Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-24649 | |
Entity Registrant Name | REPUBLIC BANCORP, INC. | |
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 | |
Entity Central Index Key | 0000921557 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 17,221,953 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,156,662 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 219,653 | $ 313,689 |
Available-for-sale debt securities, at fair value (amortized cost of $642,019 in 2023 and $663,003 in 2022, allowance for credit losses of $0 in 2023 and 2022) | 601,220 | 620,365 |
Held-to-maturity debt securities (fair value of $101,202 in 2023 and $87,357 in 2022, allowance for credit losses of $10 in 2023 and $10 in 2022) | 101,650 | 87,386 |
Equity securities with readily determinable fair value | 137 | 111 |
Mortgage loans held for sale, at fair value | 2,711 | 1,302 |
Consumer loans held for sale, at fair value | 8,443 | 4,706 |
Consumer loans held for sale, at the lower of cost or fair value | 13,529 | 13,169 |
Loans (loans carried at fair value of $0 in 2023 and $2 in 2022) | 5,081,099 | 4,515,802 |
Allowance for credit losses | (74,576) | (70,413) |
Loans, net | 5,006,523 | 4,445,389 |
Federal Home Loan Bank stock, at cost | 31,420 | 9,146 |
Premises and equipment, net | 33,926 | 31,978 |
Right-of-use assets | 35,907 | 37,017 |
Goodwill | 40,516 | 16,300 |
Other real estate owned | 1,423 | 1,581 |
Bank owned life insurance | 103,211 | 101,687 |
Low-income housing tax credit investments | 76,047 | 75,324 |
Other assets and accrued interest receivable | 110,159 | 76,393 |
TOTAL ASSETS | 6,386,475 | 5,835,543 |
Deposits: | ||
Noninterest-bearing | 1,702,979 | 1,908,768 |
Interest-bearing | 3,090,603 | 2,629,077 |
Total deposits | 4,793,582 | 4,537,845 |
Securities sold under agreements to repurchase and other short-term borrowings | 80,797 | 216,956 |
Operating lease liabilities | 36,726 | 37,809 |
Federal Home Loan Bank advances | 465,000 | 95,000 |
Low-income housing tax credit obligations | 58,858 | 43,609 |
Other liabilities and accrued interest payable | 58,112 | 47,711 |
Total liabilities | 5,493,075 | 4,978,930 |
Commitments and contingent liabilities (Footnote 10) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value | ||
Class A Common Stock, no par value, 30,000,000 shares authorized, 17,295,968 shares (2023) and 17,584,928 shares (2022) issued and outstanding; Class B Common Stock, no par value, 5,000,000 shares authorized, 2,156,662 shares (2023) and 2,159,495 shares (2022) issued and outstanding | 4,572 | 4,648 |
Additional paid in capital | 141,621 | 141,694 |
Retained earnings | 777,808 | 742,250 |
Accumulated other comprehensive (loss) income | (30,601) | (31,979) |
Total stockholders' equity | 893,400 | 856,613 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,386,475 | $ 5,835,543 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale debt securities | $ 642,019 | $ 663,003 |
Available-for-sale debt securities, allowance for credit losses | 0 | 0 |
Held-to-maturity debt securities | 101,202 | 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 | 17,295,968 | 17,584,928 |
Common Stock, outstanding | 17,295,968 | 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 | 2,156,662 | 2,159,495 |
Common Stock, outstanding | 2,156,662 | 2,159,495 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 78,175 | $ 53,167 | $ 242,984 | $ 163,235 |
Taxable investment securities | 4,792 | 3,159 | 14,179 | 7,906 |
Federal Home Loan Bank stock and other | 2,901 | 4,291 | 8,115 | 6,488 |
Total interest income | 85,868 | 60,617 | 265,278 | 177,629 |
INTEREST EXPENSE: | ||||
Deposits | 15,497 | 1,830 | 31,591 | 3,654 |
Securities sold under agreements to repurchase and other short-term borrowings | 196 | 94 | 618 | 171 |
Federal Home Loan Bank advances | 5,350 | 96 | 11,073 | 226 |
Total interest expense | 21,043 | 2,020 | 43,282 | 4,051 |
NET INTEREST INCOME | 64,825 | 58,597 | 221,996 | 173,578 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 3,730 | 1,573 | 36,635 | 14,504 |
NET INTEREST INCOME AFTER PROVISION | 61,095 | 57,024 | 185,361 | 159,074 |
NONINTEREST INCOME: | ||||
Mortgage banking income | 852 | 1,154 | 2,559 | 5,574 |
Program fees | 4,041 | 4,932 | 11,021 | 12,671 |
Increase in cash surrender value of bank owned life insurance | 690 | 617 | 2,014 | 1,852 |
Death benefits in excess of cash surrender value of life insurance | 1,728 | |||
Total noninterest income | 14,019 | 15,108 | 56,351 | 76,686 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 28,747 | 27,269 | 89,472 | 85,477 |
Technology, equipment, and communication | 7,311 | 7,235 | 21,459 | 21,678 |
Occupancy | 3,503 | 3,211 | 10,500 | 9,875 |
Marketing and development | 2,055 | 1,951 | 6,142 | 5,019 |
FDIC insurance expense | 677 | 423 | 2,038 | 1,241 |
Interchange related expense | 1,580 | 1,221 | 4,429 | 3,602 |
Legal and professional fees | 803 | 904 | 2,693 | 3,073 |
Merger expense | (132) | 2,068 | ||
Other | 3,498 | 3,952 | 13,217 | 12,438 |
Total noninterest expense | 48,042 | 46,166 | 152,018 | 142,403 |
INCOME BEFORE INCOME TAX EXPENSE | 27,072 | 25,966 | 89,694 | 93,357 |
INCOME TAX EXPENSE | 5,501 | 6,070 | 18,979 | 20,764 |
NET INCOME | 21,571 | 19,896 | 70,715 | 72,593 |
Service charges on deposit accounts | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 3,559 | 3,409 | 10,385 | 9,998 |
Net refund transfer fees | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 242 | 593 | 15,528 | 16,594 |
Interchange fee income | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 3,282 | 3,322 | 9,752 | 9,853 |
Net losses on other real estate owned | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | (53) | (53) | (158) | (158) |
Contract termination fee | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 5,000 | |||
Legal settlement | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | 13,000 | |||
Other | ||||
NONINTEREST INCOME: | ||||
Revenue under 606 | $ 1,406 | $ 1,134 | $ 3,522 | $ 2,302 |
Class A Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share (in dollars per share) | $ 1.11 | $ 1.01 | $ 3.61 | $ 3.66 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share (in dollars per share) | 1.10 | 1.01 | 3.60 | 3.65 |
Class B Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share (in dollars per share) | 1.01 | 0.92 | 3.28 | 3.33 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share (in dollars per share) | $ 1.01 | $ 0.92 | $ 3.27 | $ 3.32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||||
Net income (loss) | $ 21,571 | $ 19,896 | $ 70,715 | $ 72,593 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized gain (loss) on AFS debt securities | 1,024 | (15,510) | 1,812 | (46,892) |
Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | (7) | 1 | 27 | 10 |
Total other comprehensive income (loss) before income tax | 1,017 | (15,509) | 1,839 | (46,882) |
Income tax benefit (expense) related to items of other comprehensive income | (250) | 3,875 | (461) | 11,720 |
Total other comprehensive income (loss), net of tax | 767 | (11,634) | 1,378 | (35,162) |
COMPREHENSIVE INCOME | $ 22,338 | $ 8,262 | $ 72,093 | $ 37,431 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - 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 (Loss) | 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 (Loss) | 72,593 | 72,593 | |||||||||
Net change in accumulated other comprehensive income (loss) | (35,162) | (35,162) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (18,123) | $ (2,010) | $ (18,123) | $ (2,010) | |||||||
Stock options exercised, net of shares withheld | 2 | 38 | 40 | ||||||||
Stock options exercised, net of shares withheld (in shares) | 3 | ||||||||||
Conversion of Class B to Class A Common Shares (in shares) | 5 | (5) | |||||||||
Repurchase of Class A Common Stock | (58) | (1,868) | (10,238) | (12,164) | |||||||
Repurchase of Class A Common Stock (in shares) | (263) | ||||||||||
Net change in notes receivable on Class A Common Stock | 61 | 61 | |||||||||
Deferred director compensation expense - Class A Common Stock | 403 | 403 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 6 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 541 | 541 | |||||||||
Employee stock purchase plan - Class A Common Stock | 3 | 506 | 509 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 12 | ||||||||||
Stock-based awards, Performance stock units | 114 | 114 | |||||||||
Stock-based awards, Restricted stock | 771 | 771 | |||||||||
Stock-based awards, Restricted stock (in shares) | 8 | ||||||||||
Stock options | 436 | 436 | |||||||||
Balance at end of period at Sep. 30, 2022 | 4,649 | 140,958 | 730,744 | (33,288) | 843,063 | ||||||
Balance (in shares) at Sep. 30, 2022 | 17,587 | 2,160 | |||||||||
Balance at beginning of period at Jun. 30, 2022 | 4,663 | 140,516 | 720,341 | (21,654) | 843,866 | ||||||
Balance (in shares) at Jun. 30, 2022 | 17,629 | 2,161 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net Income (Loss) | 19,896 | 19,896 | |||||||||
Net change in accumulated other comprehensive income (loss) | (11,634) | (11,634) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (5,995) | (669) | (5,995) | (669) | |||||||
Stock options exercised, net of shares withheld | (2) | (2) | |||||||||
Conversion of Class B to Class A Common Shares (in shares) | 1 | (1) | |||||||||
Repurchase of Class A Common Stock | (15) | (484) | (2,829) | (3,328) | |||||||
Repurchase of Class A Common Stock (in shares) | (48) | ||||||||||
Net change in notes receivable on Class A Common Stock | 43 | 43 | |||||||||
Deferred director compensation expense - Class A Common Stock | 192 | 192 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 184 | 184 | |||||||||
Employee stock purchase plan - Class A Common Stock | 1 | 181 | 182 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 5 | ||||||||||
Stock-based awards, Performance stock units | 38 | 38 | |||||||||
Stock-based awards, Restricted stock | 161 | 161 | |||||||||
Stock options | 129 | 129 | |||||||||
Balance at end of period at Sep. 30, 2022 | 4,649 | 140,958 | 730,744 | (33,288) | 843,063 | ||||||
Balance (in shares) at Sep. 30, 2022 | 17,587 | 2,160 | |||||||||
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 (Loss) | 70,715 | 70,715 | |||||||||
Net change in accumulated other comprehensive income (loss) | 1,378 | 1,378 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (19,566) | (2,201) | (19,566) | (2,201) | |||||||
Stock options exercised, net of shares withheld | (1) | (193) | (194) | ||||||||
Conversion of Class B to Class A Common Shares (in shares) | 3 | (3) | |||||||||
Repurchase of Class A Common Stock | (80) | (2,640) | (13,390) | (16,110) | |||||||
Repurchase of Class A Common Stock (in shares) | (363) | ||||||||||
Deferred director compensation expense - Class A Common Stock | 349 | 349 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 495 | 495 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock (In shares) | 7 | ||||||||||
Employee stock purchase plan - Class A Common Stock | 3 | 535 | 538 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 13 | ||||||||||
Stock-based awards, Restricted stock | 2 | 798 | 800 | ||||||||
Stock-based awards, Restricted stock (in shares) | 51 | ||||||||||
Stock options | 583 | 583 | |||||||||
Balance at end of period at Sep. 30, 2023 | 4,572 | 141,621 | 777,808 | (30,601) | 893,400 | ||||||
Balance (in shares) at Sep. 30, 2023 | 17,296 | 2,157 | |||||||||
Balance at beginning of period at Jun. 30, 2023 | 4,617 | 142,462 | 771,260 | (31,368) | 886,971 | ||||||
Balance (in shares) at Jun. 30, 2023 | 17,449 | 2,157 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net Income (Loss) | 21,571 | 21,571 | |||||||||
Net change in accumulated other comprehensive income (loss) | 767 | 767 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (6,448) | $ (734) | $ (6,448) | $ (734) | |||||||
Stock options exercised, net of shares withheld | (10) | (10) | |||||||||
Repurchase of Class A Common Stock | (46) | (1,509) | (7,841) | (9,396) | |||||||
Repurchase of Class A Common Stock (in shares) | (206) | ||||||||||
Deferred director compensation expense - Class A Common Stock | 123 | 123 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 36 | 36 | |||||||||
Employee stock purchase plan - Class A Common Stock | 1 | 172 | 173 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 4 | ||||||||||
Stock-based awards, Restricted stock | 172 | 172 | |||||||||
Stock-based awards, Restricted stock (in shares) | 49 | ||||||||||
Stock options | 175 | 175 | |||||||||
Balance at end of period at Sep. 30, 2023 | $ 4,572 | $ 141,621 | $ 777,808 | $ (30,601) | $ 893,400 | ||||||
Balance (in shares) at Sep. 30, 2023 | 17,296 | 2,157 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class A Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.374 | $ 0.341 | $ 1.122 | $ 1.023 |
Class B Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.340 | $ 0.310 | $ 1.020 | $ 0.930 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
OPERATING ACTIVITIES: | |||||
Net income | $ 70,715 | $ 72,593 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Net amortization on investment securities and low-income housing investments | 4,176 | 3,753 | |||
Net accretion and amortization on loans | (2,756) | (3,026) | |||
Unrealized and realized losses on equity securities with readily determinable fair value | (26) | 204 | |||
Depreciation of premises and equipment | 4,930 | 5,884 | |||
Amortization of mortgage servicing rights | 1,440 | 1,773 | |||
Provision for expected credit loss expense | $ 3,730 | $ 1,573 | 36,635 | 14,504 | |
Provision for off-balance sheet exposures | (190) | 80 | 90 | 128 | |
Net gain on sale of mortgage loans held for sale | (494) | (785) | (1,453) | (4,704) | |
Origination of mortgage loans held for sale | (23,860) | (32,856) | (53,750) | (195,006) | |
Proceeds from sale of mortgage loans held for sale | 53,794 | 226,191 | |||
Net gain on sale of consumer loans held for sale | (8,880) | (10,466) | |||
Origination of consumer loans held for sale | (756,714) | (820,127) | |||
Proceeds from sale of consumer loans held for sale | 761,497 | 831,802 | |||
Writedowns of other real estate owned | 158 | 158 | |||
Deferred compensation expense - Class A Common Stock | 844 | 944 | |||
Stock-based awards and ESPP expense - Class A Common Stock | 1,407 | 1,397 | |||
Increase in cash surrender value of bank owned life insurance | (1,324) | (1,852) | |||
Gain from death benefits in excess of cash surrender value of BOLI | (1,728) | ||||
Net change in other assets and liabilities: | |||||
Accrued interest receivable | (5,366) | (1,225) | |||
Accrued interest payable | 1,778 | 34 | |||
Other assets | (21,085) | 1,309 | |||
Other liabilities | 1,872 | 10,518 | |||
Net cash provided by operating activities | 86,254 | 134,786 | |||
INVESTING ACTIVITIES: | |||||
Net cash proceeds paid in acquisition | (40,970) | ||||
Purchases of available-for-sale debt securities | (30,000) | (244,820) | |||
Purchases of held-to-maturity debt securities | (25,000) | ||||
Proceeds from calls, maturities and paydowns of equity and available-for-sale debt securities | 67,571 | 65,269 | |||
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities | 10,736 | 11,703 | |||
Net change in outstanding warehouse lines of credit | (54,472) | 408,312 | |||
Net change in other loans | (323,283) | (212,312) | |||
Purchase of Federal Home Loan Bank stock | (22,274) | 1,743 | |||
Investments in low-income housing tax partnerships | 10,221 | (7,258) | |||
Net purchases of premises and equipment | (5,278) | (2,624) | |||
Proceeds of principal and earnings from bank-owned life insurance | 1,528 | ||||
Net cash used in investing activities | (411,221) | 20,013 | |||
FINANCING ACTIVITIES: | |||||
Net change in deposits | 34,059 | (39,594) | |||
Net change in securities sold under agreements to repurchase and other short-term borrowings | (136,159) | (81,591) | |||
Payments of Federal Home Loan Bank advances | (538,000) | (25,000) | |||
Proceeds from Federal Home Loan Bank advances | 908,000 | 20,000 | |||
Repurchase of Class A Common Stock | (16,110) | (12,164) | |||
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 514 | 433 | |||
Net proceeds from option exercises and equity awards vested - Class A Common Stock | (194) | 40 | |||
Cash dividends paid | (21,179) | (19,501) | |||
Net cash (used in) provided by financing activities | 230,931 | (157,377) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (94,036) | (2,578) | |||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 313,689 | 756,971 | $ 756,971 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 219,653 | $ 754,393 | 219,653 | 754,393 | $ 313,689 |
Cash paid during the period for: | |||||
Interest | 41,504 | 4,017 | |||
Income taxes | 17,279 | 14,614 | |||
SUPPLEMENTAL NONCASH DISCLOSURES: | |||||
Mortgage servicing rights capitalized | 381 | 1,755 | |||
New unfunded obligations in low-income-housing investments | 27,000 | 16,100 | |||
Right-of-use assets recorded | $ 3,480 | $ 6,360 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 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. In May 2023, the Company’s Board of Directors voted to dissolve the Company’s Captive. The dissolution of the Captive is expected to occur during the fourth quarter of 2023. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and nine months ended September 30, 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 September 30, 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 ● ● Covington — 1 ● Crestview Hills — 1 ● Florence — 1 ● Indiana — 3 ● Southern Indiana — 3 ● Floyds Knobs — 1 ● Jeffersonville — 1 ● New Albany — 1 ● Florida — 7 ● Metropolitan Tampa — 7 ● Ohio — 4 ● Metropolitan Cincinnati — 4 ● Tennessee — 3 ● Metropolitan Nashville — 3 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 — 15 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 — 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 quarter of each 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., 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. In 2023, the Company also considered a RA, related to the first quarter 2023 tax season, delinquent if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. For the ERA product originated in December of 2022 and January 2023, the Company considered it 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 and ERAs 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, unless they were covered under a loss guaranty arrangement. Any RAs subject to a loss guaranty arrangement that are recovered during the second half of the year are distributed to the guarantor. 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 and ERA product parameters do not ensure positive results and could have an overall material negative impact on the performance of all RA and ERA product offerings and therefore on the Company’s financial condition and results of operations. Cancelled Sale Transaction Settlement of Lawsuit Against Green Dot - In accordance with the Settlement Agreement, on June 6, 2022, Green Dot paid $13.0 million to the Bank, which was in addition to a $5.0 million termination fee that Green Dot paid to the Bank during the first quarter of 2022 under the terms of the TRS Purchase Agreement. On June 6, 2022, the Bank and Green Dot filed a stipulation of dismissal of the Lawsuit with the Delaware Court of Chancery, which was effective to dismiss the Lawsuit when filed. 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 — ● 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 participations sold represent a 90% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three 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 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 participations sold represent a 95% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three ● RCS installment loan product – 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 nine months ended September 30, 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 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 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification™. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. Prospectively Immaterial 2023-03 Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock (SEC Update) This ASU amends the FASB Accounting Standards Codification™ for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. Upon addition to the FASB Codification. Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 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 | 9 Months Ended |
Sep. 30, 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, Inc. (“CIF”), for approximately ACQUISITION SUMMARY The following table provides a summary of the assets acquired and liabilities assumed as recorded by CBank, the previously reported preliminary fair value adjustments necessary to adjust those acquired assets and assumed liabilities to fair value, final recast adjustments to those previously reported preliminary fair values, and the expected fair values of those assets and liabilities as recorded by the Company. Effective September 30, 2023, management has finalized the fair values of the acquired assets and assumed liabilities. March 15, 2023 As Previously Reported As Recasted As Recorded Fair Value Recast As Recorded (in thousands) by CBank Adjustments Adjustments by Republic Assets acquired: Cash and cash equivalents $ 10,030 $ — $ — $ 10,030 Investment securities 16,463 (4) a (65) a 16,394 Loans 221,707 (4,219) b (150) b 217,338 Allowance for loan and lease losses (2,953) 1,353 c 1,391 c, j (209) Loans, net 218,754 (2,866) 1,241 217,129 Goodwill 954 (954) d — — Core deposit intangible — 2,844 e — 2,844 Premises and equipment, net 162 35 f (24) f 173 Other assets and accrued interest receivable 7,067 (320) g — 6,747 Total assets acquired $ 253,430 $ (1,265) $ 1,152 $ 253,317 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 50 i 4,855 Total liabilities assumed 226,356 127 50 226,533 Net assets acquired $ 27,074 $ (1,392) $ 1,102 26,784 Cash consideration paid (51,000) Goodwill $ 24,216 Explanation of fair value and recast 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 based on the Company’s evaluation of the acquired loan portfolio. c. Adjustments to the Allowance reflect the fair value adjustment to eliminate the acquiree’s recorded allowance for loan losses and other fair value adjustments based on the Company’s evaluation of the acquired loan portfolio. 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. j. Adjustment reflects a change in estimated fair value based upon further evaluation of PCD loans, including cash payments received subsequent to the date of acquisition. Goodwill of approximately $24 million, which is the excess of the merger consideration over the fair value of net assets acquired, was 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. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 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 September 30, 2023 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 436,512 $ 1 $ (20,901) $ — $ 415,612 Private label mortgage-backed security 574 1,311 — — 1,885 Mortgage-backed securities - residential 175,693 16 (20,160) — 155,549 Collateralized mortgage obligations 23,441 29 (1,307) — 22,163 Corporate bonds 2,014 2 — — 2,016 Trust preferred security 3,785 210 — — 3,995 Total available-for-sale debt securities $ 642,019 $ 1,569 $ (42,368) $ — $ 601,220 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 September 30, 2023 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 90,000 $ — $ (368) $ 89,632 $ — Mortgage-backed securities - residential 25 — (1) 24 — Collateralized mortgage obligations 6,652 40 (155) 6,537 — Corporate bonds 4,983 26 — 5,009 (10) Obligations of state and political subdivisions — — — — — Total held-to-maturity debt securities $ 101,660 $ 66 $ (524) $ 101,202 $ (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 and nine months ended September 30, 2023 and 2022, there were no material gains or losses on sales or calls of AFS debt securities. Debt Securities by Contractual Maturity The amortized cost and fair value of debt securities by contractual maturity as of September 30, 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 September 30, 2023 (in thousands) Cost Value Cost Value Due in one year or less $ 169,819 $ 165,862 $ 25,000 $ 24,917 Due from one year to five years 268,707 251,766 69,983 69,724 Due from five years to ten years — — — — Due beyond ten years 3,785 3,995 — — Private label mortgage-backed security 574 1,885 — — Mortgage-backed securities - residential 175,693 155,549 25 24 Collateralized mortgage obligations 23,441 22,163 6,652 6,537 Total debt securities $ 642,019 $ 601,220 $ 101,660 $ 101,202 Unrealized-Loss Analysis on Debt Securities The following tables summarize AFS debt securities in an unrealized loss position for which an ACLS had not been recorded as of September 30, 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 September 30, 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 $ 26,661 $ (128) $ 373,950 $ (20,773) $ 400,611 $ (20,901) Mortgage-backed securities - residential 11,905 (628) 141,948 (19,532) 153,853 (20,160) Collateralized mortgage obligations 3,341 (123) 16,892 (1,184) 20,233 (1,307) Trust preferred security — — — — — — Total available-for-sale debt securities $ 41,907 $ (879) $ 532,790 $ (41,489) $ 574,697 $ (42,368) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2022 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ 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 September 30, 2023, the Bank’s security portfolio consisted of 191 securities, 172 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 September 30, 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 September 30, 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. 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 September 30, 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 September 30, 2023 and December 31, 2022, there were gross unrealized losses of $21.5 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 September 30, 2023 and 2022 of the ACLS on AFS and HTM debt securities: ACLS Roll-forward Three Months Ended September 30, 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 $ — $ — $ — $ — $ — $ 30 $ (30) $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 10 — — — 10 50 (40) — — 10 Total $ 10 $ — $ — $ — $ 10 $ 80 $ (70) $ — $ — $ 10 ACLS Roll-forward Nine Months Ended September 30, 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 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 10 — — — 10 47 (37) — — 10 Total $ 10 $ — $ — $ — $ 10 $ 47 $ (37) $ — $ — $ 10 The Company’s ACLS on its HTM corporate bonds during the three and nine months ended September 30, 2023 remained unchanged from December 31, 2022. There were no HTM debt securities on nonaccrual or past due 90 days or more as of September 30, 2023 and December 31, 2022. All of the Company’s HTM corporate bonds were rated investment grade as of September 30, 2023 and December 31, 2022. There were no HTM debt securities considered collateral dependent as of September 30, 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 September 30, 2023 and December 31, 2022. Accrued interest receivable on HTM debt securities totaled $1 million and $92,000 as of September 30, 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) September 30, 2023 December 31, 2022 Amortized cost $ 90,170 $ 236,047 Fair value 82,376 217,562 Carrying amount 82,376 217,562 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 September 30, 2023 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 137 $ — $ 137 Total equity securities with readily determinable fair values $ — $ 137 $ — $ 137 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 September 30, 2023 Three Months Ended September 30, 2022 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 16 $ 16 $ — $ (14) $ (14) Community Reinvestment Act mutual fund — — — — — — Total equity securities with readily determinable fair value $ — $ 16 $ 16 $ — $ (14) $ (14) Gains (Losses) Recognized on Equity Securities Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 26 $ 26 $ — $ 5 $ 5 Community Reinvestment Act mutual fund — — — (209) — (209) Total equity securities with readily determinable fair value $ — $ 26 $ 26 $ (209) $ 5 $ (204) |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 5,757 $ 17,459 $ 4,706 $ 19,747 Origination of consumer loans held for sale 34,280 85,172 87,224 280,608 Proceeds from the sale of consumer loans held for sale (32,545) (96,169) (85,994) (297,253) Net gain on sale of consumer loans held for sale 951 2,334 2,507 5,694 Balance, end of period $ 8,443 $ 8,796 $ 8,443 $ 8,796 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 Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 15,787 $ 13,777 $ 13,169 $ 2,937 Origination of consumer loans held for sale 252,808 206,959 669,490 539,519 Proceeds from the sale of consumer loans held for sale (257,452) (209,924) (675,503) (534,549) Net gain on sale of consumer loans held for sale 2,386 1,867 6,373 4,772 Balance, end of period $ 13,529 $ 12,679 $ 13,529 $ 12,679 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 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) September 30, 2023 December 31, 2022 Traditional Banking: Residential real estate: Owner occupied $ 1,128,745 $ 911,427 Nonowner occupied 344,682 321,358 Commercial real estate 1,745,187 1,599,510 Construction & land development 189,756 153,875 Commercial & industrial 473,790 413,387 Lease financing receivables 85,242 10,505 Aircraft 226,947 179,785 Home equity 275,750 241,739 Consumer: Credit cards 16,950 15,473 Overdrafts 640 726 Automobile loans 3,380 6,731 Other consumer 5,674 626 Total Traditional Banking 4,496,743 3,855,142 Warehouse lines of credit* 457,033 403,560 Total Core Banking 4,953,776 4,258,702 Republic Processing Group*: Tax Refund Solutions: Refund Advances — 97,505 Other TRS commercial & industrial loans 354 51,767 Republic Credit Solutions 126,969 107,828 Total Republic Processing Group 127,323 257,100 Total loans** 5,081,099 4,515,802 Allowance for credit losses (74,576) (70,413) Total loans, net $ 5,006,523 $ 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) September 30, 2023 December 31, 2022 Contractually receivable $ 5,088,035 $ 4,519,136 Unearned income (2,325) (835) Unamortized premiums 1,209 