EX-99.2 3 a52512435ex99_2.htm EXHIBIT 99.2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

TABLE OF CONTENTS

		YEAR TO YEAR COMPARISON	S-2

		Balance Sheet Data	S-2
		Average Balance Sheet Data (Continuing Operations)	S-2
		Income Statement Data	S-3
		Selected Data and Ratios	S-5
		Credit Quality Data and Ratios	S-7

		QUARTERLY COMPARISON	S-7

		Balance Sheet Data	S-7
		Average Balance Sheet Data (Continuing Operations)	S-7
		Income Statement Data	S-8
		Selected Data and Ratios	S-10
		Credit Quality Data and Ratios	S-11

		SEGMENT DATA	S-12

		Quarter to Date Income Statement by Segment	S-13
		Year to Date Income Statement by Segment	S-14

		FOOTNOTES	S-15

S-1

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

Balance Sheet Data
	Sep. 30, 2021			Dec. 31, 2020			Sep. 30, 2020
Assets:
Cash and cash equivalents	$	1,011,247		$	485,587		$	342,028
Investment securities, net of allowance for credit losses		543,449			580,270			607,556
Loans held for sale		40,546			51,643			56,752
Loans of discontinued operations (1)		24			23,765			233
Loans		4,343,782			4,789,338			4,994,141
Allowance for credit losses		(63,024	)		(61,067	)		(59,891	)
Loans, net		4,280,758			4,728,271			4,934,250
Federal Home Loan Bank stock, at cost		10,311			17,397			19,634
Premises and equipment, net		37,499			39,512			40,946
Right-of-use assets		39,257			43,345			43,643
Goodwill		16,300			16,300			16,300
Other real estate owned ("OREO")		1,845			2,499			2,056
Bank owned life insurance ("BOLI")		99,634			68,018			67,617
Other assets and accrued interest receivable		106,764			111,718			109,431
Total assets	$	6,187,634		$	6,168,325		$	6,240,446

Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,053,485		$	1,871,539		$	1,855,502
Interest-bearing		2,861,399			2,842,765			3,115,911
Deposits of discontinued operations (1)		33,063			18,877			20,916
Total deposits		4,947,947			4,733,181			4,992,329

Securities sold under agreements to repurchase and other short-term borrowings		260,583			211,026			126,172
Operating lease liabilities		40,151			44,340			44,710
Federal Home Loan Bank advances		25,000			235,000			132,500
Subordinated note		—			41,240			41,240
Other liabilities and accrued interest payable		75,296			80,215			93,133
Total liabilities		5,348,977			5,345,002			5,430,084

Stockholders' equity		838,657			823,323			810,362
Total liabilities and stockholders' equity	$	6,187,634		$	6,168,325		$	6,240,446


Average Balance Sheet Data (Continuing Operations) (1)
	Three Months Ended Sep. 30,				Nine Months Ended Sep. 30,
	2021		2020		2021		2020
Assets:
Federal funds sold and other interest-earning deposits	$	930,823	$	315,597	$	901,086	$	377,046
Investment securities, including FHLB stock		555,934		600,943		560,780		575,575
Loans, including loans held for sale		4,404,600		4,907,630		4,515,961		4,694,141
Total interest-earning assets		5,891,357		5,824,170		5,977,827		5,646,762
Total assets		6,288,014		6,151,538		6,336,094		5,948,459

Liabilities and Stockholders' Equity:
Noninterest-bearing deposits	$	2,074,941	$	1,817,820	$	2,061,144	$	1,506,109
Interest-bearing deposits		2,908,134		2,939,063		2,945,770		2,851,995
Securities sold under agreements to
repurchase and other short-term borrowings		286,126		241,742		304,182		332,053
Federal Reserve Paycheck Protection Program Liquidity Facility		—		53,338		—		58,683
Federal Home Loan Bank advances		25,000		126,250		30,989		253,157
Subordinated note		40,792		41,240		41,089		41,240
Total interest-bearing liabilities		3,260,052		3,401,633		3,322,030		3,537,128
Stockholders' equity		848,935		811,351		844,885		795,883

S-2

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

Income Statement Data
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2021			2020			2021			2020

Total interest income (2)	$	53,700		$	55,905		$	160,266		$	174,442
Total interest expense		1,391			3,856			4,941			18,109
Net interest income		52,309			52,049			155,325			156,333

Provision for expected credit loss expense		3,553			5,842			4,381			15,555

Noninterest income:
Service charges on deposit accounts		3,277			3,017			9,221			8,604
Mortgage banking income		5,280			10,775			16,655			23,968
Interchange fee income		3,200			2,874			9,539			8,093
Program fees		4,530			1,487			10,304			5,249
Increase in cash surrender value of BOLI		626			400			1,616			1,184
Net losses on OREO		(52	)		(14	)		(107	)		(10	)
Other		1,134			861			2,769			2,673
Total noninterest income		17,995			19,400			49,997			49,761

