 1,034 | 1,302 | ||
Consumer loans held for sale, at fair value | 4,688 | 4,706 | ||
Consumer loans held for sale, at the lower of cost or fair value | 12,744 | 13,169 | ||
Loans, net | 4,678,113 | 4,445,389 | ||
Federal Home Loan Bank stock | 25,939 | 9,146 | ||
Accrued interest receivable | 16,074 | 13,572 | ||
Mortgage servicing rights | 8,406 | 8,769 | ||
Rate lock loan commitments | 96 | 2 | ||
Mandatory forward contracts | 19 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 134,412 | 216,956 | ||
Federal Home Loan Bank advances | 108,000 | 95,000 | ||
Accrued interest payable | 342 | 239 | ||
Rate lock loan commitments | 96 | |||
Mandatory forward contracts | 19 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Carrying Value | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,013,957 | 1,908,768 | ||
Carrying Value | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,513,160 | 2,398,853 | ||
Carrying Value | Time deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 272,551 | 230,224 | ||
Total Fair Value | ||||
Assets: | ||||
Cash and cash equivalents | 249,289 | 313,689 | ||
Available-for-sale debt securities | 612,948 | 620,365 | ||
Held-to-maturity debt securities | 111,796 | 87,357 | ||
Equity securities with readily determinable fair value | 107 | 111 | ||
Mortgage loans held for sale, at fair value | 1,034 | 1,302 | ||
Consumer loans held for sale, at fair value | 4,688 | 4,706 | ||
Consumer loans held for sale, at the lower of cost or fair value | 12,744 | 13,169 | ||
Loans, net | 4,488,620 | 4,276,423 | ||
Accrued interest receivable | 16,074 | 13,572 | ||
Mortgage servicing rights | 16,554 | 17,592 | ||
Rate lock loan commitments | 96 | 2 | ||
Mandatory forward contracts | 19 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 134,412 | 216,956 | ||
Federal Home Loan Bank advances | 106,490 | 93,044 | ||
Accrued interest payable | 342 | 239 | ||
Rate lock loan commitments | 96 | |||
Mandatory forward contracts | 19 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Total Fair Value | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,013,957 | 1,908,768 | ||
Total Fair Value | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,513,160 | 2,398,853 | ||
Total Fair Value | Time deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 259,421 | 223,912 | ||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||
Assets: | ||||
Cash and cash equivalents | 249,289 | 313,689 | ||
Available-for-sale debt securities | 174,871 | 193,385 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Available-for-sale debt securities | 432,066 | 420,998 | ||
Held-to-maturity debt securities | 111,796 | 87,357 | ||
Equity securities with readily determinable fair value | 107 | 111 | ||
Mortgage loans held for sale, at fair value | 1,034 | 1,302 | ||
Accrued interest receivable | 5,316 | 2,462 | ||
Mortgage servicing rights | 16,554 | 17,592 | ||
Rate lock loan commitments | 96 | 2 | ||
Mandatory forward contracts | 19 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 134,412 | 216,956 | ||
Federal Home Loan Bank advances | 106,490 | 93,044 | ||
Accrued interest payable | 342 | 239 | ||
Rate lock loan commitments | 96 | |||
Mandatory forward contracts | 19 | |||
Interest rate swap agreements | 6,852 | 8,127 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,013,957 | 1,908,768 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,513,160 | 2,398,853 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Time deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 259,421 | 223,912 | ||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Available-for-sale debt securities | 6,011 | 5,982 | ||