99 Unaccreted discounts (2,859) (479) Other net unamortized deferred origination (fees) and costs (2,961) (2,119) Carrying value of loans $ 5,081,099 $ 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 September 30, 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 September 30, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 307,179 $ 208,209 $ 178,744 $ 172,850 $ 238,598 $ — $ 1,500 $ 1,107,080 Special Mention — — — — 6,482 — — 6,482 Substandard — 1,544 1,667 1,138 10,834 — — 15,183 Doubtful — — — — — — — — Total $ 307,179 $ 209,753 $ 180,411 $ 173,988 $ 255,914 $ — $ 1,500 $ 1,128,745 YTD Gross Charge-offs $ — $ 8 $ 16 $ — $ — $ — $ — $ 24 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 48,424 $ 72,749 $ 85,990 $ 49,442 $ 80,307 $ — $ 7,675 $ 344,587 Special Mention — — — — 27 — — 27 Substandard — — 20 — 48 — — 68 Doubtful — — — — — — — — Total $ 48,424 $ 72,749 $ 86,010 $ 49,442 $ 80,382 $ — $ 7,675 $ 344,682 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 176,925 $ 466,888 $ 375,172 $ 197,435 $ 338,991 $ 24,663 $ 125,735 $ 1,705,809 Special Mention 573 1,684 4,376 — 30,319 1,520 — 38,472 Substandard — — — — 906 — — 906 Doubtful — — — — — — — — Total $ 177,498 $ 468,572 $ 379,548 $ 197,435 $ 370,216 $ 26,183 $ 125,735 $ 1,745,187 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development: Risk Rating Pass or not rated $ 53,267 $ 113,557 $ 21,167 $ 521 $ 252 $ — $ 992 $ 189,756 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 53,267 $ 113,557 $ 21,167 $ 521 $ 252 $ — $ 992 $ 189,756 YTD Gross Charge-offs — — — — — — — — Commercial and industrial: Risk Rating Pass or not rated $ 99,935 $ 96,064 $ 76,604 $ 15,758 $ 61,574 $ 102,820 $ 3,744 $ 456,499 Special Mention — 452 13,186 438 1,613 376 — 16,065 Substandard — 38 3 — 337 27 821 1,226 Doubtful — — — — — — — — Total $ 99,935 $ 96,554 $ 89,793 $ 16,196 $ 63,524 $ 103,223 $ 4,565 $ 473,790 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 36,895 $ 26,631 $ 11,907 $ 5,554 $ 2,973 $ — $ — $ 83,960 Special Mention — — — — 981 — — 981 Substandard — — — — 301 — — 301 Doubtful — — — — — — — — Total $ 36,895 $ 26,631 $ 11,907 $ 5,554 $ 4,255 $ — $ — $ 85,242 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Aircraft: Risk Rating Pass or not rated $ 67,327 $ 58,637 $ 47,885 $ 31,206 $ 21,892 $ — $ — $ 226,947 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 67,327 $ 58,637 $ 47,885 $ 31,206 $ 21,892 $ — $ — $ 226,947 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 273,803 $ — $ 273,803 Special Mention — — — — — 295 — 295 Substandard — — — — — 1,652 — 1,652 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 275,750 $ — $ 275,750 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of September 30, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 1,813 $ 1,309 $ 243 $ 92 $ 4,270 $ 18,897 $ — $ 26,624 Special Mention — — — — — — — — Substandard — — 2 — 18 — — 20 Doubtful — — — — — — — — Total $ 1,813 $ 1,309 $ 245 $ 92 $ 4,288 $ 18,897 $ — $ 26,644 YTD Gross Charge-offs $ — $ 11 $ 8 $ — $ 7 $ 852 $ — $ 878 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 457,033 $ — $ 457,033 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 457,033 $ — $ 457,033 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 354 $ — $ 354 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 354 $ — $ 354 YTD Gross Charge-offs $ 126 $ — $ — $ — $ — $ 25,825 $ — $ 25,951 RCS: Risk Rating Pass or not rated $ — $ — $ — $ — $ 73,196 $ 52,650 $ — $ 125,846 Special Mention — — — — — — — — Substandard — — — — — 1,123 — 1,123 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ 73,196 $ 53,773 $ — $ 126,969 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 9,459 $ — $ 9,459 Grand Total: Risk Rating Pass or not rated $ 791,765 $ 1,044,044 $ 797,712 $ 472,858 $ 822,053 $ 930,220 $ 139,646 $ 4,998,298 Special Mention 573 2,136 17,562 438 39,422 2,191 — 62,322 Substandard — 1,582 1,692 1,138 12,444 2,802 821 20,479 Doubtful — — — — — — — — Grand Total $ 792,338 $ 1,047,762 $ 816,966 $ 474,434 $ 873,919 $ 935,213 $ 140,467 $ 5,081,099 YTD Gross Charge-offs $ 126 $ 19 $ 24 $ — $ 7 $ 36,136 $ — $ 36,312 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 September 30, 2023 2022 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 9,899 $ 318 $ (9) $ 23 $ 10,231 $ 8,445 $ (3) $ — $ 24 $ 8,466 Nonowner occupied 3,086 (51) — 1 3,036 2,733 63 — — 2,796 Commercial real estate 25,089 251 — 7 25,347 24,341 (1,413) — 275 23,203 Construction & land development 4,811 325 — — 5,136 3,591 331 — — 3,922 Commercial & industrial 4,322 (148) — 7 4,181 3,768 82 — 124 3,974 Lease financing receivables 825 265 — 10 1,100 119 — — — 119 Aircraft 521 46 — — 567 400 16 — — 416 Home equity 4,770 375 — 1 5,146 4,113 279 — 7 4,399 Consumer: Credit cards 1,103 3 (30) 16 1,092 994 (41) (27) 33 959 Overdrafts 706 128 (243) 49 640 901 57 (288) 53 723 Automobile loans 53 16 (30) 2 41 122 (30) — 9 101 Other consumer 382 39 (20) 13 414 200 (24) (38) 15 153 Total Traditional Banking 55,567 1,567 (332) 129 56,931 49,727 (683) (353) 540 49,231 Warehouse lines of credit 1,346 (203) — — 1,143 1,491 (386) — — 1,105 Total Core Banking 56,913 1,364 (332) 129 58,074 51,218 (1,069) (353) 540 50,336 Republic Processing Group: Tax Refund Solutions: Refund Advances — (1,939) — 1,939 — — (1,296) — 1,296 — Other TRS commercial & industrial loans — (28) — 29 1 — — — — — Republic Credit Solutions 15,289 4,333 (3,340) 219 16,501 13,231 4,008 (2,922) 266 14,583 Total Republic Processing Group 15,289 2,366 (3,340) 2,187 16,502 13,231 2,712 (2,922) 1,562 14,583 Total $ 72,202 $ 3,730 $ (3,672) $ 2,316 $ 74,576 $ 64,449 $ 1,643 $ (3,275) $ 2,102 $ 64,919 ACLL Roll-forward Nine Months Ended September 30, 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 $ — $ 1,298 $ (24) $ 48 $ 10,231 $ 8,647 $ (272) $ — $ 91 $ 8,466 Nonowner occupied 2,831 — 203 — 2 3,036 2,700 94 — 2 2,796 Commercial real estate 23,739 — 1,542 — 66 25,347 23,769 (843) — 277 23,203 Construction & land development 4,123 — 1,013 — — 5,136 4,128 (206) — — 3,922 Commercial & industrial 3,976 — 89 — 116 4,181 3,487 346 — 141 3,974 Lease financing receivables 110 216 764 — 10 1,100 91 28 — — 119 Aircraft 449 — 118 — — 567 357 59 — — 416 Home equity 4,628 — 516 — 2 5,146 4,111 169 — 119 4,399 Consumer: Credit cards 996 — 158 (103) 41 1,092 934 50 (97) 72 959 Overdrafts 726 — 437 (676) 153 640 683 560 (696) 176 723 Automobile loans 87 — (16) (37) 7 41 186 (98) — 13 101 Other consumer 135 — 289 (62) 52 414 314 (137) (68) 44 153 Total Traditional Banking 50,709 216 6,411 (902) 497 56,931 49,407 (250) (861) 935 49,231 Warehouse lines of credit 1,009 — 134 — — 1,143 2,126 (1,021) — — 1,105 Total Core Banking 51,718 216 6,545 (902) 497 58,074 51,533 (1,271) (861) 935 50,336 Republic Processing Group: Tax Refund Solutions: Refund Advances 3,797 — 19,615 (25,823) 2,411 — — 7,583 (11,505) 3,922 — Other TRS commercial & industrial loans 91 — 7 (128) 31 1 96 (607) (154) 665 — Republic Credit Solutions 14,807 — 10,468 (9,459) 685 16,501 12,948 8,836 (8,005) 804 14,583 Total Republic Processing Group 18,695 — 30,090 (35,410) 3,127 16,502 13,044 15,812 (19,664) 5,391 14,583 Total $ 70,413 $ 216 $ 36,635 $ (36,312) $ 3,624 $ 74,576 $ 64,577 $ 14,541 $ (20,525) $ 6,326 $ 64,919 The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of September 30, 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. Nonperforming Loans and Nonperforming Assets Detail of nonperforming loans, nonperforming assets, and select credit quality ratios follows: (dollars in thousands) September 30, 2023 December 31, 2022 Loans on nonaccrual status* $ 18,127 $ 15,562 Loans past due 90-days-or-more and still on accrual** 1,037 756 Total nonperforming loans 19,164 16,318 Other real estate owned 1,423 1,581 Total nonperforming assets $ 20,587 $ 17,899 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.38 % 0.36 % Nonperforming assets to total loans (including OREO) 0.41 0.40 Nonperforming assets to total assets 0.32 0.31 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.37 % 0.37 % Nonperforming assets to total loans (including OREO) 0.39 0.40 Nonperforming assets to total assets 0.33 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) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Traditional Banking: Residential real estate: Owner occupied $ 14,396 $ 13,388 $ — $ — Nonowner occupied 68 117 — — Commercial real estate 883 1,001 — — Construction & land development — — — — Commercial & industrial 1,159 — — — Lease financing receivables 13 — — — Aircraft — — — Home equity 1,591 815 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 16 31 — — Other consumer 1 210 — — Total Traditional Banking 18,127 15,562 — — Warehouse lines of credit — — — — Total Core Banking 18,127 15,562 — — Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — Other TRS commercial & industrial loans — — — — Republic Credit Solutions — — 1,037 756 Total Republic Processing Group — — 1,037 756 Total $ 18,127 $ 15,562 $ 1,037 $ 756 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended Nine Months Ended As of September 30, 2023 September 30, 2023 September 30, 2023 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 624 $ 13,772 $ 14,396 $ 224 $ 664 Nonowner occupied 22 46 68 7 8 Commercial real estate 883 — 883 31 142 Construction & land development — — — — — Commercial & industrial 338 821 1,159 23 23 Lease financing receivables 13 — 13 — — Aircraft — — — — — Home equity — 1,591 1,591 45 106 Consumer 8 9 17 — 6 Total $ 1,888 $ 16,239 $ 18,127 $ 330 $ 949 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Three Months Ended Nine Months Ended As of December 31, 2022 September 30, 2022 September 30, 2022 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 2,252 $ 11,136 $ 13,388 $ 154 $ 257 Nonowner occupied 56 61 117 1 1 Commercial real estate 1,001 — 1,001 14 644 Construction & land development — — — — — Commercial & industrial — — — — — Lease financing receivables — — — — — Aircraft — — — — — Home equity — 815 815 84 146 Consumer 15 226 241 48 52 Total $ 3,324 $ 12,238 $ 15,562 |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2023 | |
DEPOSITS | |
DEPOSITS | 6. DEPOSITS The composition of the deposit portfolio follows: (in thousands) September 30, 2023 December 31, 2022 Core Bank: Demand $ 1,233,328 $ 1,336,082 Money market accounts 939,499 707,272 Savings 263,249 323,015 Reciprocal money market 206,347 28,635 Individual retirement accounts (1) 33,823 38,640 Time deposits, $250 and over (1) 94,521 54,855 Other certificates of deposit (1) 207,481 129,324 Reciprocal time deposits (1) 94,629 7,405 Wholesale brokered deposits (1) 805 — Total Core Bank interest-bearing deposits 3,073,682 2,625,228 Total Core Bank noninterest-bearing deposits 1,269,643 1,464,493 Total Core Bank deposits 4,343,325 4,089,721 Republic Processing Group: Money market accounts 16,921 3,849 Total RPG interest-bearing deposits 16,921 3,849 Brokered prepaid card deposits 326,505 328,655 Other noninterest-bearing deposits 106,831 115,620 Total RPG noninterest-bearing deposits 433,336 444,275 Total RPG deposits 450,257 448,124 Total deposits $ 4,793,582 $ 4,537,845 (1) Includes time deposits . |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 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 two percent more in securities than the associated repurchase agreements. All such securities are under the Bank’s control. As of September 30, 2023 and December 31, 2022, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase and other short-term borrowings follows: (dollars in thousands) September 30, 2023 December 31, 2022 Outstanding balance at end of period $ 80,797 $ 216,956 Weighted average interest rate at end of period 0.56 % 0.41 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 82,376 $ 254,296 Total securities pledged $ 82,376 $ 254,296 Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2023 2022 2023 2022 Average outstanding balance during the period $ 90,063 $ 220,149 $ 136,528 $ 271,276 Weighted average interest rate during the period 0.87 % 0.17 % 0.60 % 0.08 % Maximum outstanding at any month end during the period $ 88,862 $ 209,376 $ 224,067 $ 303,315 |
RIGHT-OF-USE ASSETS AND OPERATI
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 9 Months Ended |
Sep. 30, 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 September 30, 2023, the Company was under 45 separate and distinct operating lease contracts to lease the land and/or buildings for 40 of its offices, with 12 such operating leases contracted with a related party of the Company. As of September 30, 2023, payments on 22 of the Company’s operating leases were considered variable because such payments were adjustable based on periodic changes in the Consumer Price Index. The Company recorded two third-party lease renewals during the first nine months of 2023 with a total right-of-use asset value of $1.5 million and recorded five new third-party leases during the first nine months of 2023 with a total right-of-use asset value of $2.0 million. The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within the “Occupancy” category for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2023 2022 2023 2022 Operating lease expense: Related Party: Variable lease expense $ 1,202 $ 1,101 $ 3,631 $ 3,635 Fixed lease expense 58 57 175 149 Third-Party: Variable lease expense 390 222 1,070 639 Fixed lease expense 409 346 1,184 1,040 Total operating lease expense $ 2,059 $ 1,726 $ 6,060 $ 5,463 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,667 $ 1,709 $ 5,168 $ 5,121 Cash paid for variable rent payments not included in measurement of operating lease liabilities 151 151 453 453 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 September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Weighted average remaining term in years 7.78 8.44 Weighted average discount rate 2.28 % 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 September 30, 2023: Year (in thousands) Related Party Third-Party Total 2023 $ 961 $ 720 $ 1,681 2024 3,726 2,826 6,552 2025 3,569 2,244 5,813 2026 3,640 1,925 5,565 2027 3,680 1,603 5,283 Thereafter 11,750 4,698 16,448 Total undiscounted cash flows $ 27,326 $ 14,016 $ 41,342 Discount applied to cash flows (2,884) (1,732) (4,616) Total discounted cash flows reported as operating lease liabilities $ 24,442 $ 12,284 $ 36,726 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 9 Months Ended |
Sep. 30, 2023 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 9. FEDERAL HOME LOAN BANK ADVANCES FHLB advances were as follows: (in thousands) September 30, 2023 December 31, 2022 Overnight advances $ 195,000 $ 75,000 Fixed interest rate advances 270,000 20,000 Total FHLB advances $ 465,000 $ 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 September 30, 2023 and December 31, 2022, Republic had available borrowing capacity of $639 million and $900 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $125 million available through various other financial institutions as of September 30, 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 $ 195,000 5.37 % 2024 — — 2025 — — 2026 30,000 4.82 2027 80,000 4.01 2028 160,000 4.39 Total $ 465,000 4.76 % Due to their nature, the Bank considers average balance information more meaningful than period-end balances for its overnight borrowings from the FHLB. Information regarding overnight FHLB advances follows: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2023 2022 2023 2022 Average outstanding balance during the period $ 250,348 $ — $ 150,833 $ 5,641 Weighted average interest rate during the period 5.20 % — % 7.75 % 0.15 % Maximum outstanding at any month end during the period $ 365,000 ` $ — $ 485,000 $ 25,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: (in thousands) September 30, 2023 December 31, 2022 First lien, single family residential real estate $ 1,336,038 $ 1,106,287 Home equity lines of credit 249,819 219,644 Multi-family commercial real estate 141,133 — |
OFF BALANCE SHEET RISKS, COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 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) September 30, 2023 December 31, 2022 Unused warehouse lines of credit $ 557,467 $ 733,940 Unused home equity lines of credit 439,107 410,057 Unused loan commitments - other 1,202,822 951,021 Standby letters of credit 11,921 9,735 FHLB letter of credit — 643 Total commitments $ 2,211,317 $ 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 and nine months ended September 30, 2023 and 2022: ACLC Roll-forward Three Months Ended 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 $ 145 $ (43) $ — $ — $ 102 $ 162 $ 28 $ — $ — $ 190 Unused home equity lines of credit 353 (315) — — 38 277 20 — — 297 Unused construction lines of credit 633 225 — — 858 — — — — — Unused loan commitments - other 399 (57) — — 342 661 32 — — 693 Total $ 1,530 $ (190) $ — $ — $ 1,340 $ 1,100 $ 80 $ — $ — $ 1,180 ACLC Roll-forward Nine Months Ended September 30, 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 $ (88) $ — $ — $ 102 $ 154 $ 36 $ — $ — $ 190 Unused home equity lines of credit 332 (294) — — 38 247 50 — — 297 Unused construction lines of credit 384 474 — — 858 — — — — — Unused loan commitments - other 344 (2) — — 342 651 42 — — 693 Total $ 1,250 $ 90 $ — $ — $ 1,340 $ 1,052 $ 128 $ — $ — $ 1,180 The Company increased its ACLC during the three and nine months ended September 30, 2023 based primarily on a change in the loan mix to loans with higher reserve rates. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 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. For its TRUP investment, the Company considered the most recent bid price for the same instrument to approximate market value as of September 30, 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: Assets and liabilities measured at fair value on a recurring basis Fair Value Measurements at September 30, 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 $ 175,623 $ 239,989 $ — $ 415,612 Private label mortgage-backed security — — 1,885 1,885 Mortgage-backed securities - residential — 155,549 — 155,549 Collateralized mortgage obligations — 22,163 — 22,163 Corporate bonds — 2,016 — 2,016 Trust preferred security — — 3,995 3,995 Total available-for-sale debt securities $ 175,623 $ 419,717 $ 5,880 $ 601,220 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 137 $ — $ 137 Total equity securities with readily determinable fair value $ — $ 137 $ — $ 137 Mortgage loans held for sale $ — $ 2,711 $ — $ 2,711 Consumer loans held for sale — — 8,443 8,443 Rate lock loan commitments — 95 — 95 Interest rate swap agreements — 8,935 — 8,935 Financial liabilities: Mandatory forward contracts $ — $ 77 $ — $ 77 Interest rate swap agreements — 8,935 — 8,935 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 Interest rate swap agreements — 8,128 — 8,128 Financial liabilities: Mandatory forward contracts $ — $ 67 $ — $ 67 Interest rate swap agreements — 8,128 — 8,128 All transfers between levels are generally recognized at the end of each quarter. There were no transfers into or out of Level 1, 2, or 3 assets during the three months and nine months ended September 30, 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 Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 1,988 $ 2,478 $ 2,127 $ 2,731 Total gains or losses included in earnings: Net change in unrealized gain (6) 1 26 10 Principal paydowns (97) (195) (268) (457) Balance, end of period $ 1,885 $ 2,284 $ 1,885 $ 2,284 The fair value of the Bank’s single private label mortgage-backed security is supported by analysis prepared by an independent third party. The third party’s approach to determining fair value involved several steps: 1) detailed collateral analysis of the underlying mortgages, including consideration of geographic location, original loan-to-value, and the weighted average FICO score of the borrowers; 2) collateral performance projections for each pool of mortgages underlying the security (probability of default, severity of default, and prepayment probabilities) and 3) discounted cash flow modeling. The significant unobservable inputs in the fair value measurement of the Bank’s single private label mortgage-backed security are prepayment rates, probability of default, and loss severity in the event of default. Significant fluctuations in any of those inputs in isolation would result in a significantly different fair value measurement. Quantitative information about recurring Level 3 fair value measurement inputs for the Bank’s single private label mortgage-backed security follows: Fair Valuation September 30, 2023 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 1,885 Discounted cash flow (1) Constant prepayment rate 2.8% - 4.5% (2) Probability of default 1.8% - 9.3% (3) Loss severity 12% - 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 Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 3,746 $ 3,824 $ 3,855 $ 3,847 Total gains or losses included in earnings: Discount accretion 15 14 44 42 Net change in unrealized gain 234 72 96 21 Balance, end of period $ 3,995 $ 3,910 $ 3,995 $ 3,910 The fair value of the Company’s TRUP investment is based on the most recent bid price for this instrument, as provided by a third-party broker. Mortgage Loans Held for Sale The Bank has elected the fair value option for mortgage loans held for sale. These loans are intended for sale and the Bank believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of September 30, 2023 and December 31, 2022. The aggregate fair value, contractual balance, and unrealized gain were as follows: (in thousands) September 30, 2023 December 31, 2022 Aggregate fair value $ 2,711 $ 1,302 Contractual balance 2,671 1,265 Unrealized gain 40 37 The total amount of gains and losses from changes in fair value included in earnings for the three and nine months ended September 30, 2023 and 2022 for mortgage loans held for sale are presented in the following table: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Interest income $ 84 $ 112 $ 206 $ 469 Change in fair value (36) (141) 3 (738) Total included in earnings $ 48 $ (29) $ 209 $ (269) Consumer Loans Held for Sale RCS carries loans originated through its installment loan program at fair value. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of September 30, 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 September 30, 2023 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 8,443 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) September 30, 2023 December 31, 2022 Aggregate fair value $ 8,443 $ 4,706 Contractual balance 8,494 4,734 Unrealized loss (51) (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 Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Interest income $ 1,077 $ 3,009 $ 2,790 $ 8,889 Change in fair value (16) 32 (23) (186) Total included in earnings $ 1,061 $ 3,041 $ 2,767 $ 8,703 Assets measured at fair value on a non-recurring basis Fair Value Measurements at September 30, 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 $ — $ — $ 973 $ 973 Commercial real estate — — 818 818 Total collateral-dependent loans* $ — $ — $ 1,791 $ 1,791 Other real estate owned: Commercial real estate $ — $ — $ 1,423 $ 1,423 Total other real estate owned $ — $ — $ 1,423 $ 1,423 * The difference between the carrying value and the fair value of collateral-dependent loans measured at fair value is reconciled in a subsequent table of this Footnote. Fair Value Measurements at December 31, 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 difference between the carrying value and the fair value of collateral-dependent loans measured at fair value is reconciled in a subsequent table of this Footnote. The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis Range Fair Valuation Unobservable (Weighted September 30, 2023 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 973 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 27% (5%) Collateral-dependent loans - commercial real estate $ 818 Sales comparison approach Adjustments determined for differences between comparable sales 11% (11%) Other real estate owned - commercial real estate $ 1,423 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. The Provision on collateral-dependent loans follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Provision on collateral-dependent loans $ — $ (7) $ (20) $ (11) Other Real Estate Owned Details of other real estate owned carrying value and write downs follows: (in thousands) September 30, 2023 December 31, 2022 Other real estate owned carried at fair value $ 1,423 $ 1,581 Total carrying value of other real estate owned $ 1,423 $ 1,581 Other real estate owned write-downs during the years ended $ 158 $ 211 Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Other real estate owned write-downs during the period $ 53 $ 53 $ 158 $ 158 The carrying amounts and estimated exit price fair values of all financial instruments follow: Fair Value Measurements at September 30, 2023: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 219,653 $ 219,653 $ — $ — $ 219,653 Available-for-sale debt securities 601,220 175,623 419,717 5,880 601,220 Held-to-maturity debt securities 101,650 — 101,202 — 101,202 Equity securities with readily determinable fair values 137 — 137 — 137 Mortgage loans held for sale, at fair value 2,711 — 2,711 — 2,711 Consumer loans held for sale, at fair value 8,443 — — 8,443 8,443 Consumer loans held for sale, at the lower of cost or fair value 13,529 — — 13,529 13,529 Loans, net 5,006,523 — — 4,692,640 4,692,640 Federal Home Loan Bank stock 31,420 — — — NA Accrued interest receivable 18,938 — 4,588 14,350 18,938 Mortgage servicing rights 7,710 — 17,300 — 17,300 Rate lock loan commitments 95 — 95 — 95 Interest rate swap agreements 8,935 — 8,935 — 8,935 Liabilities: Noninterest-bearing deposits $ 1,702,979 $ — $ 1,702,979 $ — $ 1,702,979 Transaction deposits 2,660,149 — 2,660,149 — 2,660,149 Time deposits 430,454 — 426,808 — 426,808 Securities sold under agreements to repurchase and other short-term borrowings 82,376 — 82,376 — 82,376 Federal Home Loan Bank advances 465,000 — 458,487 — 458,487 Accrued interest payable 2,017 — 2,017 — 2,017 Rate lock loan commitments 95 — 95 — 95 Mandatory forward contracts 77 — 77 — 77 Interest rate swap agreements 8,935 — 8,935 — 8,935 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 8,128 — 8,128 — 8,128 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 Mandatory forward contracts 67 — 67 — 67 Interest rate swap agreements 8,128 — 8,128 — 8,128 |
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 4,038 $ 8,491 $ 1,302 $ 29,393 Origination of mortgage loans held for sale 23,860 32,856 53,750 195,006 Proceeds from the sale of mortgage loans held for sale (25,681) (39,220) (53,794) (226,191) Net gain on sale of mortgage loans held for sale 494 785 1,453 4,704 Balance, end of period $ 2,711 $ 2,912 $ 2,711 $ 2,912 The following table presents the components of Mortgage Banking income: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Net gain realized on sale of mortgage loans held for sale $ 608 $ 1,041 $ 1,213 $ 6,448 Net change in fair value recognized on loans held for sale (36) (141) 3 (738) Net change in fair value recognized on rate lock loan commitments (94) (395) 93 (1,579) Net change in fair value recognized on forward contracts 16 280 144 573 Net gain recognized 494 785 1,453 4,704 Loan servicing income 824 894 2,546 2,643 Amortization of mortgage servicing rights (466) (525) (1,440) (1,773) Change in mortgage servicing rights valuation allowance — — — — Net servicing income recognized 358 369 1,106 870 Total Mortgage Banking income $ 852 $ 1,154 $ 2,559 $ 5,574 Activity for capitalized mortgage servicing rights was as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 7,995 $ 9,407 $ 8,770 $ 9,196 Additions 182 296 381 1,755 Amortized to expense (466) (525) (1,440) (1,773) Change in valuation allowance — — — — Balance, end of period $ 7,711 $ 9,178 $ 7,711 $ 9,178 Activity in the valuation allowance for capitalized mortgage servicing rights follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Beginning valuation allowance $ — $ — $ — $ — Charge during the period — — — — Ending valuation allowance $ — $ — $ — $ — Other information relating to mortgage servicing rights follows: (dollars in thousands) September 30, 2023 December 31, 2022 Fair value of mortgage servicing rights portfolio $ 17,300 $ 17,145 Monthly weighted average prepayment rate of unpaid principal balance* 120 % 127 % Discount rate 10.39 % 10.21 % Weighted average foreclosure rate 0.11 % 0.10 % Weighted average life in years 7.69 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 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: September 30, 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 $ 2,671 $ 2,711 $ 1,265 $ 1,302 Included in other assets: Rate lock loan commitments $ 9,487 $ 95 $ 4,118 $ 2 Mandatory forward contracts — — — — Included in other liabilities: Mandatory forward contracts $ 9,325 $ 77 $ 4,009 $ 67 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 9 Months Ended |
