EX-99.2 3 a52569464ex99_2.htm EXHIBIT 99.2
 
 Exhibit 99.2




EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2021


TABLE OF CONTENTS


       
 
BALANCE SHEET DATA
S-2
 
       
 
AVERAGE BALANCE SHEET DATA
S-3
 
       
 
INCOME STATEMENT DATA
S-4
 
       
 
SELECTED DATA AND RATIOS
S-5
 
       
 
LOAN COMPOSITION
S-6
 
       
 
ALLOWANCE FOR CREDIT LOSSES ON LOANS
S-6
 
       
 
CREDIT QUALITY DATA AND RATIOS
S-7
 
       
 
SEGMENT DATA
S-8
 
       
 
FOOTNOTES
S-11
 

S - 1

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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
                             
   
As of
 
   
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
 
Assets:
                             
Cash and cash equivalents
 
$
756,971
   
$
1,011,247
   
$
747,007
   
$
984,857
   
$
485,587
 
Investment securities, net of allowance for credit losses
   
542,045
     
543,449
     
573,027
     
532,443
     
580,270
 
Loans held for sale
   
52,077
     
40,546
     
56,833
     
79,307
     
51,643
 
Loans
   
4,496,562
     
4,343,806
     
4,554,221
     
4,666,593
     
4,813,103
 
Allowance for credit losses
   
(64,577
)
   
(63,024
)
   
(60,291
)
   
(75,336
)
   
(61,067
)
Loans, net
   
4,431,985
     
4,280,782
     
4,493,930
     
4,591,257
     
4,752,036
 
Federal Home Loan Bank stock, at cost
   
10,311
     
10,311
     
11,670
     
13,153
     
17,397
 
Premises and equipment, net
   
36,073
     
37,499
     
38,682
     
38,324
     
39,512
 
Right-of-use assets
   
38,825
     
39,257
     
40,698
     
41,911
     
43,345
 
Goodwill
   
16,300
     
16,300
     
16,300
     
16,300
     
16,300
 
Other real estate owned (“BOLI”)
   
1,792
     
1,845
     
1,898
     
2,015
     
2,499
 
Bank owned life insurance
   
99,161
     
99,634
     
99,008
     
68,408
     
68,018
 
Other assets and accrued interest receivable (“OREO”)
   
108,092
     
106,764
     
104,257
     
108,565
     
111,718
 
Total assets
 
$
6,093,632
   
$
6,187,634
   
$
6,183,310
   
$
6,476,540
   
$
6,168,325
 
                                         
Liabilities and Stockholders' Equity:
                                       
Deposits:
                                       
Noninterest-bearing
 
$
1,990,781
   
$
2,086,548
   
$
2,062,433
   
$
2,276,348
   
$
1,890,416
 
Interest-bearing
   
2,849,637
     
2,861,399
     
2,955,145
     
2,995,144
     
2,842,765
 
Total deposits
   
4,840,418
     
4,947,947
     
5,017,578
     
5,271,492
     
4,733,181
 
                                         
Securities sold under agreements to
                                       
   repurchase and other short-term borrowings (“SSUAR”)
   
290,967
     
260,583
     
142,895
     
175,580
     
211,026
 
Operating lease liabilities
   
39,672
     
40,151
     
41,621
     
42,854
     
44,340
 
Federal Home Loan Bank advances
   
25,000
     
25,000
     
25,000
     
25,000
     
235,000
 
Subordinated note
   
     
     
41,240
     
41,240
     
41,240
 
Other liabilities and accrued interest payable
   
63,343
     
75,296
     
69,886
     
82,665
     
80,215
 
Total liabilities
   
5,259,400
     
5,348,977
     
5,338,220
     
5,638,831
     
5,345,002
 
                                         
Stockholders' equity
   
834,232
     
838,657
     
845,090
     
837,709
     
823,323
 
Total liabilities and stockholders' equity
 
$
6,093,632
   
$
6,187,634
   
$
6,183,310
   
$
6,476,540
   
$
6,168,325
 


S - 2

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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)

    
                                           
Average Balance Sheet Data
                             
   
Three Months Ended
   
Years Ended
 
   
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
   
Dec. 31, 2021
   
Dec. 31, 2020
 
Assets:
                                         
                                           
Interest-earning assets:
                                         
Federal funds sold and other interest-earning deposits
 
$
848,215
   
$
924,859
   
$
938,728
   
$
510,433
   
$
311,584
   
$
806,811
   
$
283,151
 
Investment securities, including FHLB stock
   
540,227
     
555,934
     
562,509
     
563,985
     
610,287
     
555,599
     
584,300
 
Loans, including loans held for sale
   
4,385,547
     
4,404,270
     
4,546,683
     
4,745,656
     
4,916,968
     
4,519,277
     
4,796,841
 
Total interest-earning assets
   
5,773,989
     
5,885,063
     
6,047,920
     
5,820,074
     
5,838,839
     
5,881,687
     
5,664,292
 
                                                         
Allowance for credit losses
   
(63,711
)
   
(61,562
)
   
(74,258
)
   
(66,561
)
   
(60,342
)
   
(66,481
)
   
(60,008
)
                                                         
Noninterest-earning assets:
                                                       