Consumer loans held for sale, at fair value | 4,688 | 4,706 | ||
Consumer loans held for sale, at the lower of cost or fair value | 12,744 | 13,169 | ||
Loans, net | 4,488,620 | 4,276,423 | ||
Accrued interest receivable | $ 10,758 | $ 11,110 |
MORTGAGE BANKING ACTIVITIES - M
MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
MORTGAGE BANKING ACTIVITIES | ||
Balance, beginning of period | $ 1,302 | $ 29,393 |
Origination of mortgage loans held for sale | 15,942 | 100,661 |
Proceeds from the sale of mortgage loans held for sale | (16,630) | (119,212) |
Net gain on sale of mortgage loans held for sale | 420 | 2,460 |
Balance, end of period | $ 1,034 | $ 13,302 |
MORTGAGE BANKING ACTIVITIES - C
MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Mortgage servicing rights | ||
Net gain realized on sale of mortgage loans held for sale | $ 248 | $ 2,733 |
Net gain recognized | 420 | 2,460 |
Loan servicing income | 870 | 865 |
Amortization of mortgage servicing rights | (490) | (668) |
Change in mortgage servicing rights valuation allowance | 0 | 0 |
Net servicing income recognized | 380 | 197 |
Total Mortgage Banking income | 800 | 2,657 |
Mortgage Loans Held for Sale | ||
Mortgage servicing rights | ||
Net change in fair value | (8) | (706) |
Rate lock loan commitments | ||
Mortgage servicing rights | ||
Net change in fair value | 94 | (962) |
Mandatory forward contracts | ||
Mortgage servicing rights | ||
Net change in fair value | $ 86 | $ 1,395 |
MORTGAGE BANKING ACTIVITIES -_2
MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
MORTGAGE BANKING ACTIVITIES | ||
Balance, beginning of period | $ 8,769 | $ 9,196 |
Additions | 127 | 974 |
Amortized to expense | (490) | (668) |
Balance, end of period | $ 8,406 | $ 9,502 |
MORTGAGE BANKING ACTIVITIES - O
MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
MORTGAGE BANKING ACTIVITIES | ||
Fair value of mortgage servicing rights portfolio | $ 16,554 | $ 17,145 |
Monthly weighted average prepayment rate of unpaid principal balance (as percent) | 125% | 127% |
Discount rate (as percent) | 10.22% | 10.21% |
Weighted average foreclosure rate | 0.08% | 0.10% |
Weighted average life in years | 7 years 7 months 20 days | 7 years 6 months 14 days |
MORTGAGE BANKING ACTIVITIES - N
MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Mortgage loans held for sale | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | $ 1,005 | $ 1,265 |
Fair Value, Assets | 1,034 | 1,302 |
Rate lock loan commitments | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 5,174 | 4,118 |
Fair Value, Assets | 96 | 2 |
Mandatory forward contracts | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 2,936 | |
Fair Value, Assets | $ 19 | |
Derivative Liabilities, Notional Amount | 4,009 | |
Fair Value, Liabilities | $ 67 |
INTEREST RATE SWAPS - NON-HEDGE
INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Counterparty | ||
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | $ 590,000 | $ 560,000 |
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 | 257,542,000 | 263,336,000 |
Interest rate swap | Non-Hedge | Bank Clients | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 50,941,000 | 40,032,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 77,830,000 | 91,636,000 |
Interest rate swaps with Bank clients - Total, Notional Amount | 128,771,000 | 131,668,000 |
Interest rate swaps with Bank clients - Assets | 2,131,000 | 1,386,000 |
Interest rate swaps with Bank clients - Liabilities | (4,721,000) | (6,742,000) |