Noninterest expense:
Salaries and employee benefits		25,948			25,207			79,470			75,405
Technology, equipment, and communication		7,226			7,402			21,479			20,966
Occupancy		3,195			3,367			10,004			9,885
Marketing and development		1,234			864			3,085			2,574
FDIC insurance expense		325			345			1,039			644
Bank franchise tax expense		329			972			1,106			2,665
Interchange related expense		1,275			1,056			3,707			3,305
Other real estate owned and other repossession expense		—			6			(32	)		45
Legal and professional fees		581			1,240			2,182			3,337
Other		2,481			3,319			7,953			10,262
Total noninterest expense		42,594			43,778			129,993			129,088

Income from continuing operations before income tax expense		24,157			21,829			70,948			61,451
Income tax expense		5,745			4,554			15,708			12,107
Income from continuing operations		18,412			17,275			55,240			49,344
Discontinued operations (1) (2):
Income from discontinued operations before income taxes		2,070			3,997			19,584			17,550
Income tax expense		473			883			4,840			4,004
Income from discontinued operations, net of tax		1,597			3,114			14,744			13,546

Net income	$	20,009		$	20,389		$	69,984		$	62,890

S-3

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

Income Statement Data for Discontinued Operations (1)
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2021			2020			2021		2020

Total interest income (2)	$	127		$	205		$	15,128	$	22,521
Total interest expense		4			2			200		1,659
Net interest income		123			203			14,928		20,862

Provision for expected credit loss expense		(2,261	)		(4,342	)		7,850		15,239

Noninterest income:
Net refund transfer fees		1,280			1,152			19,922		19,888
Interchange fee income		63			37			232		178
Other		1			8			78		90
Total noninterest income		1,344			1,197			20,232		20,156

Noninterest expense:
Salaries and employee benefits		1,043			1,460			4,268		4,208
Other		615			285			3,458		4,021
Total noninterest expense		1,658			1,745			7,726		8,229

Income from discontinued operations before income taxes		2,070			3,997			19,584		17,550
Income tax expense		473			883			4,840		4,004
Income from discontinued operations, net of tax	$	1,597		$	3,114		$	14,744	$	13,546

S-4

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

Selected Data and Ratios

	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2021			2020			2021			2020
Per Share Data:

Basic weighted average shares outstanding		20,508			21,026			20,807			21,031
Diluted weighted average shares outstanding		20,591			21,046			20,879			21,068

Period-end shares outstanding:
Class A Common Stock		18,040			18,715			18,040			18,715
Class B Common Stock		2,165			2,200			2,165			2,200

Book value per share (3)	$	41.51		$	38.75		$	41.51		$	38.75
Tangible book value per share (3)		40.26			37.63			40.26			37.63

Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	0.99		$	0.98		$	3.40		$	3.02
Basic EPS - Class B Common Stock		0.90			0.89			3.10			2.75
Diluted EPS - Class A Common Stock		0.99			0.98			3.39			3.02
Diluted EPS - Class B Common Stock		0.90			0.89			3.09			2.74

Earnings per share from continuing operations:
Basic EPS - Class A Common Stock	$	0.91		$	0.83		$	2.69		$	2.37
Basic EPS - Class B Common Stock		0.83			0.75			2.45			2.16
Diluted EPS - Class A Common Stock		0.91			0.83			2.68			2.37
Diluted EPS - Class B Common Stock		0.83			0.75			2.44			2.15

Cash dividends declared per Common share:
Class A Common Stock	$	0.308		$	0.286		$	0.924		$	0.858
Class B Common Stock		0.280			0.260			0.840			0.780

Performance Ratios:

Return on average assets		1.27	%		1.33	%		1.47	%		1.41	%
Return on average assets from continuing operations		1.17			1.12			1.16			1.11
Return on average equity		9.43			10.05			11.04			10.54
Return on average equity from continuing operations		8.68			8.52			8.72			8.27
Efficiency ratio from continuing operations (4)		61			61			63			63
Yield on average interest-earning assets from continuing operations (2)		3.65			3.84			3.57			4.12
Cost of average interest-bearing liabilities from continuing operations		0.17			0.45			0.20			0.68
Cost of average deposits from continuing operations (5)		0.09			0.24			0.11			0.38
Net interest spread from continuing operations (2)		3.48			3.39			3.37			3.44
Net interest margin from continuing operations - Total Company (2)		3.55			3.57			3.46			3.69
Net interest margin from continuing operations - Core Bank (6)		3.25			3.25			3.24			3.37

Other Information:

End of period FTEs (7) - Total Company		1,052			1,085			1,052			1,085
End of period FTEs - Core Bank		966			993			966			993
Number of full-service banking centers		42			42			42			42

S-5

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)


Credit Quality Data and Ratios	As of and for the						As of and for the
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2021			2020			2021			2020
Credit Quality Asset Balances:

Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	20,252		$	20,910		$	20,252		$	20,910
Loans past due 90-days-or-more and still on accrual		691			175			691			175
Total nonperforming loans		20,943			21,085			20,943			21,085
OREO		1,845			2,056			1,845			2,056
Total nonperforming assets	$	22,788		$	23,141		$	22,788		$	23,141