Noninterest-earning cash and cash equivalents
   
137,556
     
140,037
     
144,327
     
249,842
     
96,567
     
167,556
     
125,904
 
Premises and equipment, net
   
37,055
     
38,377
     
39,119
     
39,185
     
40,474
     
38,428
     
42,991
 
Bank owned life insurance
   
99,978
     
99,386
     
97,257
     
68,257
     
67,867
     
91,329
     
67,264
 
Other assets
   
192,755
     
187,286
     
186,197
     
191,497
     
187,361
     
189,386
     
171,422
 
                                                         
Total assets
 
$
6,177,622
   
$
6,288,587
   
$
6,440,562
   
$
6,302,294
   
$
6,170,766
   
$
6,301,905
   
$
6,011,865
 
                                                         
Liabilities and Stockholders' Equity:
                                                       
                                                         
Interest-bearing liabilities:
                                                       
Interest-bearing deposits
 
$
2,857,403
   
$
2,908,135
   
$
3,020,168
   
$
2,909,017
   
$
2,977,579
   
$
2,923,497
   
$
2,913,486
 
SSUARs
   
318,785
     
242,867
     
169,888
     
192,669
     
220,406
     
231,430
     
204,797
 
Federal Reserve Paycheck Protection Program Liquidity Facility
   
     
     
     
     
     
     
43,932
 
Federal Home Loan Bank advances
   
25,000
     
25,000
     
25,000
     
43,167
     
88,533
     
29,479
     
211,776
 
Subordinated note
   
     
40,791
     
41,240
     
41,240
     
41,240
     
30,732
     
41,240
 
Total interest-bearing liabilities
   
3,201,188
     
3,216,793
     
3,256,296
     
3,186,093
     
3,327,758
     
3,215,138
     
3,415,231
 
                                                         
Noninterest-bearing liabilities and Stockholders’ equity:
                                                       
Noninterest-bearing deposits
   
2,028,910
     
2,118,200
     
2,226,070
     
2,146,036
     
1,892,259
     
2,129,452
     
1,672,442
 
Other liabilities
   
102,694
     
104,659
     
108,891
     
133,953
     
127,640
     
112,444
     
121,466
 
Stockholders' equity
   
844,830
     
848,935
     
849,305
     
836,212
     
823,109
     
844,871
     
802,726
 
                                                         
Total liabilities and stock-holders’ equity
 
$
6,177,622
   
$
6,288,587
   
$
6,440,562
   
$
6,302,294
   
$
6,170,766
   
$
6,301,905
   
$
6,011,865
 

S - 3


Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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
   
Years Ended
 
   
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
   
Dec. 31, 2021
   
Dec. 31, 2020
 
                                           
Total interest income (1)
 
$
51,379
   
$
53,772
   
$
51,552
   
$
69,557
   
$
57,970
   
$
226,260
   
$
252,258
 
Total interest expense
   
1,038
     
1,340
     
1,511
     
1,777
     
2,850
     
5,666
     
19,943
 
Net interest income
   
50,341
     
52,432
     
50,041
     
67,780
     
55,120
     
220,594
     
232,315
 
                                                         
Provision for expected credit loss expense
   
2,577
     
1,292
     
(4,323
)
   
15,262
     
484
     
14,808
     
31,278
 
                                                         
Noninterest income:
                                                       
Service charges on deposit accounts
   
3,332
     
3,277
     
3,071
     
2,873
     
3,011
     
12,553
     
11,615
 
Net refund transfer fees
   
326
     
1,280
     
5,921
     
12,721
     
409
     
20,248
     
20,297
 
Mortgage banking income (2)
   
3,339
     
5,280
     
4,182
     
7,193
     
7,879
     
19,994
     
31,847
 
Interchange fee income
   
3,291
     
3,263
     
3,481
     
3,027
     
2,917
     
13,062
     
11,188
 
Program fees (2)
   
4,217
     
4,530
     
3,549
     
2,225
     
1,846
     
14,521
     
7,095
 
Increase in cash surrender value of BOLI
   
626
     
626
     
600
     
390
     
401
     
2,242
     
1,585
 
Net losses on OREO
   
(53
)
   
(52
)
   
(44
)
   
(11
)
   
(30
)
   
(160
)
   
(40
)
Other
   
1,552
     
1,135
     
1,093
     
619
     
703
     
4,399
     
3,466
 
Total noninterest income
   
16,630
     
19,339
     
21,853
     
29,037
     
17,136
     
86,859
     
87,053
 
                                                         
Noninterest expense:
                                                       
Salaries and employee benefits
   
26,350
     
26,991
     
27,410
     
29,337
     
26,553
     
110,088
     
106,166
 
Technology, equipment, and communication
   
7,161
     
7,312
     
7,384
     
7,043
     
7,701
     
28,900
     
29,128
 
Occupancy
   
3,188
     
3,195
     
3,251
     
3,559
     
3,546
     
13,193
     
13,438
 
Marketing and development
   
1,080
     
1,279
     
1,193
     
773
     
1,261
     
4,325
     
4,031
 
FDIC insurance expense
   
402
     
325
     
418
     
446
     
366
     
1,591
     
1,010
 
Bank franchise tax expense
   
209
     
338
     
454
     
328
     
975
     
1,329
     
5,369
 
Interchange related expense
   
1,253
     
1,275
     
1,288
     
1,144
     
998
     
4,960
     
4,303
 
OREO and other repossession expense
   
2
     
     
2
     
(34
)
   
1
     
(30
)
   
46
 
Legal and professional fees
   
1,360
     
884
     
1,466
     
1,214
     
734
     
4,924
     
4,244
 
FHLB advance prepayment penalties
   
     
     
     
     