Interest rate swaps with Bank clients - Total, Fair Value | (2,590,000) | (5,356,000) |
Interest rate swap | Non-Hedge | Counterparty | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 77,830,000 | 91,636,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 50,941,000 | 40,032,000 |
Interest rate swaps with Bank clients - Total, Notional Amount | 128,771,000 | 131,668,000 |
Offsetting interest rate swaps with institutional swap dealer - Assets, Fair Value | 4,721,000 | 6,742,000 |
Offsetting interest rate swaps with institutional swap dealer - Liabilities, Fair Value | (2,131,000) | (1,386,000) |
Offsetting interest rate swaps with institutional swap dealer - Total, Fair Value | $ 2,590,000 | $ 5,356,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
EARNINGS PER SHARE | ||
Net income | $ 28,092 | $ 28,350 |
Dividends declared on Common Stock: | ||
Undistributed net income for basic earnings per share | 20,777 | 21,598 |
Weighted average potential dividends on Class A shares upon exercise of dilutive options | (21) | (27) |
Undistributed net income for diluted earnings per share | $ 20,756 | $ 21,571 |
Weighted average shares outstanding: | ||
Effect of dilutive securities on Class A Shares outstanding | 55,000 | 80,000 |
Weighted average shares outstanding including dilutive securities | 19,990,000 | 20,225,000 |
Stock option | ||
Diluted earnings per share: | ||
Antidilutive stock options (in shares) | 245,898 | 186,000 |
Stock option | Weighted Average | ||
Diluted earnings per share: | ||
Antidilutive stock options (in shares) | 245,898 | 175,000 |
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 | $ (6,581) | $ (6,081) |
Weighted average shares outstanding: | ||
Weighted average shares outstanding | 17,776,000 | 17,980,000 |
Basic earnings per share: | ||
Per share dividends distributed | $ 0.37 | $ 0.34 |
Undistributed earnings per share | 1.05 | 1.08 |
Total basic earnings per share | 1.42 | 1.42 |
Diluted earnings per share: | ||
Per share dividends distributed | 0.37 | 0.34 |
Undistributed earnings per share | 1.05 | 1.08 |
Total diluted earnings per share | $ 1.42 | $ 1.42 |
Class B Common Stock | ||
Dividends declared on Common Stock: | ||
Dividends declared on Common Stock | $ (734) | $ (671) |
Weighted average shares outstanding: | ||
Weighted average shares outstanding | 2,159,000 | 2,165,000 |
Basic earnings per share: | ||
Per share dividends distributed | $ 0.34 | $ 0.31 |
Undistributed earnings per share | 0.96 | 0.98 |
Total basic earnings per share | 1.30 | 1.29 |
Diluted earnings per share: | ||
Per share dividends distributed | 0.34 | 0.31 |
Undistributed earnings per share | 0.95 | 0.98 |
Total diluted earnings per share | $ 1.29 | $ 1.29 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Available-for-Sale Debt Securities: | ||
Unrealized gain (loss) on AFS debt securities | $ 5,205 | $ (21,249) |
Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings | 5 | 24 |
Net gains (losses) | 5,210 | (21,225) |
Tax Effect | (1,305) | 5,308 |
Net of tax | $ 3,905 | $ (15,917) |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Summary of the AOCI balances, net of tax | ||
Balance at beginning of period | $ 856,613 | $ 835,054 |
Current Year Change | 3,905 | (15,917) |
Balance at end of period | 882,202 | 841,575 |
Accumulated Other Comprehensive Income | ||
Summary of the AOCI balances, net of tax | ||
Balance at beginning of period | (31,979) | 1,874 |
Current Year Change | 3,905 | (15,917) |
Balance at end of period | (28,074) | (14,043) |
Unrealized gain (loss) on AFS debt securities | ||