Nonperforming Assets - Core Bank (6):
Loans on nonaccrual status	$	20,252		$	20,910		$	20,252		$	20,910
Loans past due 90-days-or-more and still on accrual		—			—			—			—
Total nonperforming loans		20,252			20,910			20,252			20,910
OREO		1,845			2,056			1,845			2,056
Total nonperforming assets	$	22,097		$	22,966		$	22,097		$	22,966

Delinquent loans:
Delinquent loans - Core Bank	$	7,692		$	11,069		$	7,692		$	11,069
Delinquent loans - RPG (8)		9,701			5,984			9,701			5,984
Total delinquent loans - Total Company	$	17,393		$	17,053		$	17,393		$	17,053


Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.48	%		0.42	%		0.48	%		0.42	%
Nonperforming assets to total loans (including OREO)		0.52			0.46			0.52			0.46
Nonperforming assets to total assets		0.37			0.37			0.37			0.37
Allowance for credit losses to total loans		1.45			1.20			1.45			1.20
Allowance for credit losses to nonperforming loans		301			284			301			284
Delinquent loans to total loans (9)		0.40			0.34			0.40			0.34
Net charge-offs (recoveries) to average loans (annualized)		(0.13	)		(0.27	)		0.31			0.59
Net charge-offs from continuing operations to average loans (annualized)		0.07			0.07			0.07			0.15

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.48	%		0.43	%		0.48	%		0.43	%
Nonperforming assets to total loans (including OREO)		0.52			0.47			0.52			0.47
Nonperforming assets to total assets		0.39			0.39			0.39			0.39
Allowance for credit losses to total loans		1.22			1.05			1.22			1.05
Allowance for credit losses to nonperforming loans		254			245			254			245
Delinquent loans to total loans		0.18			0.23			0.18			0.23
Net charge-offs (recoveries) to average loans (annualized)		(0.02	)		0.03			0.01			0.01

S-6

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

Balance Sheet Data
	Quarterly Comparison
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Assets:
Cash and cash equivalents	$	1,011,247		$	747,007		$	984,857		$	485,587		$	342,028
Investment securities, net of allowance for credit losses		543,449			573,027			532,443			580,270			607,556
Loans held for sale		40,546			56,833			79,307			51,643			56,752
Loans of discontinued operations (1)		24			23			36,473			23,765			233
Loans		4,343,782			4,554,198			4,630,120			4,789,338			4,994,141
Allowance for credit losses		(63,024	)		(60,291	)		(75,336	)		(61,067	)		(59,891	)
Loans, net		4,280,758			4,493,907			4,554,784			4,728,271			4,934,250
Federal Home Loan Bank stock, at cost		10,311			11,670			13,153			17,397			19,634
Premises and equipment, net		37,499			38,682			38,324			39,512			40,946
Right-of-use assets		39,257			40,698			41,911			43,345			43,643
Goodwill		16,300			16,300			16,300			16,300			16,300
Other real estate owned		1,845			1,898			2,015			2,499			2,056
Bank owned life insurance		99,634			99,008			68,408			68,018			67,617
Other assets and accrued interest receivable		106,764			104,257			108,565			111,718			109,431
Total assets	$	6,187,634		$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446

Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,053,485		$	2,015,449		$	2,170,109		$	1,871,539		$	1,855,502
Interest-bearing		2,861,399			2,955,145			2,995,144			2,842,765			3,115,911
Deposits of discontinued operations (1)		33,063			46,984			106,239			18,877			20,916
Total deposits		4,947,947			5,017,578			5,271,492			4,733,181			4,992,329

Securities sold under agreements to
repurchase and other short-term borrowings		260,583			142,895			175,580			211,026			126,172
Operating lease liabilities		40,151			41,621			42,854			44,340			44,710
Federal Reserve Paycheck Protection Program Liquidity Facility		—			—			—			—			—
Federal Home Loan Bank advances		25,000			25,000			25,000			235,000			132,500
Subordinated note		—			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable		75,296			69,886			82,665			80,215			93,133
Total liabilities		5,348,977			5,338,220			5,638,831			5,345,002			5,430,084

Stockholders' equity		838,657			845,090			837,709			823,323			810,362
Total liabilities and stockholders' equity	$	6,187,634		$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446

Average Balance Sheet Data (Continuing Operations) (1)
	Quarterly Comparison
	Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sep. 30, 2020
Assets:
Federal funds sold and other interest-earning deposits	$	930,823	$	988,171	$	782,637	$	321,075	$	315,597
Investment securities, including FHLB stock		555,934		562,509		563,985		610,287		600,943
Loans, including loans held for sale		4,404,600		4,528,640		4,616,976		4,908,350		4,907,630
Total interest-earning assets		5,891,357		6,079,320		5,963,598		5,839,712		5,824,170
Total assets		6,288,014		6,435,422		6,284,812		6,170,486		6,151,538