2,108
     
     
2,108
 
Other
   
3,580
     
2,653
     
2,790
     
4,001
     
3,897
     
13,024
     
15,614
 
Total noninterest expense
   
44,585
     
44,252
     
45,656
     
47,811
     
48,140
     
182,304
     
185,457
 
                                                         
Income before income tax expense
   
19,809
     
26,227
     
30,561
     
33,744
     
23,632
     
110,341
     
102,633
 
Income tax expense
   
3,004
     
6,218
     
6,639
     
7,691
     
3,276
     
23,552
     
19,387
 
                                                         
Net income
 
$
16,805
   
$
20,009
   
$
23,922
   
$
26,053
   
$
20,356
   
$
86,789
   
$
83,246
 

S - 4

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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
   
As of and for the Years Ended
 
   
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
   
Dec. 31, 2021
   
Dec. 31, 2020
 
Per Share Data:
                                         
                                           
Basic weighted average shares outstanding
   
20,270
     
20,508
     
20,894
     
20,997
     
21,037
     
20,675
     
21,039
 
Diluted weighted average shares outstanding
   
20,379
     
20,591
     
20,949
     
21,062
     
21,072
     
20,757
     
21,069
 
                                                         
Period-end shares outstanding:
                                                       
     Class A Common Stock
   
17,816
     
18,040
     
18,421
     
18,628
     
18,697
     
17,816
     
18,697
 
     Class B Common Stock
   
2,165
     
2,165
     
2,166
     
2,198
     
2,199
     
2,165
     
2,199
 
                                                         
Book value per share (3)
 
$
41.75
   
$
41.51
   
$
41.05
   
$
40.22
   
$
39.40
   
$
41.75
   
$
39.40
 
Tangible book value per share (3)
   
40.48
     
40.26
     
39.85
     
39.07
     
38.27
     
40.48
     
38.27
 
                                                         
Earnings per share ("EPS"):
                                                       
     Basic EPS - Class A Common Stock
 
$
0.84
   
$
0.99
   
$
1.16
   
$
1.26
   
$
0.98
   
$
4.25
   
$
4.00
 
     Basic EPS - Class B Common Stock
   
0.77
     
0.90
     
1.05
     
1.14
     
0.89
     
3.87
     
3.64
 
     Diluted EPS - Class A Common Stock
   
0.84
     
0.99
     
1.16
     
1.25
     
0.98
     
4.24
     
3.99
 
     Diluted EPS - Class B Common Stock
   
0.76
     
0.90
     
1.05
     
1.14
     
0.89
     
3.85
     
3.63
 
                                                         
Cash dividends declared per Common share:
                                                       
     Class A Common Stock
 
$
0.308
   
$
0.308
   
$
0.308
   
$
0.308
   
$
0.286
   
$
1.232
   
$
1.144
 
     Class B Common Stock
   
0.280
     
0.280
     
0.280
     
0.280
     
0.260
     
1.120
     
1.040
 
                                                         
Performance Ratios:
                                                       
                                                         
Return on average assets
   
1.09
%
   
1.27
%
   
1.49
%
   
1.65
%
   
1.32
%
   
1.38
%
   
1.38
%
Return on average equity
   
7.96
     
9.43
     
11.27
     
12.46
     
9.89
     
10.27
     
10.37
 
Efficiency ratio (4)
   
67
     
62
     
64
     
49
     
67
     
59
     
58
 
Yield on average interest-earning assets (1)
   
3.56
     
3.65
     
3.41
     
4.78
     
3.97
     
3.85
     
4.45
 
Cost of average interest-bearing liabilities
   
0.13
     
0.17
     
0.19
     
0.22
     
0.34
     
0.17
     
0.58
 
Cost of average deposits (5)
   
0.08
     
0.09
     
0.10
     
0.12
     
0.19
     
0.10
     
0.33
 
Net interest spread (1)
   
3.43
     
3.48
     
3.22
     
4.56
     
3.63
     
3.68
     
3.87
 
Net interest margin - Total Company (1)
   
3.49
     
3.56
     
3.31
     
4.66
     
3.78
     
3.75
     
4.10
 
Net interest margin - Core Bank
   
3.08
     
3.25
     
3.03
     
3.46
     
3.48
     
3.20
     
3.39
 
                                                         
Other Information:
                                                       
                                                         
End of period FTEs (6) - Total Company
   
1,045
     
1,052
     
1,072
     
1,086
     
1,094
     
1,045
     
1,094
 
End of period FTEs - Core Bank
   
958
     
966
     
981
     
990
     
997
     
958
     
997
 
Number of full-service banking centers
   
42
     
42
     
42
     
42
     
42
     
42
     
42
 


S - 5

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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)

    
Loan Composition and Allowance for Credit Losses on Loans
                   
   
As of
 
   
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
 
Loan Composition
                             
                               
Traditional Banking:
                             
Residential real estate:
                             
Owner occupied
 
$
820,731
   
$
827,898
   
$
852,947
   
$
851,869
   
$
879,800
 
Nonowner occupied
   
306,323
     
294,818
     
289,290
     
271,829
     
264,780
 
Commercial real estate
   
1,456,009
     
1,393,241
     
1,389,003
     
1,344,394
     
1,349,085
 
Construction & land development
   
129,337
     
105,968
     
95,180
     
102,113
     
98,674
 
Commercial & industrial
   
340,363
     
333,795
     
330,302
     
312,537
     
325,596
 
Paycheck Protection Program
   
56,014
     
126,271
     
250,933
     
383,311
     
392,319
 
Lease financing receivables
   
8,637
     
9,427
     
9,249
     
9,930
     
10,130
 
Aircraft
   
142,894
     
130,398
     
121,112
     
106,081
     
101,375
 
Home equity
   
210,578
     
215,282
     
217,621
     
226,280
     
240,640
 
Consumer:
                                       
Credit cards
   
14,510
     
14,781
     
14,754
     
14,200
     
14,196
 
Overdrafts
   
683
     
753
     
717
     
474
     
587
 
Automobile loans
   
14,448
     
17,533
     
21,190
     
25,624
     
30,300
 
Other consumer
   
1,432
     
6,223
     
6,796
     
7,325
     
8,167
 
Total Traditional Banking
   
3,501,959
     
3,476,388
     
3,599,094
     
3,655,967
     
3,715,649
 
Warehouse lines of credit
   
850,550
     
750,682
     
840,155
     
865,844
     
962,796
 
Total Core Banking
   
4,352,509
     
4,227,070
     
4,439,249
     
4,521,811
     
4,678,445
 
                                         
Republic Processing Group:
                                       
Tax Refund Solutions:
                                       
Easy Advances
   
     
     
     
30,703
     
 
Other TRS loans
   
50,987
     
25
     
23
     
5,770
     
23,765
 
Republic Credit Solutions
   
93,066
     
116,711
     
114,949
     
108,309
     
110,893
 
Total Republic Processing Group
   
144,053
     
116,736
     
114,972
     
144,782
     
134,658
 
                                         
Total loans - Total Company
 
$
4,496,562
   
$
4,343,806
   
$
4,554,221
   
$
4,666,593
   
$
4,813,103
 

Allowance for Credit Losses on Loans ("Allowance")
                   
                               
Traditional Banking
 
$
49,407
   
$
49,487
   
$
49,362
   
$
49,387
   
$
49,699
 
Warehouse Lending
   
2,126
     
1,877
     
2,100
     
2,165
     
2,407
 
Total Core Banking
   
51,533
     
51,364
     
51,462
     
51,552
     
52,106
 
                                         
Tax Refund Solutions
   
96
     
     
     
16,029
     
158
 
Republic Credit Solutions
   
12,948
     
11,660
     
8,829
     
7,755
     
8,803
 
Total Republic Processing Group
   
13,044
     
11,660
     
8,829
     
23,784
     
8,961
 
                                         
Total Allowance - Total Company
 
$
64,577
   
$
63,024
   
$
60,291
   
$
75,336
   
$
61,067
 

Allowance to Total Loans
                   
                               
Traditional Banking
   
1.41
%
   
1.42
%
   
1.37
%
   
1.35
%
   
1.34
%
Warehouse Lending
   
0.25
     
0.25
     
0.25
     
0.25
     
0.25
 
Total Core Banking
   
1.18
     
1.22
     
1.16
     
1.14
     
1.11
 
                                         
Tax Refund Solutions
   
0.19
     
     
     
43.95
     
0.66
 
Republic Credit Solutions
   
13.91
     
9.99
     
7.68
     
7.16
     
7.94
 
Total Republic Processing Group
   
9.06
     
9.99
     
7.68
     
16.43
     
6.65
 
                                         
Total Company
   
1.44
     
1.45
     
1.32
     
1.61
     
1.27
 

S - 6


Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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
   
As of and for the Years Ended
 
   
Dec. 31, 2021
 
Sep. 30, 2021
 
Jun. 30, 2021
 
Mar. 31, 2021
 
Dec. 31, 2020
 
Dec. 31, 2021
 
Dec. 31, 2020
Credit Quality Asset Balances and Net Charge-off (“NCO”) Data:
                                         
                                           
Nonperforming Assets - Total Company:
                                         
Loans on nonaccrual status
 
$
20,504
   
$
20,252
   
$
21,621
   
$
22,004
   
$
23,548
   
$
20,504
   
$
23,548
 
Loans past due 90-days-or-more and still on accrual
   
48
     
691
     
723
     
517
     
47
     
48
     
47
 
     Total nonperforming loans
   
20,552
     
20,943
     
22,344
     
22,521
     
23,595
     
20,552
     
23,595
 
OREO
   
1,792
     
1,845
     
1,898
     
2,015
     
2,499
     
1,792
     
2,499
 
     Total nonperforming assets
 
$
22,344
   
$
22,788
   
$
24,242
   
$
24,536
   
$
26,094
   
$
22,344
   
$
26,094
 
                                                         
Nonperforming Assets - Core Bank:
                                                       
Loans on nonaccrual status
 
$
20,504
   
$
20,252
   
$
21,621
   
$
22,004
   
$
23,548
   
$
20,504
   
$
23,548
 
Loans past due 90-days-or-more and still on accrual
   
1
     
     
     
     
5
     
1
     
5
 
     Total nonperforming loans
   
20,505
     
20,252
     
21,621
     
22,004
     
23,553
     
20,505
     
23,553
 
OREO
   
1,792
     
1,845
     
1,898
     
2,015
     
2,499
     
1,792
     
2,499
 
     Total nonperforming assets
 
$
22,297
   
$
22,097
   
$
23,519
   
$
24,019
   
$
26,052
   
$
22,297
   
$
26,052
 
                                                         
Delinquent Loans:
                                                       
Delinquent loans - Core Bank
 
$
7,430
   
$
7,692
   
$
9,909
   
$
8,560
   
$
9,713
   
$
7,430
   
$
9,713
 
RPG
   
6,035
     
9,701
     
8,809
     
6,426
     
10,234
     
6,035
     
10,234
 
Total delinquent loans - Total Company
 
$
13,465
   
$
17,393
   
$
18,718
   
$
14,986
   
$
19,947
   
$
13,465
   
$
19,947
 
                                                         
Net Charge-offs (Recoveries) by Segment:
                                                       