Sep. 30, 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: September 30, 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 $ 13,413 $ 202 $ 40,032 $ 1,386 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 155,242 (8,733) 91,636 (6,742) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 168,655 $ (8,531) $ 131,668 $ (5,356) Offsetting interest rate swaps with institutional swap dealer - Assets Pay fixed/receive variable 153,132 8,733 91,636 6,742 Offsetting interest rate swaps with institutional swap dealer - Liabilities Pay fixed/receive variable 15,523 (202) 40,032 (1,386) Offsetting interest rate swaps with institutional swap dealer - Total Pay fixed/receive variable $ 168,655 $ 8,531 $ 131,668 $ 5,356 Total $ 337,310 $ — $ 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 $9 million and $560,000 as of September 30, 2023 and December 31, 2022. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, (in thousands, except per share data) 2023 2022 2023 2022 Net income $ 21,571 $ 19,896 $ 70,715 $ 72,593 Dividends declared on Common Stock: Class A Shares (6,456) (5,995) (19,574) (18,123) Class B Shares (733) (669) (2,200) (2,010) Undistributed net income for basic earnings per share 14,382 13,232 48,941 52,460 Weighted average potential dividends on Class A shares upon exercise of dilutive options (25) (21) (62) (70) Undistributed net income for diluted earnings per share $ 14,357 $ 13,211 $ 48,879 $ 52,390 Weighted average shares outstanding: Class A Shares 17,549 17,759 17,697 17,904 Class B Shares 2,157 2,160 2,158 2,162 Effect of dilutive securities on Class A Shares outstanding 68 62 55 68 Weighted average shares outstanding including dilutive securities 19,774 19,981 19,910 20,134 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.37 $ 0.34 $ 1.12 $ 1.02 Undistributed earnings per share* 0.74 0.67 2.49 2.64 Total basic earnings per share - Class A Common Stock $ 1.11 $ 1.01 $ 3.61 $ 3.66 Class B Common Stock: Per share dividends distributed $ 0.34 $ 0.31 $ 1.02 $ 0.93 Undistributed earnings per share* 0.67 0.61 2.26 2.40 Total basic earnings per share - Class B Common Stock $ 1.01 $ 0.92 $ 3.28 $ 3.33 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.37 $ 0.34 $ 1.12 $ 1.02 Undistributed earnings per share* 0.73 0.67 2.48 2.63 Total diluted earnings per share - Class A Common Stock $ 1.10 $ 1.01 $ 3.60 $ 3.65 Class B Common Stock: Per share dividends distributed $ 0.34 $ 0.31 $ 1.02 $ 0.93 Undistributed earnings per share* 0.67 0.61 2.25 2.39 Total diluted earnings per share - Class B Common Stock $ 1.01 $ 0.92 $ 3.27 $ 3.32 * To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Antidilutive stock options 121,781 180,000 193,398 180,000 Average antidilutive stock options 117,998 177,000 193,398 174,000 |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2023 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 15. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Available-for-Sale Debt Securities: Unrealized gain (loss) on AFS debt securities $ 1,024 $ (15,510) $ 1,812 $ (46,892) Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings (7) 1 27 10 Net gains (losses) 1,017 (15,509) 1,839 (46,882) Income tax benefit (expense) related to items of other comprehensive income (250) 3,875 (461) 11,720 Net of tax 767 (11,634) $ 1,378 $ (35,162) The following is a summary of the AOCI balances, net of tax: 2023 (in thousands) December 31, 2022 Change September 30, 2023 Unrealized gain (loss) on AFS debt securities $ (32,934) $ 1,351 $ (31,583) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 955 27 982 Total unrealized gain (loss) $ (31,979) $ 1,378 $ (30,601) 2022 (in thousands) December 31, 2021 Change September 30, 2022 Unrealized gain (loss) on AFS debt securities $ 890 $ (35,169) $ (34,279) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 984 7 991 Total unrealized gain (loss) $ 1,874 $ (35,162) $ (33,288) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 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 September 30, 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) $ 47,409 $ 2,467 $ 84 $ 49,960 $ 4,525 $ 10,340 $ 14,865 $ 64,825 Noninterest income: Service charges on deposit accounts 3,547 11 — 3,558 — 1 1 3,559 Net refund transfer fees — — — — 242 — 242 242 Mortgage banking income (1) — — 852 852 — — — 852 Interchange fee income 3,258 — — 3,258 23 1 24 3,282 Program fees (1) — — — — 705 3,336 4,041 4,041 Increase in cash surrender value of BOLI (1) 690 — — 690 — — — 690 Death benefits in excess of cash surrender value of life insurance — — — — — — — — Net losses on OREO (53) — — (53) — — — (53) Legal settlement — — — — — — — — Other 1,306 — 15 1,321 59 26 85 1,406 Total noninterest income 8,748 11 867 9,626 1,029 3,364 4,393 14,019 Total net revenue $ 56,157 $ 2,478 $ 951 $ 59,586 $ 5,554 $ 13,704 $ 19,258 $ 78,844 Net-revenue concentration (2) 72 % 3 % 1 % 76 % 7 % 17 % 24 % 100 % Three Months Ended September 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 46,562 $ 3,011 $ 112 $ 49,685 $ 1,709 $ 7,203 $ 8,912 $ 58,597 Noninterest income: Service charges on deposit accounts 3,397 13 — 3,410 (1) — (1) 3,409 Net refund transfer fees — — — — 593 — 593 593 Mortgage banking income (1) — — 1,154 1,154 — — — 1,154 Interchange fee income 3,292 — — 3,292 30 — 30 3,322 Program fees (1) — — — — 724 4,208 4,932 4,932 Increase in cash surrender value of BOLI (1) 617 — — 617 — — — 617 Net losses on OREO (53) — — (53) — — — (53) Other 1,068 — 33 1,101 33 — 33 1,134 Total noninterest income 8,321 13 1,187 9,521 1,379 4,208 5,587 15,108 Total net revenue $ 54,883 $ 3,024 $ 1,299 $ 59,206 $ 3,088 $ 11,411 $ 14,499 $ 73,705 Net-revenue concentration (2) 75 % 4 % 2 % 81 % 4 % 15 % 19 % 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. Nine Months Ended September 30, 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) $ 146,198 $ 7,196 $ 206 $ 153,600 $ 40,300 $ 28,096 $ 68,396 $ 221,996 Noninterest income: Service charges on deposit accounts 10,351 33 — 10,384 — 1 1 10,385 Net refund transfer fees — — — — 15,528 — 15,528 15,528 Mortgage banking income (1) — — 2,559 2,559 — — — 2,559 Interchange fee income 9,639 — — 9,639 112 1 113 9,752 Program fees (1) — — — — 2,140 8,881 11,021 11,021 Increase in cash surrender value of BOLI (1) 2,014 — — 2,014 — — — 2,014 Death benefits in excess of cash surrender value of life insurance (1) 1,728 — — 1,728 — — — 1,728 Net losses on OREO (158) — — (158) — — — (158) Other 3,158 — 59 3,217 214 91 305 3,522 Total noninterest income 26,732 33 2,618 29,383 17,994 8,974 26,968 56,351 Total net revenue $ 172,930 $ 7,229 $ 2,824 $ 182,983 $ 58,294 $ 37,070 $ 95,364 $ 278,347 Net-revenue concentration (2) 62 % 3 % 1 % 66 % 21 % 13 % 34 % 100 % Nine Months Ended September 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 121,868 $ 11,412 $ 469 $ 133,749 $ 18,751 $ 21,078 $ 39,829 $ 173,578 Noninterest income: Service charges on deposit accounts 9,971 38 — 10,009 (11) — (11) 9,998 Net refund transfer fees — — — — 16,594 — 16,594 16,594 Mortgage banking income (1) — — 5,574 5,574 — — — 5,574 Interchange fee income 9,693 — — 9,693 160 — 160 9,853 Program fees (1) — — — — 2,187 10,484 12,671 12,671 Increase in cash surrender value of BOLI (1) 1,852 — — 1,852 — — — 1,852 Net losses on OREO (158) — — (158) — — — (158) Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — 13,000 — 13,000 13,000 Other 1,939 — 113 2,052 250 — 250 2,302 Total noninterest income 23,297 38 5,687 29,022 37,180 10,484 47,664 76,686 Total net revenue $ 145,165 $ 11,450 $ 6,156 $ 162,771 $ 55,931 $ 31,562 $ 87,493 $ 250,264 Net-revenue concentration (2) 58 % 5 % 2 % 65 % 22 % 13 % 35 % 100 % (3) This revenue is not subject to ASC 606. (4) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. The following represents information for significant revenue streams subject to ASC 606: Service charges on deposit accounts Net refund transfer fees 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 routinely sells OREO it has acquired through loan foreclosure. Net gains/(losses) on OREO reflect both 1) the gain or loss recognized upon an executed deed and 2) mark-to-market writedowns the Company takes on its OREO inventory. The Company generally recognizes gains or losses on OREO at the time of an executed deed, although gains may be recognized over a financing period if the Company finances the sale. For financed OREO sales, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. Mark-to-market writedowns taken by the Company during the property’s holding period are generally at least 10% per year but may be higher based on updated real estate appraisals or BPOs. Incremental expenditures to bring OREO to salable condition are generally expensed as incurred. Contract termination fee Legal settlement |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 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 September 30, 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. 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 September 30, 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 $ 47,409 $ 2,467 $ 84 $ 49,960 $ 4,525 $ 10,340 $ 14,865 $ 64,825 Provision for expected credit loss expense 1,567 (203) — 1,364 (1,967) 4,333 2,366 3,730 Net refund transfer fees — — — — 242 — 242 242 Mortgage banking income — — 852 852 — — — 852 Program fees — — — — 705 3,336 4,041 4,041 Other noninterest income 8,748 11 15 8,774 82 28 110 8,884 Total noninterest income 8,748 11 867 9,626 1,029 3,364 4,393 14,019 Total noninterest expense 39,381 640 1,793 41,814 3,116 3,112 6,228 48,042 Income (loss) before income tax expense 15,209 2,041 (842) 16,408 4,405 6,259 10,664 27,072 Income tax expense (benefit) 2,942 456 (185) 3,213 896 1,392 2,288 5,501 Net income (loss) $ 12,267 $ 1,585 $ (657) $ 13,195 $ 3,509 $ 4,867 $ 8,376 $ 21,571 Period-end assets $ 5,375,648 $ 458,542 $ 14,457 $ 5,848,647 $ 403,733 $ 134,095 $ 537,828 $ 6,386,475 Net interest margin 3.52 % 2.33 % NM 3.43 % NM NM NM 4.35 % Net-revenue concentration* 72 % 3 % 1 % 76 % 7 % 17 % 24 % 100 % Three Months Ended September 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 46,562 $ 3,011 $ 112 $ 49,685 $ 1,709 $ 7,203 $ 8,912 $ 58,597 Provision for expected credit loss expense (753) (386) — (1,139) (1,296) 4,008 2,712 1,573 Net refund transfer fees — — — — 593 — 593 593 Mortgage banking income — — 1,154 1,154 — — — 1,154 Program fees — — — — 724 4,208 4,932 4,932 Other noninterest income 8,321 13 33 8,367 62 — 62 8,429 Total noninterest income 8,321 13 1,187 9,521 1,379 4,208 5,587 15,108 Total noninterest expense 37,838 851 2,005 40,694 3,248 2,224 5,472 46,166 Income before income tax expense 17,798 2,559 (706) 19,651 1,136 5,179 6,315 25,966 Income tax expense 4,299 572 (156) 4,715 202 1,153 1,355 6,070 Net income $ 13,499 $ 1,987 $ (550) $ 14,936 $ 934 $ 4,026 $ 4,960 $ 19,896 Period-end assets $ 5,036,343 $ 441,885 $ 16,418 $ 5,494,646 $ 395,873 $ 109,144 $ 505,017 $ 5,999,663 Net interest margin 3.63 % 2.54 % NM 3.54 % NM NM NM 4.09 % Net-revenue concentration* 75 % 4 % 2 % 81 % 4 % 15 % 19 % 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. Nine Months Ended September 30, 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 $ 146,198 $ 7,196 $ 206 $ 153,600 $ 40,300 $ 28,096 $ 68,396 $ 221,996 Provision for expected credit loss expense 6,411 134 — 6,545 19,622 10,468 30,090 36,635 Net refund transfer fees — — — — 15,528 — 15,528 15,528 Mortgage banking income — — 2,559 2,559 — — — 2,559 Program fees — — — — 2,140 8,881 11,021 11,021 Contract termination fee — — — — — — — — Legal settlement — — — — — — — — Other noninterest income 26,732 33 59 26,824 326 93 419 27,243 Total noninterest income 26,732 33 2,618 29,383 17,994 8,974 26,968 56,351 Total noninterest expense 122,386 2,616 6,669 131,671 11,907 8,440 20,347 152,018 Income (loss) before income tax expense 44,133 4,479 (3,845) 44,767 26,765 18,162 44,927 89,694 Income tax expense (benefit) 8,965 1,001 (846) 9,120 5,828 4,031 9,859 18,979 Net income (loss) $ 35,168 $ 3,478 $ (2,999) $ 35,647 $ 20,937 $ 14,131 $ 35,068 $ 70,715 Period-end assets $ 5,375,648 $ 458,542 $ 14,457 $ 5,848,647 $ 403,733 $ 134,095 $ 537,828 $ 6,386,475 Net interest margin 3.76 % 2.37 % NM 3.68 % NM NM NM 5.09 % Net-revenue concentration* 62 % 3 % 1 % 66 % 21 % 13 % 34 % 100 % Nine Months Ended September 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 121,868 $ 11,412 $ 469 $ 133,749 $ 18,751 $ 21,078 $ 39,829 $ 173,578 Provision for expected credit loss expense (287) (1,021) — (1,308) 6,976 8,836 15,812 14,504 Net refund transfer fees — — — — 16,594 — 16,594 16,594 Mortgage banking income — — 5,574 5,574 — — — 5,574 Program fees — — — — 2,187 10,484 12,671 12,671 Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — 13,000 — 13,000 13,000 Other noninterest income 23,297 38 113 23,448 399 — 399 23,847 Total noninterest income 23,297 38 5,687 29,022 37,180 10,484 47,664 76,686 Total noninterest expense 114,381 2,838 7,527 124,746 11,928 5,729 17,657 142,403 Income before income tax expense 31,071 9,633 (1,371) 39,333 37,027 16,997 54,024 93,357 Income tax expense 6,419 2,168 (302) 8,285 8,573 3,906 12,479 20,764 Net income $ 24,652 $ 7,465 $ (1,069) $ 31,048 $ 28,454 $ 13,091 $ 41,545 $ 72,593 Period-end assets $ 5,036,343 $ 441,885 $ 16,418 $ 5,494,646 $ 395,873 $ 109,144 $ 505,017 $ 5,999,663 Net interest margin 3.20 % 2.79 % NM 3.16 % NM NM NM 3.99 % Net-revenue concentration* 58 % 5 % 2 % 65 % 22 % 13 % 35 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 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. In May 2023, the Company’s Board of Directors voted to dissolve the Company’s Captive. The dissolution of the Captive is expected to occur during the fourth quarter of 2023. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and nine months ended September 30, 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 September 30, 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 ● ● Covington — 1 ● Crestview Hills — 1 ● Florence — 1 ● Indiana — 3 ● Southern Indiana — 3 ● Floyds Knobs — 1 ● Jeffersonville — 1 ● New Albany — 1 ● Florida — 7 ● Metropolitan Tampa — 7 ● Ohio — 4 ● Metropolitan Cincinnati — 4 ● Tennessee — 3 ● Metropolitan Nashville — 3 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 — 15 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 — 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 quarter of each 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., 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. In 2023, the Company also considered a RA, related to the first quarter 2023 tax season, delinquent if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. For the ERA product originated in December of 2022 and January 2023, the Company considered it 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 and ERAs 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, unless they were covered under a loss guaranty arrangement. Any RAs subject to a loss guaranty arrangement that are recovered during the second half of the year are distributed to the guarantor. 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 and ERA product parameters do not ensure positive results and could have an overall material negative impact on the performance of all RA and ERA product offerings and therefore on the Company’s financial condition and results of operations. Cancelled Sale Transaction Settlement of Lawsuit Against Green Dot - In accordance with the Settlement Agreement, on June 6, 2022, Green Dot paid $13.0 million to the Bank, which was in addition to a $5.0 million termination fee that Green Dot paid to the Bank during the first quarter of 2022 under the terms of the TRS Purchase Agreement. On June 6, 2022, the Bank and Green Dot filed a stipulation of dismissal of the Lawsuit with the Delaware Court of Chancery, which was effective to dismiss the Lawsuit when filed. 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 — ● 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 participations sold represent a 90% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three 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 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 participations sold represent a 95% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three ● RCS installment loan product – 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 nine months ended September 30, 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 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 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification™. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. Prospectively Immaterial 2023-03 Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock (SEC Update) This ASU amends the FASB Accounting Standards Codification™ for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. Upon addition to the FASB Codification. Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 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) | 9 Months Ended |
Sep. 30, 2023 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedules of Accounting Standards Updates | The following ASUs were adopted by the Company during the nine months ended September 30, 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. 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 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification™. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. Prospectively Immaterial 2023-03 Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock (SEC Update) This ASU amends the FASB Accounting Standards Codification™ for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. Upon addition to the FASB Codification. Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 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) | 9 Months Ended |
Sep. 30, 2023 | |
ACQUISITION OF CBANK | |
Summary of Assets Acquired and Liabilities Assumed | March 15, 2023 As Previously Reported As Recasted As Recorded Fair Value Recast As Recorded (in thousands) by CBank Adjustments Adjustments by Republic Assets acquired: Cash and cash equivalents $ 10,030 $ — $ — $ 10,030 Investment securities 16,463 (4) a (65) a 16,394 Loans 221,707 (4,219) b (150) b 217,338 Allowance for loan and lease losses (2,953) 1,353 c 1,391 c, j (209) Loans, net 218,754 (2,866) 1,241 217,129 Goodwill 954 (954) d — — Core deposit intangible — 2,844 e — 2,844 Premises and equipment, net 162 35 f (24) f 173 Other assets and accrued interest receivable 7,067 (320) g — 6,747 Total assets acquired $ 253,430 $ (1,265) $ 1,152 $ 253,317 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 50 i 4,855 Total liabilities assumed 226,356 127 50 226,533 Net assets acquired $ 27,074 $ (1,392) $ 1,102 26,784 Cash consideration paid (51,000) Goodwill $ 24,216 Explanation of fair value and recast 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 based on the Company’s evaluation of the acquired loan portfolio. c. Adjustments to the Allowance reflect the fair value adjustment to eliminate the acquiree’s recorded allowance for loan losses and other fair value adjustments based on the Company’s evaluation of the acquired loan portfolio. 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. j. Adjustment reflects a change in estimated fair value based upon further evaluation of PCD loans, including cash payments received subsequent to the date of acquisition. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 436,512 $ 1 $ (20,901) $ — $ 415,612 Private label mortgage-backed security 574 1,311 — — 1,885 Mortgage-backed securities - residential 175,693 16 (20,160) — 155,549 Collateralized mortgage obligations 23,441 29 (1,307) — 22,163 Corporate bonds 2,014 2 — — 2,016 Trust preferred security 3,785 210 — — 3,995 Total available-for-sale debt securities $ 642,019 $ 1,569 $ (42,368) $ — $ 601,220 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 September 30, 2023 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 90,000 $ — $ (368) $ 89,632 $ — Mortgage-backed securities - residential 25 — (1) 24 — Collateralized mortgage obligations 6,652 40 (155) 6,537 — Corporate bonds 4,983 26 — 5,009 (10) Obligations of state and political subdivisions — — — — — Total held-to-maturity debt securities $ 101,660 $ 66 $ (524) $ 101,202 $ (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 September 30, 2023 (in thousands) Cost Value Cost Value Due in one year or less $ 169,819 $ 165,862 $ 25,000 $ 24,917 Due from one year to five years 268,707 251,766 69,983 69,724 Due from five years to ten years — — — — Due beyond ten years 3,785 3,995 — — Private label mortgage-backed security 574 1,885 — — Mortgage-backed securities - residential 175,693 155,549 25 24 Collateralized mortgage obligations 23,441 22,163 6,652 6,537 Total debt securities $ 642,019 $ 601,220 $ 101,660 $ 101,202 |
Schedule of debt securities with unrealized losses | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized September 30, 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 $ 26,661 $ (128) $ 373,950 $ (20,773) $ 400,611 $ (20,901) Mortgage-backed securities - residential 11,905 (628) 141,948 (19,532) 153,853 (20,160) Collateralized mortgage obligations 3,341 (123) 16,892 (1,184) 20,233 (1,307) Trust preferred security — — — — — — Total available-for-sale debt securities $ 41,907 $ (879) $ 532,790 $ (41,489) $ 574,697 $ (42,368) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2022 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ 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 September 30, 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 $ — $ — $ — $ — $ — $ 30 $ (30) $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 10 — — — 10 50 (40) — — 10 Total $ 10 $ — $ — $ — $ 10 $ 80 $ (70) $ — $ — $ 10 ACLS Roll-forward Nine Months Ended September 30, 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 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 10 — — — 10 47 (37) — — 10 Total $ 10 $ — $ — $ — $ 10 $ 47 $ (37) $ — $ — $ 10 |
Schedule of pledged investment securities | (in thousands) September 30, 2023 December 31, 2022 Amortized cost $ 90,170 $ 236,047 Fair value 82,376 217,562 Carrying amount 82,376 217,562 |
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 September 30, 2023 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 137 $ — $ 137 Total equity securities with readily determinable fair values $ — $ 137 $ — $ 137 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 September 30, 2023 Three Months Ended September 30, 2022 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 16 $ 16 $ — $ (14) $ (14) Community Reinvestment Act mutual fund — — — — — — Total equity securities with readily determinable fair value $ — $ 16 $ 16 $ — $ (14) $ (14) Gains (Losses) Recognized on Equity Securities Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 26 $ 26 $ — $ 5 $ 5 Community Reinvestment Act mutual fund — — — (209) — (209) Total equity securities with readily determinable fair value $ — $ 26 $ 26 $ (209) $ 5 $ (204) |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
LOANS HELD FOR SALE | |
Schedule of activity of consumer loans held for sale and carried at fair value | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 5,757 $ 17,459 $ 4,706 $ 19,747 Origination of consumer loans held for sale 34,280 85,172 87,224 280,608 Proceeds from the sale of consumer loans held for sale (32,545) (96,169) (85,994) (297,253) Net gain on sale of consumer loans held for sale 951 2,334 2,507 5,694 Balance, end of period $ 8,443 $ 8,796 $ 8,443 $ 8,796 |
Schedule of activity of consumer loans held for sale and carried at lower of cost or fair value | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 15,787 $ 13,777 $ 13,169 $ 2,937 Origination of consumer loans held for sale 252,808 206,959 669,490 539,519 Proceeds from the sale of consumer loans held for sale (257,452) (209,924) (675,503) (534,549) Net gain on sale of consumer loans held for sale 2,386 1,867 6,373 4,772 Balance, end of period $ 13,529 $ 12,679 $ 13,529 $ 12,679 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Schedule of composition of loan portfolio | (in thousands) September 30, 2023 December 31, 2022 Traditional Banking: Residential real estate: Owner occupied $ 1,128,745 $ 911,427 Nonowner occupied 344,682 321,358 Commercial real estate 1,745,187 1,599,510 Construction & land development 189,756 153,875 Commercial & industrial 473,790 413,387 Lease financing receivables 85,242 10,505 Aircraft 226,947 179,785 Home equity 275,750 241,739 Consumer: Credit cards 16,950 15,473 Overdrafts 640 726 Automobile loans 3,380 6,731 Other consumer 5,674 626 Total Traditional Banking 4,496,743 3,855,142 Warehouse lines of credit* 457,033 403,560 Total Core Banking 4,953,776 4,258,702 Republic Processing Group*: Tax Refund Solutions: Refund Advances — 97,505 Other TRS commercial & industrial loans 354 51,767 Republic Credit Solutions 126,969 107,828 Total Republic Processing Group 127,323 257,100 Total loans** 5,081,099 4,515,802 Allowance for credit losses (74,576) (70,413) Total loans, net $ 5,006,523 $ 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) September 30, 2023 December 31, 2022 Contractually receivable $ 5,088,035 $ 4,519,136 Unearned income (2,325) (835) Unamortized premiums 1,209 99 Unaccreted discounts (2,859) (479) Other net unamortized deferred origination (fees) and costs (2,961) (2,119) Carrying value of loans $ 5,081,099 $ 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 September 30, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Residential real estate owner occupied: Risk Rating Pass or not rated $ 307,179 $ 208,209 $ 178,744 $ 172,850 $ 238,598 $ — $ 1,500 $ 1,107,080 Special Mention — — — — 6,482 — — 6,482 Substandard — 1,544 1,667 1,138 10,834 — — 15,183 Doubtful — — — — — — — — Total $ 307,179 $ 209,753 $ 180,411 $ 173,988 $ 255,914 $ — $ 1,500 $ 1,128,745 YTD Gross Charge-offs $ — $ 8 $ 16 $ — $ — $ — $ — $ 24 Residential real estate nonowner occupied: Risk Rating Pass or not rated $ 48,424 $ 72,749 $ 85,990 $ 49,442 $ 80,307 $ — $ 7,675 $ 344,587 Special Mention — — — — 27 — — 27 Substandard — — 20 — 48 — — 68 Doubtful — — — — — — — — Total $ 48,424 $ 72,749 $ 86,010 $ 49,442 $ 80,382 $ — $ 7,675 $ 344,682 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 176,925 $ 466,888 $ 375,172 $ 197,435 $ 338,991 $ 24,663 $ 125,735 $ 1,705,809 Special Mention 573 1,684 4,376 — 30,319 1,520 — 38,472 Substandard — — — — 906 — — 906 Doubtful — — — — — — — — Total $ 177,498 $ 468,572 $ 379,548 $ 197,435 $ 370,216 $ 26,183 $ 125,735 $ 1,745,187 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development: Risk Rating Pass or not rated $ 53,267 $ 113,557 $ 21,167 $ 521 $ 252 $ — $ 992 $ 189,756 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 53,267 $ 113,557 $ 21,167 $ 521 $ 252 $ — $ 992 $ 189,756 YTD Gross Charge-offs — — — — — — — — Commercial and industrial: Risk Rating Pass or not rated $ 99,935 $ 96,064 $ 76,604 $ 15,758 $ 61,574 $ 102,820 $ 3,744 $ 456,499 Special Mention — 452 13,186 438 1,613 376 — 16,065 Substandard — 38 3 — 337 27 821 1,226 Doubtful — — — — — — — — Total $ 99,935 $ 96,554 $ 89,793 $ 16,196 $ 63,524 $ 103,223 $ 4,565 $ 473,790 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 36,895 $ 26,631 $ 11,907 $ 5,554 $ 2,973 $ — $ — $ 83,960 Special Mention — — — — 981 — — 981 Substandard — — — — 301 — — 301 Doubtful — — — — — — — — Total $ 36,895 $ 26,631 $ 11,907 $ 5,554 $ 4,255 $ — $ — $ 85,242 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Aircraft: Risk Rating Pass or not rated $ 67,327 $ 58,637 $ 47,885 $ 31,206 $ 21,892 $ — $ — $ 226,947 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 67,327 $ 58,637 $ 47,885 $ 31,206 $ 21,892 $ — $ — $ 226,947 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 273,803 $ — $ 273,803 Special Mention — — — — — 295 — 295 Substandard — — — — — 1,652 — 1,652 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 275,750 $ — $ 275,750 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of September 30, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 1,813 $ 1,309 $ 243 $ 92 $ 4,270 $ 18,897 $ — $ 26,624 Special Mention — — — — — — — — Substandard — — 2 — 18 — — 20 Doubtful — — — — — — — — Total $ 1,813 $ 1,309 $ 245 $ 92 $ 4,288 $ 18,897 $ — $ 26,644 YTD Gross Charge-offs $ — $ 11 $ 8 $ — $ 7 $ 852 $ — $ 878 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 457,033 $ — $ 457,033 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 457,033 $ — $ 457,033 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 354 $ — $ 354 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 354 $ — $ 354 YTD Gross Charge-offs $ 126 $ — $ — $ — $ — $ 25,825 $ — $ 25,951 RCS: Risk Rating Pass or not rated $ — $ — $ — $ — $ 73,196 $ 52,650 $ — $ 125,846 Special Mention — — — — — — — — Substandard — — — — — 1,123 — 1,123 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ 73,196 $ 53,773 $ — $ 126,969 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 9,459 $ — $ 9,459 Grand Total: Risk Rating Pass or not rated $ 791,765 $ 1,044,044 $ 797,712 $ 472,858 $ 822,053 $ 930,220 $ 139,646 $ 4,998,298 Special Mention 573 2,136 17,562 438 39,422 2,191 — 62,322 Substandard — 1,582 1,692 1,138 12,444 2,802 821 20,479 Doubtful — — — — — — — — Grand Total $ 792,338 $ 1,047,762 $ 816,966 $ 474,434 $ 873,919 $ 935,213 $ 140,467 $ 5,081,099 YTD Gross Charge-offs $ 126 $ 19 $ 24 $ — $ 7 $ 36,136 $ — $ 36,312 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 September 30, 2023 2022 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 9,899 $ 318 $ (9) $ 23 $ 10,231 $ 8,445 $ (3) $ — $ 24 $ 8,466 Nonowner occupied 3,086 (51) — 1 3,036 2,733 63 — — 2,796 Commercial real estate 25,089 251 — 7 25,347 24,341 (1,413) — 275 23,203 Construction & land development 4,811 325 — — 5,136 3,591 331 — — 3,922 Commercial & industrial 4,322 (148) — 7 4,181 3,768 82 — 124 3,974 Lease financing receivables 825 265 — 10 1,100 119 — — — 119 Aircraft 521 46 — — 567 400 16 — — 416 Home equity 4,770 375 — 1 5,146 4,113 279 — 7 4,399 Consumer: Credit cards 1,103 3 (30) 16 1,092 994 (41) (27) 33 959 Overdrafts 706 128 (243) 49 640 901 57 (288) 53 723 Automobile loans 53 16 (30) 2 41 122 (30) — 9 101 Other consumer 382 39 (20) 13 414 200 (24) (38) 15 153 Total Traditional Banking 55,567 1,567 (332) 129 56,931 49,727 (683) (353) 540 49,231 Warehouse lines of credit 1,346 (203) — — 1,143 1,491 (386) — — 1,105 Total Core Banking 56,913 1,364 (332) 129 58,074 51,218 (1,069) (353) 540 50,336 Republic Processing Group: Tax Refund Solutions: Refund Advances — (1,939) — 1,939 — — (1,296) — 1,296 — Other TRS commercial & industrial loans — (28) — 29 1 — — — — — Republic Credit Solutions 15,289 4,333 (3,340) 219 16,501 13,231 4,008 (2,922) 266 14,583 Total Republic Processing Group 15,289 2,366 (3,340) 2,187 16,502 13,231 2,712 (2,922) 1,562 14,583 Total $ 72,202 $ 3,730 $ (3,672) $ 2,316 $ 74,576 $ 64,449 $ 1,643 $ (3,275) $ 2,102 $ 64,919 ACLL Roll-forward Nine Months Ended September 30, 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 $ — $ 1,298 $ (24) $ 48 $ 10,231 $ 8,647 $ (272) $ — $ 91 $ 8,466 Nonowner occupied 2,831 — 203 — 2 3,036 2,700 94 — 2 2,796 Commercial real estate 23,739 — 1,542 — 66 25,347 23,769 (843) — 277 23,203 Construction & land development 4,123 — 1,013 — — 5,136 4,128 (206) — — 3,922 Commercial & industrial 3,976 — 89 — 116 4,181 3,487 346 — 141 3,974 Lease financing receivables 110 216 764 — 10 1,100 91 28 — — 119 Aircraft 449 — 118 — — 567 357 59 — — 416 Home equity 4,628 — 516 — 2 5,146 4,111 169 — 119 4,399 Consumer: Credit cards 996 — 158 (103) 41 1,092 934 50 (97) 72 959 Overdrafts 726 — 437 (676) 153 640 683 560 (696) 176 723 Automobile loans 87 — (16) (37) 7 41 186 (98) — 13 101 Other consumer 135 — 289 (62) 52 414 314 (137) (68) 44 153 Total Traditional Banking 50,709 216 6,411 (902) 497 56,931 49,407 (250) (861) 935 49,231 Warehouse lines of credit 1,009 — 134 — — 1,143 2,126 (1,021) — — 1,105 Total Core Banking 51,718 216 6,545 (902) 497 58,074 51,533 (1,271) (861) 935 50,336 Republic Processing Group: Tax Refund Solutions: Refund Advances 3,797 — 19,615 (25,823) 2,411 — — 7,583 (11,505) 3,922 — Other TRS commercial & industrial loans 91 — 7 (128) 31 1 96 (607) (154) 665 — Republic Credit Solutions 14,807 — 10,468 (9,459) 685 16,501 12,948 8,836 (8,005) 804 14,583 Total Republic Processing Group 18,695 — 30,090 (35,410) 3,127 16,502 13,044 15,812 (19,664) 5,391 14,583 Total $ 70,413 $ 216 $ 36,635 $ (36,312) $ 3,624 $ 74,576 $ 64,577 $ 14,541 $ (20,525) $ 6,326 $ 64,919 |
