EX-99.2 3 a52948398ex99_2.htm EXHIBIT 99.2
Exhibit 99.2










EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2022


TABLE OF CONTENTS


   
   
   
   
   
   
   
   
   



S-1


Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third Quarter 2022
(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
    
$ Change
    
$ Change
  
   
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar. 31, 2022
    
Dec. 31, 2021
    
Sep. 30, 2021
    
From Dec. 31,2021
    
From Sep. 30, 2021
  
Assets:
                                          
Cash and cash equivalents
  
$
754,393
    
$
795,143
    
$
1,077,158
    
$
756,971
    
$
1,011,247
    
$
(2,578
)
  
$
(256,854
)
Investment securities, net of allowance for credit losses
    
662,750
      
655,296
      
614,836
      
542,045
      
543,449
      
120,705
      
119,301
  
Loans held for sale
    
24,387
      
39,727
      
28,037
      
52,077
      
40,546
      
(27,690
)
    
(16,159
)
Loans
    
4,289,450
      
4,362,233
      
4,390,243
      
4,496,562
      
4,343,806
      
(207,112
)
    
(54,356
)
Allowance for credit losses
    
(64,919
)
    
(64,449
)
    
(71,656
)
    
(64,577
)
    
(63,024
)
    
(342
)
    
(1,895
)
Loans, net
    
4,224,531
      
4,297,784
      
4,318,587
      
4,431,985
      
4,280,782
      
(207,454
)
    
(56,251
)
Federal Home Loan Bank stock, at cost
    
8,568
      
10,311
      
10,311
      
10,311
      
10,311
      
(1,743
)
    
(1,743
)
Premises and equipment, net
    
32,813
      
33,886
      
34,358
      
36,073
      
37,499
      
(3,260
)
    
(4,686
)
Right-of-use assets
    
41,303
      
41,364
      
42,402
      
38,825
      
39,257
      
2,478
      
2,046
  
Goodwill
    
16,300
      
16,300
      
16,300
      
16,300
      
16,300
      
—
      
—
  
Other real estate owned ("OREO")
    
1,634
      
1,687
      
1,740
      
1,792
      
1,845
      
(158
)
    
(211
)
Bank owned life insurance ("BOLI")
    
101,013
      
100,396
      
99,773
      
99,161
      
99,634
      
1,852
      
1,379
  
Other assets and accrued interest receivable
    
131,971
      
120,582
      
106,367
      
108,092
      
106,764
      
23,879
      
25,207
  
Total assets
  
$
5,999,663
    
$
6,112,476
    
$
6,349,869
    
$
6,093,632
    
$
6,187,634
    
$
(93,969
)
  
$
(187,971
)
                                                         
Liabilities and Stockholders' Equity:
                                                        
Deposits:
                                                        
Noninterest-bearing
  
$
2,014,123
    
$
2,094,436
    
$
2,226,714
    
$
1,990,781
    
$
2,086,548
    
$
23,342
    
$
(72,425
)
Interest-bearing
    
2,786,385
      
2,733,093
      
2,860,392
      
2,849,637
      
2,861,399
      
(63,252
)
    
(75,014
)
Total deposits
    
4,800,508
      
4,827,529
      
5,087,106
      
4,840,418
      
4,947,947
      
(39,910
)
    
(147,439
)
                                                         
Securities sold under agreements to
                                                        
   repurchase ("SSUAR") and other short-term borrowings
    
209,376
      
303,315
      
287,818
      
290,967
      
260,583
      
(81,591
)
    
(51,207
)
Operating lease liabilities
    
42,109
      
42,163
      
43,204
      
39,672
      
40,151
      
2,437
      
1,958
  
Federal Home Loan Bank advances
    
20,000
      
20,000
      
20,000
      
25,000
      
25,000
      
(5,000
)
    
(5,000
)
Other liabilities and accrued interest payable
    
86,712
      
77,295
      
71,412
      
63,343
      
75,296
      
23,369
      
11,416
  
Total liabilities
    
5,158,705
      
5,270,302
      
5,509,540
      
5,259,400
      
5,348,977
      
(100,695
)
    
(190,272
)
                                                         
Stockholders' equity
    
840,958
      
842,174
      
840,329
      
834,232
      
838,657
      
6,726
      
2,301
  
Total liabilities and stockholders' equity
  
$
5,999,663
    
$
6,112,476
    
$
6,349,869
    
$
6,093,632
    
$
6,187,634
    
$
(93,969
)
  
$
(187,971
)
                                                         


S-2


Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third Quarter 2022 (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
    
$ Change (8)
    
Nine Months Ended
    
$ Change (8)
  
   
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar.31, 2022
    
Dec. 31, 2021
    
Sep. 30, 2021
    
Q3 to Q3
    
Sep. 30, 2022
    
Sep. 30, 2021
    
9M to 9M
  
Assets:
                                                      
                                                       
Interest-earning assets:
                                                      
Federal funds sold and other interest-earning deposits
  
$
727,626
    
$
813,956
    
$
861,822
    
$
848,215
    
$
924,859
    
$
(197,233
)
  
$
800,643
    
$
792,858
    
$
7,785
  
Investment securities, including FHLB stock
    
694,781
      
691,427
      
606,182
      
540,227
      
555,934
      
138,847
      
664,455
      
560,780
      
103,675
  
Loans, including loans held for sale
    
4,306,169
      
4,339,432
      
4,355,255
      
4,385,547
      
4,404,270
      
(98,101
)
    
4,333,439
      
4,564,344
      
(230,905
)
Total interest-earning assets
    
5,728,576
      
5,844,815
      
5,823,259
      
5,773,989
      
5,885,063
      
(156,487
)
    
5,798,537
      
5,917,982
      
(119,445
)
                                                                         
Allowance for credit losses
    
(65,262
)
    
(72,037
)
    
(69,287
)
    
(63,711
)
    
(61,562
)
    
(3,700
)
    
(68,847
)
    
(67,415
)
    
(1,432
)
                                                                         
Noninterest-earning assets:
                                                                        
Noninterest-earning cash and cash equivalents
    
108,069
      
172,382
      
354,165
      
137,556
      
140,037
      
(31,968
)
    
210,637
      
177,667
      
32,970
  
Premises and equipment, net
    
33,307
      
34,322
      
35,460
      
37,055
      
38,377
      
(5,070
)
    
34,355
      
38,891
      
(4,536
)
Bank owned life insurance
    
100,740
      
100,152
      
99,532
      
99,978
      
99,386
      
1,354
      
100,146
      
88,414
      
11,732
  
Other assets
    
170,692
      
164,090
      
180,779
      
192,755
      
187,286
      
(16,594
)
    