Liabilities and Stockholders' Equity:
Noninterest-bearing deposits	$	2,074,941	$	2,142,055	$	1,965,230	$	1,871,226	$	1,817,820
Interest-bearing deposits		2,908,134		3,020,168		2,909,017		2,977,579		2,939,063
Securities sold under agreements to
repurchase and other short-term borrowings		286,126		253,903		373,476		241,440		241,742
Federal Reserve Paycheck Protection Program Liquidity Facility		—		—		—		—		53,338
Federal Home Loan Bank advances		25,000		25,000		43,167		88,533		126,250
Subordinated note		40,792		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		3,260,052		3,340,311		3,366,900		3,348,792		3,401,633
Stockholders' equity		848,935		849,305		836,274		823,109		811,351

S-7

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

Income Statement Data
	Three Months Ended
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020

Total interest income (2)	$	53,700		$	51,284		$	55,282		$	57,908		$	55,905
Total interest expense		1,391			1,646			1,904			2,880			3,856
Net interest income		52,309			49,638			53,378			55,028			52,049

Provision for expected credit loss expense		3,553			1,450			(622	)		2,534			5,842

Noninterest income:
Service charges on deposit accounts		3,277			3,071			2,873			3,011			3,017
Mortgage banking income		5,280			4,182			7,193			7,879			10,775
Interchange fee income		3,200			3,368			2,971			2,889			2,874
Program fees		4,530			3,549			2,225			1,846			1,487
Increase in cash surrender value of BOLI		626			600			390			401			400
Net losses on OREO		(52	)		(44	)		(11	)		(30	)		(14	)
Other		1,134			1,035			600			701			861
Total noninterest income		17,995			15,761			16,241			16,697			19,400

Noninterest expense:
Salaries and employee benefits		25,948			26,106			27,416			25,220			25,207
Technology, equipment, and communication		7,226			7,321			6,932			7,595			7,402
Occupancy		3,195			3,250			3,559			3,545			3,367
Marketing and development		1,234			1,120			731			1,079			864
FDIC insurance expense		325			418			296			366			345
Bank franchise tax expense		329			452			325			972			972
Interchange related expense		1,275			1,288			1,144			998			1,056
Other real estate owned and other repossession expense		—			2			(34	)		1			6
Legal and professional fees		581			448			1,153			700			1,240
FHLB advance prepayment penalties		—			—			—			2,108			—
Other		2,481			2,885			2,587			3,150			3,319
Total noninterest expense		42,594			43,290			44,109			45,734			43,778

Income from continuing operations before income tax expense		24,157			20,659			26,132			23,457			21,829
Income tax expense		5,745			4,157			5,806			3,309			4,554
Income from continuing operations		18,412			16,502			20,326			20,148			17,275
Discontinued operations (1) (2):
Income from discontinued operations before income taxes		2,070			9,902			7,612			175			3,997
Income tax expense (benefit)		473			2,482			1,885			(33	)		883
Income from discontinued operations, net of tax		1,597			7,420			5,727			208			3,114

Net income	$	20,009		$	23,922		$	26,053		$	20,356		$	20,389

S-8

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

Income Statement Data for Discontinued Operations (1)
	Three Months Ended
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021		Dec. 31, 2020			Sep. 30, 2020

Total interest income (2)	$	127		$	433		$	14,568	$	98		$	205
Total interest expense		4			30			166		6			2
Net interest income		123			403			14,402		92			203

Provision for expected credit loss expense		(2,261	)		(5,773	)		15,884		(2,050	)		(4,342	)

Noninterest income:
Net refund transfer fees		1,280			5,921			12,721		409			1,152
Interchange fee income		63			113			56		28			37
Other		1			58			19		2			8
Total noninterest income		1,344			6,092			12,796		439			1,197

Noninterest expense:
Salaries and employee benefits		1,043			1,304			1,921		1,333			1,460
Other		615			1,062			1,781		1,073			285
Total noninterest expense		1,658			2,366			3,702		2,406			1,745

Income from discontinued operations before income taxes		2,070			9,902			7,612		175			3,997
Income tax expense (benefit)		473			2,482			1,885		(33	)		883
Income from discontinued operations, net of tax	$	1,597		$	7,420		$	5,727	$	208		$	3,114

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

Selected Data and Ratios
	As of and for the Three Months Ended
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Per Share Data:

Basic weighted average shares outstanding		20,508			20,894			20,997			21,037			21,026
Diluted weighted average shares outstanding		20,591			20,949			21,062			21,072			21,046

Period-end shares outstanding:
Class A Common Stock		18,040			18,421			18,628			18,697			18,715
Class B Common Stock		2,165			2,166			2,198			2,199			2,200

Book value per share (3)	$	41.51		$	41.05		$	40.22		$	39.40		$	38.75
Tangible book value per share (3)		40.26			39.85			39.07			38.27			37.63

Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	0.99		$	1.16		$	1.26		$	0.98		$	0.98
Basic EPS - Class B Common Stock		0.90			1.05			1.14			0.89			0.89
Diluted EPS - Class A Common Stock		0.99			1.16			1.25			0.98			0.98
Diluted EPS - Class B Common Stock		0.90			1.05			1.14			0.89			0.89