Traditional Bank
 
$
175
   
$
(167
)
 
$
(5
)
 
$
382
   
$
858
   
$
385
   
$
1,370
 
Warehouse Lending loans
   
     
     
     
     
     
     
 
Core Bank loans
   
175
     
(167
)
   
(5
)
   
382
     
858
     
385
     
1,370
 
Tax Refund Solutions
   
(1,263
)
   
(2,261
)
   
10,256
     
13
     
(2,067
)
   
6,745
     
13,265
 
Republic Credit Solutions
   
2,119
     
989
     
518
     
673
     
686
     
4,299
     
5,534
 
RPG
   
856
     
(1,272
)
   
10,774
     
686
     
(1,381
)
   
11,044
     
18,799
 
     Total NCOs (recoveries) - Total Company
 
$
1,031
   
$
(1,439
)
 
$
10,769
   
$
1,068
   
$
(523
)
 
$
11,429
   
$
20,169
 
                                                         
Credit Quality Ratios - Total Company:
                                                       
                                                         
Nonperforming loans to total loans
   
0.46
%
   
0.48
%
   
0.49
%
   
0.48
%
   
0.49
%
   
0.46
%
   
0.49
%
Nonperforming assets to total loans (including OREO)
   
0.50
     
0.52
     
0.53
     
0.53
     
0.54
     
0.50
     
0.54
 
Nonperforming assets to total assets
   
0.37
     
0.37
     
0.39
     
0.38
     
0.42
     
0.37
     
0.42
 
Allowance for credit losses to total loans
   
1.44
     
1.45
     
1.32
     
1.61
     
1.27
     
1.44
     
1.27
 
Allowance for credit losses to nonperforming loans
   
314
     
301
     
270
     
335
     
259
     
314
     
259
 
Delinquent loans to total loans (7)
   
0.30
     
0.40
     
0.41
     
0.32
     
0.41
     
0.30
     
0.41
 
NCOs (recoveries) to average loans (annualized)
   
0.09
     
(0.13
)
   
0.95
     
0.09
     
(0.04
)
   
0.25
     
0.42
 
                                                         
Credit Quality Ratios - Core Bank:
                                                       
                                                         
Nonperforming loans to total loans
   
0.47
%
   
0.48
%
   
0.49
%
   
0.49
%
   
0.50
%
   
0.47
%
   
0.50
%
Nonperforming assets to total loans (including OREO)
   
0.51
     
0.52
     
0.53
     
0.53
     
0.56
     
0.51
     
0.56
 
Nonperforming assets to total assets
   
0.40
     
0.39
     
0.42
     
0.42
     
0.45
     
0.40
     
0.45
 
Allowance for credit losses to total loans
   
1.18
     
1.22
     
1.16
     
1.14
     
1.11
     
1.18
     
1.11
 
Allowance for credit losses to nonperforming loans
   
251
     
254
     
238
     
234
     
221
     
251
     
221
 
Delinquent loans to total loans
   
0.17
     
0.18
     
0.22
     
0.19
     
0.21
     
0.17
     
0.21
 
NCOs (recoveries) to average loans (annualized)
   
0.02
     
(0.02
)
   
     
0.03
     
0.07
     
0.01
     
0.03
 
                                                         
TRS Easy Advances ("EAs")
                                                       
                                                         
EAs originated
 
$
   
$
   
$
   
$
250,045
   
$
   
$
250,045
   
$
387,762
 
Net (credit) charge to the Provision for EAs
   
(1,261
)
   
(2,242
)
   
(5,793
)
   
16,019
     
(2,206
)
   
6,723
     
13,033
 
Net Provision to YTD EAs originated
   
(0.50
)%
   
(0.90
)%
   
(2.32
)%
   
6.41
%
   
(0.57
)%
   
2.69
%
   
3.36
%
EAs NCOs (recoveries)
 
$
(1,261
)
 
$
(2,242
)
 
$
10,226
   
$
   
$
(2,206
)
 
$
6,723
   
$
13,033
 
EA NCOs (recoveries) to YTD EAs originated
   
(0.50
)%
   
(0.90
)%
   
4.09
%
   
%
   
(0.57
)%
   
2.69
%
   
3.36
%


S - 7


Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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 December 31, 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 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
 
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 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.
S - 8

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth Quarter 2021 (continued)

Segment information for the quarters and years ended December 31, 2021 and 2020 follows:

                                                 
   
Three Months Ended December 31, 2021
 
   
Core Banking
   
Republic Processing Group
       
                     
Total
   
Tax
   
Republic
             
   
Traditional
   
Warehouse
   
Mortgage
   
Core
   
Refund
   
Credit
   
Total
   
Total
 
(dollars in thousands)
 
Banking
   
Lending
   
Banking
   
Banking
   
Solutions
   
Solutions
   
RPG
   
Company
 
                                                 
Net interest income
 
$
37,572
   
$
5,831
   
$
279
   
$
43,682
   
$
244
   
$
6,415
   
$
6,659
   
$
50,341
 
                                                                 
Provision for expected credit loss expense
   
88
     
249
     
     
337
     
(1,167
)
   
3,407
     
2,240
     
2,577
 
                                                                 
Net refund transfer fees
   
     
     
     
     
326
     
     
326
     
326
 
Mortgage banking income
   
     
     
3,339
     
3,339
     
     
     
     
3,339
 
Program fees
   
     
     
     
     
797
     
3,420
     
4,217
     
4,217
 
Other noninterest income
   
8,630
     
14
     
51
     
8,695
     
53
     
     
53
     
8,748
 
Total noninterest income
   
8,630
     
14
     
3,390
     
12,034
     
1,176
     
3,420
     
4,596
     
16,630
 
                                                                 
Total noninterest expense
   
35,184
     
1,060
     
2,972
     
39,216
     
4,379
     
990
     
5,369
     
44,585
 
                                                                 
Income (loss) before income tax expense
   
10,930
     
4,536
     
697
     
16,163
     
(1,792
)
   
5,438
     
3,646
     
19,809
 
Income tax expense (benefit)
   
963
     
1,043
     
153
     
2,159
     
(503
)
   
1,348
     
845
     
3,004
 
                                                                 
Net income (loss)
 
$
9,967
   
$
3,493
   
$
544
   
$
14,004
   
$
(1,289
)
 
$
4,090
   
$
2,801
   
$
16,805
 
                                                                 
Period-end assets
 
$
4,717,836
   
$
850,703
   
$
43,929
   
$
5,612,468
   
$
371,647
   
$
109,517
   
$
481,164
   
$
6,093,632
 
                                                                 
Net interest margin
   
3.08
%
   
3.08
%
 
NM
     
3.08
%
 
NM
   
NM
   
NM
     
3.49
%
                                                                 
Net-revenue concentration*
   
69
%
   
9
%
   
5
%
   
83
%
   
2
%
   
15
%
   
17
%
   
100
%

   
Three Months Ended December 31, 2020
 
   
Core Banking
   
Republic Processing Group
       
                     
Total
   
Tax
   
Republic
             
   
Traditional
   
Warehouse
   
Mortgage
   
Core
   
Refund
   
Credit
   
Total
   
Total
 
(dollars in thousands)
 
Banking
   
Lending
   
Banking
   
Banking
   
Solutions
   
Solutions
   
RPG
   
Company
 
                                                 
Net interest income
 
$
40,972
   
$
8,242
   
$
430
   
$
49,644
   
$
488
   
$
4,988
   
$
5,476
   
$
55,120
 
                                                                 
Provision for expected credit loss expense
   
1,731
     
(165
)
   
     
1,566
     
(2,050
)
   
968
     
(1,082
)
   
484
 
                                                                 
Net refund transfer fees
   
     
     
     
     
409
     
     
409
     
409
 
Mortgage banking income
   
     
     
7,879
     
7,879
     
     
     
     
7,879
 
Program fees
   
     
     
     
     
620
     
1,226
     
1,846
     
1,846
 
Other noninterest income
   
6,905
     
17
     
50
     
6,972
     
30
     
     
30
     
7,002
 
Total noninterest income
   
6,905
     
17
     
7,929
     
14,851
     
1,059
     
1,226
     
2,285
     
17,136
 
                                                                 
Total noninterest expense
   
39,311
     
898
     
3,243
     
43,452
     
3,925
     
763
     
4,688
     
48,140
 
                                                                 
Income (loss) before income tax expense
   
6,835
     
7,526
     
5,116
     
19,477
     
(328
)
   
4,483
     
4,155
     
23,632
 
Income tax expense (benefit)
   
(352
)
   
1,694
     
1,074
     
2,416
     
(164
)
   
1,024
     
860
     
3,276
 
                                                                 
Net income
 
$
7,187
   
$
5,832
   
$
4,042
   
$
17,061
   
$
(164
)
 
$
3,459
   
$
3,295
   
$
20,356
 
                                                                 
Period-end assets
 
$
4,750,460
   
$
962,692
   
$
62,400
   
$
5,775,552
   
$
285,612
   
$
107,161
   
$
392,773
   
$
6,168,325
 
                                                                 
Net interest margin
   
3.46
%
   
3.51
%
 
NM
     
3.48
%
 
NM
   
NM
   
NM
     
3.78
%
                                                                 
Net-revenue concentration*
   
66
%
   
11
%
   
12
%
   
89
%
   
2
%
   
9
%
   
11
%
   
100
%

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

S - 9

  
   
Year Ended December 31, 2021
 
   
Core Banking
   
Republic Processing Group
       
                     
Total
   
Tax
   
Republic
             
   
Traditional
   
Warehouse
   
Mortgage
   
Core
   
Refund
   
Credit
   
Total
   
Total
 
(dollars in thousands)
 
Banking
   
Lending
   
Banking
   
Banking
   
Solutions
   
Solutions
   
RPG
   
Company
 
                                                 
Net interest income
 
$
157,249
   
$
25,218
   
$
1,081
   
$
183,548
   
$
15,837
   
$
21,209
   
$
37,046
   
$
220,594
 
                                                                 
Provision for expected credit loss expense
   
(38
)
   
(281
)
   
     
(319
)
   
6,683
     
8,444
     
15,127
     
14,808
 
                                                                 
Net refund transfer fees
   
     
     
     
     
20,248
     
     
20,248
     
20,248
 
Mortgage banking income
   
     
     
19,994
     
19,994
     
     
     
     
19,994
 
Program fees
   
     
     
     
     