171,819
      
188,250
      
(16,431
)
                                                                         
Total assets
  
$
6,076,122
    
$
6,243,724
    
$
6,423,908
    
$
6,177,622
    
$
6,288,587
    
$
(212,465
)
  
$
6,246,647
    
$
6,343,789
    
$
(97,142
)
                                                                         
Liabilities and Stockholders' Equity:
                                                                        
                                                                         
Interest-bearing liabilities:
                                                                        
Interest-bearing deposits
  
$
2,777,124
    
$
2,779,941
    
$
2,827,496
    
$
2,857,403
    
$
2,908,135
    
$
(131,011
)
  
$
2,794,669
    
$
2,945,770
    
$
(151,101
)
SSUARs and other short-term borrowings
    
220,149
      
294,388
      
300,169
      
318,785
      
242,867
      
(22,718
)
    
271,276
      
201,992
      
69,284
  
Federal Home Loan Bank advances
    
20,000
      
20,000
      
23,333
      
25,000
      
25,000
      
(5,000
)
    
21,099
      
30,989
      
(9,890
)
Subordinated note
    
—
      
—
      
—
      
—
      
40,791
      
(40,791
)
    
—
      
41,089
      
(41,089
)
Total interest-bearing liabilities
    
3,017,273
      
3,094,329
      
3,150,998
      
3,201,188
      
3,216,793
      
(199,520
)
    
3,087,044
      
3,219,840
      
(132,796
)
                                                                         
Noninterest-bearing liabilities and Stockholders’ equity:
                                                          
Noninterest-bearing deposits
    
2,096,911
      
2,197,300
      
2,313,549
      
2,028,910
      
2,118,200
      
(21,289
)
    
2,201,793
      
2,163,334
      
38,459
  
Other liabilities
    
110,190
      
100,937
      
112,331
      
102,694
      
104,660
      
5,530
      
107,814
      
115,730
      
(7,916
)
Stockholders' equity
    
851,748
      
851,158
      
847,030
      
844,830
      
848,935
      
2,813
      
849,996
      
844,885
      
5,111
  
                                                                         
Total liabilities and stock-holders’ equity
  
$
6,076,122
    
$
6,243,724
    
$
6,423,908
    
$
6,177,622
    
$
6,288,588
    
$
(212,466
)
  
$
6,246,647
    
$
6,343,789
    
$
(97,142
)
                                                                         

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third Quarter 2022 (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
    
$ Change (8)
    
Nine Months Ended
    
$ Change (8)
  
   
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar. 31, 2022
    
Dec. 31, 2021
    
Sep. 30, 2021
    
Q3 to Q3
    
Sep. 30, 2022
    
Sep. 30, 2021
    
9M to 9M
  
                                                       
Total interest income (1)
  
$
60,056
    
$
52,320
    
$
63,555
    
$
51,379
    
$
54,469
    
$
5,587
    
$
175,931
    
$
175,927
    
$
4
  
Total interest expense
    
2,020
      
1,088
      
943
      
1,038
      
1,340
      
680
      
4,051
      
4,628
      
(577
)
Net interest income
    
58,036
      
51,232
      
62,612
      
50,341
      
53,129
      
4,907
      
171,880
      
171,299
      
581
  
                                                                         
Provision (2)
    
1,573
      
3,705
      
9,226
      
2,577
      
1,292
      
281
      
14,504
      
12,231
      
2,273
  
                                                                         
Noninterest income:
                                                                        
Service charges on deposit accounts
    
3,409
      
3,363
      
3,226
      
3,332
      
3,277
      
132
      
9,998
      
9,221
      
777
  
Net refund transfer fees
    
593
      
3,950
      
12,051
      
326
      
1,280
      
(687
)
    
16,594
      
19,924
      
(3,330
)
Mortgage banking income (3)
    
1,154
      
1,763
      
2,657
      
3,339
      
5,280
      
(4,126
)
    
5,574
      
16,655
      
(11,081
)
Interchange fee income
    
3,322
      
3,461
      
3,070
      
3,291
      
3,263
      
59
      
9,853
      
9,771
      
82
  
Program fees (3)
    
4,932
      
3,885
      
3,854
      
4,668
      
4,018
      
914
      
12,671
      
9,569
      
3,102
  
Increase in cash surrender value of BOLI
    
617
      
623
      
612
      
626
      
626
      
(9
)
    
1,852
      
1,616
      
236
  
Net losses on OREO
    
(53
)
    
(52
)
    
(53
)
    
(53
)
    
(52
)
    
(1
)
    
(158
)
    
(107
)
    
(51
)
Contract termination fee
    
—
      
—
      
5,000
      
—
      
—
      
—
      
5,000
      
—
      
5,000
  
Legal settlement
    
—
      
13,000
      
—
      
—
      
—
      
—
      
13,000
      
—
      
13,000
  
Other
    
1,073
      
573
      
584
      
1,552
      
1,133
      
(60
)
    
2,230
      
2,845
      
(615
)
Total noninterest income
    
15,047
      
30,566
      
31,001
      
17,081
      
18,825
      
(3,778
)
    
76,614
      
69,494
      
7,120
  
                                                                         
Noninterest expense:
                                                                        
Salaries and employee benefits
    
27,269
      
28,896
      
29,312
      
26,350
      
26,991
      
278
      
85,477
      
83,738
      
1,739
  
Technology, equipment, and communication
    
7,235
      
7,229
      
7,214
      
7,342
      
7,498
      
(263
)
    
21,678
      
22,009
      
(331
)
Occupancy
    
3,211
      
3,224
      
3,440
      
3,188
      
3,195
      
16
      
9,875
      
10,005
      
(130
)
Marketing and development
    
1,951
      
1,720
      
1,348
      
1,291
      
1,233
      
718
      
5,019
      
3,099
      
1,920
  
FDIC insurance expense
    
423
      
399
      
419
      
402
      
325
      
98
      
1,241
      
1,189
      
52
  
Interchange related expense
    
1,221
      
1,264
      
1,117
      
1,253
      
1,275
      
(54
)
    
3,602
      
3,707
      
(105
)
Legal and professional fees
    
904
      
804
      
1,365
      
1,360
      
884
      
20
      
3,073
      
3,564
      
(491
)
Other (2)
    