Summary of the AOCI balances, net of tax | ||
Balance at beginning of period | (32,934) | 890 |
Current Year Change | 3,900 | (15,935) |
Balance at end of period | (29,034) | (15,045) |
Unrealized gain 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 | 955 | 984 |
Current Year Change | 5 | 18 |
Balance at end of period | $ 960 | $ 1,002 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue recognition | ||
Net interest Income | $ 92,642 | $ 63,167 |
Noninterest income: | ||
Mortgage banking income | 800 | 2,657 |
Program fees | 3,241 | 3,854 |
Increase in cash surrender value of BOLI | 635 | 612 |
Total noninterest income | 22,681 | 31,009 |
Total net revenue | $ 115,323 | $ 94,176 |
Net-revenue concentration (as percent) | 100% | 100% |
Writedowns during entity's holding of property (as a percent) | 10% | |
Core Banking Activities | ||
Revenue recognition | ||
Net interest Income | $ 52,255 | $ 40,867 |
Noninterest income: | ||
Mortgage banking income | 800 | 2,657 |
Increase in cash surrender value of BOLI | 635 | 612 |
Total noninterest income | 8,482 | 9,946 |
Total net revenue | $ 60,737 | $ 50,813 |
Net-revenue concentration (as percent) | 52% | 54% |
Traditional Banking | ||
Revenue recognition | ||
Net interest Income | $ 50,107 | $ 36,148 |
Noninterest income: | ||
Increase in cash surrender value of BOLI | 635 | 612 |
Total noninterest income | 7,654 | 7,242 |
Total net revenue | $ 57,761 | $ 43,390 |
Net-revenue concentration (as percent) | 49% | 46% |
Warehouse Lending | ||
Revenue recognition | ||
Net interest Income | $ 2,087 | $ 4,515 |
Noninterest income: | ||
Total noninterest income | 11 | 13 |
Total net revenue | $ 2,098 | $ 4,528 |
Net-revenue concentration (as percent) | 2% | 5% |
Mortgage Banking | ||
Revenue recognition | ||
Net interest Income | $ 61 | $ 204 |
Noninterest income: | ||
Mortgage banking income | 800 | 2,657 |
Total noninterest income | 817 | 2,691 |
Total net revenue | $ 878 | $ 2,895 |
Net-revenue concentration (as percent) | 1% | 3% |
Republic Processing Group | ||
Revenue recognition | ||
Net interest Income | $ 40,387 | $ 22,300 |
Noninterest income: | ||
Program fees | 3,241 | 3,854 |
Total noninterest income | 14,199 | 21,063 |
Total net revenue | $ 54,586 | $ 43,363 |
Net-revenue concentration (as percent) | 48% | 46% |
Tax Refund Solutions | ||
Revenue recognition | ||
Net interest Income | $ 31,765 | $ 15,404 |
Noninterest income: | ||
Program fees | 707 | 727 |
Total noninterest income | 11,640 | 17,936 |
Total net revenue | $ 43,405 | $ 33,340 |
Net-revenue concentration (as percent) | 38% | 35% |
Republic Credit Solutions | ||
Revenue recognition | ||
Net interest Income | $ 8,622 | $ 6,896 |
Noninterest income: | ||
Program fees | 2,534 | 3,127 |
Total noninterest income | 2,559 | 3,127 |
Total net revenue | $ 11,181 | $ 10,023 |
Net-revenue concentration (as percent) | 10% | 11% |
Service charges on deposit accounts | ||
Noninterest income: | ||
Revenue under 606 | $ 3,299 | $ 3,226 |
Service charges on deposit accounts | Core Banking Activities | ||
Noninterest income: | ||
Revenue under 606 | 3,299 | 3,232 |
Service charges on deposit accounts | Traditional Banking | ||
Noninterest income: | ||
Revenue under 606 | 3,288 | 3,219 |
Service charges on deposit accounts | Warehouse Lending | ||
Noninterest income: | ||
Revenue under 606 | 11 | 13 |
Service charges on deposit accounts | Republic Processing Group | ||
Noninterest income: | ||
Revenue under 606 | (6) | |
Service charges on deposit accounts | Tax Refund Solutions | ||
Noninterest income: | ||