3,171
     
11,350
     
14,521
     
14,521
 
Other noninterest income
   
31,492
     
57
     
191
     
31,740
     
356
     
     
356
     
32,096
 
Total noninterest income
   
31,492
     
57
     
20,185
     
51,734
     
23,775
     
11,350
     
35,125
     
86,859
 
                                                                 
Total noninterest expense
   
145,376
     
4,210
     
12,356
     
161,942
     
16,344
     
4,018
     
20,362
     
182,304
 
                                                                 
Income before income tax expense
   
43,403
     
21,346
     
8,910
     
73,659
     
16,585
     
20,097
     
36,682
     
110,341
 
Income tax expense
   
7,681
     
4,962
     
1,960
     
14,603
     
3,964
     
4,985
     
8,949
     
23,552
 
                                                                 
Net income
 
$
35,722
   
$
16,384
   
$
6,950
   
$
59,056
   
$
12,621
   
$
15,112
   
$
27,733
   
$
86,789
 
                                                                 
Period-end assets
 
$
4,717,836
   
$
850,703
   
$
43,929
   
$
5,612,468
   
$
371,647
   
$
109,517
   
$
481,164
   
$
6,093,632
 
                                                                 
Net interest margin
   
3.18
%
   
3.37
%
 
NM
     
3.20
%
 
NM
   
NM
   
NM
     
3.75
%
                                                                 
Net-revenue concentration*
   
61
%
   
8
%
   
7
%
   
76
%
   
13
%
   
11
%
   
24
%
   
100
%


   
Year Ended December 31, 2020
 
   
Core Banking
   
Republic Processing Group
       
                     
Total
   
Tax
   
Republic
             
   
Traditional
   
Warehouse
   
Mortgage
   
Core
   
Refund
   
Credit
   
Total
   
Total
 
(dollars in thousands)
 
Banking
   
Lending
   
Banking
   
Banking
   
Solutions
   
Solutions
   
RPG
   
Company
 
                                                 
Net interest income
 
$
159,381
   
$
25,957
   
$
1,362
   
$
186,700
   
$
22,972
   
$
22,643
   
$
45,615
   
$
232,315
 
                                                                 
Provision for expected credit loss expense
   
16,257
     
613
     
     
16,870
     
13,189
     
1,219
     
14,408
     
31,278
 
                                                                 
Net refund transfer fees
   
     
     
     
     
20,297
     
     
20,297
     
20,297
 
Mortgage banking income
   
     
     
31,847
     
31,847
     
     
     
     
31,847
 
Program fees
   
     
     
     
     
2,193
     
4,902
     
7,095
     
7,095
 
Other noninterest income
   
27,404
     
24
     
103
     
27,531
     
283
     
     
283
     
27,814
 
Total noninterest income
   
27,404
     
24
     
31,950
     
59,378
     
22,773
     
4,902
     
27,675
     
87,053
 
                                                                 
Total noninterest expense
   
149,061
     
4,387
     
10,760
     
164,208
     
17,514
     
3,735
     
21,249
     
185,457
 
                                                                 
Income before income tax expense
   
21,467
     
20,981
     
22,552
     
65,000
     
15,042
     
22,591
     
37,633
     
102,633
 
Income tax expense
   
1,395
     
4,721
     
4,736
     
10,852
     
3,323
     
5,212
     
8,535
     
19,387
 
                                                                 
Net income
 
$
20,072
   
$
16,260
   
$
17,816
   
$
54,148
   
$
11,719
   
$
17,379
   
$
29,098
   
$
83,246
 
                                                                 
Period-end assets
 
$
4,750,460
   
$
962,692
   
$
62,400
   
$
5,775,552
   
$
285,612
   
$
107,161
   
$
392,773
   
$
6,168,325
 
                                                                 
Net interest margin
   
3.42
%
   
3.19
%
 
NM
     
3.39
%
 
NM
   
NM
   
NM
     
4.10
%
                                                                 
Net-revenue concentration*
   
59
%
   
8
%
   
10
%
   
77
%
   
14
%
   
9
%
   
23
%
   
100
%

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


S - 10


Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth Quarter 2021 (continued)
 
Footnotes:
 
(1)
The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The following table presents the Company’s loan fees by segment:
 
   
Three Months Ended
   
Years Ended
 
(dollars in thousands)
 
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
   
Dec. 31, 2021
   
Dec. 31, 2020
 
                                           
Traditional Bank excluding PPP fees
 
$
1,126
   
$
1,152
   
$
963
   
$
895
   
$
1,046
   
$
4,136
   
$
3,301
 
Traditional Bank - PPP fees
   
2,850
     
5,182
     
3,676
     
5,757
     
4,822
     
17,465
     
8,569
 
Warehouse Lending
   
662
     
779
     
789
     
871
     
1,064
     
3,101
     
3,427
 
Total Core Bank
   
4,638
     
7,113
     
5,428
     
7,523
     
6,932
     
24,702
     
15,297
 
TRS - Easy Advances
   
43
     
76
     
294
     
12,789
     
68
     
13,202
     
19,671
 
TRS - Other Loan Fees
   
     
     
4
     
1,652
     
     
1,656
     
1,375
 
RCS
   
5,694
     
4,167
     
3,568
     
3,770
     
3,830
     
17,199
     
18,522
 
Total RPG
   
5,737
     
4,243
     
3,866
     
18,211
     
3,898
     
32,057
     
39,568
 
                                                         
Total loan fees - Total Company
 
$
10,375
   
$
11,356
   
$
9,294
   
$
25,734
   
$
10,830
   
$
56,759
   
$
54,865
 
 
(2)
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. Gains on sale of mortgage loans are recorded as a component of Mortgage Banking income.  Gains on sale of consumer loans are recorded as a component of Program Fees.

   
As of and for the Three Months Ended
   
As of and for the Years Ended
 
(dollars in thousands)
 
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
   
Dec. 31, 2021
   
Dec. 31, 2020
 
                                           
Mortgage Loans Held for Sale
                                         
                                           
Balance, beginning of period
 
$
25,791
   
$
32,401
   
$
63,636
   
$
46,867
   
$
44,860
   
$
46,867
   
$
19,224
 
Originations
   
155,468
     
170,482
     
141,177
     
213,587
     
235,383
     
680,714
     
782,939
 
Proceeds from sales
   
(155,186
)
   
(182,422
)
   
(176,424
)
   
(203,815
)
   
(241,525
)
   
(717,847
)
   
(788,475
)
Net gain on sale
   
3,320
     
5,330
     
4,012
     
6,997
     
8,149
     
19,659
     
33,179
 
Balance, end of period
 
$
29,393
   
$
25,791
   
$
32,401
   
$
63,636
   
$
46,867
   
$
29,393
   
$
46,867
 
                                                         
RCS Consumer Loans Held for Sale
                                                       
                                                         
Balance, beginning of period
 
$
14,755
   
$
24,432
   
$
15,671
   
$
4,776
   
$
11,892
   
$
4,776
   
$
12,244
 
Originations
   
321,118
     
257,018
     
186,771
     
117,274
     
127,184
     
882,180
     
518,873
 
Proceeds from sales
   
(316,597
)
   
(270,463
)
   
(180,826
)
   
(107,683
)
   
(135,529
)
   
(875,570
)
   
(531,321
)
Net gain on sale
   
3,408
     
3,768
     
2,816
     
1,304
     
1,229
     
11,298
     
4,980
 
Balance, end of period
 
$
22,684
   
$
14,755
   
$
24,432
   
$
15,671
   
$
4,776
   
$
22,684
   
$
4,776
 

S - 11

 
(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.

                               
   
As of
 
(dollars in thousands, except per share data)
 
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
 
                               
Total stockholders' equity - GAAP (a)
 
$
834,232
   
$
838,657
   
$
845,090
   
$
837,709
   
$
823,323
 
Less: Goodwill
   
16,300
     
16,300
     
16,300
     
16,300
     
16,300
 
Less: Mortgage servicing rights
   
9,196
     
8,867
     
8,335
     
7,711
     
7,095
 
Less: Core deposit intangible
   
     
     
     
53
     
189
 
Tangible stockholders' equity - Non-GAAP (c)
 
$
808,736
   
$
813,490
   
$
820,455
   
$
813,645
   
$
799,739
 
                                         
Total assets - GAAP (b)
 
$
6,093,632
   
$
6,187,634
   
$
6,183,310
   
$
6,476,540
   
$
6,168,325
 
Less: Goodwill
   
16,300
     
16,300
     
16,300
     
16,300
     
16,300
 
Less: Mortgage servicing rights
   
9,196
     
8,867
     
8,335
     
7,711
     
7,095
 
Less: Core deposit intangible
   
     
     
     
53
     
189
 
Tangible assets - Non-GAAP (d)
 
$
6,068,136
   
$
6,162,467
   
$
6,158,675
   
$
6,452,476
   
$
6,144,741
 
                                         
Total stockholders' equity to total assets - GAAP (a/b)
   
13.69
%
   
13.55
%
   
13.67
%
   
12.93
%
   
13.35
%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)
   
13.33
%
   
13.20
%
   
13.32
%
   
12.61
%
   
13.02
%
                                         
Number of shares outstanding (e)
   
19,981
     
20,205
     
20,587
     
20,826
     
20,896
 
                                         
Book value per share - GAAP (a/e)
 
$
41.75
   
$
41.51
   
$
41.05
   
$
40.22
   
$
39.40
 
Tangible book value per share - Non-GAAP (c/e)
   
40.48
     
40.26
     
39.85
     
39.07
     
38.27
 

(4)
The efficiency ratio, 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
   
Years Ended
 
(dollars in thousands)
 
Dec. 31, 2021
   
Sep. 30, 2021
   
Jun. 30, 2021
   
Mar. 31, 2021
   
Dec. 31, 2020
   
Dec. 31, 2021
   
Dec. 31, 2020
 
                                           
Net interest income - GAAP
 
$
50,341
   
$
52,432
   
$
50,041
   
$
67,780
   
$
55,120
   
$
220,594
   
$
232,315
 
Noninterest income - GAAP
   
16,630
     
19,339
     
21,853
     
29,037
     
17,136
     
86,859
     
87,053
 
Less: Net gain (loss) on securities
   
(23
)
   
(10
)
   
(1
)
   
(35
)
   
(12
)
   
(69
)
   
49
 
Total adjusted income - Non-GAAP (a)
 
$
66,994
   
$
71,781
   
$
71,895
   
$
96,852
   
$
72,268
   
$
307,522
   
$
319,319
 
                                                         
Noninterest expense - GAAP (b)
 
$
44,585
   
$
44,252
   
$
45,656
   
$
47,811
   
$
48,140
   
$
182,304
   
$
185,457
 
                                                         
Efficiency Ratio - Non-GAAP (b/a)
   
67
%
   
62
%
   
64
%
   
49
%
   
67
%
   
59
%
   
58
%

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

YTD – Year to date

CONTACT:
Republic Bancorp, Inc.
Kevin Sipes
Executive Vice President & Chief Financial Officer
(502) 560-8628


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