3,891
      
4,117
      
4,358
      
3,850
      
3,034
      
857
      
12,366
      
10,719
      
1,647
  
Total noninterest expense
    
46,105
      
47,653
      
48,573
      
45,036
      
44,435
      
1,670
      
142,331
      
138,030
      
4,301
  
                                                                         
Income before income tax expense
    
25,405
      
30,440
      
35,814
      
19,809
      
26,227
      
(822
)
    
91,659
      
90,532
      
1,127
  
Income tax expense
    
5,922
      
6,539
      
7,888
      
3,004
      
6,218
      
(296
)
    
20,349
      
20,548
      
(199
)
                                                                         
Net income
  
$
19,483
    
$
23,901
    
$
27,926
    
$
16,805
    
$
20,009
    
$
(526
)
  
$
71,310
    
$
69,984
    
$
1,326
  
                                                                         


S-4


Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third Quarter 2022 (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
    
Change (8)
    
As of and for the Nine
Months Ended
    
Change (8)
  
   
Sep. 30,
2022
    
Jun. 30,
2022
    
Mar. 31,
2022
    
Dec. 31,
2021
    
Sep. 30,
2021
    
From Dec.
31, 2021 or
Q3 to Q3
    
Sep. 30, 2022
    
Sep. 30, 2021
    
From Sep.
30,2021 or
9M to 9M
  
Per Share Data:
                                                      
                                                       
Basic weighted average shares outstanding
    
19,919
      
20,107
      
20,145
      
20,270
      
20,508
      
(589
)
    
20,066
      
20,807
      
(741
)
Diluted weighted average shares outstanding
    
19,981
      
20,169
      
20,225
      
20,379
      
20,591
      
(610
)
    
20,134
      
20,879
      
(745
)
                                                                         
Period-end shares outstanding:
                                                                        
     Class A Common Stock
    
17,587
      
17,629
      
17,834
      
17,816
      
18,040
      
(453
)
    
17,587
      
18,040
      
(453
)
     Class B Common Stock
    
2,160
      
2,161
      
2,165
      
2,165
      
2,165
      
(5
)
    
2,160
      
2,165
      
(5
)
                                                                         
Book value per share (4)
  
$
42.59
    
$
42.56
    
$
42.02
    
$
41.75
    
$
41.51
    
$
1.08
    
$
42.59
    
$
41.51
    
$
1.08
  
Tangible book value per share (4)
    
41.30
      
41.26
      
40.73
      
40.48
      
40.26
      
1.04
      
41.30
      
40.26
      
1.04
  
                                                                         
Earnings per share ("EPS"):
                                                                        
     Basic EPS - Class A Common Stock
  
$
0.99
    
$
1.20
    
$
1.40
    
$
0.84
    
$
0.99
    
$
—
    
$
3.60
    
$
3.40
    
$
0.20
  
     Basic EPS - Class B Common Stock
    
0.90
      
1.09
      
1.27
      
0.77
      
0.90
      
—
      
3.27
      
3.10
      
0.17
  
     Diluted EPS - Class A Common Stock
    
0.99
      
1.20
      
1.40
      
0.84
      
0.99
      
—
      
3.58
      
3.39
      
0.19
  
     Diluted EPS - Class B Common Stock
    
0.90
      
1.09
      
1.27
      
0.76
      
0.90
      
—
      
3.26
      
3.09
      
0.17
  
                                                                         
Cash dividends declared per Common share:
                                                                        
     Class A Common Stock
  
$
0.341
    
$
0.341
    
$
0.341
    
$
0.308
    
$
0.308
    
$
0.033
    
$
1.023
    
$
0.924
    
$
0.099
  
     Class B Common Stock
    
0.310
      
0.310
      
0.310
      
0.280
      
0.280
      
0.030
      
0.930
      
0.840
      
0.090
  
                                                                         
Performance Ratios:
                                                                        
                                                                         
Return on average assets
    
1.28
%
    
1.53
%
    
1.74
%
    
1.09
%
    
1.27
%
    
0.01
%
    
1.52
%
    
1.47
%
    
0.05
%
Return on average equity
    
9.15
      
11.23
      
13.19
      
7.96
      
9.43
      
(0.28
)
    
11.19
      
11.04
      
0.15
  
Efficiency ratio (5)
    
63
      
68
      
55
      
66
      
61
      
2
      
61
      
57
      
4
  
Yield on average interest-earning assets (1)
    
4.19
      
3.58
      
4.37
      
3.56
      
3.70
      
0.49
      
4.05
      
3.96
      
0.09
  
Cost of average interest-bearing liabilities
    
0.27
      
0.14
      
0.12
      
0.13
      
0.17
      
0.10
      
0.17
      
0.19
      
(0.02
)
Cost of average deposits (6)
    
0.15
      
0.08
      
0.07
      
0.08
      
0.09
      
0.06
      
0.10
      
0.11
      
(0.01
)
Net interest spread (1)
    
3.92
      
3.44
      
4.25
      
3.43
      
3.53
      
0.39
      
3.88
      
3.77
      
0.11
  
Net interest margin - Total Company (1)
    
4.05
      
3.51
      
4.30
      
3.49
      
3.61
      
0.44
      
3.95
      
3.86
      
0.09
  
Net interest margin - Core Bank
    
3.54
      
3.02
      
2.92
      
3.08
      
3.25
      
0.29
      
3.16
      
3.24
      
(0.08
)
                                                                         
Other Information:
                                                                        
                                                                         
End of period FTEs (7) - Total Company
    
1,009
      
1,020
      
1,040
      
1,045
      
1,052
      
(43
)
    
1,009
      
1,052
      
(43
)
End of period FTEs - Core Bank
    
916
      
929
      
955
      
958
      
966
      
(50
)
    
916
      
966
      
(50
)
Number of full-service banking centers
    
42
      
42
      
42
      
42
      
42
      
—
      
42
      
42
      
—
  
                                                                         


S-5

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third Quarter 2022 (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
    
Change
    
Change
  
   
Sep. 30,
2022
    
Jun. 30,
2022
    
Mar. 31,
2022
    
Dec. 31,
2021
    
Sep. 30,
2021
    
From Dec. 31,2021
    
From Sep. 30, 2021
  
Loan Composition
                                          
                                           
Traditional Banking:
                                          
Residential real estate:
                                          