Schedule of non-performing loans and non-performing assets and select credit quality ratios | (dollars in thousands) September 30, 2023 December 31, 2022 Loans on nonaccrual status* $ 18,127 $ 15,562 Loans past due 90-days-or-more and still on accrual** 1,037 756 Total nonperforming loans 19,164 16,318 Other real estate owned 1,423 1,581 Total nonperforming assets $ 20,587 $ 17,899 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.38 % 0.36 % Nonperforming assets to total loans (including OREO) 0.41 0.40 Nonperforming assets to total assets 0.32 0.31 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.37 % 0.37 % Nonperforming assets to total loans (including OREO) 0.39 0.40 Nonperforming assets to total assets 0.33 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) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Traditional Banking: Residential real estate: Owner occupied $ 14,396 $ 13,388 $ — $ — Nonowner occupied 68 117 — — Commercial real estate 883 1,001 — — Construction & land development — — — — Commercial & industrial 1,159 — — — Lease financing receivables 13 — — — Aircraft — — — Home equity 1,591 815 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 16 31 — — Other consumer 1 210 — — Total Traditional Banking 18,127 15,562 — — Warehouse lines of credit — — — — Total Core Banking 18,127 15,562 — — Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — Other TRS commercial & industrial loans — — — — Republic Credit Solutions — — 1,037 756 Total Republic Processing Group — — 1,037 756 Total $ 18,127 $ 15,562 $ 1,037 $ 756 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Three Months Ended Nine Months Ended As of September 30, 2023 September 30, 2023 September 30, 2023 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 624 $ 13,772 $ 14,396 $ 224 $ 664 Nonowner occupied 22 46 68 7 8 Commercial real estate 883 — 883 31 142 Construction & land development — — — — — Commercial & industrial 338 821 1,159 23 23 Lease financing receivables 13 — 13 — — Aircraft — — — — — Home equity — 1,591 1,591 45 106 Consumer 8 9 17 — 6 Total $ 1,888 $ 16,239 $ 18,127 $ 330 $ 949 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Three Months Ended Nine Months Ended As of December 31, 2022 September 30, 2022 September 30, 2022 Nonaccrual Nonaccrual Total Interest Income Interest Income Loans with Loans without Nonaccrual Recognized Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* on Nonaccrual Loans* Residential real estate: Owner occupied $ 2,252 $ 11,136 $ 13,388 $ 154 $ 257 Nonowner occupied 56 61 117 1 1 Commercial real estate 1,001 — 1,001 14 644 Construction & land development — — — — — Commercial & industrial — — — — — Lease financing receivables — — — — — Aircraft — — — — — Home equity — 815 815 84 146 Consumer 15 226 241 48 52 Total $ 3,324 $ 12,238 $ 15,562 $ 301 $ 1,100 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. |
Schedule of aging of the recorded investment in loans by class of loans | 30 - 59 60 - 89 90 or More September 30, 2023 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 2,241 $ 1,521 $ 822 $ 4,584 $ 1,124,161 $ 1,128,745 Nonowner occupied 231 — — 231 344,451 344,682 Commercial real estate 23 — — 23 1,745,164 1,745,187 Construction & land development — — — — 189,756 189,756 Commercial & industrial 186 27 1,159 1,372 472,418 473,790 Lease financing receivables 4 — 12 16 85,226 85,242 Aircraft — — — — 226,947 226,947 Home equity 137 147 83 367 275,383 275,750 Consumer: Credit cards 11 16 1 28 16,922 16,950 Overdrafts 131 — 1 132 508 640 Automobile loans — — 4 4 3,376 3,380 Other consumer 38 10 1 49 5,625 5,674 Total Traditional Banking 3,002 1,721 2,083 6,806 4,489,937 4,496,743 Warehouse lines of credit — — — — 457,033 457,033 Total Core Banking 3,002 1,721 2,083 6,806 4,946,970 4,953,776 Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — — — Other TRS commercial & industrial loans — — — — 354 354 Republic Credit Solutions 8,020 3,271 1,037 12,328 114,641 126,969 Total Republic Processing Group 8,020 3,271 1,037 12,328 114,995 127,323 Total $ 11,022 $ 4,992 $ 3,120 $ 19,134 $ 5,061,965 $ 5,081,099 Delinquency ratio*** 0.22 % 0.10 % 0.06 % 0.38 % * 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 | September 30, 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 $ 16,122 $ — $ 18,057 $ — Nonowner occupied 68 — 150 — Commercial real estate 909 — 1,041 — Construction & land development — — — — Commercial & industrial — 1,226 — — Lease financing receivables — — — — Aircraft — — — 210 Home equity 1,548 — 967 — Consumer — 20 — 26 Total Traditional Banking $ 18,647 $ 1,246 $ 20,215 $ 236 |
Schedule of financing receivable, experiencing financial difficulty and modified | Amortized Cost Basis of Modified Financing Receivables Three Months Ended September 30, 2023 (in thousands) Loans (#) Rate Reduction ($) Loans (#) Term Extension ($) Loans (#) Principal Deferral ($) Residential real estate: Owner occupied — $ — — $ — 4 $ 239 Nonowner occupied — — — — — — Home equity — — — — 1 433 Republic Processing Group — — — — 383 84 Total Loan Modifications — $ — — $ — 388 $ 756 Amortized Cost Basis of Modified Financing Receivables Nine Months Ended September 30, 2023 (in thousands) Loans (#) Rate Reduction ($) Loans (#) Term Extension ($) Loans (#) Principal Deferral ($) Residential real estate: Owner occupied — $ — 2 $ 258 13 $ 1,006 Nonowner occupied — — — — — — Home equity — — — — 4 566 Republic Processing Group — — — — 383 84 Total Loan Modifications — $ — 2 $ 258 400 $ 1,656 |
Schedule of financing receivable, loan modification | Total Loan Modification by Type Accruing Nonaccruing Three Months Ended September 30, 2023 (in thousands) Loans (#) Recorded investment ($) Loans (#) Recorded investment ($) Term extension — $ — — $ — Principal deferral 383 84 5 672 Total Loan Modifications 383 $ 84 5 $ 672 Amortized Cost Basis of Modified Financing Receivables Nine Months Ended September 30, 2023 (in thousands) Loans (#) Rate Reduction ($) Loans (#) Term Extension ($) Loans (#) Principal Deferral ($) Residential real estate: Owner occupied — $ — 2 $ 258 13 $ 1,006 Nonowner occupied — — — — — — Home equity — — — — 4 566 Republic Processing Group — — — — 383 84 Total Loan Modifications — $ — 2 $ 258 400 $ 1,656 Total Loan Modification by Type Accruing Nonaccruing Nine Months Ended September 30, 2023 (in thousands) Loans (#) Recorded investment ($) Loans (#) Recorded investment ($) Term extension — $ — — $ — Principal deferral 383 84 19 1,830 Total Loan Modifications 383 $ 84 19 $ 1,830 |
Schedule of percentage of the amortized cost of loans and leases that were modified | Accruing Loan Modifications Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 % of Total % of Total Amortized of Financing Amortized of Financing (dollars in thousands) Loans (#) Cost Basis ($) Receivable Loans Cost Basis Receivable Republic Processing Group 383 $ 84 0.07 % 383 84 0.07 Total Accruing Loan Modifications 383 $ 84 0.00 383 $ 84 0.00 Nonaccruing Loan Modifications Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 % of Total % of Total Amortized of Financing Amortized of Financing (dollars in thousands) Loans (#) Cost Basis ($) Receivable Loans Cost Basis Receivable Residential real estate: Owner occupied 4 $ 239 0.02 % 4 $ 566 0.05 % Home equity 1 433 0.16 15 1,264 0.46 Total Nonaccruing Loan Modifications 5 $ 672 0.01 % 19 $ 1,830 0.04 |
Schedule of financing receivable modified past due | Accruing Loan Modifications Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 30-89 Days 90+ Days 30-89 Days 90+ Days (in thousands) Current Past Due Past Due Current Past Due Past Due Republic Processing Group $ 84 $ — $ — 84 — — Total Accruing Loan Modifications $ 84 $ — $ — $ 84 $ — $ — Nonaccruing Loan Modifications Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 30-89 Days 90+ Days 30-89 Days 90+ Days (in thousands) Current Past Due Past Due Current Past Due Past Due Residential real estate: Owner occupied $ 75 $ 164 $ — $ 932 $ 188 $ 168 Nonowner occupied — — — — — — Home equity 433 — — 542 — — Total Nonaccruing Loan Modifications $ 508 $ 164 $ — $ 1,474 $ 188 $ 168 |
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 September 30, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Legal modification 10 $ 443 1 $ 47 11 $ 490 Total residential TDRs 10 443 1 47 11 490 Consumer loans: Principal deferral 332 62 — — 332 62 Total consumer TDRs 332 62 — — 332 62 Total troubled debt restructurings 342 $ 505 1 $ 47 343 $ 552 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded September 30, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Legal modification 17 $ 954 1 $ 47 18 $ 1,001 Total residential TDRs 17 954 1 47 18 1,001 Consumer loans: Principal deferral 605 109 — — 605 109 Total consumer TDRs 605 109 — — 605 109 Total troubled debt restructurings 622 $ 1,063 1 $ 47 623 $ 1,110 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) September 30, 2023 December 31, 2022 Commercial real estate $ 1,423 $ 1,581 Total other real estate owned $ 1,423 $ 1,581 |
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties | (in thousands) September 30, 2023 December 31, 2022 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure $ 1,067 $ 909 |
Schedule of Refund Advances | Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2023 2022 2023 2022 Refund Advances originated $ — $ — $ 737,047 $ 311,207 Net charge to the Provision for RAs, including ERAs (1,939) (1,296) 19,615 7,583 Provision as a percentage of RAs, including ERAs, originated during the first quarter NA NA 2.66 % 2.44 % Refund Advances net charge-offs (recoveries) $ (1,939) $ (1,296) $ 23,412 $ 7,583 Refund Advances net charge-offs (recoveries) to total Refund Advances originated NA NA 3.18 % 2.44 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
DEPOSITS | |
Composition of deposit portfolio | The composition of the deposit portfolio follows: (in thousands) September 30, 2023 December 31, 2022 Core Bank: Demand $ 1,233,328 $ 1,336,082 Money market accounts 939,499 707,272 Savings 263,249 323,015 Reciprocal money market 206,347 28,635 Individual retirement accounts (1) 33,823 38,640 Time deposits, $250 and over (1) 94,521 54,855 Other certificates of deposit (1) 207,481 129,324 Reciprocal time deposits (1) 94,629 7,405 Wholesale brokered deposits (1) 805 — Total Core Bank interest-bearing deposits 3,073,682 2,625,228 Total Core Bank noninterest-bearing deposits 1,269,643 1,464,493 Total Core Bank deposits 4,343,325 4,089,721 Republic Processing Group: Money market accounts 16,921 3,849 Total RPG interest-bearing deposits 16,921 3,849 Brokered prepaid card deposits 326,505 328,655 Other noninterest-bearing deposits 106,831 115,620 Total RPG noninterest-bearing deposits 433,336 444,275 Total RPG deposits 450,257 448,124 Total deposits $ 4,793,582 $ 4,537,845 (1) Includes time deposits . |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |
Schedule of securities sold under agreements to repurchase | (dollars in thousands) September 30, 2023 December 31, 2022 Outstanding balance at end of period $ 80,797 $ 216,956 Weighted average interest rate at end of period 0.56 % 0.41 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 82,376 $ 254,296 Total securities pledged $ 82,376 $ 254,296 Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2023 2022 2023 2022 Average outstanding balance during the period $ 90,063 $ 220,149 $ 136,528 $ 271,276 Weighted average interest rate during the period 0.87 % 0.17 % 0.60 % 0.08 % Maximum outstanding at any month end during the period $ 88,862 $ 209,376 $ 224,067 $ 303,315 |
RIGHT-OF-USE ASSETS AND OPERA_2
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Summary of operating lease expense | Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2023 2022 2023 2022 Operating lease expense: Related Party: Variable lease expense $ 1,202 $ 1,101 $ 3,631 $ 3,635 Fixed lease expense 58 57 175 149 Third-Party: Variable lease expense 390 222 1,070 639 Fixed lease expense 409 346 1,184 1,040 Total operating lease expense $ 2,059 $ 1,726 $ 6,060 $ 5,463 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,667 $ 1,709 $ 5,168 $ 5,121 Cash paid for variable rent payments not included in measurement of operating lease liabilities 151 151 453 453 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 | September 30, 2023 December 31, 2022 Weighted average remaining term in years 7.78 8.44 Weighted average discount rate 2.28 % 2.10 % |
Schedule of operating lease liabilities | Year (in thousands) Related Party Third-Party Total 2023 $ 961 $ 720 $ 1,681 2024 3,726 2,826 6,552 2025 3,569 2,244 5,813 2026 3,640 1,925 5,565 2027 3,680 1,603 5,283 Thereafter 11,750 4,698 16,448 Total undiscounted cash flows $ 27,326 $ 14,016 $ 41,342 Discount applied to cash flows (2,884) (1,732) (4,616) Total discounted cash flows reported as operating lease liabilities $ 24,442 $ 12,284 $ 36,726 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Federal Home Loan Bank Advances | (in thousands) September 30, 2023 December 31, 2022 Overnight advances $ 195,000 $ 75,000 Fixed interest rate advances 270,000 20,000 Total FHLB advances $ 465,000 $ 95,000 |
Aggregate Future Principal Payments on FHLB Advances | Weighted Average Year (dollars in thousands) Principal Rate 2023 $ 195,000 5.37 % 2024 — — 2025 — — 2026 30,000 4.82 2027 80,000 4.01 2028 160,000 4.39 Total $ 465,000 4.76 % |
Information Regarding Overnight FHLB Advances | Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2023 2022 2023 2022 Average outstanding balance during the period $ 250,348 $ — $ 150,833 $ 5,641 Weighted average interest rate during the period 5.20 % — % 7.75 % 0.15 % Maximum outstanding at any month end during the period $ 365,000 ` $ — $ 485,000 $ 25,000 |
Real Estate Loans Pledged | (in thousands) September 30, 2023 December 31, 2022 First lien, single family residential real estate $ 1,336,038 $ 1,106,287 Home equity lines of credit 249,819 219,644 Multi-family commercial real estate 141,133 — |
OFF BALANCE SHEET RISKS, COMM_2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
Commitments Exclusive of Mortgage Bank Loan Commitments | (in thousands) September 30, 2023 December 31, 2022 Unused warehouse lines of credit $ 557,467 $ 733,940 Unused home equity lines of credit 439,107 410,057 Unused loan commitments - other 1,202,822 951,021 Standby letters of credit 11,921 9,735 FHLB letter of credit — 643 Total commitments $ 2,211,317 $ 2,105,396 |
Schedule of roll-forward of the ACLC | ACLC Roll-forward Three Months Ended 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 $ 145 $ (43) $ — $ — $ 102 $ 162 $ 28 $ — $ — $ 190 Unused home equity lines of credit 353 (315) — — 38 277 20 — — 297 Unused construction lines of credit 633 225 — — 858 — — — — — Unused loan commitments - other 399 (57) — — 342 661 32 — — 693 Total $ 1,530 $ (190) $ — $ — $ 1,340 $ 1,100 $ 80 $ — $ — $ 1,180 ACLC Roll-forward Nine Months Ended September 30, 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 $ (88) $ — $ — $ 102 $ 154 $ 36 $ — $ — $ 190 Unused home equity lines of credit 332 (294) — — 38 247 50 — — 297 Unused construction lines of credit 384 474 — — 858 — — — — — Unused loan commitments - other 344 (2) — — 342 651 42 — — 693 Total $ 1,250 $ 90 $ — $ — $ 1,340 $ 1,052 $ 128 $ — $ — $ 1,180 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at September 30, 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 $ 175,623 $ 239,989 $ — $ 415,612 Private label mortgage-backed security — — 1,885 1,885 Mortgage-backed securities - residential — 155,549 — 155,549 Collateralized mortgage obligations — 22,163 — 22,163 Corporate bonds — 2,016 — 2,016 Trust preferred security — — 3,995 3,995 Total available-for-sale debt securities $ 175,623 $ 419,717 $ 5,880 $ 601,220 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 137 $ — $ 137 Total equity securities with readily determinable fair value $ — $ 137 $ — $ 137 Mortgage loans held for sale $ — $ 2,711 $ — $ 2,711 Consumer loans held for sale — — 8,443 8,443 Rate lock loan commitments — 95 — 95 Interest rate swap agreements — 8,935 — 8,935 Financial liabilities: Mandatory forward contracts $ — $ 77 $ — $ 77 Interest rate swap agreements — 8,935 — 8,935 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 Interest rate swap agreements — 8,128 — 8,128 Financial liabilities: Mandatory forward contracts $ — $ 67 $ — $ 67 Interest rate swap agreements — 8,128 — 8,128 |
Assets Measured at Fair Value on a Non-Recurring Basis | Fair Value Measurements at September 30, 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 $ — $ — $ 973 $ 973 Commercial real estate — — 818 818 Total collateral-dependent loans* $ — $ — $ 1,791 $ 1,791 Other real estate owned: Commercial real estate $ — $ — $ 1,423 $ 1,423 Total other real estate owned $ — $ — $ 1,423 $ 1,423 * The difference between the carrying value and the fair value of collateral-dependent loans measured at fair value is reconciled in a subsequent table of this Footnote. Fair Value Measurements at December 31, 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 difference between the carrying value and the fair value of collateral-dependent loans measured at fair value is reconciled in a subsequent table of this Footnote. |
Provisions for collateral dependent impaired loans | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Provision on collateral-dependent loans $ — $ (7) $ (20) $ (11) |
Other Real Estate Owned | (in thousands) September 30, 2023 December 31, 2022 Other real estate owned carried at fair value $ 1,423 $ 1,581 Total carrying value of other real estate owned $ 1,423 $ 1,581 Other real estate owned write-downs during the years ended $ 158 $ 211 Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Other real estate owned write-downs during the period $ 53 $ 53 $ 158 $ 158 |
Carrying amount and estimated fair values of financial instruments | Fair Value Measurements at September 30, 2023: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 219,653 $ 219,653 $ — $ — $ 219,653 Available-for-sale debt securities 601,220 175,623 419,717 5,880 601,220 Held-to-maturity debt securities 101,650 — 101,202 — 101,202 Equity securities with readily determinable fair values 137 — 137 — 137 Mortgage loans held for sale, at fair value 2,711 — 2,711 — 2,711 Consumer loans held for sale, at fair value 8,443 — — 8,443 8,443 Consumer loans held for sale, at the lower of cost or fair value 13,529 — — 13,529 13,529 Loans, net 5,006,523 — — 4,692,640 4,692,640 Federal Home Loan Bank stock 31,420 — — — NA Accrued interest receivable 18,938 — 4,588 14,350 18,938 Mortgage servicing rights 7,710 — 17,300 — 17,300 Rate lock loan commitments 95 — 95 — 95 Interest rate swap agreements 8,935 — 8,935 — 8,935 Liabilities: Noninterest-bearing deposits $ 1,702,979 $ — $ 1,702,979 $ — $ 1,702,979 Transaction deposits 2,660,149 — 2,660,149 — 2,660,149 Time deposits 430,454 — 426,808 — 426,808 Securities sold under agreements to repurchase and other short-term borrowings 82,376 — 82,376 — 82,376 Federal Home Loan Bank advances 465,000 — 458,487 — 458,487 Accrued interest payable 2,017 — 2,017 — 2,017 Rate lock loan commitments 95 — 95 — 95 Mandatory forward contracts 77 — 77 — 77 Interest rate swap agreements 8,935 — 8,935 — 8,935 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 8,128 — 8,128 — 8,128 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 Mandatory forward contracts 67 — 67 — 67 Interest rate swap agreements 8,128 — 8,128 — 8,128 |
Nonrecurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Range Fair Valuation Unobservable (Weighted September 30, 2023 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner occupied $ 973 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 27% (5%) Collateral-dependent loans - commercial real estate $ 818 Sales comparison approach Adjustments determined for differences between comparable sales 11% (11%) Other real estate owned - commercial real estate $ 1,423 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 Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 1,988 $ 2,478 $ 2,127 $ 2,731 Total gains or losses included in earnings: Net change in unrealized gain (6) 1 26 10 Principal paydowns (97) (195) (268) (457) Balance, end of period $ 1,885 $ 2,284 $ 1,885 $ 2,284 |
Private label mortgage backed security | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation September 30, 2023 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 1,885 Discounted cash flow (1) Constant prepayment rate 2.8% - 4.5% (2) Probability of default 1.8% - 9.3% (3) Loss severity 12% - 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 Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 3,746 $ 3,824 $ 3,855 $ 3,847 Total gains or losses included in earnings: Discount accretion 15 14 44 42 Net change in unrealized gain 234 72 96 21 Balance, end of period $ 3,995 $ 3,910 $ 3,995 $ 3,910 |
Mortgage Loans Held for Sale | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) September 30, 2023 December 31, 2022 Aggregate fair value $ 2,711 $ 1,302 Contractual balance 2,671 1,265 Unrealized gain 40 37 |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Interest income $ 84 $ 112 $ 206 $ 469 Change in fair value (36) (141) 3 (738) Total included in earnings $ 48 $ (29) $ 209 $ (269) |
Consumer loans | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) September 30, 2023 December 31, 2022 Aggregate fair value $ 8,443 $ 4,706 Contractual balance 8,494 4,734 Unrealized loss (51) (28) |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Interest income $ 1,077 $ 3,009 $ 2,790 $ 8,889 Change in fair value (16) 32 (23) (186) Total included in earnings $ 1,061 $ 3,041 $ 2,767 $ 8,703 |
Consumer loans | Recurring basis | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Fair Valuation September 30, 2023 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 8,443 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) | 9 Months Ended |
Sep. 30, 2023 | |
MORTGAGE BANKING ACTIVITIES | |
Activity for Mortgage Loans Held for Sale, at fair value | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 4,038 $ 8,491 $ 1,302 $ 29,393 Origination of mortgage loans held for sale 23,860 32,856 53,750 195,006 Proceeds from the sale of mortgage loans held for sale (25,681) (39,220) (53,794) (226,191) Net gain on sale of mortgage loans held for sale 494 785 1,453 4,704 Balance, end of period $ 2,711 $ 2,912 $ 2,711 $ 2,912 |
Components of Mortgage Banking Income | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Net gain realized on sale of mortgage loans held for sale $ 608 $ 1,041 $ 1,213 $ 6,448 Net change in fair value recognized on loans held for sale (36) (141) 3 (738) Net change in fair value recognized on rate lock loan commitments (94) (395) 93 (1,579) Net change in fair value recognized on forward contracts 16 280 144 573 Net gain recognized 494 785 1,453 4,704 Loan servicing income 824 894 2,546 2,643 Amortization of mortgage servicing rights (466) (525) (1,440) (1,773) Change in mortgage servicing rights valuation allowance — — — — Net servicing income recognized 358 369 1,106 870 Total Mortgage Banking income $ 852 $ 1,154 $ 2,559 $ 5,574 |
Activity for capitalized mortgage servicing rights | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 7,995 $ 9,407 $ 8,770 $ 9,196 Additions 182 296 381 1,755 Amortized to expense (466) (525) (1,440) (1,773) Change in valuation allowance — — — — Balance, end of period $ 7,711 $ 9,178 $ 7,711 $ 9,178 |
Schedule of activity in the valuation allowance for capitalized mortgage servicing rights | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Beginning valuation allowance $ — $ — $ — $ — Charge during the period — — — — Ending valuation allowance $ — $ — $ — $ — |
Other information relating to mortgage servicing rights | (dollars in thousands) September 30, 2023 December 31, 2022 Fair value of mortgage servicing rights portfolio $ 17,300 $ 17,145 Monthly weighted average prepayment rate of unpaid principal balance* 120 % 127 % Discount rate 10.39 % 10.21 % Weighted average foreclosure rate 0.11 % 0.10 % Weighted average life in years 7.69 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 | September 30, 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 $ 2,671 $ 2,711 $ 1,265 $ 1,302 Included in other assets: Rate lock loan commitments $ 9,487 $ 95 $ 4,118 $ 2 Mandatory forward contracts — — — — Included in other liabilities: Mandatory forward contracts $ 9,325 $ 77 $ 4,009 $ 67 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
INTEREST RATE SWAPS | |
Summary of interest rate swaps related to clients | September 30, 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 $ 13,413 $ 202 $ 40,032 $ 1,386 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 155,242 (8,733) 91,636 (6,742) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 168,655 $ (8,531) $ 131,668 $ (5,356) Offsetting interest rate swaps with institutional swap dealer - Assets Pay fixed/receive variable 153,132 8,733 91,636 6,742 Offsetting interest rate swaps with institutional swap dealer - Liabilities Pay fixed/receive variable 15,523 (202) 40,032 (1,386) Offsetting interest rate swaps with institutional swap dealer - Total Pay fixed/receive variable $ 168,655 $ 8,531 $ 131,668 $ 5,356 Total $ 337,310 $ — $ 263,336 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS PER SHARE | |
Earnings per share and diluted earnings per share | Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2023 2022 2023 2022 Net income $ 21,571 $ 19,896 $ 70,715 $ 72,593 Dividends declared on Common Stock: Class A Shares (6,456) (5,995) (19,574) (18,123) Class B Shares (733) (669) (2,200) (2,010) Undistributed net income for basic earnings per share 14,382 13,232 48,941 52,460 Weighted average potential dividends on Class A shares upon exercise of dilutive options (25) (21) (62) (70) Undistributed net income for diluted earnings per share $ 14,357 $ 13,211 $ 48,879 $ 52,390 Weighted average shares outstanding: Class A Shares 17,549 17,759 17,697 17,904 Class B Shares 2,157 2,160 2,158 2,162 Effect of dilutive securities on Class A Shares outstanding 68 62 55 68 Weighted average shares outstanding including dilutive securities 19,774 19,981 19,910 20,134 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.37 $ 0.34 $ 1.12 $ 1.02 Undistributed earnings per share* 0.74 0.67 2.49 2.64 Total basic earnings per share - Class A Common Stock $ 1.11 $ 1.01 $ 3.61 $ 3.66 Class B Common Stock: Per share dividends distributed $ 0.34 $ 0.31 $ 1.02 $ 0.93 Undistributed earnings per share* 0.67 0.61 2.26 2.40 Total basic earnings per share - Class B Common Stock $ 1.01 $ 0.92 $ 3.28 $ 3.33 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.37 $ 0.34 $ 1.12 $ 1.02 Undistributed earnings per share* 0.73 0.67 2.48 2.63 Total diluted earnings per share - Class A Common Stock $ 1.10 $ 1.01 $ 3.60 $ 3.65 Class B Common Stock: Per share dividends distributed $ 0.34 $ 0.31 $ 1.02 $ 0.93 Undistributed earnings per share* 0.67 0.61 2.25 2.39 Total diluted earnings per share - Class B Common Stock $ 1.01 $ 0.92 $ 3.27 $ 3.32 * To arrive at undistributed earnings per share, undistributed net income is first prorated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. |
Antidilutive stock options | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Antidilutive stock options 121,781 180,000 193,398 180,000 Average antidilutive stock options 117,998 177,000 193,398 174,000 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
OTHER COMPREHENSIVE INCOME | |
Summary of OCI components and related tax effects | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2023 2022 2023 2022 Available-for-Sale Debt Securities: Unrealized gain (loss) on AFS debt securities $ 1,024 $ (15,510) $ 1,812 $ (46,892) Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings (7) 1 27 10 Net gains (losses) 1,017 (15,509) 1,839 (46,882) Income tax benefit (expense) related to items of other comprehensive income (250) 3,875 (461) 11,720 Net of tax 767 (11,634) $ 1,378 $ (35,162) |