Earnings per share from continuing operations:
Basic EPS - Class A Common Stock	$	0.91		$	0.80		$	0.71		$	0.97		$	0.83
Basic EPS - Class B Common Stock		0.83			0.73			0.64			0.88			0.75
Diluted EPS - Class A Common Stock		0.91			0.80			0.71			0.97			0.83
Diluted EPS - Class B Common Stock		0.83			0.73			0.64			0.88			0.75

Cash dividends declared per Common share:
Class A Common Stock	$	0.308		$	0.308		$	0.308		$	0.286		$	0.286
Class B Common Stock		0.280			0.280			0.280			0.260			0.260

Performance Ratios:

Return on average assets		1.27	%		1.49	%		1.65	%		1.32	%		1.33	%
Return on average assets from continuing operations		1.17			1.03			1.29			1.31			1.12
Return on average equity		9.43			11.27			12.46			9.89			10.05
Return on average equity from continuing operations		8.68			7.77			9.72			9.79			8.52
Efficiency ratio from continuing operations (4)		61			66			63			64			61
Yield on average interest-earning assets from continuing operations (2)		3.65			3.37			3.71			3.97			3.84
Cost of average interest-bearing liabilities from continuing operations		0.17			0.20			0.23			0.34			0.45
Cost of average deposits from continuing operations (5)		0.09			0.10			0.13			0.19			0.24
Net interest spread from continuing operations (2)		3.48			3.17			3.48			3.63			3.39
Net interest margin from continuing operations - Total Company (2)		3.55			3.27			3.58			3.77			3.57
Net interest margin from continuing operations - Core Bank (6)		3.25			3.03			3.46			3.48			3.25

Other Information:

End of period FTEs (7) - Total Company		1,052			1,072			1,086			1,094			1,085
End of period FTEs - Core Bank		966			981			990			997			993
Number of full-service banking centers		42			42			42			42			42

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)


Credit Quality Data and Ratios
	As of and for the Three Months Ended
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Credit Quality Asset Balances:

Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	20,252		$	21,621		$	22,004		$	23,548		$	20,910
Loans past due 90-days-or-more and still on accrual		691			723			517			47			175
Total nonperforming loans		20,943			22,344			22,521			23,595			21,085
OREO		1,845			1,898			2,015			2,499			2,056
Total nonperforming assets	$	22,788		$	24,242		$	24,536		$	26,094		$	23,141

Nonperforming Assets - Core Bank (6):
Loans on nonaccrual status	$	20,252		$	21,621		$	22,004		$	23,548		$	20,910
Loans past due 90-days-or-more and still on accrual		—			—			—			5			—
Total nonperforming loans		20,252			21,621			22,004			23,553			20,910
OREO		1,845			1,898			2,015			2,499			2,056
Total nonperforming assets	$	22,097		$	23,519		$	24,019		$	26,052		$	22,966

Delinquent Loans:
Delinquent loans - Core Bank	$	7,692		$	9,909		$	8,560		$	9,713		$	11,069
Delinquent loans - RPG (8)		9,701			8,809			6,426			10,234			5,984
Total delinquent loans - Total Company	$	17,393		$	18,718		$	14,986		$	19,947		$	17,053


Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.48	%		0.49	%		0.48	%		0.49	%		0.42	%
Nonperforming assets to total loans (including OREO)		0.52			0.53			0.53			0.54			0.46
Nonperforming assets to total assets		0.37			0.39			0.38			0.42			0.37
Allowance for credit losses to total loans		1.45			1.32			1.61			1.27			1.20
Allowance for credit losses to nonperforming loans		301			270			335			259			284
Delinquent loans to total loans (9)		0.40			0.41			0.32			0.41			0.34
Net charge-offs (recoveries) to average loans (annualized)		(0.13	)		0.95			0.09			(0.04	)		(0.27	)
Net charge-offs from continuing operations to average loans (annualized)		0.07			0.05			0.09			0.13			0.07

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.48	%		0.49	%		0.49	%		0.50	%		0.43	%
Nonperforming assets to total loans (including OREO)		0.52			0.53			0.53			0.56			0.47
Nonperforming assets to total assets		0.39			0.42			0.42			0.45			0.39
Allowance for credit losses to total loans		1.22			1.16			1.14			1.11			1.05
Allowance for credit losses to nonperforming loans		254			238			234			221			245
Delinquent loans to total loans		0.18			0.22			0.19			0.21			0.23
Net charge-offs (recoveries) to average loans (annualized)		(0.02	)		—			0.03			0.07			0.03

S-11

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

Segment Data:

Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar.

As of September 30, 2021, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking, Tax Refund Solutions (“TRS”), and Republic Credit Solutions (“RCS”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute Republic Processing Group (“RPG”) operations. The TRS segment includes continuing and discontinued operations.

The nature of segment operations and the primary drivers of net revenues by reportable segment are provided below:

Reportable Segment:	Nature of Operations:	Primary Drivers of Net Revenue:

Core Banking:

Traditional Banking	Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels.	Loans, investments, and deposits

Warehouse Lending	Provides short-term, revolving credit facilities to mortgage bankers across the United States.	Mortgage warehouse lines of credit

Mortgage Banking	Primarily originates, sells and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint.	Loan sales and servicing

Republic Processing Group:
Tax Refund Solutions:

Continuing Operations	Continuing operations of TRS include its RPS division and certain indirect costs that are expected to remain with the Bank. The RPS division of TRS offers general-purpose reloadable cards primarily to clients outside of the Bank’s market footprint.	Prepaid Cards

Discontinued Operations	The Bank agreed to sell its TRS business to Green Dot in May 2021. The TRS business has traditionally contained the significant majority of revenue and expense generated at the TRS segment. The TRS business contracted to be sold offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. TRS products are primarily provided to clients outside of the Bank’s market footprint.	Loans and refund transfers

Republic Credit Solutions	Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers.	Unsecured, consumer loans

The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies in the Company’s 2020 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value.

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

Segment information for the quarters and nine months ended September 30, 2021 and 2020 follows:


	Three Months Ended September 30, 2021
	Core Banking												Republic Processing Group ("RPG")
	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company
(dollars in thousands)	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company

Net interest income	$	40,297		$	6,291		$	253		$	46,841		$	171		$	5,297		$	5,468		$	52,309

Provision for expected credit loss expense		(44	)		(223	)		—			(267	)		—			3,820			3,820			3,553

Mortgage banking income		—			—			5,280			5,280			—			—			—			5,280
Program fees		—			—			—			—			763			3,767			4,530			4,530
Other noninterest income		8,108			15			62			8,185			—			—			—			8,185
Total noninterest income		8,108			15			5,342			13,465			763			3,767			4,530			17,995

Total noninterest expense		35,927			1,056			3,257			40,240			1,308			1,046			2,354			42,594

Income (loss) from continuing operations before income tax expense		12,522			5,473			2,338			20,333			(374	)		4,198			3,824			24,157
Income tax expense (benefit)		3,038			1,258			514			4,810			(102	)		1,037			935			5,745
Income (loss) from continuing operations		9,484			4,215			1,824			15,523			(272	)		3,161			2,889			18,412

Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			2,070			—			2,070			2,070
Income tax expense		—			—			—			—			473			—			473			473
Income from discontinued operations, net of tax		—			—			—			—			1,597			—			1,597			1,597

Net income	$	9,484		$	4,215		$	1,824		$	15,523		$	1,325		$	3,161		$	4,486		$	20,009

Period-end assets	$	4,907,503		$	750,266		$	41,196		$	5,698,965		$	365,552		$	123,117		$	488,669		$	6,187,634

Net interest margin from continuing operations		3.22	%		3.51	%	NM				3.25	%	NM			NM			NM				3.55	%

Net-revenue concentration from continuing operations*		69	%		9	%		8	%		86	%		1	%		13	%		14	%		100	%

	Three Months Ended September 30, 2020
	Core Banking												Republic Processing Group ("RPG")
	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company
(dollars in thousands)	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company

Net interest income	$	38,753		$	7,345		$	300		$	46,398		$	675		$	4,976		$	5,651		$	52,049

Provision for expected credit loss expense		5,857			(3	)		—			5,854			—			(12	)		(12	)		5,842

Mortgage banking income		—			—			10,775			10,775			—			—			—			10,775
Program fees		—			—			—			—			643			844			1,487			1,487
Other noninterest income		7,138			(21	)		21			7,138			—			—			—			7,138
Total noninterest income		7,138			(21	)		10,796			17,913			643			844			1,487			19,400

Total noninterest expense		36,415			1,875			2,832			41,122			1,481			1,175			2,656			43,778

Income (loss) from continuing operations before income tax expense		3,619			5,452			8,264			17,335			(163	)		4,657			4,494			21,829
Income tax expense (benefit)		558			1,226			1,736			3,520			(40	)		1,074			1,034			4,554
Income (loss) from continuing operations		3,061			4,226			6,528			13,815			(123	)		3,583			3,460			17,275

Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			3,997			—			3,997			3,997
Income tax expense		—			—			—			—			883			—			883			883
Income from discontinued operations, net of tax		—			—			—			—			3,114			—			3,114			3,114

Net income	$	3,061		$	4,226		$	6,528		$	13,815		$	2,991		$	3,583		$	6,574		$	20,389

Period-end assets	$	4,769,848		$	1,026,790		$	61,809		$	5,858,447		$	269,337		$	112,662		$	381,999		$	6,240,446

Net interest margin from continuing operations		3.22	%		3.41	%	NM				3.25	%	NM			NM			NM				3.57	%

Net-revenue concentration from continuing operations*		64	%		10	%		16	%		90	%		2	%		8	%		10	%		100	%

*Net revenues from continuing operations represent total net interest income plus noninterest income from continuing operations. Net-revenue concentration from continuing operations equals segment-level net revenue from continuing operations divided by total Company net revenue from continuing operations.

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Table of Contents

	Nine Months Ended September 30, 2021
	Core Banking												Republic Processing Group ("RPG")
	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company
(dollars in thousands)	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company

Net interest income	$	119,677		$	19,387		$	802		$	139,866		$	665		$	14,794		$	15,459		$	155,325

Provision for expected credit loss expense		(126	)		(530	)		—			(656	)		—			5,037			5,037			4,381

Mortgage banking income		—			—			16,655			16,655			—			—			—			16,655
Program fees		—			—			—			—			2,374			7,930			10,304			10,304
Other noninterest income		22,862			43			140			23,045			(7	)		—			(7	)		23,038
Total noninterest income		22,862			43			16,795			39,700			2,367			7,930			10,297			49,997

Total noninterest expense		110,192			3,150			9,384			122,726			4,239			3,028			7,267			129,993

Income (loss) from continuing operations before income tax expense		32,473			16,810			8,213			57,496			(1,207	)		14,659			13,452			70,948
Income tax expense (benefit)		6,718			3,919			1,807			12,444			(373	)		3,637			3,264			15,708
Income (loss) from continuing operations		25,755			12,891			6,406			45,052			(834	)		11,022			10,188			55,240

Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			19,584			—			19,584			19,584
Income tax expense		—			—			—			—			4,840			—			4,840			4,840
Income from discontinued operations, net of tax		—			—			—			—			14,744			—			14,744			14,744

Net income	$	25,755		$	12,891		$	6,406		$	45,052		$	13,910		$	11,022		$	24,932		$	69,984

Period-end assets	$	4,907,503		$	750,266		$	41,196		$	5,698,965		$	365,552		$	123,117		$	488,669		$	6,187,634

Net interest margin from continuing operations		3.21	%		3.47	%	NM				3.24	%	NM			NM			NM				3.46	%

Net-revenue concentration from continuing operations*		70	%		9	%		9	%		88	%		1	%		11	%		12	%		100	%

	Nine Months Ended September 30, 2020
	Core Banking												Republic Processing Group ("RPG")
	Traditional Banking			Warehouse Lending			Mortgage Banking			Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company
(dollars in thousands)	Traditional Banking			Warehouse Lending			Mortgage Banking			Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company

Net interest income	$	118,409		$	17,715		$	932		$	137,056		$	1,622		$	17,655		$	19,277		$	156,333

Provision for expected credit loss expense		14,526			778			—			15,304			—			251			251			15,555

Mortgage banking income		—			—			23,968			23,968			—			—			—			23,968
Program fees		—			—			—			—			1,573			3,676			5,249			5,249
Other noninterest income		20,499			7			53			20,559			(15	)		—			(15	)		20,544
Total noninterest income		20,499			7			24,021			44,527			1,558			3,676			5,234			49,761

Total noninterest expense		109,750			3,489			7,517			120,756			5,360			2,972			8,332			129,088

Income (loss) from continuing operations before income tax expense		14,632			13,455			17,436			45,523			(2,180	)		18,108			15,928			61,451
Income tax expense (benefit)		1,747			3,027			3,662			8,436			(517	)		4,188			3,671			12,107
Income (loss) from continuing operations		12,885			10,428			13,774			37,087			(1,663	)		13,920			12,257			49,344

Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			17,550			—			17,550			17,550
Income tax expense		—			—			—			—			4,004			—			4,004			4,004
Income from discontinued operations, net of tax		—			—			—			—			13,546			—			13,546			13,546

Net income	$	12,885		$	10,428		$	13,774		$	37,087		$	11,883		$	13,920		$	25,803		$	62,890

Period-end assets	$	4,769,848		$	1,026,790		$	61,809		$	5,858,447		$	269,337		$	112,662		$	381,999		$	6,240,446

Net interest margin from continuing operations		3.41	%		3.07	%	NM				3.37	%	NM			NM			NM				3.69	%

Net-revenue concentration from continuing operations*		67	%		9	%		12	%		88	%		2	%		10	%		12	%		100	%

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

Footnotes:

(1)

On May 13, 2021, the Bank entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Green Dot providing for the purchase by Green Dot, upon the terms and subject to the conditions set forth therein, of substantially all of the assets and operations of the Bank’s Tax Refund Solutions business (the “Sale Transaction”).

As a result of the Purchase Agreement and the Sale Transaction, the results for the Company, RPG, and its TRS segment are presented within this press release to reflect continuing versus discontinued operations. RPG’s continuing operations include its Republic Credit Solutions (“RCS”) segment, its Republic Payment Solutions (“RPS”) division, and certain overhead costs previously allocated to TRS that will remain with RPG. Discontinued operations are those contracted to be sold. These discontinued operations have historically contained the majority of TRS’s revenue and expense. Interest income and expense for continuing and discontinued operations also include intercompany interest charged and earned based on the Company’s funds transfer pricing methodology.

For all periods presented, loans for discontinued operations and deposits of discontinued operations are presented separately on the Company’s balance sheet. Average Balance Sheet Data for continuing operations excludes average assets, average liabilities, interest income, and interest expense for discontinued operations; however, loans to and borrowings from discontinued operations are included along with their related income and expense based on the Company’s funds transfer pricing methodology.

On October 4, 2021, Green Dot announced that it had been unable to obtain the Federal Reserve’s approval of or non-objection to the Sale Transaction and that, as a result, Green Dot would not consummate the Sale Transaction. On October 5, 2021, the Bank filed a lawsuit against Green Dot in the Delaware Court of Chancery alleging breach of contract. In so doing, the Bank seeks, among other relief, specific performance to require that Green Dot proceed with the Sale Transaction as the parties had agreed to in the Purchase Agreement. Due to the inherent uncertainties of legal proceedings, the Company cannot predict the outcome of these proceedings at this time.

(2)

The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The amount of loan fee income included in total interest income from continuing operations was $11.3 million and $7.8 million for the quarters ended and $31.6 million and $23.1 million for the nine months ended September 30, 2021 and 2020.

Included in the above totals, fee income recognized on PPP loans was $5.2 million and $2.1 million for the quarters ended and $14.6 million and $3.7 million for the nine months ended September 30, 2021 and 2020. Fee income recognized on PPP loans by quarter was $5.2 million (quarter ended September 30, 2021); $3.7 million (quarter ended June 30, 2021); $5.8 million (quarter ended March 31, 2021); $4.8 million (quarter ended December 31, 2020); and $2.1 million (quarter ended September 30, 2020).

Loan fees included in discontinued operations totaled $76,000 and $135,000 for the quarters ended and $14.8 million and $21.0 million for the nine months ended September 30, 2021 and 2020. Loan fees per quarter included in discontinued operations totaled $76,000 (quarter ended September 30, 2021); $298,000 (quarter ended June 30, 2021); $14.4 million (quarter ended March 31, 2021); $68,000 (quarter ended December 31, 2020); and $135,000 (quarter ended September 30, 2020).

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(3)

The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity in accordance with applicable regulatory requirements, a non-GAAP disclosure. The Company provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.

	Quarterly Comparison
(dollars in thousands, except per share data)	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020

Total stockholders' equity - GAAP (a)	$	838,657		$	845,090		$	837,709		$	823,323		$	810,362
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		8,867			8,335			7,711			7,095			6,674
Less: Core deposit intangible		—			—			53			189			283
Tangible stockholders' equity - Non-GAAP (c)	$	813,490		$	820,455		$	813,645		$	799,739		$	787,105

Total assets - GAAP (b)	$	6,187,634		$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		8,867			8,335			7,711			7,095			6,674
Less: Core deposit intangible		—			—			53			189			283
Tangible assets - Non-GAAP (d)	$	6,162,467		$	6,158,675		$	6,452,476		$	6,144,741		$	6,217,189

Total stockholders' equity to total assets - GAAP (a/b)		13.55	%		13.67	%		12.93	%		13.35	%		12.99	%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)		13.20	%		13.32	%		12.61	%		13.02	%		12.66	%

Number of shares outstanding (e)		20,205			20,587			20,826			20,896			20,915

Book value per share - GAAP (a/e)	$	41.51		$	41.05		$	40.22		$	39.40		$	38.75
Tangible book value per share - Non-GAAP (c/e)		40.26			39.85			39.07			38.27			37.63

(4)	The efficiency ratio for continuing operations, a non-GAAP measure with no GAAP comparable, equals total noninterest expense divided by the sum of net interest income and noninterest income. The ratio excludes net gains (losses) on sales, calls, and impairment of investment securities.


	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
(dollars in thousands)	2021			2020			2021			2020

Net interest income - GAAP	$	52,309		$	52,049		$	155,325		$	156,333
Noninterest income - GAAP		17,995			19,400			49,997			49,761
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities		(10	)		5			(46	)		61
Total adjusted income - Non-GAAP (a)	$	70,314		$	71,444		$	205,368		$	206,033

Noninterest expense - GAAP (b)	$	42,594		$	43,778		$	129,993		$	129,088

Efficiency Ratio from continuing operations- Non-GAAP (b/a)		61	%		61	%		63	%		63	%

	Three Months Ended
(dollars in thousands)	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020

Net interest income - GAAP	$	52,309		$	49,638		$	53,378		$	55,028		$	52,049
Noninterest income - GAAP		17,995			15,761			16,241			16,697			19,400
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities		(10	)		(1	)		(35	)		(12	)		5
Total adjusted income - Non-GAAP (a)	$	70,314		$	65,400		$	69,654		$	71,737		$	71,444

Noninterest expense - GAAP (b)	$	42,594		$	43,290		$	44,109		$	45,734		$	43,778

Efficiency Ratio from continuing operations- Non-GAAP (b/a)		61	%		66	%		63	%		64	%		61	%

(5)	The cost of average deposits ratio equals annualized total interest expense on deposits divided by total average interest-bearing deposits plus total average noninterest-bearing deposits.

(6)	“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending, and Mortgage Banking segments.

(7)	FTEs – Full-time-equivalent employees.

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(8)	Republic Processing Group operations consist of the Tax Refund Solutions and Republic Credit Solutions segments.

(9)	The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due.

NM – Not meaningful

NA – Not applicable

CONTACT:

Republic Bancorp, Inc.

Kevin Sipes

Executive Vice President & Chief Financial Officer

(502) 560-8628

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