Revenue under 606 | (6) | |
Net refund transfer fees | ||
Noninterest income: | ||
Revenue under 606 | 10,807 | 12,051 |
Net refund transfer fees | Republic Processing Group | ||
Noninterest income: | ||
Revenue under 606 | 10,807 | 12,051 |
Net refund transfer fees | Tax Refund Solutions | ||
Noninterest income: | ||
Revenue under 606 | 10,807 | 12,051 |
Interchange fee income | ||
Noninterest income: | ||
Revenue under 606 | 3,051 | 3,070 |
Interchange fee income | Core Banking Activities | ||
Noninterest income: | ||
Revenue under 606 | 3,006 | 3,012 |
Interchange fee income | Traditional Banking | ||
Noninterest income: | ||
Revenue under 606 | 3,006 | 3,012 |
Interchange fee income | Republic Processing Group | ||
Noninterest income: | ||
Revenue under 606 | 45 | 58 |
Interchange fee income | Tax Refund Solutions | ||
Noninterest income: | ||
Revenue under 606 | 45 | 58 |
Net gains (losses) on other real estate owned | ||
Noninterest income: | ||
Revenue under 606 | (53) | (53) |
Net gains (losses) on other real estate owned | Core Banking Activities | ||
Noninterest income: | ||
Revenue under 606 | (53) | (53) |
Net gains (losses) on other real estate owned | Traditional Banking | ||
Noninterest income: | ||
Revenue under 606 | (53) | (53) |
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 | 901 | 592 |
Other | Core Banking Activities | ||
Noninterest income: | ||
Revenue under 606 | 795 | 486 |
Other | Traditional Banking | ||
Noninterest income: | ||
Revenue under 606 | 778 | 452 |
Other | Mortgage Banking | ||
Noninterest income: | ||
Revenue under 606 | 17 | 34 |
Other | Republic Processing Group | ||
Noninterest income: | ||
Revenue under 606 | 106 | 106 |
Other | Tax Refund Solutions | ||
Noninterest income: | ||
Revenue under 606 | 81 | $ 106 |
Other | Republic Credit Solutions | ||
Noninterest income: | ||
Revenue under 606 | $ 25 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Disclosure information | |||
Number of reportable segments | segment | 5 | ||
Segment information | |||
Net interest Income | $ 92,642 | $ 63,167 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 26,766 | 9,226 | |
Mortgage banking income | 800 | 2,657 | |
Program fees | 3,241 | 3,854 | |
Other noninterest income | 7,833 | 7,447 | |
Total noninterest income | 22,681 | 31,009 | |
Noninterest Expense | 52,443 | 48,581 | |
INCOME BEFORE INCOME TAX EXPENSE | 36,114 | 36,369 | |
Income tax expense (benefit) | 8,022 | 8,019 | |
NET INCOME | 28,092 | 28,350 | |
Period-end assets | $ 6,074,091 | $ 6,349,869 | $ 5,835,543 |
Net interest margin (as percent) | 6.52% | 4.34% | |
Net-revenue concentration (as percent) | 100% | 100% | |
Core Banking Activities | |||
Segment Disclosure information | |||
Number of reportable segments | segment | 3 | ||
Segment information | |||
Net interest Income | $ 52,255 | $ 40,867 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 3,119 | (81) | |
Mortgage banking income | 800 | 2,657 | |
Other noninterest income | 7,682 | 7,289 | |
Total noninterest income | 8,482 | 9,946 | |
Noninterest Expense | 44,374 | 41,869 | |
INCOME BEFORE INCOME TAX EXPENSE | 13,244 | 9,025 | |
Income tax expense (benefit) | 2,936 | 1,417 | |
NET INCOME | 10,308 | 7,608 | |
Period-end assets | $ 5,446,098 | $ 5,702,695 | |
Net interest margin (as percent) | 3.98% | 2.92% | |
Net-revenue concentration (as percent) | 52% | 54% | |
Traditional Banking | |||
Segment information | |||
Net interest Income | $ 50,107 | $ 36,148 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 2,984 | 320 | |
Other noninterest income | 7,654 | 7,242 | |