Summary of the AOCI balances, net of tax | 2023 (in thousands) December 31, 2022 Change September 30, 2023 Unrealized gain (loss) on AFS debt securities $ (32,934) $ 1,351 $ (31,583) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 955 27 982 Total unrealized gain (loss) $ (31,979) $ 1,378 $ (30,601) 2022 (in thousands) December 31, 2021 Change September 30, 2022 Unrealized gain (loss) on AFS debt securities $ 890 $ (35,169) $ (34,279) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 984 7 991 Total unrealized gain (loss) $ 1,874 $ (35,162) $ (33,288) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of net revenues by reportable segments | Three Months Ended September 30, 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) $ 47,409 $ 2,467 $ 84 $ 49,960 $ 4,525 $ 10,340 $ 14,865 $ 64,825 Noninterest income: Service charges on deposit accounts 3,547 11 — 3,558 — 1 1 3,559 Net refund transfer fees — — — — 242 — 242 242 Mortgage banking income (1) — — 852 852 — — — 852 Interchange fee income 3,258 — — 3,258 23 1 24 3,282 Program fees (1) — — — — 705 3,336 4,041 4,041 Increase in cash surrender value of BOLI (1) 690 — — 690 — — — 690 Death benefits in excess of cash surrender value of life insurance — — — — — — — — Net losses on OREO (53) — — (53) — — — (53) Legal settlement — — — — — — — — Other 1,306 — 15 1,321 59 26 85 1,406 Total noninterest income 8,748 11 867 9,626 1,029 3,364 4,393 14,019 Total net revenue $ 56,157 $ 2,478 $ 951 $ 59,586 $ 5,554 $ 13,704 $ 19,258 $ 78,844 Net-revenue concentration (2) 72 % 3 % 1 % 76 % 7 % 17 % 24 % 100 % Three Months Ended September 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 46,562 $ 3,011 $ 112 $ 49,685 $ 1,709 $ 7,203 $ 8,912 $ 58,597 Noninterest income: Service charges on deposit accounts 3,397 13 — 3,410 (1) — (1) 3,409 Net refund transfer fees — — — — 593 — 593 593 Mortgage banking income (1) — — 1,154 1,154 — — — 1,154 Interchange fee income 3,292 — — 3,292 30 — 30 3,322 Program fees (1) — — — — 724 4,208 4,932 4,932 Increase in cash surrender value of BOLI (1) 617 — — 617 — — — 617 Net losses on OREO (53) — — (53) — — — (53) Other 1,068 — 33 1,101 33 — 33 1,134 Total noninterest income 8,321 13 1,187 9,521 1,379 4,208 5,587 15,108 Total net revenue $ 54,883 $ 3,024 $ 1,299 $ 59,206 $ 3,088 $ 11,411 $ 14,499 $ 73,705 Net-revenue concentration (2) 75 % 4 % 2 % 81 % 4 % 15 % 19 % 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. Nine Months Ended September 30, 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) $ 146,198 $ 7,196 $ 206 $ 153,600 $ 40,300 $ 28,096 $ 68,396 $ 221,996 Noninterest income: Service charges on deposit accounts 10,351 33 — 10,384 — 1 1 10,385 Net refund transfer fees — — — — 15,528 — 15,528 15,528 Mortgage banking income (1) — — 2,559 2,559 — — — 2,559 Interchange fee income 9,639 — — 9,639 112 1 113 9,752 Program fees (1) — — — — 2,140 8,881 11,021 11,021 Increase in cash surrender value of BOLI (1) 2,014 — — 2,014 — — — 2,014 Death benefits in excess of cash surrender value of life insurance (1) 1,728 — — 1,728 — — — 1,728 Net losses on OREO (158) — — (158) — — — (158) Other 3,158 — 59 3,217 214 91 305 3,522 Total noninterest income 26,732 33 2,618 29,383 17,994 8,974 26,968 56,351 Total net revenue $ 172,930 $ 7,229 $ 2,824 $ 182,983 $ 58,294 $ 37,070 $ 95,364 $ 278,347 Net-revenue concentration (2) 62 % 3 % 1 % 66 % 21 % 13 % 34 % 100 % Nine Months Ended September 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income (1) $ 121,868 $ 11,412 $ 469 $ 133,749 $ 18,751 $ 21,078 $ 39,829 $ 173,578 Noninterest income: Service charges on deposit accounts 9,971 38 — 10,009 (11) — (11) 9,998 Net refund transfer fees — — — — 16,594 — 16,594 16,594 Mortgage banking income (1) — — 5,574 5,574 — — — 5,574 Interchange fee income 9,693 — — 9,693 160 — 160 9,853 Program fees (1) — — — — 2,187 10,484 12,671 12,671 Increase in cash surrender value of BOLI (1) 1,852 — — 1,852 — — — 1,852 Net losses on OREO (158) — — (158) — — — (158) Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — 13,000 — 13,000 13,000 Other 1,939 — 113 2,052 250 — 250 2,302 Total noninterest income 23,297 38 5,687 29,022 37,180 10,484 47,664 76,686 Total net revenue $ 145,165 $ 11,450 $ 6,156 $ 162,771 $ 55,931 $ 31,562 $ 87,493 $ 250,264 Net-revenue concentration (2) 58 % 5 % 2 % 65 % 22 % 13 % 35 % 100 % (3) This revenue is not subject to ASC 606. (4) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
SEGMENT INFORMATION | |
Schedule of segment information | Three Months Ended September 30, 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 $ 47,409 $ 2,467 $ 84 $ 49,960 $ 4,525 $ 10,340 $ 14,865 $ 64,825 Provision for expected credit loss expense 1,567 (203) — 1,364 (1,967) 4,333 2,366 3,730 Net refund transfer fees — — — — 242 — 242 242 Mortgage banking income — — 852 852 — — — 852 Program fees — — — — 705 3,336 4,041 4,041 Other noninterest income 8,748 11 15 8,774 82 28 110 8,884 Total noninterest income 8,748 11 867 9,626 1,029 3,364 4,393 14,019 Total noninterest expense 39,381 640 1,793 41,814 3,116 3,112 6,228 48,042 Income (loss) before income tax expense 15,209 2,041 (842) 16,408 4,405 6,259 10,664 27,072 Income tax expense (benefit) 2,942 456 (185) 3,213 896 1,392 2,288 5,501 Net income (loss) $ 12,267 $ 1,585 $ (657) $ 13,195 $ 3,509 $ 4,867 $ 8,376 $ 21,571 Period-end assets $ 5,375,648 $ 458,542 $ 14,457 $ 5,848,647 $ 403,733 $ 134,095 $ 537,828 $ 6,386,475 Net interest margin 3.52 % 2.33 % NM 3.43 % NM NM NM 4.35 % Net-revenue concentration* 72 % 3 % 1 % 76 % 7 % 17 % 24 % 100 % Three Months Ended September 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 46,562 $ 3,011 $ 112 $ 49,685 $ 1,709 $ 7,203 $ 8,912 $ 58,597 Provision for expected credit loss expense (753) (386) — (1,139) (1,296) 4,008 2,712 1,573 Net refund transfer fees — — — — 593 — 593 593 Mortgage banking income — — 1,154 1,154 — — — 1,154 Program fees — — — — 724 4,208 4,932 4,932 Other noninterest income 8,321 13 33 8,367 62 — 62 8,429 Total noninterest income 8,321 13 1,187 9,521 1,379 4,208 5,587 15,108 Total noninterest expense 37,838 851 2,005 40,694 3,248 2,224 5,472 46,166 Income before income tax expense 17,798 2,559 (706) 19,651 1,136 5,179 6,315 25,966 Income tax expense 4,299 572 (156) 4,715 202 1,153 1,355 6,070 Net income $ 13,499 $ 1,987 $ (550) $ 14,936 $ 934 $ 4,026 $ 4,960 $ 19,896 Period-end assets $ 5,036,343 $ 441,885 $ 16,418 $ 5,494,646 $ 395,873 $ 109,144 $ 505,017 $ 5,999,663 Net interest margin 3.63 % 2.54 % NM 3.54 % NM NM NM 4.09 % Net-revenue concentration* 75 % 4 % 2 % 81 % 4 % 15 % 19 % 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. Nine Months Ended September 30, 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 $ 146,198 $ 7,196 $ 206 $ 153,600 $ 40,300 $ 28,096 $ 68,396 $ 221,996 Provision for expected credit loss expense 6,411 134 — 6,545 19,622 10,468 30,090 36,635 Net refund transfer fees — — — — 15,528 — 15,528 15,528 Mortgage banking income — — 2,559 2,559 — — — 2,559 Program fees — — — — 2,140 8,881 11,021 11,021 Contract termination fee — — — — — — — — Legal settlement — — — — — — — — Other noninterest income 26,732 33 59 26,824 326 93 419 27,243 Total noninterest income 26,732 33 2,618 29,383 17,994 8,974 26,968 56,351 Total noninterest expense 122,386 2,616 6,669 131,671 11,907 8,440 20,347 152,018 Income (loss) before income tax expense 44,133 4,479 (3,845) 44,767 26,765 18,162 44,927 89,694 Income tax expense (benefit) 8,965 1,001 (846) 9,120 5,828 4,031 9,859 18,979 Net income (loss) $ 35,168 $ 3,478 $ (2,999) $ 35,647 $ 20,937 $ 14,131 $ 35,068 $ 70,715 Period-end assets $ 5,375,648 $ 458,542 $ 14,457 $ 5,848,647 $ 403,733 $ 134,095 $ 537,828 $ 6,386,475 Net interest margin 3.76 % 2.37 % NM 3.68 % NM NM NM 5.09 % Net-revenue concentration* 62 % 3 % 1 % 66 % 21 % 13 % 34 % 100 % Nine Months Ended September 30, 2022 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 121,868 $ 11,412 $ 469 $ 133,749 $ 18,751 $ 21,078 $ 39,829 $ 173,578 Provision for expected credit loss expense (287) (1,021) — (1,308) 6,976 8,836 15,812 14,504 Net refund transfer fees — — — — 16,594 — 16,594 16,594 Mortgage banking income — — 5,574 5,574 — — — 5,574 Program fees — — — — 2,187 10,484 12,671 12,671 Contract termination fee — — — — 5,000 — 5,000 5,000 Legal settlement — — — — 13,000 — 13,000 13,000 Other noninterest income 23,297 38 113 23,448 399 — 399 23,847 Total noninterest income 23,297 38 5,687 29,022 37,180 10,484 47,664 76,686 Total noninterest expense 114,381 2,838 7,527 124,746 11,928 5,729 17,657 142,403 Income before income tax expense 31,071 9,633 (1,371) 39,333 37,027 16,997 54,024 93,357 Income tax expense 6,419 2,168 (302) 8,285 8,573 3,906 12,479 20,764 Net income $ 24,652 $ 7,465 $ (1,069) $ 31,048 $ 28,454 $ 13,091 $ 41,545 $ 72,593 Period-end assets $ 5,036,343 $ 441,885 $ 16,418 $ 5,494,646 $ 395,873 $ 109,144 $ 505,017 $ 5,999,663 Net interest margin 3.20 % 2.79 % NM 3.16 % NM NM NM 3.99 % Net-revenue concentration* 58 % 5 % 2 % 65 % 22 % 13 % 35 % 100 % * Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details) | 9 Months Ended |
Sep. 30, 2023 item segment | |
Basis of Presentation | |
Number of reportable segments | segment | 5 |
Number of banking centers | 46 |
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 | |
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 |
Indiana | |
Basis of Presentation | |
Number of banking centers | 3 |
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 |
Florida | |
Basis of Presentation | |
Number of banking centers | 7 |
Metropolitan Tampa, Florida | |
Basis of Presentation | |
Number of banking centers | 7 |
Ohio | |
Basis of Presentation | |
Number of banking centers | 4 |
Metropolitan Cincinnati, Ohio | |
Basis of Presentation | |
Number of banking centers | 4 |
Tennessee | |
Basis of Presentation | |
Number of banking centers | 3 |
Metropolitan Nashville, Tennessee | |
Basis of Presentation | |
Number of banking centers | 3 |
Core Banking Activities | |
Basis of Presentation | |
Number of reportable segments | segment | 3 |
Core Banking Activities | Minimum | |
Basis of Presentation | |
Period of loan expected to remain in warehouse line | 15 days |
Core Banking Activities | Maximum | |
Basis of Presentation | |
Period of loan expected to remain in warehouse line | 30 days |
Republic Processing Group | |
Basis of Presentation | |
Number of reportable segments | segment | 2 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENTS (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Jun. 06, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2019 | Feb. 28, 2023 | Jan. 31, 2023 USD ($) | Feb. 28, 2022 | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) | |
Contract termination fee | |||||||||||
Basis of Presentation | |||||||||||
Revenue recognized | $ 5,000,000 | ||||||||||
Contract termination fee | Green Dot | |||||||||||
Basis of Presentation | |||||||||||
Revenue recognized | $ 5,000,000 | ||||||||||
Legal settlement | |||||||||||
Basis of Presentation | |||||||||||
Revenue recognized | 13,000,000 | ||||||||||
Legal settlement | Green Dot | |||||||||||
Basis of Presentation | |||||||||||
Revenue recognized | $ 13,000,000 | $ 13,000,000 | |||||||||
Republic Processing Group | Contract termination fee | |||||||||||
Basis of Presentation | |||||||||||
Revenue recognized | 5,000,000 | ||||||||||
Republic Processing Group | Legal settlement | |||||||||||
Basis of Presentation | |||||||||||
Revenue recognized | 13,000,000 | ||||||||||
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 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 amount | $ 10,000 | ||||||||||
Republic Credit Solutions | Installment loan | |||||||||||
Basis of Presentation | |||||||||||
Term for intent to sell loans | 16 days | 16 days | |||||||||
Republic Credit Solutions | Installment loan | Minimum | |||||||||||
Basis of Presentation | |||||||||||
Loan held-for-sale term | 12 months | 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 | 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 | 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 | ||||||||||
Tax Refund Solutions | Legal settlement | |||||||||||
Basis of Presentation | |||||||||||
Revenue recognized | $ 13,000,000 |
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 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | |||||||
Cash and cash equivalents | $ 219,653 | $ 313,689 | |||||
Loans (loans carried at fair value of $0 in 2023 and $2 in 2022) | 5,081,099 | 4,515,802 | |||||
Allowance for credit losses | (74,576) | $ (72,202) | (70,413) | $ (64,919) | $ (64,449) | $ (64,577) | |
Loans, net | 5,006,523 | 4,445,389 | |||||
Goodwill | 40,516 | 16,300 | |||||
Premises and equipment, net | 33,926 | 31,978 | |||||
Other assets and accrued interest receivable | 110,159 | 76,393 | |||||
TOTAL ASSETS | 6,386,475 | 5,835,543 | $ 5,999,663 | ||||
Deposits: | |||||||
Noninterest-bearing | 1,702,979 | 1,908,768 | |||||
Interest-bearing | 3,090,603 | 2,629,077 | |||||
Total deposits | 4,793,582 | 4,537,845 | |||||
Other liabilities and accrued interest payable | 58,112 | 47,711 | |||||
Total liabilities | 5,493,075 | 4,978,930 | |||||
Assets acquired: | |||||||
Goodwill | 40,516 | 16,300 | |||||
Liabilities assumed: | |||||||
Goodwill | $ 40,516 | $ 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 assumed: | |||||||
Goodwill | 954 | ||||||
CBank | Fair Value Adjustments | |||||||
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) | ||||||
CBank | |||||||
ASSETS | |||||||
Goodwill | 24,216 | ||||||
Assets acquired: | |||||||
Cash and cash equivalents | 10,030 | ||||||
Investment securities | 16,394 | ||||||
Loans | 217,338 | ||||||
Allowance for loan and lease losses | (209) | ||||||
Loans, net | 217,129 | ||||||
Goodwill | 24,216 | ||||||
Core deposit intangible | 2,844 | ||||||
Premises and equipment, net | 173 | ||||||
Other assets and accrued interest receivable | 6,747 | ||||||
Total assets acquired | 253,317 | ||||||
Liabilities assumed: | |||||||
Noninterest-bearing | 42,160 | ||||||
Interest-bearing | 179,518 | ||||||
Total deposits | 221,678 | ||||||
Other liabilities and accrued interest payable | 4,855 | ||||||
Total liabilities assumed | 226,533 | ||||||
Net assets acquired | 26,784 | ||||||
Cash consideration paid | (51,000) | ||||||
Goodwill | 24,216 | ||||||
CBank | Recast Adjustments | |||||||
Fair Value Adjustments | |||||||
Fair value adjustments, Investment securities | (65) | ||||||
Fair value adjustments, Loans | (150) | ||||||
Fair value adjustments, Allowance for loan and lease losses | 1,391 | ||||||
Fair value adjustments, Loans, net | 1,241 | ||||||
Fair value adjustments, Premises and equipment, net | (24) | ||||||
Fair value adjustments, Total assets acquired | 1,152 | ||||||
Fair value adjustments, Other liabilities and accrued interest payable | 50 | ||||||
Fair value adjustments, Total liabilities assumed | 50 | ||||||
Fair value adjustments, Net assets acquired | $ 1,102 |
INVESTMENT SECURITIES - AFS (De
INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Available-for-Sale Debt Securities | |||
Amortized Cost | $ 642,019 | $ 663,003 | |
Gross Unrealized Gains | 1,569 | 1,437 | |
Gross Unrealized Losses | (42,368) | (44,075) | |
Allowance for Credit Losses | 0 | 0 | |
Total available-for-sale debt securities | 601,220 | 620,365 | |
U.S. Treasury securities and U.S. Government agencies | |||
Available-for-Sale Debt Securities | |||
Amortized Cost | 436,512 | 436,333 | |
Gross Unrealized Gains | 1 | 1 | |
Gross Unrealized Losses | (20,901) | (25,193) | |
Allowance for Credit Losses | 0 | 0 | |
Total available-for-sale debt securities | 415,612 | 411,141 | |
Private label mortgage backed security | |||
Available-for-Sale Debt Securities | |||
Amortized Cost | 574 | 843 | |
Gross Unrealized Gains | 1,311 | 1,284 | |
Allowance for Credit Losses | 0 | 0 | |
Total available-for-sale debt securities | 1,885 | 2,127 | |
Mortgage-backed securities - residential | |||
Available-for-Sale Debt Securities | |||
Amortized Cost | 175,693 | 189,312 | |
Gross Unrealized Gains | 16 | 16 | |
Gross Unrealized Losses | (20,160) | (17,455) | |
Allowance for Credit Losses | 0 | 0 | |
Total available-for-sale debt securities | 155,549 | 171,873 | |
Collateralized mortgage obligations | |||
Available-for-Sale Debt Securities | |||
Amortized Cost | 23,441 | 22,774 | |
Gross Unrealized Gains | 29 | 21 | |
Gross Unrealized Losses | (1,307) | (1,427) | |
Allowance for Credit Losses | 0 | 0 | |
Total available-for-sale debt securities | 22,163 | 21,368 | |
Corporate bonds | |||
Available-for-Sale Debt Securities | |||
Amortized Cost | 2,014 | 10,000 | |
Gross Unrealized Gains | 2 | 1 | |
Allowance for Credit Losses | 0 | 0 | $ (30) |
Total available-for-sale debt securities | 2,016 | 10,001 | |
Trust preferred security | |||
Available-for-Sale Debt Securities | |||
Amortized Cost | 3,785 | 3,741 | |
Gross Unrealized Gains | 210 | 114 | |
Allowance for Credit Losses | 0 | 0 | |
Total available-for-sale debt securities | $ 3,995 | $ 3,855 |
INVESTMENT SECURITIES - HTM (De
INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | $ 101,660 | $ 87,396 | ||||
Gross Unrecognized Gains | 66 | 160 | ||||
Gross Unrecognized Losses | (524) | (199) | ||||
Fair Value | 101,202 | 87,357 | ||||
Allowance for credit losses | (10) | (10) | ||||
U.S. Treasury securities and U.S. Government agencies | ||||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 90,000 | 75,000 | ||||
Gross Unrecognized Gains | 106 | |||||
Gross Unrecognized Losses | (368) | |||||
Fair Value | 89,632 | 75,106 | ||||
Mortgage-backed securities - residential | ||||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 25 | 27 | ||||
Gross Unrecognized Losses | (1) | (1) | ||||
Fair Value | 24 | 26 | ||||
Collateralized mortgage obligations | ||||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 6,652 | 7,270 | ||||
Gross Unrecognized Gains | 40 | 54 | ||||
Gross Unrecognized Losses | (155) | (148) | ||||
Fair Value | 6,537 | 7,176 | ||||
Corporate bonds | ||||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 4,983 | 4,974 | ||||
Gross Unrecognized Gains | 26 | |||||
Gross Unrecognized Losses | (49) | |||||
Fair Value | 5,009 | 4,925 | ||||
Allowance for credit losses | $ (10) | $ (10) | (10) | $ (10) | $ (50) | $ (47) |
Obligations of state and political subdivisions | ||||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 125 | |||||
Gross Unrecognized Losses | (1) | |||||
Fair Value | $ 124 |
INVESTMENT SECURITIES - SALES A
INVESTMENT SECURITIES - SALES AND CALLS OF AFS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INVESTMENT SECURITIES | ||||
Net gains (losses) on securities available for sale | $ 0 | $ 0 | $ 0 | $ 0 |
INVESTMENT SECURITIES - AMORTIZ
INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Securities available for Sale - Amortized Cost | ||
Due in one year or less | $ 169,819 | |
Due from one year to five years | 268,707 | |
Due beyond ten years | 3,785 | |
Amortized Cost | 642,019 | $ 663,003 |
Securities available for Sale - Fair Value | ||
Due in one year or less | 165,862 | |
Due from one year to five years | 251,766 | |
Due beyond ten years | 3,995 | |
Total securities | 601,220 | 620,365 |
Securities held to maturity - Amortized Cost | ||
Due in one year or less | 25,000 | |
Due from one year to five years | 69,983 | |
Total securities | 101,660 | 87,396 |
Securities held to maturity - Fair Value | ||
Due in one year or less | 24,917 | |
Due from one year to five years | 69,724 | |
Fair Value | 101,202 | 87,357 |
Private label mortgage backed security | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 574 | |
Amortized Cost | 574 | 843 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 1,885 | |
Total securities | 1,885 | 2,127 |
Mortgage-backed securities - residential | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 175,693 | |
Amortized Cost | 175,693 | 189,312 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 155,549 | |
Total securities | 155,549 | 171,873 |
Securities held to maturity - Amortized Cost | ||
Total securities | 25 | 27 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 24 | |
Fair Value | 24 | 26 |
Securities not due at a single maturity date | 25 | |
Collateralized mortgage obligations | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 23,441 | |
Amortized Cost | 23,441 | 22,774 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 22,163 | |
Total securities | 22,163 | 21,368 |
Securities held to maturity - Amortized Cost | ||
Total securities | 6,652 | 7,270 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 6,537 | |
Fair Value | 6,537 | $ 7,176 |
Securities not due at a single maturity date | $ 6,652 |
INVESTMENT SECURITIES - INVESTM
INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 41,907 | $ 355,064 |
Less than 12 months Unrealized Losses | (879) | (15,999) |
12 months or more Fair Value | 532,790 | 237,202 |
12 months or more Unrealized Losses | (41,489) | (28,076) |
Total Fair Value | 574,697 | 592,266 |
Total Unrealized Losses | $ (42,368) | $ (44,075) |
Number of securities held | 191 | 179 |
Number of securities held in an unrealized loss position | 172 | 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 | $ 26,661 | $ 229,372 |
Less than 12 months Unrealized Losses | (128) | (7,139) |
12 months or more Fair Value | 373,950 | 171,676 |
12 months or more Unrealized Losses | (20,773) | (18,054) |
Total Fair Value | 400,611 | 401,048 |
Total Unrealized Losses | (20,901) | (25,193) |
Mortgage backed securities - residential | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 11,905 | 105,274 |
Less than 12 months Unrealized Losses | (628) | (7,434) |
12 months or more Fair Value | 141,948 | 65,520 |
12 months or more Unrealized Losses | (19,532) | (10,021) |
Total Fair Value | 153,853 | 170,794 |
Total Unrealized Losses | (20,160) | (17,455) |
Collateralized mortgage obligations | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 3,341 | 20,418 |
Less than 12 months Unrealized Losses | (123) | (1,426) |
12 months or more Fair Value | 16,892 | 6 |
12 months or more Unrealized Losses | (1,184) | (1) |
Total Fair Value | 20,233 | 20,424 |
Total Unrealized Losses | $ (1,307) | $ (1,427) |
INVESTMENT SECURITIES - PRIVATE
INVESTMENT SECURITIES - PRIVATE LABEL MORTGAGE-BACKED SECURITY (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Number of securities held | 191 | 179 |
Private label mortgage backed security | ||
Marketable Securities [Line Items] | ||
Number of securities held | 1 | |
Securities | $ 1,885 |
INVESTMENT SECURITIES - CORPORA
INVESTMENT SECURITIES - CORPORATE BONDS AND MORTGAGE BACKED SECURITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Private label mortgage backed security | ||
Marketable Securities [Line Items] | ||
Securities | $ 1,885 | |
Mortgage backed securities and CMOs | ||
Marketable Securities [Line Items] | ||
Gross unrealized losses on available for sale securities | $ 21,500 | $ 18,900 |
INVESTMENT SECURITIES - ACLS RO
INVESTMENT SECURITIES - ACLS ROLLFORWARD (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Marketable Securities [Line Items] | |||||
Beginning Balance - AFS | $ 0 | ||||
Beginning Balance - HTM | 10 | ||||
Balance - Total | $ 10 | $ 80 | 10 | $ 47 | |
Provision - Total | 0 | (70) | 0 | (37) | |
Ending Balance - AFS | 0 | 0 | |||
Ending Balance - HTM | 10 | 10 | |||
Balance - Total | 10 | 10 | 10 | 10 | |
Debt Securities, Held-to-maturity, Nonaccrual | 0 | 0 | $ 0 | ||
Debt Securities, Held To Maturity, Collateral Dependent | 0 | 0 | $ 0 | ||
Corporate bonds | |||||
Marketable Securities [Line Items] | |||||
Beginning Balance - AFS | 30 | 0 | |||
Beginning Balance - HTM | 10 | 50 | 10 | 47 | |
Provision - AFS | (30) | ||||
Provision - HTM | (40) | (37) | |||
Ending Balance - AFS | 0 | 0 | |||
Ending Balance - HTM | $ 10 | $ 10 | $ 10 | $ 10 |
INVESTMENT SECURITIES - ACCRUED
INVESTMENT SECURITIES - ACCRUED INTEREST (Details) - Other Assets. - USD ($) | Sep. 30, 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 | Sep. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 90,170 | $ 236,047 |
Carrying Value | ||
Marketable Securities [Line Items] | ||
Fair value | 82,376 | 217,562 |
Total Fair Value | ||
Marketable Securities [Line Items] | ||
Fair value | $ 82,376 | $ 217,562 |
INVESTMENT SECURITIES - EQUITY
INVESTMENT SECURITIES - EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Equity securities | |||||
Gross Unrealized Gains | $ 137 | $ 111 | |||
Fair Value | $ 137 | 137 | 111 | ||
Gains (Losses) Recognized on Equity securities, Realized | $ (209) | ||||
Gains (Losses) Recognized on Equity securities, Unrealized | 16 | $ (14) | 26 | 5 | |
Gains (Losses) Recognized on Equity securities, Total | 16 | (14) | 26 | (204) | |
Freddie Mac preferred stock | |||||
Equity securities | |||||
Gross Unrealized Gains | 137 | 111 | |||
Fair Value | 137 | 137 | $ 111 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | 16 | (14) | 26 | 5 | |
Gains (Losses) Recognized on Equity securities, Total | $ 16 | $ (14) | $ 26 | 5 | |
Mutual fund | |||||
Equity securities | |||||
Gains (Losses) Recognized on Equity securities, Realized | (209) | ||||
Gains (Losses) Recognized on Equity securities, Total | $ (209) |
LOANS HELD FOR SALE - CONSUMER
LOANS HELD FOR SALE - CONSUMER LOANS - HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consumer Loans Held For Sale At Fair Value [RollForward] | ||||
Balance, beginning of period | $ 5,757 | $ 17,459 | $ 4,706 | $ 19,747 |
Origination of consumer loans held for sale | 34,280 | 85,172 | 87,224 | 280,608 |
Proceeds from the sale of consumer loans held for sale | (32,545) | (96,169) | (85,994) | (297,253) |
Net gain on sale of consumer loans held for sale | 951 | 2,334 | 2,507 | 5,694 |
Balance, end of period | $ 8,443 | $ 8,796 | $ 8,443 | $ 8,796 |
LOANS HELD FOR SALE - CONSUME_2
LOANS HELD FOR SALE - CONSUMER LOANS - LOWER COST (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Carried at lower of cost or fair value | |||||
Balance, beginning of period | $ 15,787 | $ 13,777 | $ 13,169 | $ 2,937 | |
Origination of consumer loans held for sale | 252,808 | 206,959 | 669,490 | 539,519 | |
Proceeds from the sale of consumer loans held for sale | (257,452) | (209,924) | (675,503) | (534,549) | |
Net gain on sale of consumer loans held for sale | 2,386 | 1,867 | 6,373 | 4,772 | |
Balance, end of period | $ 13,529 | $ 12,679 | $ 13,529 | $ 12,679 | |
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 | 16 days | |||
Republic Credit Solutions | Installment loan | Minimum | |||||
Loans held for sale | |||||
Loan held-for-sale term | 12 months | 12 months | 12 months | ||
Republic Credit Solutions | Installment loan | Maximum | |||||
Loans held for sale | |||||
Loan held-for-sale term | 60 months | 60 months | 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 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans disclosures | ||||||
Lease financing receivables | $ 85,242 | $ 10,505 | ||||
Loans | 5,081,099 | 4,515,802 | ||||
Allowance for credit losses | (74,576) | $ (72,202) | (70,413) | $ (64,919) | $ (64,449) | $ (64,577) |
Loans, net | 5,006,523 | 4,445,389 | ||||
Core Banking Activities | ||||||
Loans disclosures | ||||||
Loans | 4,953,776 | 4,258,702 | ||||
Allowance for credit losses | (58,074) | (56,913) | (51,718) | (50,336) | (51,218) | (51,533) |
Traditional Banking | ||||||
Loans disclosures | ||||||
Lease financing receivables | 85,242 | 10,505 | ||||
Loans | 4,496,743 | 3,855,142 | ||||
Allowance for credit losses | (56,931) | $ (55,567) | (50,709) | $ (49,231) | $ (49,727) | $ (49,407) |
Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 127,323 | 257,100 | ||||
Residential real estate | Residential Real Estate - Owner Occupied | ||||||
Loans disclosures | ||||||
Total loans | 1,128,745 | 911,427 | ||||
Residential real estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 1,128,745 | 911,427 | ||||
Residential real estate | Residential Real Estate - Non Owner Occupied | ||||||
Loans disclosures | ||||||
Total loans | 344,682 | 321,358 | ||||
Residential real estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 344,682 | 321,358 | ||||
Residential real estate | Home equity | ||||||
Loans disclosures | ||||||
Total loans | 275,750 | 241,739 | ||||
Residential real estate | Home equity | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 275,750 | 241,739 | ||||
Commercial real estate | ||||||
Loans disclosures | ||||||
Total loans | 1,745,187 | 1,599,510 | ||||
Commercial real estate | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 1,745,187 | 1,599,510 | ||||
Construction & land development | ||||||
Loans disclosures | ||||||
Total loans | 189,756 | 153,875 | ||||
Construction & land development | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 189,756 | 153,875 | ||||
Commercial | Commercial and Industrial | ||||||
Loans disclosures | ||||||
Total loans | 473,790 | 413,387 | ||||
Commercial | Commercial and Industrial | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 473,790 | 413,387 | ||||
Aircraft | ||||||
Loans disclosures | ||||||
Total loans | 226,947 | 179,785 | ||||
Aircraft | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 226,947 | 179,785 | ||||
Consumer | ||||||
Loans disclosures | ||||||
Total loans | 26,644 | 23,556 | ||||
Consumer | Credit cards | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 16,950 | 15,473 | ||||
Consumer | Overdrafts | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 640 | 726 | ||||
Consumer | Automobile loans | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 3,380 | 6,731 | ||||
Consumer | Other consumer | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 5,674 | 626 | ||||
Warehouse lines of credit | ||||||
Loans disclosures | ||||||
Total loans | 457,033 | 403,560 | ||||
Warehouse lines of credit | Warehouse Lending | ||||||
Loans disclosures | ||||||
Total loans | 457,033 | 403,560 | ||||
Tax Refund Solution | ||||||
Loans disclosures | ||||||
Total loans | 354 | 149,272 | ||||
Tax Refund Solution | Refund Advances | Tax Refund Solutions | ||||||
Loans disclosures | ||||||
Total loans | 97,505 | |||||
Tax Refund Solution | Other TRS commercial and industrial loans | Tax Refund Solutions | ||||||
Loans disclosures | ||||||
Total loans | 354 | 51,767 | ||||
Republic Credit Solution | ||||||
Loans disclosures | ||||||
Total loans | 126,969 | 107,828 | ||||
Republic Credit Solution | Republic Credit Solutions | ||||||
Loans disclosures | ||||||
Total loans | $ 126,969 | $ 107,828 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Contractually receivable | $ 5,088,035 | $ 4,519,136 |
Unearned income | (2,325) | (835) |
Unamortized premiums | 1,209 | 99 |
Unaccreted discounts | (2,859) | (479) |
Other net unamortized deferred origination (fees) and costs | (2,961) | (2,119) |
Loans | $ 5,081,099 | $ 4,515,802 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RISK CATEGORY (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Loans | |||||
Revolving Loans Amortized Cost Basis | $ 935,213 | $ 935,213 | $ 992,992 | ||
Revolving Loans Converted To Term Loans | 140,467 | 140,467 | 110,803 | ||
Loans, Gross Charge-offs | |||||
Revolving Loans Amortized Cost Basis | 36,136 | 24,323 | |||
Lease | |||||
Year One | 36,895 | 36,895 | 5,469 | ||
Year Two | 26,631 | 26,631 | 1,964 | ||
Year Three | 11,907 | 11,907 | 542 | ||
Year Four | 5,554 | 5,554 | 1,548 | ||
Prior | 4,255 | 4,255 | 982 | ||
Total Loans | 85,242 | 85,242 | 10,505 | ||
Loans and Lease | |||||
Year One | 792,338 | 792,338 | 1,083,468 | ||
Year Two | 1,047,762 | 1,047,762 | 887,197 | ||
Year Three | 816,966 | 816,966 | 510,259 | ||
Year Four | 474,434 | 474,434 | 303,266 | ||
Prior | 873,919 | 873,919 | 627,817 | ||
Loans | 5,081,099 | 5,081,099 | 4,515,802 | ||
Loans and Lease, Gross Charge-offs | |||||
Year One | 126 | 21 | |||
Year Two | 19 | 14 | |||
Year Three | 24 | ||||
Year Four | 11 | ||||
Prior | 7 | ||||
Total, YTD Gross Charge-offs | (2,316) | $ 3,275 | 36,312 | $ 20,525 | 24,369 |
Pass or not rated | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 930,220 | 930,220 | 990,235 | ||
Revolving Loans Converted To Term Loans | 139,646 | 139,646 | 110,803 | ||
Lease | |||||
Year One | 36,895 | 36,895 | 5,469 | ||
Year Two | 26,631 | 26,631 | 1,964 | ||
Year Three | 11,907 | 11,907 | 542 | ||
Year Four | 5,554 | 5,554 | 1,548 | ||
Prior | 2,973 | 2,973 | 982 | ||