Owner occupied
  
$
863,899
    
$
832,137
    
$
808,658
    
$
820,731
    
$
827,898
    
$
43,168
    
$
36,001
  
Nonowner occupied
    
321,037
      
313,534
      
314,933
      
306,323
      
294,818
      
14,714
      
26,219
  
Commercial real estate
    
1,571,593
      
1,569,119
      
1,556,575
      
1,456,009
      
1,393,241
      
115,584
      
178,352
  
Construction & land development
    
147,418
      
137,452
      
129,970
      
129,337
      
105,968
      
18,081
      
41,450
  
Commercial & industrial
    
404,971
      
394,175
      
342,175
      
340,363
      
333,795
      
64,608
      
71,176
  
Paycheck Protection Program
    
7,855
      
14,657
      
18,276
      
56,014
      
126,271
      
(48,159
)
    
(118,416
)
Lease financing receivables
    
11,333
      
11,345
      
10,396
      
8,637
      
9,427
      
2,696
      
1,906
  
Aircraft
    
166,313
      
159,958
      
151,284
      
142,894
      
130,398
      
23,419
      
35,915
  
Home equity
    
229,038
      
214,069
      
210,364
      
210,578
      
215,282
      
18,460
      
13,756
  
Consumer:
                                                        
Credit cards
    
14,897
      
15,419
      
14,654
      
14,510
      
14,781
      
387
      
116
  
Overdrafts
    
723
      
901
      
716
      
683
      
753
      
40
      
(30
)
Automobile loans
    
7,890
      
9,579
      
11,846
      
14,448
      
17,533
      
(6,558
)
    
(9,643
)
Other consumer
    
973
      
1,245
      
939
      
1,432
      
6,223
      
(459
)
    
(5,250
)
Total Traditional Banking
    
3,747,940
      
3,673,590
      
3,570,786
      
3,501,959
      
3,476,388
      
245,981
      
271,552
  
Warehouse lines of credit
    
442,238
      
596,678
      
690,200
      
850,550
      
750,682
      
(408,312
)
    
(308,444
)
Total Core Banking
    
4,190,178
      
4,270,268
      
4,260,986
      
4,352,509
      
4,227,070
      
(162,331
)
    
(36,892
)
                                                         
Republic Processing Group:
                                                        
Tax Refund Solutions:
                                                        
Easy Advances
    
—
      
—
      
16,475
      
—
      
—
      
—
      
—
  
Other TRS loans
    
295
      
149
      
25,132
      
50,987
      
25
      
(50,692
)
    
270
  
Republic Credit Solutions
    
98,977
      
91,816
      
87,650
      
93,066
      
116,711
      
5,911
      
(17,734
)
Total Republic Processing Group
    
99,272
      
91,965
      
129,257
      
144,053
      
116,736
      
(44,781
)
    
(17,464
)
                                                         
Total loans - Total Company
  
$
4,289,450
    
$
4,362,233
    
$
4,390,243
    
$
4,496,562
    
$
4,343,806
    
$
(207,112
)
  
$
(54,356
)
                                                         
Allowance for Credit Losses on Loans ("Allowance")
                                          
                                                         
Traditional Banking
  
$
49,231
    
$
49,727
    
$
49,616
    
$
49,407
    
$
49,487
    
$
(176
)
  
$
(256
)
Warehouse Lending
    
1,105
      
1,491
      
1,725
      
2,126
      
1,877
      
(1,021
)
    
(772
)
Total Core Banking
    
50,336
      
51,218
      
51,341
      
51,533
      
51,364
      
(1,197
)
    
(1,028
)
                                                         
Tax Refund Solutions
    
—
      
—
      
8,370
      
96
      
—
      
(96
)
    
—
  
Republic Credit Solutions
    
14,583
      
13,231
      
11,945
      
12,948
      
11,660
      
1,635
      
2,923
  
Total Republic Processing Group
    
14,583
      
13,231
      
20,315
      
13,044
      
11,660
      
1,539
      
2,923
  
                                                         
Total Allowance - Total Company
  
$
64,919
    
$
64,449
    
$
71,656
    
$
64,577
    
$
63,024
    
$
342
    
$
1,895
  
                                                         
Allowance to Total Loans
                                          
                                                         
Traditional Banking
    
1.31
%
    
1.35
%
    
1.39
%
    
1.41
%
    
1.42
%
    
(0.10
)%
    
(0.11
)%
Warehouse Lending
    
0.25
      
0.25
      
0.25
      
0.25
      
0.25
      
—
      
—
  
Total Core Banking
    
1.20
      
1.20
      
1.20
      
1.18
      
1.22
      
0.02
      
(0.02
)
                                                         
Tax Refund Solutions
    
—
      
—
      
20.12
      
0.19
      
—
      
(0.19
)
    
—
  
Republic Credit Solutions
    
14.73
      
14.41
      
13.63
      
13.91
      
9.99
      
0.82
      
4.74
  
Total Republic Processing Group
    
14.69
      
14.39
      
15.72
      
9.06
      
9.99
      
5.63
      
4.70
  
                                                         
Total Company
    
1.51
      
1.48
      
1.63
      
1.44
      
1.45
      
0.07
      
0.06
  
                                                         
    
S-6
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third Quarter 2022 (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
    
Change (8)
    
As of and for the Nine Months Ended
    
Change (8)
  
   
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar. 31, 2022
    
Dec. 31, 2021
    
Sep. 30, 2021
    
From Dec. 31,2021 or
Q3 to Q3
    
Sep. 30, 2022
    
Sep. 30, 2021
    
From Sep.
30,2021 or
9M to 9M
  
Credit Quality Asset Balances and Net Charge-off ("NCO") Data:
                                                  
                                                       
Nonperforming Assets - Total Company:
                                                      
Loans on nonaccrual status
  
$
16,322
    
$
16,168
    
$
16,935
    
$
20,504
    
$
20,252
    
$
(3,930
)
  
$
16,322
    
$
20,252
    
$
(3,930
)
Loans past due 90-days-or-more and still on accrual
    
37
      
42
      
31
      
48
      
691
      
(654
)
    
37
      
691
      
(654
)
     Total nonperforming loans
    
16,359
      
16,210
      
16,966
      
20,552
      
20,943
      
(4,584
)
    
16,359
      
20,943
      
(4,584
)
OREO
    
1,634
      
1,687
      
1,740
      
1,792
      
1,845
      
(211
)
    
1,634
      
1,845
      
(211
)
     Total nonperforming assets
  
$
17,993
    
$
17,897
    
$
18,706
    
$
22,344
    
$
22,788
    
$
(4,795
)
  
$
17,993
    
$
22,788
    
$
(4,795
)
                                                                         
Nonperforming Assets - Core Bank:
                                                                        
Loans on nonaccrual status
  
$
16,322
    
$
16,168
    
$
16,935
    
$
20,504
    
$
20,252
    
$
(3,930
)
  
$
16,322
    
$
20,252
    
$
(3,930
)
Loans past due 90-days-or-more and still on accrual
    
—
      
—
      
—
      
1
      
—
      
—
      
—
      
—
      
—
  
     Total nonperforming loans
    
16,322
      
16,168
      
16,935
      
20,505
      
20,252
      
(3,930
)
    
16,322
      
20,252
      
(3,930
)
OREO
    
1,634
      
1,687
      
1,740
      
1,792
      
1,845
      
(211
)
    
1,634
      
1,845
      
(211
)
     Total nonperforming assets
  
$
17,956
    
$
17,855
    
$
18,675
    
$
22,297
    
$
22,097
    
$
(4,141
)
  
$
17,956
    
$
22,097
    
$
(4,141
)
                                                                         
Delinquent Loans:
                                                                        
Delinquent loans - Core Bank
  
$
4,368
    
$
5,352
    
$
5,863
    
$
7,430
    
$
7,692
    
$
(3,324
)
  
$
4,368
    
$
7,692
    
$
(3,324
)
RPG
    
7,522
      
6,099
      
10,352
      
6,035
      
9,701
      
(2,179
)
    
7,522
      
9,701
      
(2,179
)
Total delinquent loans - Total Company
  
$
11,890
    
$
11,451
    
$
16,215
    
$
13,465
    
$
17,393
    
$
(5,503
)
  
$
11,890
    
$
17,393
    
$
(5,503
)
                                                                         
NCOs (Recoveries) by Segment:
                                                                        
Traditional Bank
  
$
(187
)
  
$
(5
)
  
$
118
    
$
175
    
$
(167
)
  
$
(20
)
  
$
(73
)
  
$
210
    
$
(283
)
Warehouse Lending loans
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Core Bank loans
    
(187
)
    
(5
)
    
118
      
175
      
(167
)
    
(20
)
    
(73
)
    
210
      
(283
)
Tax Refund Solutions
    
(1,296
)
    
8,730
      
(362
)
    
(1,263
)
    
(2,261
)
    
965
      
7,070
      
8,008
      
(938
)
Republic Credit Solutions
    
2,656
      
2,147
      
2,398
      
2,119
      
989
      
1,667
      
7,203
      
2,180
      
5,023
  
RPG
    
1,360
      
10,877
      
2,036
      
856
      
(1,272
)
    
2,632
      
14,273
      
10,188
      
4,085
  
     Total NCOs (recoveries) - Total Company
  
$
1,173
    
$
10,872
    
$
2,154
    
$
1,031
    
$
(1,439
)
  
$
2,612
    
$
14,200
    
$
10,398
    
$
3,802
  
                                                                         
Credit Quality Ratios - Total Company:
                                                                        
                                                                         
Nonperforming loans to total loans
    
0.38
%
    
0.37
%
    
0.39
%
    
0.46
%
    
0.48
%
    
(0.10
)%
    
0.38
%
    
0.48
%
    
(0.10
)%
Nonperforming assets to total loans (including OREO)
    
0.42
      
0.41
      
0.43
      
0.50
      
0.52
      
(0.10
)
    
0.42
      
0.52
      
(0.10
)
Nonperforming assets to total assets
    
0.30
      
0.29
      
0.29
      
0.37
      
0.37
      
(0.07
)
    
0.30
      
0.37
      
(0.07
)
Allowance for credit losses to total loans
    
1.51
      
1.48
      
1.63
      
1.44
      
1.45
      
0.06
      
1.51
      
1.45
      
0.06
  
Allowance for credit losses to nonperforming loans
    
397
      
398
      
422
      
314
      
301
      
96
      
397
      
301
      
96
  
Delinquent loans to total loans (9)
    
0.28
      
0.26
      
0.37
      
0.30
      
0.40
      
(0.12
)
    
0.28
      
0.40
      
(0.12
)
NCOs (recoveries) to average loans (annualized)
    
0.11
      
1.00
      
0.20
      
0.09
      
(0.13
)
    
0.24
      
0.44
      
0.30
      
0.14
  
                                                                         
Credit Quality Ratios - Core Bank:
                                                                        
                                                                         
Nonperforming loans to total loans
    
0.39
%
    
0.38
%
    
0.40
%
    
0.47
%
    
0.48
%
    
(0.09
)%
    
0.39
%
    
0.48
%
    
(0.09
)%
Nonperforming assets to total loans (including OREO)
    
0.43
      
0.42
      
0.44
      
0.51
      
0.52
      
(0.09
)
    
0.43
      
0.52
      
(0.09
)
Nonperforming assets to total assets
    
0.33
      
0.32
      
0.33
      
0.40
      
0.39
      
(0.06
)
    
0.33
      
0.39
      
(0.06
)
Allowance for credit losses to total loans
    
1.20
      
1.20
      
1.20
      
1.18
      
1.22
      
(0.02
)
    
1.20
      
1.22
      
(0.02
)
Allowance for credit losses to nonperforming loans
    
308
      
317
      
303
      
251
      
254
      
54
      
308
      
254
      
54
  
Delinquent loans to total loans
    
0.10
      
0.13
      
0.14
      
0.17
      
0.18
      
(0.08
)
    
0.10
      
0.18
      
(0.08
)
NCOs (recoveries) to average loans (annualized)
    
(0.02
)
    
—
      
0.01
      
0.02
      
(0.02
)
    
—
      
—
      
0.01
      
(0.01
)
                                                                         
TRS Easy Advances ("EAs")
                                                                        
                                                                         
EAs originated
  
$
—
    
$
—
    
$
311,207
    
$
—
    
$
—
    
$
—
    
$
311,207
    
$
250,045
    
$
61,162
  
Net (credit) charge to the Provision for EAs
    
(1,296
)
    
564
      
8,315
      
(1,261
)
    
(2,242
)
    
946
      
7,583
      
7,984
      
(401
)
Net Provision to YTD EAs originated
    
(0.41
)%
    
0.18
%
    
2.67
%
    
(0.50
)%
    
(0.90
)%
    
0.49
%
    
2.44
%
    
3.19
%
    
(0.75
)%
EAs NCOs (recoveries)
  
$
(1,296
)
  
$
8,879
    
$
—
    
$
(1,261
)
  
$
(2,242
)
  
$
946
    
$
7,583
    
$
7,984
    
$
(401
)
EA NCOs (recoveries) to YTD EAs originated
    
(0.41
)%
    
2.85
%
    
—
%
    
(0.50
)%
    
(0.90
)%
    
0.49
%
    
2.44
%
    
3.19
%
    
(0.75
)%
                                                                         
                                                                         


S-7


Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third Quarter 2022 (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, 2022, 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 2021 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value.

S-8

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third Quarter 2022 (continued)

Segment information for the quarters and nine months ended September 30, 2022 and 2021 follows:


   
Three Months Ended September 30, 2022
  
   
Core Banking
    
Republic Processing Group
        
                     
Total
    
Tax
    
Republic
              
   
Traditional
    
Warehouse
    
Mortgage
    
Core
    
Refund
    
Credit
    
Total
    
Total
  
(dollars in thousands)
  
Banking
    
Lending
    
Banking
    
Banking
    
Solutions
    
Solutions
    
RPG
    
Company
  
                                                 
Net interest income
  
$
46,562
    
$
3,011
    
$
112
    
$
49,685
    
$
1,709
    
$
6,642
    
$
8,351
    
$
58,036
  
                                                                 
Provision for expected credit loss expense
    
(753
)
    
(386
)
    
—
      
(1,139
)
    
(1,296
)
    
4,008
      
2,712
      
1,573
  
                                                                 
Net refund transfer fees
    
—
      
—
      
—
      
—
      
593
      
—
      
593
      
593
  
Mortgage banking income
    
—
      
—
      
1,154
      
1,154
      
—
      
—
      
—
      
1,154
  
Program fees
    
—
      
—
      
—
      
—
      
724
      
4,208
      
4,932
      
4,932
  
Other noninterest income
    
8,260
      
13
      
33
      
8,306
      
62
      
—
      
62
      
8,368
  
Total noninterest income
    
8,260
      
13
      
1,187
      
9,460
      
1,379
      
4,208
      
5,587
      
15,047
  
                                                                 
Total noninterest expense
    
37,777
      
851
      
2,005
      
40,633
      
3,248
      
2,224
      
5,472
      
46,105
  
                                                                 
Income (loss) before income tax expense
    
17,798
      
2,559
      
(706
)
    
19,651
      
1,136
      
4,618
      
5,754
      
25,405
  
Income tax expense (benefit)
    
4,278
      
572
      
(156
)
    
4,694
      
202
      
1,026
      
1,228
      
5,922
  
                                                                 
Net income (loss)
  
$
13,520
    
$
1,987
    
$
(550
)
  
$
14,957
    
$
934
    
$
3,592
    
$
4,526
    
$
19,483
  
                                                                 
Period-end assets
  
$
5,036,343
    
$
441,885
    
$
16,418
    
$
5,494,646
    
$
395,873
    
$
109,144
    
$
505,017
    
$
5,999,663
  
                                                                 
Net interest margin
    
3.63
%
    
2.54
%
  
NM
      
3.54
%
  
NM
    
NM
    
NM
      
4.05
%
                                                                 
Net-revenue concentration*
    
75
%
    
4
%
    
2
%
    
81
%
    
4
%
    
15
%
    
19
%
    
100
%


   
Three Months Ended September 30, 2021
  
   
Core Banking
    
Republic Processing Group
        
                     
Total
    
Tax
    
Republic
              
   
Traditional
    
Warehouse
    
Mortgage
    
Core
    
Refund
    
Credit
    
Total
    
Total
  
(dollars in thousands)
  
Banking
    
Lending
    
Banking
    
Banking
    
Solutions
    
Solutions
    
RPG
    
Company
  
                                                 
Net interest income
  
$
40,297
    
$
6,291
    
$
253
    
$
46,841
    
$
294
    
$
5,994
    
$
6,288
    
$
53,129
  
                                                                 
Provision for expected credit loss expense
    
(44
)
    
(223
)
    
—
      
(267
)
    
(2,261
)
    
3,820
      
1,559
      
1,292
  
                                                                 
Net refund transfer fees
    
—
      
—
      
—
      
—
      
1,280
      
—
      
1,280
      
1,280
  
Mortgage banking income
    
—
      
—
      
5,280
      
5,280
      
—
      
—
      
—
      
5,280
  
Program fees
    
—
      
—
      
—
      
—
      
762
      
3,256
      
4,018
      
4,018
  
Other noninterest income
    
8,105
      
15
      
62
      
8,182
      
65
      
—
      
65
      
8,247
  
Total noninterest income
    
8,105
      
15
      
5,342
      
13,462
      
2,107
      
3,256
      
5,363
      
18,825
  
                                                                 
Total noninterest expense
    
35,924
      
1,056
      
3,257
      
40,237
      
2,966
      
1,232
      
4,198
      
44,435
  
                                                                 
Income before income tax expense
    
12,522
      
5,473
      
2,338
      
20,333
      
1,696
      
4,198
      
5,894
      
26,227
  
Income tax expense
    
3,038
      
1,258
      
514
      
4,810
      
371
      
1,037
      
1,408
      
6,218
  
                                                                 
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
    
3.22
%
    
3.51
%
  
NM
      
3.25
%
  
NM
    
NM
    
NM
      
3.61
%
                                                                 
Net-revenue concentration*
    
67
%
    
9
%
    
8
%
    
84
%
    
3
%
    
13
%
    
16
%
    
100
%

S-9


   
Nine Months Ended September 30, 2022
  
   
Core Banking
    
Republic Processing Group
        
                     
Total
    
Tax
    
Republic
              
   
Traditional
    
Warehouse
    
Mortgage
    
Core
    
Refund
    
Credit
    
Total
    
Total
  
(dollars in thousands)
  
Banking
    
Lending
    
Banking
    
Banking
    
Solutions
    
Solutions
    
RPG
    
Company
  
                                                 
Net interest income
  
$
121,868
    
$
11,412
    
$
469
    
$
133,749
    
$
18,751
    
$
19,380
    
$
38,131
    
$
171,880
  
                                                                 
Provision for expected credit loss expense
    
(287
)
    
(1,021
)
    
—
      
(1,308
)
    
6,976
      
8,836
      
15,812
      
14,504
  
                                                                 
Net refund transfer fees
    
—
      
—
      
—
      
—
      
16,594
      
—
      
16,594
      
16,594
  
Mortgage banking income
    
—
      
—
      
5,574
      
5,574
      
—
      
—
      
—
      
5,574
  
Program fees
    
—
      
—
      
—
      
—
      
2,187
      
10,484
      
12,671
      
12,671
  
Contract termination fee
    
—
      
—
      
—
      
—
      
5,000
      
—
      
5,000
      
5,000
  
Legal settlement
    
—
      
—
      
—
      
—
      
13,000
      
—
      
13,000
      
13,000
  
Other noninterest income
    
23,225
      
38
      
113
      
23,376
      
399
      
—
      
399
      
23,775
  
Total noninterest income
    
23,225
      
38
      
5,687
      
28,950
      
37,180
      
10,484
      
47,664
      
76,614
  
                                                                 
Total noninterest expense
    
114,310
      
2,838
      
7,527
      
124,675
      
11,926
      
5,730
      
17,656
      
142,331
  
                                                                 
Income (loss) before income tax expense
    
31,070
      
9,633
      
(1,371
)
    
39,332
      
37,029
      
15,298
      
52,327
      
91,659
  
Income tax expense (benefit)
    
6,397
      
2,168
      
(302
)
    
8,263
      
8,573
      
3,513
      
12,086
      
20,349
  
                                                                 
Net income (loss)
  
$
24,673
    
$
7,465
    
$
(1,069
)
  
$
31,069
    
$
28,456
    
$
11,785
    
$
40,241
    
$
71,310
  
                                                                 
Period-end assets
  
$
5,036,343
    
$
441,885
    
$
16,418
    
$
5,494,646
    
$
395,873
    
$
109,144
    
$
505,017
    
$
5,999,663
  
                                                                 
Net interest margin
    
3.20
%
    
2.79
%
  
NM
      
3.16
%
  
NM
    
NM
    
NM
      
3.95
%
                                                                 
Net-revenue concentration*
    
58
%
    
5
%
    
2
%
    
65
%
    
23
%
    
12
%
    
35
%
    
100
%


   
Nine Months Ended September 30, 2021
  
   
Core Banking
    
Republic Processing Group
        
                     
Total
    
Tax
    
Republic
              
   
Traditional
    
Warehouse
    
Mortgage
    
Core
    
Refund
    
Credit
    
Total
    
Total
  
(dollars in thousands)
  
Banking
    
Lending
    
Banking
    
Banking
    
Solutions
    
Solutions
    
RPG
    
Company
  
                                                 
Net interest income
  
$
119,677
    
$
19,387
    
$
802
    
$
139,866
    
$
15,593
    
$
15,840
    
$
31,433
    
$
171,299
  
                                                                 
Provision for expected credit loss expense
    
(126
)
    
(530
)
    
—
      
(656
)
    
7,850
      
5,037
      
12,887
      
12,231
  
                                                                 
Net refund transfer fees
    
2
      
—
      
—
      
2
      
19,922
      
—
      
19,922
      
19,924
  
Mortgage banking income
    
—
      
—
      
16,655
      
16,655
      
—
      
—
      
—
      
16,655
  
Program fees
    
—
      
—
      
—
      
—
      
2,373
      
7,196
      
9,569
      
9,569
  
Other noninterest income
    
22,859
      
43
      
140
      
23,042
      
304
      
—
      
304
      
23,346
  
Total noninterest income
    
22,861
      
43
      
16,795
      
39,699
      
22,599
      
7,196
      
29,795
      
69,494
  
                                                                 
Total noninterest expense
    
110,191
      
3,150
      
9,384
      
122,725
      
11,965
      
3,340
      
15,305
      
138,030
  
                                                                 
Income before income tax expense
    
32,473
      
16,810
      
8,213
      
57,496
      
18,377
      
14,659
      
33,036
      
90,532
  
Income tax expense
    
6,718
      
3,919
      
1,807
      
12,444
      
4,467
      
3,637
      
8,104
      
20,548
  
                                                                 
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
    
3.21
%
    
3.47
%
  
NM
      
3.24
%
  
NM
    
NM
    
NM
      
3.86
%
                                                                 
Net-revenue concentration*
    59 %     8 %     7 %     74
 %     16 %     10 %     26 %     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
Third Quarter 2022 (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
    
$ Change (8)
    
Nine Months Ended
    
$ Change (8)
  
(dollars in thousands)
  
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar. 31, 2022
    
Dec. 31, 2021
    
Sep. 30, 2021
    
Q3 to Q3
    
Sep. 30, 2022
    
Sep. 30, 2021
    
9M to 9M
  
                                                       
Traditional Bank excluding PPP fees
  
$
911
    
$
1,545
    
$
1,451
    
$
1,126
    
$
1,152
    
$
(241
)
  
$
3,907
    
$
3,010
    
$
897
  
Traditional Bank - PPP fees
    
152
      
124
      
879
      
2,850
      
5,182
      
(5,030
)
    
1,155
      
14,615
      
(13,460
)
Warehouse Lending
    
402
      
500
      
574
      
662
      
779
      
(377
)
    
1,476
      
2,439
      
(963
)
Total Core Bank
    
1,465
      
2,169
      
2,904
      
4,638
      
7,113
      
(5,648
)
    
6,538
      
20,064
      
(13,526
)
TRS - Easy Advances
    
81
      
81
      
13,444
      
43
      
76
      
5
      
13,606
      
13,159
      
447
  
TRS - Other Loan Fees
    
(1
)
    
2
      
662
      
—
      
—
      
(1
)
    
663
      
1,656
      
(993
)
RCS
    
6,635
      
5,782
      
5,702
      
5,695
      
4,862
      
1,773
      
18,119
      
12,550
      
5,569
  
Total RPG
    
6,715
      
5,865
      
19,808
      
5,738
      
4,938
      
1,777
      
32,388
      
27,365
      
5,023
  
                                                                         
Total loan fees - Total Company
  
$
8,180
    
$
8,034
    
$
22,712
    
$
10,376
    
$
12,051
    
$
(3,871
)
  
$
38,926
    
$
47,429
    
$
(8,503
)
                                                                         
 

(2)
Provision for expected credit loss expense includes provisions for losses on on-balance sheet loans and investment securities.  Provision expense for off-balance sheet credit exposures is a component of “Other” noninterest expense.