Total noninterest income | 7,654 | 7,242 | |
Noninterest Expense | 40,852 | 38,227 | |
INCOME BEFORE INCOME TAX EXPENSE | 13,925 | 4,843 | |
Income tax expense (benefit) | 3,082 | 468 | |
NET INCOME | 10,843 | 4,375 | |
Period-end assets | $ 4,974,002 | $ 4,984,918 | |
Net interest margin (as percent) | 4.07% | 2.90% | |
Net-revenue concentration (as percent) | 49% | 46% | |
Warehouse Lending | |||
Segment information | |||
Net interest Income | $ 2,087 | $ 4,515 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 135 | (401) | |
Other noninterest income | 11 | 13 | |
Total noninterest income | 11 | 13 | |
Noninterest Expense | 968 | 952 | |
INCOME BEFORE INCOME TAX EXPENSE | 995 | 3,977 | |
Income tax expense (benefit) | 223 | 904 | |
NET INCOME | 772 | 3,073 | |
Period-end assets | $ 458,675 | $ 689,204 | |
Net interest margin (as percent) | 2.53% | 3.09% | |
Net-revenue concentration (as percent) | 2% | 5% | |
Mortgage Banking | |||
Segment information | |||
Net interest Income | $ 61 | $ 204 | |
Mortgage banking income | 800 | 2,657 | |
Other noninterest income | 17 | 34 | |
Total noninterest income | 817 | 2,691 | |
Noninterest Expense | 2,554 | 2,690 | |
INCOME BEFORE INCOME TAX EXPENSE | (1,676) | 205 | |
Income tax expense (benefit) | (369) | 45 | |
NET INCOME | (1,307) | 160 | |
Period-end assets | $ 13,421 | $ 28,573 | |
Net-revenue concentration (as percent) | 1% | 3% | |
Republic Processing Group | |||
Segment Disclosure information | |||
Number of reportable segments | segment | 2 | ||
Segment information | |||
Net interest Income | $ 40,387 | $ 22,300 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 23,647 | 9,307 | |
Program fees | 3,241 | 3,854 | |
Other noninterest income | 151 | 158 | |
Total noninterest income | 14,199 | 21,063 | |
Noninterest Expense | 8,069 | 6,712 | |
INCOME BEFORE INCOME TAX EXPENSE | 22,870 | 27,344 | |
Income tax expense (benefit) | 5,086 | 6,602 | |
NET INCOME | 17,784 | 20,742 | |
Period-end assets | $ 627,993 | $ 647,174 | |
Net-revenue concentration (as percent) | 48% | 46% | |
Tax Refund Solutions | |||
Segment information | |||
Net interest Income | $ 31,765 | $ 15,404 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 21,808 | 7,912 | |
Program fees | 707 | 727 | |
Other noninterest income | 126 | 158 | |
Total noninterest income | 11,640 | 17,936 | |
Noninterest Expense | 5,648 | 5,145 | |
INCOME BEFORE INCOME TAX EXPENSE | 15,949 | 20,283 | |
Income tax expense (benefit) | 3,541 | 4,906 | |
NET INCOME | 12,408 | 15,377 | |
Period-end assets | $ 511,150 | $ 552,101 | |
Net-revenue concentration (as percent) | 38% | 35% | |
Republic Credit Solutions | |||
Segment information | |||
Net interest Income | $ 8,622 | $ 6,896 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 1,839 | 1,395 | |
Program fees | 2,534 | 3,127 | |
Other noninterest income | 25 | ||
Total noninterest income | 2,559 | 3,127 | |
Noninterest Expense | 2,421 | 1,567 | |
INCOME BEFORE INCOME TAX EXPENSE | 6,921 | 7,061 | |
Income tax expense (benefit) | 1,545 | 1,696 | |
NET INCOME | 5,376 | 5,365 | |
Period-end assets | $ 116,843 | $ 95,073 | |
Net-revenue concentration (as percent) | 10% | 11% | |
Net refund transfer fees | |||
Segment information | |||
Revenue under 606 | $ 10,807 | $ 12,051 | |
Net refund transfer fees | Republic Processing Group | |||
Segment information | |||
Revenue under 606 | 10,807 | 12,051 | |
Net refund transfer fees | Tax Refund Solutions | |||
Segment information | |||
Revenue under 606 | $ 10,807 | 12,051 | |
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 |