Total Loans | 83,960 | 83,960 | 10,505 | ||
Loans and Lease | |||||
Year One | 791,765 | 791,765 | 1,078,578 | ||
Year Two | 1,044,044 | 1,044,044 | 860,795 | ||
Year Three | 797,712 | 797,712 | 508,758 | ||
Year Four | 472,858 | 472,858 | 280,501 | ||
Prior | 822,053 | 822,053 | 597,660 | ||
Loans | 4,998,298 | 4,998,298 | 4,427,330 | ||
Special Mention | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 2,191 | 2,191 | 744 | ||
Lease | |||||
Prior | 981 | 981 | |||
Total Loans | 981 | 981 | |||
Loans and Lease | |||||
Year One | 573 | 573 | 3,660 | ||
Year Two | 2,136 | 2,136 | 25,269 | ||
Year Three | 17,562 | 17,562 | |||
Year Four | 438 | 438 | 21,296 | ||
Prior | 39,422 | 39,422 | 18,995 | ||
Loans | 62,322 | 62,322 | 69,964 | ||
Substandard | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 2,802 | 2,802 | 2,013 | ||
Revolving Loans Converted To Term Loans | 821 | 821 | |||
Lease | |||||
Prior | 301 | 301 | |||
Total Loans | 301 | 301 | |||
Loans and Lease | |||||
Year One | 1,230 | ||||
Year Two | 1,582 | 1,582 | 1,133 | ||
Year Three | 1,692 | 1,692 | 1,501 | ||
Year Four | 1,138 | 1,138 | 1,469 | ||
Prior | 12,444 | 12,444 | 11,162 | ||
Loans | 20,479 | 20,479 | 18,508 | ||
Residential real estate | Residential Real Estate - Owner Occupied | |||||
Loans | |||||
Year One | 307,179 | 307,179 | 232,868 | ||
Year Two | 209,753 | 209,753 | 190,758 | ||
Year Three | 180,411 | 180,411 | 189,505 | ||
Year Four | 173,988 | 173,988 | 72,766 | ||
Prior | 255,914 | 255,914 | 225,530 | ||
Revolving Loans Converted To Term Loans | 1,500 | 1,500 | |||
Loans | 1,128,745 | 1,128,745 | 911,427 | ||
Loans, Gross Charge-offs | |||||
Year One | 21 | ||||
Year Two | 8 | ||||
Year Three | 16 | ||||
Total | 24 | 21 | |||
Residential real estate | Residential Real Estate - Owner Occupied | Pass or not rated | |||||
Loans | |||||
Year One | 307,179 | 307,179 | 231,638 | ||
Year Two | 208,209 | 208,209 | 189,495 | ||
Year Three | 178,744 | 178,744 | 188,004 | ||
Year Four | 172,850 | 172,850 | 71,306 | ||
Prior | 238,598 | 238,598 | 208,296 | ||
Revolving Loans Converted To Term Loans | 1,500 | 1,500 | |||
Loans | 1,107,080 | 1,107,080 | 888,739 | ||
Residential real estate | Residential Real Estate - Owner Occupied | Special Mention | |||||
Loans | |||||
Year Two | 160 | ||||
Prior | 6,482 | 6,482 | 7,240 | ||
Loans | 6,482 | 6,482 | 7,400 | ||
Residential real estate | Residential Real Estate - Owner Occupied | Substandard | |||||
Loans | |||||
Year One | 1,230 | ||||
Year Two | 1,544 | 1,544 | 1,103 | ||
Year Three | 1,667 | 1,667 | 1,501 | ||
Year Four | 1,138 | 1,138 | 1,460 | ||
Prior | 10,834 | 10,834 | 9,994 | ||
Loans | 15,183 | 15,183 | 15,288 | ||
Residential real estate | Residential Real Estate - Non Owner Occupied | |||||
Loans | |||||
Year One | 48,424 | 48,424 | 78,337 | ||
Year Two | 72,749 | 72,749 | 91,808 | ||
Year Three | 86,010 | 86,010 | 55,058 | ||
Year Four | 49,442 | 49,442 | 32,803 | ||
Prior | 80,382 | 80,382 | 57,205 | ||
Revolving Loans Converted To Term Loans | 7,675 | 7,675 | 6,147 | ||
Loans | 344,682 | 344,682 | 321,358 | ||
Residential real estate | Residential Real Estate - Non Owner Occupied | Pass or not rated | |||||
Loans | |||||
Year One | 48,424 | 48,424 | 78,337 | ||
Year Two | 72,749 | 72,749 | 91,778 | ||
Year Three | 85,990 | 85,990 | 55,058 | ||
Year Four | 49,442 | 49,442 | 32,803 | ||
Prior | 80,307 | 80,307 | 57,053 | ||
Revolving Loans Converted To Term Loans | 7,675 | 7,675 | 6,147 | ||
Loans | 344,587 | 344,587 | 321,176 | ||
Residential real estate | Residential Real Estate - Non Owner Occupied | Special Mention | |||||
Loans | |||||
Prior | 27 | 27 | 32 | ||
Loans | 27 | 27 | 32 | ||
Residential real estate | Residential Real Estate - Non Owner Occupied | Substandard | |||||
Loans | |||||
Year Two | 30 | ||||
Year Three | 20 | 20 | |||
Prior | 48 | 48 | 120 | ||
Loans | 68 | 68 | 150 | ||
Residential real estate | Home equity | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 275,750 | 275,750 | 241,739 | ||
Loans | 275,750 | 275,750 | 241,739 | ||
Residential real estate | Home equity | Pass or not rated | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 273,803 | 273,803 | 240,704 | ||
Loans | 273,803 | 273,803 | 240,704 | ||
Residential real estate | Home equity | Special Mention | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 295 | 295 | 171 | ||
Loans | 295 | 295 | 171 | ||
Residential real estate | Home equity | Substandard | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 1,652 | 1,652 | 864 | ||
Loans | 1,652 | 1,652 | 864 | ||
Commercial real estate | |||||
Loans | |||||
Year One | 177,498 | 177,498 | 454,451 | ||
Year Two | 468,572 | 468,572 | 406,187 | ||
Year Three | 379,548 | 379,548 | 210,055 | ||
Year Four | 197,435 | 197,435 | 139,224 | ||
Prior | 370,216 | 370,216 | 263,985 | ||
Revolving Loans Amortized Cost Basis | 26,183 | 26,183 | 25,817 | ||
Revolving Loans Converted To Term Loans | 125,735 | 125,735 | 99,791 | ||
Loans | 1,745,187 | 1,745,187 | 1,599,510 | ||
Loans, Gross Charge-offs | |||||
Year Two | 9 | ||||
Total | 9 | ||||
Commercial real estate | Pass or not rated | |||||
Loans | |||||
Year One | 176,925 | 176,925 | 451,327 | ||
Year Two | 466,888 | 466,888 | 394,317 | ||
Year Three | 375,172 | 375,172 | 210,055 | ||
Year Four | 197,435 | 197,435 | 117,928 | ||
Prior | 338,991 | 338,991 | 253,213 | ||
Revolving Loans Amortized Cost Basis | 24,663 | 24,663 | 25,499 | ||
Revolving Loans Converted To Term Loans | 125,735 | 125,735 | 99,791 | ||
Loans | 1,705,809 | 1,705,809 | 1,552,130 | ||
Commercial real estate | Special Mention | |||||
Loans | |||||
Year One | 573 | 573 | 3,124 | ||
Year Two | 1,684 | 1,684 | 11,870 | ||
Year Three | 4,376 | 4,376 | |||
Year Four | 21,296 | ||||
Prior | 30,319 | 30,319 | 9,967 | ||
Revolving Loans Amortized Cost Basis | 1,520 | 1,520 | 318 | ||
Loans | 38,472 | 38,472 | 46,575 | ||
Commercial real estate | Substandard | |||||
Loans | |||||
Prior | 906 | 906 | 805 | ||
Loans | 906 | 906 | 805 | ||
Construction & land development | |||||
Loans | |||||
Year One | 53,267 | 53,267 | 107,153 | ||
Year Two | 113,557 | 113,557 | 43,289 | ||
Year Three | 21,167 | 21,167 | 638 | ||
Year Four | 521 | 521 | 641 | ||
Prior | 252 | 252 | 373 | ||
Revolving Loans Amortized Cost Basis | 1,781 | ||||
Revolving Loans Converted To Term Loans | 992 | 992 | |||
Loans | 189,756 | 189,756 | 153,875 | ||
Construction & land development | Pass or not rated | |||||
Loans | |||||
Year One | 53,267 | 53,267 | 107,153 | ||
Year Two | 113,557 | 113,557 | 43,289 | ||
Year Three | 21,167 | 21,167 | 638 | ||
Year Four | 521 | 521 | 641 | ||
Prior | 252 | 252 | 373 | ||
Revolving Loans Amortized Cost Basis | 1,781 | ||||
Revolving Loans Converted To Term Loans | 992 | 992 | |||
Loans | 189,756 | 189,756 | 153,875 | ||
Commercial | Commercial and Industrial | |||||
Loans | |||||
Year One | 99,935 | 99,935 | 117,019 | ||
Year Two | 96,554 | 96,554 | 95,670 | ||
Year Three | 89,793 | 89,793 | 17,944 | ||
Year Four | 16,196 | 16,196 | 36,254 | ||
Prior | 63,524 | 63,524 | 38,123 | ||
Revolving Loans Amortized Cost Basis | 103,223 | 103,223 | 103,512 | ||
Revolving Loans Converted To Term Loans | 4,565 | 4,565 | 4,865 | ||
Loans | 473,790 | 473,790 | 413,387 | ||
Commercial | Commercial and Industrial | Pass or not rated | |||||
Loans | |||||
Year One | 99,935 | 99,935 | 116,483 | ||
Year Two | 96,064 | 96,064 | 82,431 | ||
Year Three | 76,604 | 76,604 | 17,944 | ||
Year Four | 15,758 | 15,758 | 36,254 | ||
Prior | 61,574 | 61,574 | 36,367 | ||
Revolving Loans Amortized Cost Basis | 102,820 | 102,820 | 103,257 | ||
Revolving Loans Converted To Term Loans | 3,744 | 3,744 | 4,865 | ||
Loans | 456,499 | 456,499 | 397,601 | ||
Commercial | Commercial and Industrial | Special Mention | |||||
Loans | |||||
Year One | 536 | ||||
Year Two | 452 | 452 | 13,239 | ||
Year Three | 13,186 | 13,186 | |||
Year Four | 438 | 438 | |||
Prior | 1,613 | 1,613 | 1,756 | ||
Revolving Loans Amortized Cost Basis | 376 | 376 | 255 | ||
Loans | 16,065 | 16,065 | 15,786 | ||
Commercial | Commercial and Industrial | Substandard | |||||
Loans | |||||
Year Two | 38 | 38 | |||
Year Three | 3 | 3 | |||
Prior | 337 | 337 | |||
Revolving Loans Amortized Cost Basis | 27 | 27 | |||
Revolving Loans Converted To Term Loans | 821 | 821 | |||
Loans | 1,226 | 1,226 | |||
Aircraft | |||||
Loans | |||||
Year One | 67,327 | 67,327 | 65,399 | ||
Year Two | 58,637 | 58,637 | 54,749 | ||
Year Three | 47,885 | 47,885 | 35,085 | ||
Year Four | 31,206 | 31,206 | 16,888 | ||
Prior | 21,892 | 21,892 | 7,664 | ||
Loans | 226,947 | 226,947 | 179,785 | ||
Aircraft | Pass or not rated | |||||
Loans | |||||
Year One | 67,327 | 67,327 | 65,399 | ||
Year Two | 58,637 | 58,637 | 54,749 | ||
Year Three | 47,885 | 47,885 | 35,085 | ||
Year Four | 31,206 | 31,206 | 16,888 | ||
Prior | 21,892 | 21,892 | 7,454 | ||
Loans | 226,947 | 226,947 | 179,575 | ||
Aircraft | Substandard | |||||
Loans | |||||
Prior | 210 | ||||
Loans | 210 | ||||
Consumer | |||||
Loans | |||||
Year One | 1,813 | 1,813 | 415 | ||
Year Two | 1,309 | 1,309 | 499 | ||
Year Three | 245 | 245 | 168 | ||
Year Four | 92 | 92 | 2,540 | ||
Prior | 4,288 | 4,288 | 4,361 | ||
Revolving Loans Amortized Cost Basis | 18,897 | 18,897 | 15,573 | ||
Loans | 26,644 | 26,644 | 23,556 | ||
Loans, Gross Charge-offs | |||||
Year Two | 11 | 5 | |||
Year Three | 8 | ||||
Year Four | 11 | ||||
Prior | 7 | ||||
Revolving Loans Amortized Cost Basis | 852 | 1,274 | |||
Total | 878 | 1,290 | |||
Consumer | Pass or not rated | |||||
Loans | |||||
Year One | 1,813 | 1,813 | 415 | ||
Year Two | 1,309 | 1,309 | 499 | ||
Year Three | 243 | 243 | 168 | ||
Year Four | 92 | 92 | 2,531 | ||
Prior | 4,270 | 4,270 | 4,328 | ||
Revolving Loans Amortized Cost Basis | 18,897 | 18,897 | 15,573 | ||
Loans | 26,624 | 26,624 | 23,514 | ||
Consumer | Substandard | |||||
Loans | |||||
Year Three | 2 | 2 | |||
Year Four | 9 | ||||
Prior | 18 | 18 | 33 | ||
Loans | 20 | 20 | 42 | ||
Warehouse lines of credit | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 457,033 | 457,033 | 403,560 | ||
Loans | 457,033 | 457,033 | 403,560 | ||
Warehouse lines of credit | Pass or not rated | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 457,033 | 457,033 | 403,560 | ||
Loans | 457,033 | 457,033 | 403,560 | ||
Tax Refund Solution | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 354 | 354 | 149,272 | ||
Loans | 354 | 354 | 149,272 | ||
Loans, Gross Charge-offs | |||||
Year One | 126 | ||||
Revolving Loans Amortized Cost Basis | 25,825 | 11,659 | |||
Total | 25,951 | 11,659 | |||
Tax Refund Solution | Pass or not rated | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 354 | 354 | 149,272 | ||
Loans | 354 | 354 | 149,272 | ||
Republic Credit Solution | |||||
Loans | |||||
Year One | 22,357 | ||||
Year Two | 2,273 | ||||
Year Three | 1,264 | ||||
Year Four | 602 | ||||
Prior | 73,196 | 73,196 | 29,594 | ||
Revolving Loans Amortized Cost Basis | 53,773 | 53,773 | 51,738 | ||
Loans | 126,969 | 126,969 | 107,828 | ||
Loans, Gross Charge-offs | |||||
Revolving Loans Amortized Cost Basis | 9,459 | 11,390 | |||
Total | 9,459 | 11,390 | |||
Republic Credit Solution | Pass or not rated | |||||
Loans | |||||
Year One | 22,357 | ||||
Year Two | 2,273 | ||||
Year Three | 1,264 | ||||
Year Four | 602 | ||||
Prior | 73,196 | 73,196 | 29,594 | ||
Revolving Loans Amortized Cost Basis | 52,650 | 52,650 | 50,589 | ||
Loans | 125,846 | 125,846 | 106,679 | ||
Republic Credit Solution | Substandard | |||||
Loans | |||||
Revolving Loans Amortized Cost Basis | 1,123 | 1,123 | 1,149 | ||
Loans | $ 1,123 | $ 1,123 | $ 1,149 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | $ 72,202 | $ 64,449 | $ 70,413 | $ 64,577 | $ 64,577 |
Provision | 3,672 | 1,643 | 36,635 | 14,541 | |
Charge-offs | 2,316 | (3,275) | (36,312) | (20,525) | (24,369) |
Recoveries | 74,576 | (2,102) | 3,624 | 6,326 | |
Ending Balance | 74,576 | 64,919 | $ 74,576 | 64,919 | 70,413 |
Forecast period for unemployment and general CRE values | 1 year | ||||
Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | $ 216 | ||||
Provision | 3,730 | ||||
Ending Balance | 216 | ||||
Core Banking Activities | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 56,913 | 51,218 | 51,718 | 51,533 | 51,533 |
Provision | 332 | (1,069) | 6,545 | (1,271) | |
Charge-offs | 129 | (353) | (902) | (861) | |
Recoveries | 58,074 | (540) | 497 | 935 | |
Ending Balance | 58,074 | 50,336 | 58,074 | 50,336 | 51,718 |
Core Banking Activities | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 216 | ||||
Provision | 1,364 | ||||
Ending Balance | 216 | ||||
Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 825 | 119 | 110 | 91 | 91 |
Beginning Balance | 55,567 | 49,727 | 50,709 | 49,407 | 49,407 |
Provision | 764 | 28 | |||
Provision | 332 | (683) | 6,411 | (250) | |
Charge-offs | 129 | (353) | (902) | (861) | |
Recoveries | 10 | ||||
Recoveries | (10) | ||||
Recoveries | 56,931 | (540) | 497 | 935 | |
Ending balance | 1,100 | 119 | 1,100 | 119 | 110 |
Ending Balance | 56,931 | 49,231 | 56,931 | 49,231 | 50,709 |
Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 216 | ||||
Beginning Balance | 216 | ||||
Provision | 265 | ||||
Provision | 1,567 | ||||
Ending balance | 216 | ||||
Ending Balance | 216 | ||||
Republic Processing Group | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 15,289 | 13,231 | 18,695 | 13,044 | 13,044 |
Provision | 2,712 | 30,090 | 15,812 | ||
Charge-offs | (3,340) | (2,922) | (35,410) | (19,664) | |
Recoveries | (2,187) | (1,562) | 3,127 | 5,391 | |
Ending balance | 16,502 | 14,583 | 16,502 | 14,583 | 18,695 |
Republic Processing Group | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 2,366 | ||||
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 | (24) | (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 | 9,899 | 8,445 | 8,909 | 8,647 | 8,647 |
Provision | (3) | 1,298 | (272) | ||
Charge-offs | (9) | (24) | |||
Recoveries | (23) | (24) | 48 | 91 | |
Ending balance | 10,231 | 8,466 | 10,231 | 8,466 | 8,909 |
Residential real estate | Residential Real Estate - Owner Occupied | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 318 | ||||
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 | 3,086 | 2,733 | 2,831 | 2,700 | 2,700 |
Provision | 63 | 203 | 94 | ||
Recoveries | (1) | 2 | 2 | ||
Ending balance | 3,036 | 2,796 | 3,036 | 2,796 | 2,831 |
Residential real estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | (51) | ||||
Residential real estate | Home equity | Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 4,770 | 4,113 | 4,628 | 4,111 | 4,111 |
Provision | 279 | 516 | 169 | ||
Recoveries | (1) | (7) | 2 | 119 | |
Recoveries | 5,146 | ||||
Ending balance | 5,146 | 4,399 | 5,146 | 4,399 | 4,628 |
Residential real estate | Home equity | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 375 | ||||
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 | 25,089 | 24,341 | 23,739 | 23,769 | 23,769 |
Provision | (1,413) | 1,542 | (843) | ||
Recoveries | (7) | (275) | 66 | 277 | |
Ending balance | 25,347 | 23,203 | 25,347 | 23,203 | 23,739 |
Commercial real estate | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 251 | ||||
Construction & land development | Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 4,811 | 3,591 | 4,123 | 4,128 | 4,128 |
Provision | 331 | 1,013 | (206) | ||
Ending balance | 5,136 | 3,922 | 5,136 | 3,922 | 4,123 |
Construction & land development | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 325 | ||||
Commercial | Commercial and Industrial | Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 4,322 | 3,768 | 3,976 | 3,487 | 3,487 |
Provision | 82 | 89 | 346 | ||
Recoveries | (7) | (124) | 116 | 141 | |
Ending balance | 4,181 | 3,974 | 4,181 | 3,974 | 3,976 |
Commercial | Commercial and Industrial | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | (148) | ||||
Aircraft | Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 521 | 400 | 449 | 357 | 357 |
Provision | 16 | 118 | 59 | ||
Ending balance | 567 | 416 | 567 | 416 | 449 |
Aircraft | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 46 | ||||
Consumer | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Charge-offs | (878) | (1,290) | |||
Consumer | Credit cards | Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,103 | 994 | 996 | 934 | 934 |
Provision | (41) | 158 | 50 | ||
Charge-offs | (30) | (27) | (103) | (97) | |
Recoveries | (16) | (33) | 41 | 72 | |
Ending balance | 1,092 | 959 | 1,092 | 959 | 996 |
Consumer | Credit cards | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 3 | ||||
Consumer | Overdrafts | Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 706 | 901 | 726 | 683 | 683 |
Provision | 57 | 437 | 560 | ||
Charge-offs | (243) | (288) | (676) | (696) | |
Recoveries | (49) | (53) | 153 | 176 | |
Ending balance | 640 | 723 | 640 | 723 | 726 |
Consumer | Overdrafts | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 128 | ||||
Consumer | Automobile loans | Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 53 | 122 | 87 | 186 | 186 |
Provision | (30) | (16) | (98) | ||
Charge-offs | (30) | (37) | |||
Recoveries | (2) | (9) | 7 | 13 | |
Ending balance | 41 | 101 | 41 | 101 | 87 |
Consumer | Automobile loans | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 16 | ||||
Consumer | Other consumer | Traditional Banking | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 382 | 200 | 135 | 314 | 314 |
Provision | (24) | 289 | (137) | ||
Charge-offs | (20) | (38) | (62) | (68) | |
Recoveries | (13) | (15) | 52 | 44 | |
Ending balance | 414 | 153 | 414 | 153 | 135 |
Consumer | Other consumer | Traditional Banking | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | 39 | ||||
Warehouse lines of credit | Warehouse Lending | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,346 | 1,491 | 1,009 | 2,126 | 2,126 |
Provision | (386) | 134 | (1,021) | ||
Ending balance | 1,143 | 1,105 | 1,143 | 1,105 | 1,009 |
Warehouse lines of credit | Warehouse Lending | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | (203) | ||||
Tax Refund Solution | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Charge-offs | (25,951) | (11,659) | |||
Tax Refund Solution | Refund Advances | Tax Refund Solutions | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 3,797 | ||||
Provision | (1,296) | 19,615 | 7,583 | ||
Charge-offs | (25,823) | (11,505) | |||
Recoveries | (1,939) | (1,296) | 2,411 | 3,922 | |
Ending balance | 3,797 | ||||
Tax Refund Solution | Refund Advances | Tax Refund Solutions | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | (1,939) | ||||
Tax Refund Solution | Other TRS commercial and industrial loans | Tax Refund Solutions | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 91 | 96 | 96 | ||
Provision | 7 | (607) | |||
Charge-offs | (128) | (154) | |||
Recoveries | (29) | 31 | 665 | ||
Ending balance | 1 | 1 | 91 | ||
Tax Refund Solution | Other TRS commercial and industrial loans | Tax Refund Solutions | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | (28) | ||||
Republic Credit Solution | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Charge-offs | (9,459) | (11,390) | |||
Republic Credit Solution | Republic Credit Solutions | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 15,289 | 13,231 | 14,807 | 12,948 | 12,948 |
Provision | 4,008 | 10,468 | 8,836 | ||
Charge-offs | (3,340) | (2,922) | (9,459) | (8,005) | |
Recoveries | (219) | (266) | 685 | 804 | |
Ending balance | 16,501 | $ 14,583 | $ 16,501 | $ 14,583 | $ 14,807 |
Republic Credit Solution | Republic Credit Solutions | Adjustment | |||||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||||
Provision | $ 4,333 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 18,127 | $ 15,562 |
Loans past due 90 days or more and still on accrual | 1,037 | 756 |
Total nonperforming loans | 19,164 | 16,318 |
Other real estate owned | 1,423 | 1,581 |
Total nonperforming assets | $ 20,587 | $ 17,899 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.38% | 0.36% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.41% | 0.40% |
Nonperforming assets to total assets (as percent) | 0.32% | 0.31% |
Core Banking Activities | ||
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 18,127 | $ 15,562 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.37% | 0.37% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.39% | 0.40% |
Nonperforming assets to total assets (as percent) | 0.33% | 0.32% |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | $ 1,888 | $ 1,888 | $ 3,324 | ||
Nonaccrual with no ACLL | 16,239 | 16,239 | 12,238 | ||
Nonaccrual | 18,127 | 18,127 | 15,562 | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 1,037 | 1,037 | 756 | ||
Interest Income Recognized on Nonaccrual Loans | 330 | $ 301 | 949 | $ 1,100 | |
Core Banking Activities | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 18,127 | 18,127 | 15,562 | ||
Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 18,127 | 18,127 | 15,562 | ||
Republic Processing Group | |||||
Aging or recorded investments in loans | |||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 1,037 | 1,037 | 756 | ||
Residential real estate | Residential Real Estate - Owner Occupied | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 624 | 624 | 2,252 | ||
Nonaccrual with no ACLL | 13,772 | 13,772 | 11,136 | ||
Nonaccrual | 14,396 | 14,396 | 13,388 | ||
Interest Income Recognized on Nonaccrual Loans | 224 | 154 | 664 | 257 | |
Residential real estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 14,396 | 14,396 | 13,388 | ||
Residential real estate | Residential Real Estate - Non Owner Occupied | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 22 | 22 | 56 | ||
Nonaccrual with no ACLL | 46 | 46 | 61 | ||
Nonaccrual | 68 | 68 | 117 | ||
Interest Income Recognized on Nonaccrual Loans | 7 | 1 | 8 | 1 | |
Residential real estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 68 | 68 | 117 | ||
Residential real estate | Home equity | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with no ACLL | 1,591 | 1,591 | 815 | ||
Nonaccrual | 1,591 | 1,591 | 815 | ||
Interest Income Recognized on Nonaccrual Loans | 45 | 84 | 106 | 146 | |
Residential real estate | Home equity | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 1,591 | 1,591 | 815 | ||
Commercial real estate | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 883 | 883 | 1,001 | ||
Nonaccrual | 883 | 883 | 1,001 | ||
Interest Income Recognized on Nonaccrual Loans | 31 | 14 | 142 | 644 | |
Commercial real estate | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 883 | 883 | 1,001 | ||
Commercial | Commercial and Industrial | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 338 | 338 | |||
Nonaccrual with no ACLL | 821 | 821 | |||
Nonaccrual | 1,159 | 1,159 | |||
Interest Income Recognized on Nonaccrual Loans | 23 | 23 | |||
Commercial | Commercial and Industrial | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 1,159 | 1,159 | |||
Lease financing receivables | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 13 | 13 | |||
Nonaccrual | 13 | 13 | |||
Consumer | |||||
Aging or recorded investments in loans | |||||
Nonaccrual with ACLL | 8 | 8 | 15 | ||
Nonaccrual with no ACLL | 9 | 9 | 226 | ||
Nonaccrual | 17 | 17 | 241 | ||
Interest Income Recognized on Nonaccrual Loans | $ 48 | 6 | $ 52 | ||
Consumer | Automobile loans | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 16 | 16 | 31 | ||
Consumer | Other consumer | Traditional Banking | |||||
Aging or recorded investments in loans | |||||
Nonaccrual | 1 | 1 | 210 | ||
Republic Credit Solution | Republic Credit Solutions | |||||
Aging or recorded investments in loans | |||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 1,037 | $ 1,037 | $ 756 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Aging or recorded investments in loans | ||
Lease financing receivables | $ 85,242 | $ 10,505 |
Loans | 5,081,099 | 4,515,802 |
30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | $ 11,022 | $ 9,966 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.22% | 0.22% |
60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | $ 4,992 | $ 3,241 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.10% | 0.07% |
90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | $ 3,120 | $ 2,053 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.06% | 0.05% |
Past Due | ||
Aging or recorded investments in loans | ||
Loans | $ 19,134 | $ 15,260 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.38% | 0.34% |
Current | ||
Aging or recorded investments in loans | ||
Loans | $ 5,061,965 | $ 4,500,542 |
Residential real estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,128,745 | 911,427 |
Residential real estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 344,682 | 321,358 |
Residential real estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 275,750 | 241,739 |
Commercial real estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,745,187 | 1,599,510 |
Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 189,756 | 153,875 |
Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 473,790 | 413,387 |
Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 226,947 | 179,785 |
Consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 26,644 | 23,556 |
Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 457,033 | 403,560 |
Tax Refund Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 354 | 149,272 |
Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 126,969 | 107,828 |
Core Banking Activities | ||
Aging or recorded investments in loans | ||
Loans | 4,953,776 | 4,258,702 |
Core Banking Activities | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 3,002 | 3,478 |
Core Banking Activities | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 1,721 | 1,285 |
Core Banking Activities | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 2,083 | 1,297 |
Core Banking Activities | Past Due | ||
Aging or recorded investments in loans | ||
Loans | 6,806 | 6,060 |
Core Banking Activities | Current | ||
Aging or recorded investments in loans | ||
Loans | 4,946,970 | 4,252,642 |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 85,242 | 10,505 |
Loans | 4,496,743 | 3,855,142 |
Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 4 | |
Loans | 3,002 | 3,478 |
Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Loans | 1,721 | 1,285 |
Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 12 | |
Loans | 2,083 | 1,297 |
Traditional Banking | Past Due | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 16 | |
Loans | 6,806 | 6,060 |
Traditional Banking | Current | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 85,226 | 10,505 |
Loans | 4,489,937 | 3,849,082 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,128,745 | 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 | 2,241 | 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 | 1,521 | 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 | 822 | 1,267 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,584 | 4,834 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,124,161 | 906,593 |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 344,682 | 321,358 |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 231 | |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 231 | |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 344,451 | 321,358 |
Traditional Banking | Residential real estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 275,750 | 241,739 |
Traditional Banking | Residential real estate | Home equity | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 137 | 56 |
Traditional Banking | Residential real estate | Home equity | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 147 | 93 |
Traditional Banking | Residential real estate | Home equity | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 83 | 26 |
Traditional Banking | Residential real estate | Home equity | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 367 | 175 |
Traditional Banking | Residential real estate | Home equity | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 275,383 | 241,564 |
Traditional Banking | Commercial real estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,745,187 | 1,599,510 |
Traditional Banking | Commercial real estate | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 23 | 604 |
Traditional Banking | Commercial real estate | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 23 | 604 |
Traditional Banking | Commercial real estate | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,745,164 | 1,598,906 |
Traditional Banking | Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 189,756 | 153,875 |
Traditional Banking | Construction & land development | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 189,756 | 153,875 |
Traditional Banking | Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 473,790 | 413,387 |
Traditional Banking | Commercial | Commercial and Industrial | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 186 | 177 |
Traditional Banking | Commercial | Commercial and Industrial | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 27 | |
Traditional Banking | Commercial | Commercial and Industrial | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,159 | |
Traditional Banking | Commercial | Commercial and Industrial | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,372 | 177 |
Traditional Banking | Commercial | Commercial and Industrial | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 472,418 | 413,210 |
Traditional Banking | Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 226,947 | 179,785 |
Traditional Banking | Aircraft | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 226,947 | 179,785 |
Traditional Banking | Consumer | Credit cards | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 16,950 | 15,473 |
Traditional Banking | Consumer | Credit cards | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 11 | 50 |
Traditional Banking | Consumer | Credit cards | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 16 | 5 |
Traditional Banking | Consumer | Credit cards | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Traditional Banking | Consumer | Credit cards | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 28 | 55 |
Traditional Banking | Consumer | Credit cards | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 16,922 | 15,418 |
Traditional Banking | Consumer | Overdrafts | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 640 | 726 |