(3)
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
    
$ Change (8)
    
As of and for the Nine Months Ended
    
$ Change (8)
  
(dollars in thousands)
  
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar. 31, 2022
    
Dec. 31, 2021
    
Sep. 30, 2021
    
Q3 to Q3
    
Sep. 30, 2022
    
Sep. 30, 2021
    
9M to 9M
  
                                                       
Mortgage Loans Held for Sale
                                                  
                                                       
Balance, beginning of period
  
$
8,491
    
$
13,302
    
$
29,393
    
$
25,791
    
$
32,401
    
$
(23,910
)
  
$
29,393
    
$
46,867
    
$
(17,474
)
Originations
    
32,856
      
61,489
      
100,661
      
155,468
      
170,482
      
(137,626
)
    
195,006
      
525,246
      
(330,240
)
Proceeds from sales
    
(39,220
)
    
(67,759
)
    
(119,212
)
    
(155,186
)
    
(182,422
)
    
143,202
      
(226,191
)
    
(562,661
)
    
336,470
  
Net gain on sale
    
785
      
1,459
      
2,460
      
3,320
      
5,330
      
(4,545
)
    
4,704
      
16,339
      
(11,635
)
Balance, end of period
  
$
2,912
    
$
8,491
    
$
13,302
    
$
29,393
    
$
25,791
    
$
(22,879
)
  
$
2,912
    
$
25,791
    
$
(22,879
)
                                                                         
RCS Consumer Loans Held for Sale
                                                          
                                                                         
Balance, beginning of period
  
$
31,236
    
$
14,735
    
$
22,684
    
$
14,755
    
$
24,432
    
$
6,804
    
$
22,684
    
$
4,776
    
$
17,908
  
Originations
    
292,131
      
282,782
      
245,214
      
321,118
      
257,018
      
35,113
      
820,127
      
561,062
      
259,065
  
Proceeds from sales
    
(306,093
)
    
(269,429
)
    
(256,280
)
    
(316,597
)
    
(270,463
)
    
(35,630
)
    
(831,802
)
    
(558,972
)
    
(272,830
)
Net gain on sale
    
4,201
      
3,148
      
3,117
      
3,408
      
3,768
      
433
      
10,466
      
7,889
      
2,577
  
Balance, end of period
  
$
21,475
    
$
31,236
    
$
14,735
    
$
22,684
    
$
14,755
    
$
6,720
    
$
21,475
    
$
14,755
    
$
6,720
  


S-11


(4)
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)
  
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar. 31, 2022
    
Dec. 31, 2021
    
Sep. 30, 2021
  
                               
Total stockholders' equity - GAAP (a)
  
$
840,958
    
$
842,174
    
$
840,329
    
$
834,232
    
$
838,657
  
Less: Goodwill
    
16,300
      
16,300
      
16,300
      
16,300
      
16,300
  
Less: Mortgage servicing rights
    
9,177
      
9,407
      
9,502
      
9,196
      
8,867
  
Tangible stockholders' equity - Non-GAAP (c)
  
$
815,481
    
$
816,467
    
$
814,527
    
$
808,736
    
$
813,490
  
                                         
Total assets - GAAP (b)
  
$
5,999,663
    
$
6,112,476
    
$
6,349,869
    
$
6,093,632
    
$
6,187,634
  
Less: Goodwill
    
16,300
      
16,300
      
16,300
      
16,300
      
16,300
  
Less: Mortgage servicing rights
    
9,177
      
9,407
      
9,502
      
9,196
      
8,867
  
Tangible assets - Non-GAAP (d)
  
$
5,974,186
    
$
6,086,769
    
$
6,324,067
    
$
6,068,136
    
$
6,162,467
  
                                         
Total stockholders' equity to total assets - GAAP (a/b)
    
14.02
%
    
13.78
%
    
13.23
%
    
13.69
%
    
13.55
%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)
    
13.65
%
    
13.41
%
    
12.88
%
    
13.33
%
    
13.20
%
                                         
Number of shares outstanding (e)
    
19,747
      
19,790
      
19,999
      
19,981
      
20,205
  
                                         
Book value per share - GAAP (a/e)
  
$
42.59
    
$
42.56
    
$
42.02
    
$
41.75
    
$
41.51
  
Tangible book value per share - Non-GAAP (c/e)
    
41.30
      
41.26
      
40.73
      
40.48
      
40.26
  

(5)
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 material nonrecurring revenues and expenses related to the now-cancelled TRS Transaction, as well as net gains (losses) on sales, calls, and impairment of investment securities.


   
Three Months Ended
      
Nine Months Ended September 30, 2022
  
(dollars in thousands)
  
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar. 31, 2022
    
Dec. 31, 2021
    
Sep. 30, 2021
      
Sep. 30, 2022
    
Sep. 30, 2021
  
                                             
Net interest income - GAAP
  
$
58,036
    
$
51,232
    
$
62,612
    
$
50,341
    
$
53,129
      
$
171,880
    
$
171,299
  
Noninterest income - GAAP
    
15,047
      
30,566
      
31,001
      
17,081
      
18,825
        
76,614
      
69,494
  
Less: Contract termination fee related to TRS Transaction
    
—
      
—
      
5,000
      
—
      
—
        
5,000
      
—
  
Less: Legal settlement related to TRS Transaction
    
—
      
13,000
      
—
      
—
      
—
        
13,000
      
—
  
Less: Net gain (loss) on securities
    
2
      
(102
)
    
(120
)
    
(23
)
    
(10
)
      
(220
)
    
(46
)
Total adjusted income - Non-GAAP (a)
  
$
73,081
    
$
68,900
    
$
88,733
    
$
67,445
    
$
71,964
      
$
230,714
    
$
240,839
  
                                                           
                                                           
Noninterest expense - GAAP
  
$
46,105
    
$
47,653
    
$
48,573
    
$
45,036
    
$
44,435
      
$
142,331
    
$
138,030
  
Less: Expenses related to TRS Transaction
    
88
      
699
      
127
      
611
      
300
        
914
      
1,300
  
Adjusted noninterest expense - Non-GAAP (b)
  
$
46,017
    
$
46,954
    
$
48,446
    
$
44,425
    
$
44,135
      
$
141,417
    
$
136,730
  
                                                           
Efficiency Ratio - Non-GAAP (b/a)
    
63
%
    
68
%
    
55
%
    
66
%
    
61
%
      
61
%
    
57
%
                                                           

(6)
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.
 
(7)
FTEs – Full-time-equivalent employees.
 
(8)
Quarter (“Q”) to Quarter changes compare the most recent quarter or quarter end to the same quarter or quarter end of a year prior. Year-to-date changes compare the most recent period or period end to the same period or period end of a year prior. Year-to-date changes are expressed as either 3M to 3M  (three months), 6M to 6M (six months), 9M to 9M (nine months), or 12M to 12M (twelve months).

(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. Delinquent loans as of March 31, 2022 included $4.7 million of Easy Advances, which do not have a contractual due date but the Company considered an EA delinquent in 2022 if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority.

NM – Not meaningful
NA – Not applicable
S-12

Table of Contents

YTD – Year to date

CONTACT:
Republic Bancorp, Inc.
Kevin Sipes
Executive Vice President & Chief Financial Officer
(502) 560-8628
S-13