Traditional Banking | Consumer | Overdrafts | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 131 | 158 |
Traditional Banking | Consumer | Overdrafts | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Traditional Banking | Consumer | Overdrafts | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | 1 |
Traditional Banking | Consumer | Overdrafts | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 132 | 160 |
Traditional Banking | Consumer | Overdrafts | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 508 | 566 |
Traditional Banking | Consumer | Automobile loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,380 | 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 | 4 | 3 |
Traditional Banking | Consumer | Automobile loans | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4 | 11 |
Traditional Banking | Consumer | Automobile loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,376 | 6,720 |
Traditional Banking | Consumer | Other consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,674 | 626 |
Traditional Banking | Consumer | Other consumer | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 38 | 43 |
Traditional Banking | Consumer | Other consumer | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 10 | 1 |
Traditional Banking | Consumer | Other consumer | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | |
Traditional Banking | Consumer | Other consumer | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 49 | 44 |
Traditional Banking | Consumer | Other consumer | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,625 | 582 |
Warehouse Lending | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 457,033 | 403,560 |
Warehouse Lending | Warehouse lines of credit | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 457,033 | 403,560 |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 127,323 | 257,100 |
Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 8,020 | 6,488 |
Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,271 | 1,956 |
Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,037 | 756 |
Republic Processing Group | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 12,328 | 9,200 |
Republic Processing Group | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 114,995 | 247,900 |
Tax Refund Solutions | Tax Refund Solution | Refund Advances | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 97,505 | |
Tax Refund Solutions | Tax Refund Solution | Refund Advances | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 97,505 | |
Tax Refund Solutions | Tax Refund Solution | Other TRS commercial and industrial loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 354 | 51,767 |
Tax Refund Solutions | Tax Refund Solution | Other TRS commercial and industrial loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 354 | 51,767 |
Republic Credit Solutions | Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 126,969 | 107,828 |
Republic Credit Solutions | Republic Credit Solution | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 8,020 | 6,488 |
Republic Credit Solutions | Republic Credit Solution | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,271 | 1,956 |
Republic Credit Solutions | Republic Credit Solution | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,037 | 756 |
Republic Credit Solutions | Republic Credit Solution | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 12,328 | 9,200 |
Republic Credit Solutions | Republic Credit Solution | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 114,641 | $ 98,628 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COLLATERAL DEPENDENT LOANS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 85,242 | $ 10,505 |
Loans | $ 5,081,099 | 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 | $ 1,128,745 | 911,427 |
Residential real estate | Residential Real Estate - Non Owner Occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 344,682 | 321,358 |
Residential real estate | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 275,750 | 241,739 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,745,187 | 1,599,510 |
Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 189,756 | 153,875 |
Commercial | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 473,790 | 413,387 |
Aircraft | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 226,947 | 179,785 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 26,644 | 23,556 |
Traditional Banking | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 85,242 | 10,505 |
Loans | 4,496,743 | 3,855,142 |
Traditional Banking | Real Estate | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 18,647 | 20,215 |
Traditional Banking | Personal Property | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,246 | 236 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,128,745 | 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 | 16,122 | 18,057 |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 344,682 | 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 | 68 | 150 |
Traditional Banking | Residential real estate | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 275,750 | 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 | 1,548 | 967 |
Traditional Banking | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,745,187 | 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 | 909 | 1,041 |
Traditional Banking | Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 189,756 | 153,875 |
Traditional Banking | Commercial | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 473,790 | 413,387 |
Traditional Banking | Commercial | Commercial and Industrial | Personal Property | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,226 | |
Traditional Banking | Aircraft | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 226,947 | 179,785 |
Traditional Banking | Aircraft | Personal Property | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 210 | |
Traditional Banking | Consumer | Personal Property | Asset Pledged as Collateral [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 20 | $ 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) loan | Sep. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Modifications [Line Items] | |||
Accruing number of contracts | loan | 383 | 383 | |
Accruing recorded investments | $ 84 | $ 84 | |
Nonaccruing number of contracts | loan | 5 | 19 | |
Nonaccruing recorded investments | $ 672 | $ 1,830 | |
Accruing percentage of total financing receivables | 0% | 0% | |
Nonaccruing percentage of total financing receivables | 0.01% | 0.04% | |
Number of Loans | loan | 2,475 | ||
Recorded Investment | $ 12,026 | ||
Current | |||
Financing Receivable, Modifications [Line Items] | |||
Accruing recorded investments | $ 84 | $ 84 | |
Nonaccruing recorded investments | 508 | 1,474 | |
30-89 Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccruing recorded investments | $ 164 | 188 | |
90 + Days Delinquent | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccruing recorded investments | $ 168 | ||
Republic Processing Group | |||
Financing Receivable, Modifications [Line Items] | |||
Accruing number of contracts | loan | 383 | 383 | |
Accruing recorded investments | $ 84 | $ 84 | |
Accruing percentage of total financing receivables | 0.07% | 0.07% | |
Republic Processing Group | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Accruing recorded investments | $ 84 | $ 84 | |
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 150 | ||
Recorded Investment | $ 10,772 | ||
Residential real estate | Residential Real Estate - Owner Occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccruing number of contracts | loan | 4 | 4 | |
Nonaccruing recorded investments | $ 239 | $ 566 | |
Nonaccruing percentage of total financing receivables | 0.02% | 0.05% | |
Residential real estate | Residential Real Estate - Owner Occupied | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccruing recorded investments | $ 75 | $ 932 | |
Residential real estate | Residential Real Estate - Owner Occupied | 30-89 Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccruing recorded investments | $ 164 | 188 | |
Residential real estate | Residential Real Estate - Owner Occupied | 90 + Days Delinquent | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccruing recorded investments | $ 168 | ||
Residential real estate | Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccruing number of contracts | loan | 1 | 15 | |
Nonaccruing recorded investments | $ 433 | $ 1,264 | |
Nonaccruing percentage of total financing receivables | 0.16% | 0.46% | |
Residential real estate | Home equity | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccruing recorded investments | $ 433 | $ 542 | |
Rate reduction | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 70 | ||
Recorded Investment | $ 6,547 | ||
Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 258 | ||
Term Extension | Residential real estate | Residential Real Estate - Owner Occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 2 | ||
Recorded Investment | $ 258 | ||
Principal deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Accruing number of contracts | loan | 383 | 383 | |
Accruing recorded investments | $ 84 | $ 84 | |
Nonaccruing number of contracts | loan | 5 | 19 | |
Nonaccruing recorded investments | $ 672 | $ 1,830 | |
Number of Loans | loan | 388 | 400 | |
Recorded Investment | $ 756 | $ 1,656 | |
Principal deferral | Republic Processing Group | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 383 | 383 | |
Recorded Investment | $ 84 | $ 84 | |
Principal deferral | Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 4 | |
Recorded Investment | $ 433 | $ 566 | |
Principal deferral | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 7 | ||
Recorded Investment | $ 699 | ||
Principal deferral | Residential real estate | Residential Real Estate - Owner Occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 4 | 13 | |
Recorded Investment | $ 239 | $ 1,006 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - MODIFICATIONS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2,475 | ||||
Recorded Investment | $ | $ 12,026 | ||||
Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 388 | 400 | |||
Recorded Investment | $ | $ 756 | $ 1,656 | |||
Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 343 | 623 | |||
Recorded Investment | $ | $ 552 | $ 1,110 | |||
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 | 342 | 622 | |||
Recorded Investment | $ | $ 505 | $ 1,063 | |||
Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 9 | ||||
Recorded Investment | $ | $ 619 | ||||
Nonperforming Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ | $ 47 | $ 47 | |||
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 | |||||
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 | 11 | 18 | |||
Recorded Investment | $ | $ 490 | $ 1,001 | |||
Residential real estate | Modified During The Period | Legal Modification | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 11 | 18 | |||
Recorded Investment | $ | $ 490 | $ 1,001 | |||
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 | |||||
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 | 10 | 17 | |||
Recorded Investment | $ | $ 443 | $ 954 | |||
Residential real estate | Performing Financing Receivable | Modified During The Period | Legal Modification | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 10 | 17 | |||
Recorded Investment | $ | $ 443 | $ 954 | |||
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 | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 6 | ||||
Recorded Investment | $ | $ 377 | ||||
Residential real estate | Nonperforming Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ | $ 47 | $ 47 | |||
Residential real estate | Nonperforming Financing Receivable | Modified During The Period | Legal Modification | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ | $ 47 | $ 47 | |||
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 | |||||
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 | 332 | 605 | |||
Recorded Investment | $ | $ 62 | $ 109 | |||
Consumer | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 332 | 605 | |||
Recorded Investment | $ | $ 62 | $ 109 | |||
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 | |||||
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 | 332 | 605 | |||
Recorded Investment | $ | $ 62 | $ 109 | |||
Consumer | Performing Financing Receivable | Modified During The Period | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 332 | 605 | |||
Recorded Investment | $ | $ 62 | $ 109 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - MODIFIED CLASS (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||
Number of Loans with payment default | loan | 3 | 1 | 5 | 4 |
Recorded Investment with payment default | $ | $ 188,000 | $ 47,000 | $ 356,000 | $ 93,000 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,423 | $ 1,581 |
Commercial real estate | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,423 | $ 1,581 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands | Sep. 30, 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 | $ 1,067 | $ 909 |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - REFUND ADVANCES (Details) - Tax Refund Solutions - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Refund Advances | |||||||
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 | $ (1,939) | $ (1,296) | $ 19,615 | $ 7,583 | |||
Provision as a percentage of RAs, including ERAs, originated | 2.66% | 2.44% | |||||
Refund Advances net charge-offs (recoveries) | $ (1,939) | $ (1,296) | $ 23,412 | $ 7,583 | |||
Refund Advances net charge-offs (recoveries) to total Refund Advances originated | 3.18% | 2.44% | |||||
Early Season Refund Advances | |||||||
Early Season Refund Advances originated | $ 98,000 |
DEPOSITS - Balances (Details)
DEPOSITS - Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposit Liabilities | ||
Total interest-bearing deposits | $ 3,090,603 | $ 2,629,077 |
Total non interest-bearing deposits | 1,702,979 | 1,908,768 |
Total deposits | 4,793,582 | 4,537,845 |
Core Banking Activities | ||
Deposit Liabilities | ||
Demand | 1,233,328 | 1,336,082 |
Money market accounts | 939,499 | 707,272 |
Savings | 263,249 | 323,015 |
Reciprocal money market | 206,347 | 28,635 |
Individual retirement accounts | 33,823 | 38,640 |
Time deposits, $250 and over | 94,521 | 54,855 |
Other certificates of deposit | 207,481 | 129,324 |
Reciprocal time deposits | 94,629 | 7,405 |
Wholesale brokered deposits | 805 | |
Total interest-bearing deposits | 3,073,682 | 2,625,228 |
Total non interest-bearing deposits | 1,269,643 | 1,464,493 |
Total deposits | 4,343,325 | 4,089,721 |
Republic Processing Group | ||
Deposit Liabilities | ||
Money market accounts | 16,921 | 3,849 |
Total interest-bearing deposits | 16,921 | 3,849 |
Brokered prepaid cards deposits | 326,505 | 328,655 |
Other noninterest-bearing deposits | 106,831 | 115,620 |
Total non interest-bearing deposits | 433,336 | 444,275 |
Total deposits | $ 450,257 | $ 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 | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Securities sold under agreements to repurchase | |||||
Outstanding balance at end of period | $ 80,797 | $ 80,797 | $ 216,956 | ||
Securities sold under agreements to repurchase | |||||
Securities sold under agreements to repurchase | |||||
Securities pledged more than repurchase agreements (as a percent) | 2% | 2% | |||
Outstanding balance at end of period | $ 80,797 | $ 80,797 | $ 216,956 | ||
Weighted average interest rate at end of period (as a percent) | 0.56% | 0.56% | 0.41% | ||
Fair Value of securities pledged | $ 82,376 | $ 82,376 | $ 254,296 | ||
Average outstanding balance during the period | $ 90,063 | $ 220,149 | $ 136,528 | $ 271,276 | |
Weighted average interest rate during the period (as a percent) | 0.87% | 0.17% | 0.60% | 0.08% | |
Maximum outstanding at any month end during the period | $ 88,862 | $ 209,376 | $ 224,067 | $ 303,315 | |
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 | $ 82,376 | $ 82,376 | $ 254,296 |
RIGHT-OF-USE ASSETS AND OPERA_3
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 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 | 40 | |
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 | $ | $ 35,907 | $ 37,017 |
Third Party | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of third party lease extensions | 2 | |
Right-of-use assets | $ | $ 1,500 | |
New Third Party | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of third party lease extensions | 5 | |
Right-of-use assets | $ | $ 2,000 |
RIGHT-OF-USE ASSETS AND OPERA_4
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Operating lease expense: | |||||
Total operating lease expense | $ 2,059 | $ 1,726 | $ 6,060 | $ 5,463 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 1,667 | 1,709 | 5,168 | 5,121 | |
Cash paid for variable rent payments not included in measurement of operating lease liabilities | $ 151 | 151 | $ 453 | 453 | |
Weighted average remaining term in years | 7 years 9 months 10 days | 7 years 9 months 10 days | 8 years 5 months 8 days | ||
Weighted average discount rate | 2.28% | 2.28% | 2.10% | ||
Related Party [Member] | |||||
Operating lease expense: | |||||
Variable lease expense | $ 1,202 | 1,101 | $ 3,631 | 3,635 | |
Fixed lease expense | 58 | 57 | 175 | 149 | |
Third Party | |||||
Operating lease expense: | |||||
Variable lease expense | 390 | 222 | 1,070 | 639 | |
Fixed lease expense | $ 409 | $ 346 | $ 1,184 | $ 1,040 |
RIGHT-OF-USE ASSETS AND OPERA_5
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Operating lease liabilities | ||
2023 | $ 1,681 | |
2024 | 6,552 | |
2025 | 5,813 | |
2026 | 5,565 | |
2027 | 5,283 | |
Thereafter | 16,448 | |
Total undiscounted cash flows | 41,342 | |
Discount applied to cash flows | (4,616) | |
Total discounted cash flows reported as operating lease liabilities | 36,726 | $ 37,809 |
Related Party [Member] | ||
Operating lease liabilities | ||
2023 | 961 | |
2024 | 3,726 | |
2025 | 3,569 | |
2026 | 3,640 | |
2027 | 3,680 | |
Thereafter | 11,750 | |
Total undiscounted cash flows | 27,326 | |
Discount applied to cash flows | (2,884) | |
Total discounted cash flows reported as operating lease liabilities | 24,442 | |
Third Party | ||
Operating lease liabilities | ||
2023 | 720 | |
2024 | 2,826 | |
2025 | 2,244 | |
2026 | 1,925 | |
2027 | 1,603 | |
Thereafter | 4,698 | |
Total undiscounted cash flows | 14,016 | |
Discount applied to cash flows | (1,732) | |
Total discounted cash flows reported as operating lease liabilities | $ 12,284 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
FHLB advances | ||
Total FHLB advances | $ 465,000 | $ 95,000 |
Additional collateralized advances available | 639,000 | 900,000 |
Overnight advances | ||
FHLB advances | ||
Total FHLB advances | 195,000 | 75,000 |
Fixed interest rate advances | ||
FHLB advances | ||
Total FHLB advances | 270,000 | 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 | Sep. 30, 2023 | Dec. 31, 2022 |
FEDERAL HOME LOAN BANK ADVANCES | ||
2023 | $ 195,000 | |
2026 | 30,000 | |
2027 | 80,000 | |
2028 | 160,000 | |
Total | $ 465,000 | $ 95,000 |
Weighted Average Rate | ||
2023 | 5.37% | |
2026 | 4.82% | |
2027 | 4.01% | |
2028 | 4.39% | |
Total | 4.76% |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES - SHORT-TERM FHLB ADVANCES (Details) - Federal Home Loan Bank advances. - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
FHLB advances | |||
Average outstanding balance during the period | $ 250,348 | $ 150,833 | $ 5,641 |
Weighted average interest rate during the period (as percent) | 5.20% | 7.75% | 0.15% |
Maximum outstanding at any month end during the period | $ 365,000 | $ 485,000 | $ 25,000 |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands | Sep. 30, 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 | $ 1,336,038 | $ 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 | 249,819 | $ 219,644 |
Multi-Family Commercial 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 | $ 141,133 |
OFF BALANCE SHEET RISKS, COMM_3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Commitments and letters of credit | |||||
Loan commitment, line credit | $ 2,211,317 | $ 2,211,317 | $ 2,105,396 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 1,530 | $ 1,100 | 1,250 | $ 1,052 | |
Provision | (190) | 80 | 90 | 128 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 1,340 | 1,180 | 1,340 | 1,180 | |
Unused warehouse lines of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 557,467 | 557,467 | 733,940 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 145 | 162 | 190 | 154 | |
Provision | (43) | 28 | (88) | 36 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 102 | 190 | 102 | 190 | |
Unused home equity lines of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 439,107 | 439,107 | 410,057 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 353 | 277 | 332 | 247 | |
Provision | (315) | 20 | (294) | 50 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 38 | 297 | 38 | 297 | |
Unused construction lines of credit | |||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 633 | 384 | |||
Provision | 225 | 474 | |||
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 858 | 858 | |||
Unused loan commitments - other | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | 1,202,822 | 1,202,822 | 951,021 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 399 | 661 | 344 | 651 | |
Provision | (57) | 32 | (2) | 42 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 342 | $ 693 | 342 | $ 693 | |
Standby letters of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | $ 11,921 | $ 11,921 | 9,735 | ||
FHLB letters of credit | |||||
Commitments and letters of credit | |||||
Loan commitment, line credit | $ 643 |
FAIR VALUE - RECURRING BASIS (D
FAIR VALUE - RECURRING BASIS (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Financial assets: | |||||||||
Total available-for-sale debt securities | $ 601,220 | $ 601,220 | $ 620,365 | ||||||
Mortgage loans held for sale, at fair value | 2,711 | $ 2,912 | 2,711 | $ 2,912 | $ 4,038 | 1,302 | $ 8,491 | $ 29,393 | |
Consumer loans held for sale | 8,443 | 8,796 | 8,443 | 8,796 | $ 5,757 | 4,706 | $ 17,459 | $ 19,747 | |
Equity securities with readily determinable fair value: | |||||||||
Equity securities with readily determinable fair value | $ 137 | $ 137 | 111 | ||||||
Installment loan | Republic Credit Solutions | |||||||||
Financial Liabilities: | |||||||||
Term for intent to sell loans | 16 days | 16 days | |||||||
Installment loan | Republic Credit Solutions | Minimum | |||||||||
Financial Liabilities: | |||||||||
Loan held-for-sale term | 12 months | 12 months | 12 months | ||||||
Installment loan | Republic Credit Solutions | Maximum | |||||||||
Financial Liabilities: | |||||||||
Loan held-for-sale term | 60 months | 60 months | 60 months | ||||||
Term for intent to sell loans | 16 days | ||||||||
U.S. Treasury securities and U.S. Government agencies | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | $ 415,612 | $ 415,612 | 411,141 | ||||||
Private label mortgage backed security | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 1,885 | 1,885 | 2,127 | ||||||
Mortgage backed securities - residential | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 155,549 | 155,549 | 171,873 | ||||||
Collateralized mortgage obligations | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 22,163 | 22,163 | 21,368 | ||||||
Corporate bonds | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 2,016 | 2,016 | 10,001 | ||||||
Trust Preferred Securities | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 3,995 | 3,995 | 3,855 | ||||||
Freddie Mac preferred stock | |||||||||
Equity securities with readily determinable fair value: | |||||||||
Equity securities with readily determinable fair value | 137 | 137 | 111 | ||||||
Recurring basis | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 601,220 | 601,220 | 620,365 | ||||||
Mortgage loans held for sale, at fair value | 2,711 | 2,711 | 1,302 | ||||||
Consumer loans held for sale | 8,443 | 8,443 | 4,706 | ||||||
Consumer loans held for investment | 2 | ||||||||
Rate lock loan commitments | 95 | 95 | 2 | ||||||
Interest rate swap agreements | 8,935 | 8,935 | 8,128 | ||||||
Equity securities with readily determinable fair value: | |||||||||
Equity securities with readily determinable fair value | 137 | 137 | 111 | ||||||
Financial Liabilities: | |||||||||
Mandatory forward contracts | 77 | 77 | 67 | ||||||
Interest rate swap agreements | 8,935 | 8,935 | 8,128 | ||||||
Transfers between Level 1, 2 or 3 | 0 | $ 0 | 0 | $ 0 | |||||
Recurring basis | U.S. Treasury securities and U.S. Government agencies | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 415,612 | 415,612 | 411,141 | ||||||
Recurring basis | Private label mortgage backed security | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 1,885 | 1,885 | 2,127 | ||||||
Recurring basis | Mortgage backed securities - residential | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 155,549 | 155,549 | 171,873 | ||||||
Recurring basis | Collateralized mortgage obligations | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 22,163 | 22,163 | 21,368 | ||||||
Recurring basis | Corporate bonds | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 2,016 | 2,016 | 10,001 | ||||||
Recurring basis | Trust Preferred Securities | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 3,995 | 3,995 | 3,855 | ||||||
Recurring basis | Freddie Mac preferred stock | |||||||||
Equity securities with readily determinable fair value: | |||||||||
Equity securities with readily determinable fair value | 137 | 137 | 111 | ||||||
Recurring basis | Fair Value, Inputs, Level 1 | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 175,623 | 175,623 | 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 | 175,623 | 175,623 | 193,385 | ||||||
Recurring basis | Fair Value, Inputs, Level 2 | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 419,717 | 419,717 | 420,998 | ||||||
Mortgage loans held for sale, at fair value | 2,711 | 2,711 | 1,302 | ||||||
Rate lock loan commitments | 95 | 95 | 2 | ||||||
Interest rate swap agreements | 8,935 | 8,935 | 8,128 | ||||||
Equity securities with readily determinable fair value: | |||||||||
Equity securities with readily determinable fair value | 137 | 137 | 111 | ||||||
Financial Liabilities: | |||||||||
Mandatory forward contracts | 77 | 77 | 67 | ||||||
Interest rate swap agreements | 8,935 | 8,935 | 8,128 | ||||||
Recurring basis | Fair Value, Inputs, Level 2 | U.S. Treasury securities and U.S. Government agencies | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 239,989 | 239,989 | 217,756 | ||||||
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 155,549 | 155,549 | 171,873 | ||||||
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 22,163 | 22,163 | 21,368 | ||||||
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 2,016 | 2,016 | 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 | 137 | 137 | 111 | ||||||
Recurring basis | Fair Value, Inputs, Level 3 | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | 5,880 | 5,880 | 5,982 | ||||||
Consumer loans held for sale | 8,443 | 8,443 | 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 | 1,885 | 1,885 | 2,127 | ||||||
Recurring basis | Fair Value, Inputs, Level 3 | Trust Preferred Securities | |||||||||
Financial assets: | |||||||||
Total available-for-sale debt securities | $ 3,995 | $ 3,995 | $ 3,855 |
FAIR VALUE - RECONCILIATION USI
FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Private label mortgage backed security | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | $ 1,988 | $ 2,478 | $ 2,127 | $ 2,731 |
Net change in unrealized gain | (6) | 1 | 26 | 10 |
Principal paydowns | (97) | (195) | (268) | (457) |
Balance, end of period | 1,885 | 2,284 | 1,885 | 2,284 |
Trust Preferred Securities | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | 3,746 | 3,824 | 3,855 | 3,847 |
Discount accretion | 15 | 14 | 44 | 42 |
Net change in unrealized gain | 234 | 72 | 96 | 21 |
Balance, end of period | $ 3,995 | $ 3,910 | $ 3,995 | $ 3,910 |
FAIR VALUE - RECURRING LEVEL 3
FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Private label mortgage backed security | Recurring basis | ||
Fair value inputs quantitative information | ||
Mortgage backed security fair value | $ 1,885 | $ 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 | 0.028 | 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 | 0.12 | 0.25 |
Private label mortgage backed security | Maximum | Recurring basis | Constant Prepayment Rate | ||
Fair value inputs quantitative information | ||
Measurable input | 0.045 | 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 | $ 8,443 | $ 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 | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) loan | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value, Option | ||||||||
Aggregate fair value | $ 2,711 | $ 2,912 | $ 2,711 | $ 2,912 | $ 4,038 | $ 1,302 | $ 8,491 | $ 29,393 |
Contractual balance | $ 5,088,035 | $ 5,088,035 | $ 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 | 0 | |||||
Aggregate fair value | $ 2,711 | $ 2,711 | $ 1,302 | |||||
Contractual balance | 2,671 | 2,671 | 1,265 | |||||
Unrealized (loss) gain | 40 | 40 | $ 37 | |||||
Total included in earnings | 48 | (29) | 209 | (269) | ||||
Mortgage loans held for sale | Interest Income | ||||||||
Fair Value, Option | ||||||||
Total included in earnings | 84 | 112 | 206 | 469 | ||||
Mortgage loans held for sale | Change In Fair Value | ||||||||
Fair Value, Option | ||||||||
Total included in earnings | $ (36) | (141) | $ 3 | (738) | ||||
Consumer Loans Held For Sale | ||||||||
Fair Value, Option | ||||||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | 0 | |||||
Aggregate fair value | $ 8,443 | $ 8,443 | $ 4,706 | |||||
Contractual balance | 8,494 | 8,494 | 4,734 | |||||
Unrealized (loss) gain | (51) | (51) | $ (28) | |||||
Total included in earnings | 1,061 | 3,041 | 2,767 | 8,703 | ||||
Consumer Loans Held For Sale | Interest Income | ||||||||
Fair Value, Option | ||||||||
Total included in earnings | 1,077 | 3,009 | 2,790 | 8,889 | ||||
Consumer Loans Held For Sale | Change In Fair Value | ||||||||
Fair Value, Option | ||||||||
Total included in earnings | $ (16) | $ 32 | $ (23) | $ (186) |
FAIR VALUE - ASSETS MEASURED ON
FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 1,791 | $ 2,362 |
Other real estate owned | 1,423 | 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 | 973 | 1,456 |
Commercial real estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 818 | 906 |
Other real estate owned | 1,423 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,791 | 2,362 |
Other real estate owned | 1,423 | 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 | 973 | 1,456 |
Fair Value, Inputs, Level 3 | Commercial real estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 818 | $ 906 |
Other real estate owned | $ 1,423 |
FAIR VALUE - NON-RECURRING LEVE
FAIR VALUE - NON-RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 - Nonrecurring basis - Sale comparison approach $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Collateral Dependent Loans | Residential real estate | Residential Real Estate - Owner Occupied | ||
Fair value inputs quantitative information | ||
Fair Value | $ 973 | $ 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 | 0.27 | 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 | $ 818 | $ 906 |
Collateral Dependent Loans | Commercial real estate | Comparability Adjustment | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.11 | 0.16 |
Collateral Dependent Loans | Commercial real estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.11 | 0.16 |
Other Real Estate Owned | Commercial real estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,423 | $ 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 | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Inputs, Level 3 | Nonrecurring basis | |||
Provision for impairment on loan, lease and other losses | |||
Provisions on collateral-dependent loans | $ (7) | $ (20) | $ (11) |
FAIR VALUE - OTHER REAL ESTATE
FAIR VALUE - OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Disclosures | |||||
Total Carrying value of other real estate owned | $ 1,423 | $ 1,423 | $ 1,581 | ||
Other real estate owned write-downs during the period | 158 | $ 158 | |||
Nonrecurring basis | |||||
Fair Value Disclosures | |||||
Other real estate owned write-downs during the period | 53 | $ 53 | 158 | $ 158 | |
Nonrecurring basis | Other Real Estate Owned | |||||
Fair Value Disclosures | |||||
Other real estate owned carried at fair value | 1,423 | 1,423 | 1,581 | ||
Total Carrying value of other real estate owned | $ 1,423 | 1,423 | 1,581 | ||
Other real estate owned write-downs during the period | $ 158 | $ 211 |
FAIR VALUE - CARRYING AMOUNTS A
FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||||||
Available-for-sale debt securities | $ 601,220 | $ 620,365 | ||||
Held-to-maturity debt securities | 101,202 | 87,357 | ||||
Equity securities with readily determinable fair value | 137 | 111 | ||||
Mortgage loans held for sale, at fair value | 2,711 | $ 4,038 | 1,302 | $ 2,912 | $ 8,491 | $ 29,393 |
Consumer loans held for sale, at fair value | 8,443 | 5,757 | 4,706 | 8,796 | 17,459 | 19,747 |
Consumer loans held for sale, at the lower of cost or fair value | 13,529 | $ 15,787 | 13,169 | $ 12,679 | $ 13,777 | $ 2,937 |
Carrying Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 219,653 | 313,689 | ||||
Available-for-sale debt securities | 601,220 | 620,365 | ||||
Held-to-maturity debt securities | 101,650 | 87,386 | ||||
Equity securities with readily determinable fair value | 137 | 111 | ||||
Mortgage loans held for sale, at fair value | 2,711 | 1,302 | ||||
Consumer loans held for sale, at fair value | 8,443 | 4,706 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 13,529 | 13,169 | ||||
Loans, net | 5,006,523 | 4,445,389 | ||||
Federal Home Loan Bank stock | 31,420 | 9,146 | ||||
Accrued interest receivable | 18,938 | 13,572 | ||||
Mortgage servicing rights | 7,710 | 8,769 | ||||
Rate lock loan commitments | 95 | 2 | ||||
Interest rate swap agreements | 8,935 | 8,128 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 82,376 | 216,956 | ||||
Federal Home Loan Bank advances | 465,000 | 95,000 | ||||
Accrued interest payable | 2,017 | 239 | ||||
Mandatory forward contracts | 77 | 67 | ||||
Interest rate swap agreements | 8,935 | 8,128 | ||||
Carrying Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,702,979 | 1,908,768 | ||||
Carrying Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,660,149 | 2,398,853 | ||||
Carrying Value | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 430,454 | 230,224 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 219,653 | 313,689 | ||||
Available-for-sale debt securities | 601,220 | 620,365 | ||||
Held-to-maturity debt securities | 101,202 | 87,357 | ||||
Equity securities with readily determinable fair value | 137 | 111 | ||||
Mortgage loans held for sale, at fair value | 2,711 | 1,302 | ||||
Consumer loans held for sale, at fair value | 8,443 | 4,706 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 13,529 | 13,169 | ||||
Loans, net | 4,692,640 | 4,276,423 | ||||
Accrued interest receivable | 18,938 | 13,572 | ||||
Mortgage servicing rights | 17,300 | 17,592 | ||||
Rate lock loan commitments | 95 | 2 | ||||
Interest rate swap agreements | 8,935 | 8,128 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 82,376 | 216,956 | ||||
Federal Home Loan Bank advances | 458,487 | 93,044 | ||||
Accrued interest payable | 2,017 | 239 | ||||
Mandatory forward contracts | 77 | 67 | ||||
Interest rate swap agreements | 8,935 | 8,128 | ||||
Total Fair Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,702,979 | 1,908,768 | ||||
Total Fair Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,660,149 | 2,398,853 | ||||
Total Fair Value | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 426,808 | 223,912 | ||||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||||
Assets: | ||||||
Cash and cash equivalents | 219,653 | 313,689 | ||||
Available-for-sale debt securities | 175,623 | 193,385 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 419,717 | 420,998 | ||||
Held-to-maturity debt securities | 101,202 | 87,357 | ||||
Equity securities with readily determinable fair value | 137 | 111 | ||||
Mortgage loans held for sale, at fair value | 2,711 | 1,302 | ||||
Accrued interest receivable | 4,588 | 2,462 | ||||
Mortgage servicing rights | 17,300 | 17,592 | ||||
Rate lock loan commitments | 95 | 2 | ||||
Interest rate swap agreements | 8,935 | 8,128 | ||||
Liabilities: | ||||||
Securities sold under agreements to repurchase and other short-term borrowings | 82,376 | 216,956 | ||||
Federal Home Loan Bank advances | 458,487 | 93,044 | ||||
Accrued interest payable | 2,017 | 239 | ||||
Mandatory forward contracts | 77 | 67 | ||||
Interest rate swap agreements | 8,935 | 8,128 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,702,979 | 1,908,768 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 2,660,149 | 2,398,853 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Time deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 426,808 | 223,912 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 5,880 | 5,982 | ||||
Consumer loans held for sale, at fair value | 8,443 | 4,706 | ||||
Consumer loans held for sale, at the lower of cost or fair value | 13,529 | 13,169 | ||||
Loans, net | 4,692,640 | 4,276,423 | ||||
Accrued interest receivable | $ 14,350 | $ 11,110 |
MORTGAGE BANKING ACTIVITIES - M
MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 4,038 | $ 8,491 | $ 1,302 | $ 29,393 |
Origination of mortgage loans held for sale | 23,860 | 32,856 | 53,750 | 195,006 |
Proceeds from the sale of mortgage loans held for sale | (25,681) | (39,220) | (53,794) | (226,191) |
Net gain on sale of mortgage loans held for sale | 494 | 785 | 1,453 | 4,704 |
Balance, end of period | $ 2,711 | $ 2,912 | $ 2,711 | $ 2,912 |
MORTGAGE BANKING ACTIVITIES - C
MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Mortgage servicing rights | ||||
Net gain realized on sale of mortgage loans held for sale | $ 608 | $ 1,041 | $ 1,213 | $ 6,448 |
Net gain recognized | 494 | 785 | 1,453 | 4,704 |
Loan servicing income | 824 | 894 | 2,546 | 2,643 |
Amortization of mortgage servicing rights | (466) | (525) | (1,440) | (1,773) |
Net servicing income recognized | 358 | 369 | 1,106 | 870 |
Total Mortgage Banking income | 852 | 1,154 | 2,559 | 5,574 |
Mortgage Loans Held for Sale | ||||
Mortgage servicing rights | ||||
Net change in fair value | (36) | (141) | 3 | (738) |
Rate lock loan commitments | ||||
Mortgage servicing rights | ||||
Net change in fair value | (94) | (395) | 93 | (1,579) |
Mandatory forward contracts | ||||
Mortgage servicing rights | ||||
Net change in fair value | $ 16 | $ 280 | $ 144 | $ 573 |
MORTGAGE BANKING ACTIVITIES -_2
MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 7,995 | $ 9,407 | $ 8,770 | $ 9,196 |
Additions | 182 | 296 | 381 | 1,755 |
Amortized to expense | (466) | (525) | (1,440) | (1,773) |
Balance, end of period | $ 7,711 | $ 9,178 | $ 7,711 | $ 9,178 |
MORTGAGE BANKING ACTIVITIES - V
MORTGAGE BANKING ACTIVITIES - VALUATION OF CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |
Beginning valuation allowance | $ 0 |
Charge during the period | 0 |
Ending valuation allowance | $ 0 |
MORTGAGE BANKING ACTIVITIES - O
MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
MORTGAGE BANKING ACTIVITIES | ||
Fair value of mortgage servicing rights portfolio | $ 17,300 | $ 17,145 |
Monthly weighted average prepayment rate of unpaid principal balance (as percent) | 120% | 127% |
Discount rate (as percent) | 10.39% | 10.21% |
Weighted average foreclosure rate | 0.11% | 0.10% |
Weighted average life in years | 7 years 8 months 8 days | 7 years 6 months 14 days |
MORTGAGE BANKING ACTIVITIES - N
MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Mortgage servicing rights | ||
Derivative instruments expiration period | 90 days | |
Mortgage loans held for sale | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | $ 2,671 | $ 2,711 |
Rate lock loan commitments | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 9,487 | 95 |
Mandatory forward contracts | ||
Information about derivatives and swaps | ||
Derivative Liabilities, Notional Amount | $ 9,325 | $ 77 |
INTEREST RATE SWAPS - NON-HEDGE
INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Counterparty | ||
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | $ 9,000,000 | $ 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 | 337,310,000 | 263,336,000 |
Interest rate swap | Non-Hedge | Bank Clients | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 13,413,000 | 40,032,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 155,242,000 | 91,636,000 |
Interest rate swaps with Bank clients - Total, Notional Amount | 168,655,000 | 131,668,000 |
Interest rate swaps with Bank clients - Assets | 202,000 | 1,386,000 |
Interest rate swaps with Bank clients - Liabilities | (8,733,000) | (6,742,000) |
Interest rate swaps with Bank clients - Total, Fair Value | (8,531,000) | (5,356,000) |
Interest rate swap | Non-Hedge | Counterparty | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 153,132,000 | 91,636,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 15,523,000 | 40,032,000 |
Interest rate swaps with Bank clients - Total, Notional Amount | 168,655,000 | 131,668,000 |
Offsetting interest rate swaps with institutional swap dealer - Assets, Fair Value | 8,733,000 | 6,742,000 |
Offsetting interest rate swaps with institutional swap dealer - Liabilities, Fair Value | (202,000) | (1,386,000) |
Offsetting interest rate swaps with institutional swap dealer - Total, Fair Value | $ 8,531,000 | $ 5,356,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
EARNINGS PER SHARE | ||||
Net Income (Loss) | $ 21,571 | $ 19,896 | $ 70,715 | $ 72,593 |
Dividends declared on Common Stock: | ||||
Undistributed net income for basic earnings per share | 14,382 | 13,232 | 48,941 | 52,460 |
Weighted average potential dividends on Class A shares upon exercise of dilutive options | (25) | (21) | (62) | (70) |
Undistributed net income for diluted earnings per share | $ 14,357 | $ 13,211 | $ 48,879 | $ 52,390 |
Weighted average shares outstanding: | ||||
Effect of dilutive securities on Class A Shares outstanding | 68,000 | 62,000 | 55,000 | 68,000 |
Weighted average shares outstanding including dilutive securities | 19,774,000 | 19,981,000 | 19,910,000 | 20,134,000 |
Employee Stock Option [Member] | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 121,781 | 180,000 | 193,398 | 180,000 |
Employee Stock Option [Member] | Weighted Average | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 117,998 | 177,000 | 193,398 | 174,000 |
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 | $ (6,456) | $ (5,995) | $ (19,574) | $ (18,123) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 17,549,000 | 17,759,000 | 17,697,000 | 17,904,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.37 | $ 0.34 | $ 1.12 | $ 1.02 |
Undistributed earnings per share | 0.74 | 0.67 | 2.49 | 2.64 |
Total basic earnings per share | 1.11 | 1.01 | 3.61 | 3.66 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.37 | 0.34 | 1.12 | 1.02 |
Undistributed earnings per share | 0.73 | 0.67 | 2.48 | 2.63 |
Total diluted earnings per share | $ 1.10 | $ 1.01 | $ 3.60 | $ 3.65 |
Class B Common Stock | ||||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (733) | $ (669) | $ (2,200) | $ (2,010) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 2,157,000 | 2,160,000 | 2,158,000 | 2,162,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.34 | $ 0.31 | $ 1.02 | $ 0.93 |
Undistributed earnings per share | 0.67 | 0.61 | 2.26 | 2.40 |
Total basic earnings per share | 1.01 | 0.92 | 3.28 | 3.33 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.34 | 0.31 | 1.02 | 0.93 |
Undistributed earnings per share | 0.67 | 0.61 | 2.25 | 2.39 |
Total diluted earnings per share | $ 1.01 | $ 0.92 | $ 3.27 | $ 3.32 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Available-for-Sale Debt Securities: | ||||
Unrealized gain (loss) on AFS debt securities | $ 1,024 | $ (15,510) | $ 1,812 | $ (46,892) |
Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | (7) | 1 | 27 | 10 |
Total other comprehensive income (loss) before income tax | 1,017 | (15,509) | 1,839 | (46,882) |
Income tax benefit (expense) related to items of other comprehensive income | (250) | 3,875 | (461) | 11,720 |
Total other comprehensive income (loss), net of tax | $ 767 | $ (11,634) | $ 1,378 | $ (35,162) |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | $ 886,971 | $ 843,866 | $ 856,613 | $ 835,054 |
Current Year Change | 767 | (11,634) | 1,378 | (35,162) |
Balance at end of period | 893,400 | 843,063 | 893,400 | 843,063 |
Accumulated Other Comprehensive Income | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | (31,368) | (21,654) | (31,979) | 1,874 |
Current Year Change | 1,378 | (35,162) | ||
Balance at end of period | (30,601) | (33,288) | (30,601) | (33,288) |
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 | 1,351 | (35,169) | ||
Balance at end of period | (31,583) | (34,279) | (31,583) | (34,279) |
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 | 27 | 7 | ||
Balance at end of period | $ 982 | $ 991 | $ 982 | $ 991 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 06, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue recognition | |||||||
Net interest income | $ 64,825 | $ 58,597 | $ 221,996 | $ 173,578 | |||
Noninterest income: | |||||||
Mortgage banking income | 852 | 1,154 | 2,559 | 5,574 | |||
Program fees | 4,041 | 4,932 | 11,021 | 12,671 | |||
Increase in cash surrender value of BOLI | 690 | 617 | 2,014 | 1,852 | |||
Death benefits in excess of cash surrender value of life insurance | 1,728 | ||||||
Total noninterest income | 14,019 | 15,108 | 56,351 | 76,686 | |||
Total net revenue | $ 78,844 | $ 73,705 | $ 278,347 | $ 250,264 | |||
Net-revenue concentration (as percent) | 100% | 100% | 100% | 100% | |||
Writedowns during entity's holding of property (as a percent) | 10% | ||||||
Core Banking Activities | |||||||
Revenue recognition | |||||||
Net interest income | $ 49,960 | $ 49,685 | $ 153,600 | $ 133,749 | |||
Noninterest income: | |||||||
Mortgage banking income | 852 | 1,154 | 2,559 | 5,574 | |||
Increase in cash surrender value of BOLI | 690 | 617 | 2,014 | 1,852 | |||
Death benefits in excess of cash surrender value of life insurance | 1,728 | ||||||
Total noninterest income | 9,626 | 9,521 | 29,383 | 29,022 | |||
Total net revenue | $ 59,586 | $ 59,206 | $ 182,983 | $ 162,771 | |||
Net-revenue concentration (as percent) | 76% | 81% | 66% | 65% | |||
Traditional Banking | |||||||
Revenue recognition | |||||||
Net interest income | $ 47,409 | $ 46,562 | $ 146,198 | $ 121,868 | |||
Noninterest income: | |||||||
Increase in cash surrender value of BOLI | 690 | 617 | 2,014 | 1,852 | |||
Death benefits in excess of cash surrender value of life insurance | 1,728 | ||||||
Total noninterest income | 8,748 | 8,321 | 26,732 | 23,297 | |||
Total net revenue | $ 56,157 | $ 54,883 | $ 172,930 | $ 145,165 | |||
Net-revenue concentration (as percent) | 72% | 75% | 62% | 58% | |||
Warehouse Lending | |||||||
Revenue recognition | |||||||
Net interest income | $ 2,467 | $ 3,011 | $ 7,196 | $ 11,412 | |||
Noninterest income: | |||||||
Total noninterest income | 11 | 13 | 33 | 38 | |||
Total net revenue | $ 2,478 | $ 3,024 | $ 7,229 | $ 11,450 | |||
Net-revenue concentration (as percent) | 3% | 4% | 3% | 5% | |||
Mortgage Banking | |||||||
Revenue recognition | |||||||
Net interest income | $ 84 | $ 112 | $ 206 | $ 469 | |||
Noninterest income: | |||||||
Mortgage banking income | 852 | 1,154 | 2,559 | 5,574 | |||
Total noninterest income | 867 | 1,187 | 2,618 | 5,687 | |||
Total net revenue | $ 951 | $ 1,299 | $ 2,824 | $ 6,156 | |||
Net-revenue concentration (as percent) | 1% | 2% | 1% | 2% | |||
Republic Processing Group | |||||||
Revenue recognition | |||||||
Net interest income | $ 14,865 | $ 8,912 | $ 68,396 | $ 39,829 | |||
Noninterest income: | |||||||
Program fees | 4,041 | 4,932 | 11,021 | 12,671 | |||
Total noninterest income | 4,393 | 5,587 | 26,968 | 47,664 | |||
Total net revenue | $ 19,258 | $ 14,499 | $ 95,364 | $ 87,493 | |||
Net-revenue concentration (as percent) | 24% | 19% | 34% | 35% | |||
Tax Refund Solutions | |||||||
Revenue recognition | |||||||
Net interest income | $ 4,525 | $ 1,709 | $ 40,300 | $ 18,751 | |||
Noninterest income: | |||||||
Program fees | 705 | 724 | 2,140 | 2,187 | |||
Total noninterest income | 1,029 | 1,379 | 17,994 | 37,180 | |||
Total net revenue | $ 5,554 | $ 3,088 | $ 58,294 | $ 55,931 | |||
Net-revenue concentration (as percent) | 7% | 4% | 21% | 22% | |||
Republic Credit Solutions | |||||||
Revenue recognition | |||||||
Net interest income | $ 10,340 | $ 7,203 | $ 28,096 | $ 21,078 | |||
Noninterest income: | |||||||
Program fees | 3,336 | 4,208 | 8,881 | 10,484 | |||
Total noninterest income | 3,364 | 4,208 | 8,974 | 10,484 | |||
Total net revenue | $ 13,704 | $ 11,411 | $ 37,070 | $ 31,562 | |||
Net-revenue concentration (as percent) | 17% | 15% | 13% | 13% | |||
Service charges on deposit accounts | |||||||
Noninterest income: | |||||||
Revenue under 606 | $ 3,559 | $ 3,409 | $ 10,385 | $ 9,998 | |||
Service charges on deposit accounts | Core Banking Activities | |||||||
Noninterest income: | |||||||
Revenue under 606 | 3,558 | 3,410 | 10,384 | 10,009 | |||
Service charges on deposit accounts | Traditional Banking | |||||||
Noninterest income: | |||||||
Revenue under 606 | 3,547 | 3,397 | 10,351 | 9,971 | |||
Service charges on deposit accounts | Warehouse Lending | |||||||
Noninterest income: | |||||||
Revenue under 606 | 11 | 13 | 33 | 38 | |||
Service charges on deposit accounts | Republic Processing Group | |||||||
Noninterest income: | |||||||
Revenue under 606 | 1 | (1) | 1 | (11) | |||
Service charges on deposit accounts | Tax Refund Solutions | |||||||
Noninterest income: | |||||||
Revenue under 606 | (1) | (11) | |||||
Service charges on deposit accounts | Republic Credit Solutions | |||||||
Noninterest income: | |||||||
Revenue under 606 | 1 | 1 | |||||
Net refund transfer fees | |||||||
Noninterest income: | |||||||
Revenue under 606 | 242 | 593 | 15,528 | 16,594 | |||
Net refund transfer fees | Republic Processing Group | |||||||
Noninterest income: | |||||||
Revenue under 606 | 242 | 593 | 15,528 | 16,594 | |||
Net refund transfer fees | Tax Refund Solutions | |||||||
Noninterest income: | |||||||
Revenue under 606 | 242 | 593 | 15,528 | 16,594 | |||
Interchange fee income | |||||||
Noninterest income: | |||||||
Revenue under 606 | 3,282 | 3,322 | 9,752 | 9,853 | |||
Interchange fee income | Core Banking Activities | |||||||
Noninterest income: | |||||||
Revenue under 606 | 3,258 | 3,292 | 9,639 | 9,693 | |||
Interchange fee income | Traditional Banking | |||||||
Noninterest income: | |||||||
Revenue under 606 | 3,258 | 3,292 | 9,639 | 9,693 | |||
Interchange fee income | Republic Processing Group | |||||||
Noninterest income: | |||||||
Revenue under 606 | 24 | 30 | 113 | 160 | |||
Interchange fee income | Tax Refund Solutions | |||||||
Noninterest income: | |||||||
Revenue under 606 | 23 | 30 | 112 | 160 | |||
Interchange fee income | Republic Credit Solutions | |||||||
Noninterest income: | |||||||
Revenue under 606 | 1 | 1 | |||||
Net losses on other real estate owned | |||||||
Noninterest income: | |||||||
Revenue under 606 | (53) | (53) | (158) | (158) | |||
Net losses on other real estate owned | Core Banking Activities | |||||||
Noninterest income: | |||||||
Revenue under 606 | (53) | (53) | (158) | (158) | |||
Net losses on other real estate owned | Traditional Banking | |||||||
Noninterest income: | |||||||
Revenue under 606 | (53) | (53) | (158) | (158) | |||
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 | ||||||
Legal settlement | |||||||
Noninterest income: | |||||||
Revenue under 606 | 13,000 | ||||||
Legal settlement | Republic Processing Group | |||||||
Noninterest income: | |||||||
Revenue under 606 | 13,000 | ||||||
Legal settlement | Tax Refund Solutions | |||||||
Noninterest income: | |||||||
Revenue under 606 | 13,000 | ||||||
Legal settlement | Green Dot | |||||||
Noninterest income: | |||||||
Revenue under 606 | $ 13,000 | $ 13,000 | |||||
Other | |||||||
Noninterest income: | |||||||
Revenue under 606 | 1,406 | 1,134 | 3,522 | 2,302 | |||
Other | Core Banking Activities | |||||||
Noninterest income: | |||||||
Revenue under 606 | 1,321 | 1,101 | 3,217 | 2,052 | |||
Other | Traditional Banking | |||||||
Noninterest income: | |||||||
Revenue under 606 | 1,306 | 1,068 | 3,158 | 1,939 | |||
Other | Mortgage Banking | |||||||
Noninterest income: | |||||||
Revenue under 606 | 15 | 33 | 59 | 113 | |||
Other | Republic Processing Group | |||||||
Noninterest income: | |||||||
Revenue under 606 | 85 | 33 | 305 | 250 | |||
Other | Tax Refund Solutions | |||||||
Noninterest income: | |||||||
Revenue under 606 | 59 | $ 33 | 214 | $ 250 | |||
Other | Republic Credit Solutions | |||||||
Noninterest income: | |||||||
Revenue under 606 | $ 26 | $ 91 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Disclosure information | |||||
Number of reportable segments | segment | 5 | ||||
Segment information | |||||
Net interest income | $ 64,825 | $ 58,597 | $ 221,996 | $ 173,578 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 3,730 | 1,573 | 36,635 | 14,504 | |
Mortgage banking income | 852 | 1,154 | 2,559 | 5,574 | |
Program fees | 4,041 | 4,932 | 11,021 | 12,671 | |
Other noninterest income | 8,884 | 8,429 | 27,243 | 23,847 | |
Total noninterest income | 14,019 | 15,108 | 56,351 | 76,686 | |
Total noninterest expense | 48,042 | 46,166 | 152,018 | 142,403 | |
INCOME BEFORE INCOME TAX EXPENSE | 27,072 | 25,966 | 89,694 | 93,357 | |
Income tax expense (benefit) | 5,501 | 6,070 | 18,979 | 20,764 | |
NET INCOME | 21,571 | 19,896 | 70,715 | 72,593 | |
Period-end assets | $ 6,386,475 | $ 5,999,663 | $ 6,386,475 | $ 5,999,663 | $ 5,835,543 |
Net interest margin (as percent) | 4.35% | 4.09% | 5.09% | 3.99% | |
Net-revenue concentration (as percent) | 100% | 100% | 100% | 100% | |
Core Banking Activities | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 3 | ||||
Segment information | |||||
Net interest income | $ 49,960 | $ 49,685 | $ 153,600 | $ 133,749 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 1,364 | (1,139) | 6,545 | (1,308) | |
Mortgage banking income | 852 | 1,154 | 2,559 | 5,574 | |
Other noninterest income | 8,774 | 8,367 | 26,824 | 23,448 | |
Total noninterest income | 9,626 | 9,521 | 29,383 | 29,022 | |
Total noninterest expense | 41,814 | 40,694 | 131,671 | 124,746 | |
INCOME BEFORE INCOME TAX EXPENSE | 16,408 | 19,651 | 44,767 | 39,333 | |
Income tax expense (benefit) | 3,213 | 4,715 | 9,120 | 8,285 | |
NET INCOME | 13,195 | 14,936 | 35,647 | 31,048 | |
Period-end assets | $ 5,848,647 | $ 5,494,646 | $ 5,848,647 | $ 5,494,646 | |
Net interest margin (as percent) | 3.43% | 3.54% | 3.68% | 3.16% | |
Net-revenue concentration (as percent) | 76% | 81% | 66% | 65% | |
Traditional Banking | |||||
Segment information | |||||
Net interest income | $ 47,409 | $ 46,562 | $ 146,198 | $ 121,868 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 1,567 | (753) | 6,411 | (287) | |
Other noninterest income | 8,748 | 8,321 | 26,732 | 23,297 | |
Total noninterest income | 8,748 | 8,321 | 26,732 | 23,297 | |
Total noninterest expense | 39,381 | 37,838 | 122,386 | 114,381 | |
INCOME BEFORE INCOME TAX EXPENSE | 15,209 | 17,798 | 44,133 | 31,071 | |
Income tax expense (benefit) | 2,942 | 4,299 | 8,965 | 6,419 | |
NET INCOME | 12,267 | 13,499 | 35,168 | 24,652 | |
Period-end assets | $ 5,375,648 | $ 5,036,343 | $ 5,375,648 | $ 5,036,343 | |
Net interest margin (as percent) | 3.52% | 3.63% | 3.76% | 3.20% | |
Net-revenue concentration (as percent) | 72% | 75% | 62% | 58% | |
Warehouse Lending | |||||
Segment information | |||||
Net interest income | $ 2,467 | $ 3,011 | $ 7,196 | $ 11,412 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | (203) | (386) | 134 | (1,021) | |
Other noninterest income | 11 | 13 | 33 | 38 | |
Total noninterest income | 11 | 13 | 33 | 38 | |
Total noninterest expense | 640 | 851 | 2,616 | 2,838 | |
INCOME BEFORE INCOME TAX EXPENSE | 2,041 | 2,559 | 4,479 | 9,633 | |
Income tax expense (benefit) | 456 | 572 | 1,001 | 2,168 | |
NET INCOME | 1,585 | 1,987 | 3,478 | 7,465 | |
Period-end assets | $ 458,542 | $ 441,885 | $ 458,542 | $ 441,885 | |
Net interest margin (as percent) | 2.33% | 2.54% | 2.37% | 2.79% | |
Net-revenue concentration (as percent) | 3% | 4% | 3% | 5% | |
Mortgage Banking | |||||
Segment information | |||||
Net interest income | $ 84 | $ 112 | $ 206 | $ 469 | |
Mortgage banking income | 852 | 1,154 | 2,559 | 5,574 | |
Other noninterest income | 15 | 33 | 59 | 113 | |
Total noninterest income | 867 | 1,187 | 2,618 | 5,687 | |
Total noninterest expense | 1,793 | 2,005 | 6,669 | 7,527 | |
INCOME BEFORE INCOME TAX EXPENSE | (842) | (706) | (3,845) | (1,371) | |
Income tax expense (benefit) | (185) | (156) | (846) | (302) | |
NET INCOME | (657) | (550) | (2,999) | (1,069) | |
Period-end assets | $ 14,457 | $ 16,418 | $ 14,457 | $ 16,418 | |
Net-revenue concentration (as percent) | 1% | 2% | 1% | 2% | |
Republic Processing Group | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 2 | ||||
Segment information | |||||
Net interest income | $ 14,865 | $ 8,912 | $ 68,396 | $ 39,829 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 2,366 | 2,712 | 30,090 | 15,812 | |
Program fees | 4,041 | 4,932 | 11,021 | 12,671 | |
Other noninterest income | 110 | 62 | 419 | 399 | |
Total noninterest income | 4,393 | 5,587 | 26,968 | 47,664 | |
Total noninterest expense | 6,228 | 5,472 | 20,347 | 17,657 | |
INCOME BEFORE INCOME TAX EXPENSE | 10,664 | 6,315 | 44,927 | 54,024 | |
Income tax expense (benefit) | 2,288 | 1,355 | 9,859 | 12,479 | |
NET INCOME | 8,376 | 4,960 | 35,068 | 41,545 | |
Period-end assets | $ 537,828 | $ 505,017 | $ 537,828 | $ 505,017 | |
Net-revenue concentration (as percent) | 24% | 19% | 34% | 35% | |
Tax Refund Solutions | |||||
Segment information | |||||
Net interest income | $ 4,525 | $ 1,709 | $ 40,300 | $ 18,751 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | (1,967) | (1,296) | 19,622 | 6,976 | |
Program fees | 705 | 724 | 2,140 | 2,187 | |
Other noninterest income | 82 | 62 | 326 | 399 | |
Total noninterest income | 1,029 | 1,379 | 17,994 | 37,180 | |
Total noninterest expense | 3,116 | 3,248 | 11,907 | 11,928 | |
INCOME BEFORE INCOME TAX EXPENSE | 4,405 | 1,136 | 26,765 | 37,027 | |
Income tax expense (benefit) | 896 | 202 | 5,828 | 8,573 | |
NET INCOME | 3,509 | 934 | 20,937 | 28,454 | |
Period-end assets | $ 403,733 | $ 395,873 | $ 403,733 | $ 395,873 | |
Net-revenue concentration (as percent) | 7% | 4% | 21% | 22% | |
Republic Credit Solutions | |||||
Segment information | |||||
Net interest income | $ 10,340 | $ 7,203 | $ 28,096 | $ 21,078 | |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 4,333 | 4,008 | 10,468 | 8,836 | |
Program fees | 3,336 | 4,208 | 8,881 | 10,484 | |
Other noninterest income | 28 | 93 | |||
Total noninterest income | 3,364 | 4,208 | 8,974 | 10,484 | |
Total noninterest expense | 3,112 | 2,224 | 8,440 | 5,729 | |
INCOME BEFORE INCOME TAX EXPENSE | 6,259 | 5,179 | 18,162 | 16,997 | |
Income tax expense (benefit) | 1,392 | 1,153 | 4,031 | 3,906 | |
NET INCOME | 4,867 | 4,026 | 14,131 | 13,091 | |
Period-end assets | $ 134,095 | $ 109,144 | $ 134,095 | $ 109,144 | |
Net-revenue concentration (as percent) | 17% | 15% | 13% | 13% | |
Net refund transfer fees | |||||
Segment information | |||||
Revenue under 606 | $ 242 | $ 593 | $ 15,528 | $ 16,594 | |
Net refund transfer fees | Republic Processing Group | |||||
Segment information | |||||
Revenue under 606 | 242 | 593 | 15,528 | 16,594 | |
Net refund transfer fees | Tax Refund Solutions | |||||
Segment information | |||||
Revenue under 606 | $ 242 | $ 593 | $ 15,528 | 16,594 | |
Contract termination fee | |||||
Segment information | |||||
Revenue under 606 | 5,000 | ||||
Contract termination fee | Republic Processing Group | |||||
Segment information | |||||
Revenue under 606 | 5,000 | ||||
Contract termination fee | Tax Refund Solutions | |||||
Segment information | |||||
Revenue under 606 | 5,000 | ||||
Legal settlement | |||||
Segment information | |||||
Revenue under 606 | 13,000 | ||||
Legal settlement | Republic Processing Group | |||||
Segment information | |||||
Revenue under 606 | 13,000 | ||||
Legal settlement | Tax Refund Solutions | |||||
Segment information | |||||
Revenue under 606 | $ 13,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 21,571 | $ 19,896 | $ 70,715 | $ 72,593 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |