EX-99.2 3 a53291310ex99_2.htm EXHIBIT 99.2
Exhibit 99.2


EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2022


TABLE OF CONTENTS


   
   
   
   
   
   
   
   

S-1

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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
  
   
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
From Dec. 31, 2021
  
Assets:
                                    
Cash and cash equivalents
  
$
313,689
    
$
754,393
    
$
795,143
    
$
1,077,158
    
$
756,971
    
$
(443,282
)
Investment securities, net of allowance for credit losses
    
707,862
      
662,750
      
655,296
      
614,836
      
542,045
      
165,817
  
Loans held for sale
    
19,177
      
24,387
      
39,727
      
28,037
      
52,077
      
(32,900
)
Loans
    
4,515,802
      
4,289,450
      
4,362,233
      
4,390,243
      
4,496,562
      
19,240
  
Allowance for credit losses
    
(70,413
)
    
(64,919
)
    
(64,449
)
    
(71,656
)
    
(64,577
)
    
(5,836
)
Loans, net
    
4,445,389
      
4,224,531
      
4,297,784
      
4,318,587
      
4,431,985
      
13,404
  
Federal Home Loan Bank stock, at cost
    
9,146
      
8,568
      
10,311
      
10,311
      
10,311
      
(1,165
)
Premises and equipment, net
    
31,978
      
32,813
      
33,886
      
34,358
      
36,073
      
(4,095
)
Right-of-use assets
    
37,017
      
41,303
      
41,364
      
42,402
      
38,825
      
(1,808
)
Goodwill
    
16,300
      
16,300
      
16,300
      
16,300
      
16,300
      
—
  
Other real estate owned ("OREO")
    
1,581
      
1,634
      
1,687
      
1,740
      
1,792
      
(211
)
Bank owned life insurance ("BOLI")
    
101,687
      
101,013
      
100,396
      
99,773
      
99,161
      
2,526
  
Other assets and accrued interest receivable
    
150,705
      
131,971
      
120,582
      
106,367
      
108,092
      
42,613
  
Total assets
  
$
5,834,531
    
$
5,999,663
    
$
6,112,476
    
$
6,349,869
    
$
6,093,632
    
$
(259,101
)
                                                 
Liabilities and Stockholders' Equity:
                                                
Deposits:
                                                
Noninterest-bearing
  
$
1,908,768
    
$
2,013,337
    
$
2,093,853
    
$
2,226,160
    
$
1,989,679
    
$
(80,911
)
Interest-bearing
    
2,629,077
      
2,786,385
      
2,733,093
      
2,860,392
      
2,849,637
      
(220,560
)
Total deposits
    
4,537,845
      
4,799,722
      
4,826,946
      
5,086,552
      
4,839,316
      
(301,471
)
                                                 
Securities sold under agreements to repurchase ("SSUAR") and other short-term borrowings
    
216,956
      
209,376
      
303,315
      
287,818
      
290,967
      
(74,011
)
Operating lease liabilities
    
37,809
      
42,109
      
42,163
      
43,204
      
39,672
      
(1,863
)
Federal Home Loan Bank advances
    
95,000
      
20,000
      
20,000
      
20,000
      
25,000
      
70,000
  
Other liabilities and accrued interest payable
    
90,308
      
85,393
      
76,186
      
70,719
      
63,623
      
26,685
  
Total liabilities
    
4,977,918
      
5,156,600
      
5,268,610
      
5,508,293
      
5,258,578
      
(280,660
)
                                                 
Stockholders' equity
    
856,613
      
843,063
      
843,866
      
841,576
      
835,054
      
21,559
  
Total liabilities and stockholders' equity
  
$
5,834,531
    
$
5,999,663
    
$
6,112,476
    
$
6,349,869
    
$
6,093,632
    
$
(259,101
)

S-2

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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
    
Years Ended
    
$ Change (8)
  
   
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
Dec. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
12M to 12M
  
Assets:
                                                
                                                 
Interest-earning assets:
                                                
Federal funds sold and other interest-earning deposits
  
$
553,695
    
$
727,626
    
$
813,956
    
$
861,822
    
$
848,215
    
$
738,399
    
$
806,811
    
$
(68,412
)
Investment securities, including FHLB stock
    
693,825
      
694,781
      
691,427
      
606,182
      
540,227
      
671,858
      
555,599
      
116,259
  
Loans, including loans held for sale
    
4,353,256
      
4,306,169
      
4,339,432
      
4,355,255
      
4,385,547
      
4,338,433
      
4,519,277
      
(180,844
)
Total interest-earning assets
    
5,600,776
      
5,728,576
      
5,844,815
      
5,823,259
      
5,773,989
      
5,748,690
      
5,881,687
      
(132,997
)
                                                                 
Allowance for credit losses
    
(65,290
)
    
(65,262
)
    
(72,037
)
    
(69,287
)
    
(63,711
)
    
(67,951
)
    
(66,481
)
    
(1,470
)
                                                                 
Noninterest-earning assets:
                                                                
Noninterest-earning cash and cash equivalents
    
115,416
      
108,069
      
172,382
      
354,165
      
137,556
      
186,636
      
167,556
      
19,080
  
Premises and equipment, net
    
32,518
      
33,307
      
34,322
      
35,460
      
37,055
      
33,892
      
38,428
      
(4,536
)
Bank owned life insurance
    
101,361
      
100,740
      
100,152
      
99,532
      
99,978
      
100,452
      
91,329
      
9,123
  
Other assets
    
153,721
      
171,392
      
161,548
      
180,913
      
192,393
      
167,251
      
189,339
      
(22,088
)
                                                                 
Total assets
  
$
5,938,502
    
$
6,076,822
    
$
6,241,182
    
$
6,424,042
    
$
6,177,260
    
$
6,168,970
    
$
6,301,858
    
$
(132,888
)
                                                                 
Liabilities and Stockholders' Equity:
                                                                
                                                                 
Interest-bearing liabilities:
                                                                
Interest-bearing deposits
  
$
2,704,764
    
$
2,777,124
    
$
2,779,941
    
$
2,827,496
    
$
2,857,403
    
$
2,772,009
    
$
2,923,497
    
$
(151,488
)
SSUARs and other short-term borrowings
    
247,123
      
220,149
      
294,388
      
300,169
      
318,785
      
265,188
      
231,430
      
33,758
  
Federal Home Loan Bank advances
    
21,630
      
20,000
      
20,000
      
23,333
      
25,000
      
21,233
      
29,479
      
(8,246
)
Subordinated note
    
—
      
—
      
—
      
—
      
—
      
—
      
30,732
      
(30,732
)
Total interest-bearing liabilities
    
2,973,517
      
3,017,273
      
3,094,329
      
3,150,998
      
3,201,188
      
3,058,430
      
3,215,138
      
(156,708
)
                                                                 
Noninterest-bearing liabilities and Stockholders’ equity:
                                                                
Noninterest-bearing deposits
    
1,994,233
      
2,096,206
      
2,196,794
      
2,312,233
      
2,028,206
      
2,148,848
      
2,129,222
      
19,626
  
Other liabilities
    
114,196
      
108,964
      
100,118
      
112,699
      
102,506
      
108,965
      
112,466
      
(3,501
)
Stockholders' equity
    
856,556
      
854,379
      
849,941
      
848,112
      
845,360
      
852,727
      
845,032
      
7,695
  
                                                                 
Total liabilities and stockholders’ equity
  
$
5,938,502
    
$
6,076,822
    
$
6,241,182
    
$
6,424,042
    
$
6,177,260
    
$
6,168,970
    
$
6,301,858
    
$
(132,888
)

S-3

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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)
    
Years Ended
    
$ Change (8)
  
   
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
Q4 to Q4
    
Dec. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
12M to 12M
  
                                                       
Total interest income (1)
  
$
66,555
    
$
60,617
    
$
52,902
    
$
64,110
    
$
51,937
    
$
14,618
    
$
244,184
    
$
228,406
    
$
15,778
  
Total interest expense
    
3,442
      
2,020
      
1,088
      
943
      
1,038
      
2,404
      
7,493
      
5,666
      
1,827
  
Net interest income
    
63,113
      
58,597
      
51,814
      
63,167
      
50,899
      
12,214
      
236,691
      
222,740
      
13,951
  
                                                                         
Provision (2)
    
7,844
      
1,573
      
3,705
      
9,226
      
2,577
      
5,267
      
22,348
      
14,808
      
7,540
  
                                                                         
Noninterest income:
                                                                        
Service charges on deposit accounts
    
3,428
      
3,409
      
3,363
      
3,226
      
3,332
      
96
      
13,426
      
12,553
      
873
  
Net refund transfer fees
    
486
      
593
      
3,950
      
12,051
      
326
      
160
      
17,080
      
20,248
      
(3,168
)
Mortgage banking income (3)
    
622
      
1,154
      
1,763
      
2,657
      
3,339
      
(2,717
)
    
6,196
      
19,994
      
(13,798
)
Interchange fee income
    
3,272
      
3,322
      
3,461
      
3,070
      
3,291
      
(19
)
    
13,125
      
13,062
      
63
  
Program fees (3)
    
3,501
      
4,932
      
3,885
      
3,854
      
4,668
      
(1,167
)
    
16,172
      
14,237
      
1,935
  
Increase in cash surrender value of BOLI
    
674
      
617
      
623
      
612
      
626
      
48
      
2,526
      
2,242
      
284
  
Net losses on OREO
    
(53
)
    
(53
)
    
(52
)
    
(53
)
    
(53
)
    
—
      
(211
)
    
(160
)
    
(51
)
Contract termination fee
    
—
      
—
      
—
      
5,000
      
—
      
—
      
5,000
      
—
      
5,000
  
Legal settlement
    
—
      
—
      
13,000
      
—
      
—
      
—
      
13,000
      
—
      
13,000
  
Other
    
1,194
      
1,134
      
576
      
592
      
1,550
      
(356
)
    
3,496
      
4,399
      
(903
)
Total noninterest income
    
13,124
      
15,108
      
30,569
      
31,009
      
17,079
      
(3,955
)
    
89,810
      
86,575
      
3,235
  
                                                                         
Noninterest expense:
                                                                        
Salaries and employee benefits
    
25,763
      
27,269
      
28,896
      
29,312
      
26,350
      
(587
)
    
111,240
      
110,088
      
1,152
  
Technology, equipment, and communication
    
7,276
      
7,235
      
7,229
      
7,214
      
7,342
      
(66
)
    
28,954
      
29,351
      
(397
)
Occupancy
    
3,139
      
3,211
      
3,224
      
3,440
      
3,188
      
(49
)
    
13,014
      
13,193
      
(179
)
Marketing and development
    
1,856
      
1,951
      
1,720
      
1,348
      
1,291
      
565
      
6,875
      
4,390
      
2,485
  
FDIC insurance expense
    
427
      
423
      
399
      
419
      
402
      
25
      
1,668
      
1,591
      
77
  
Interchange related expense
    
1,171
      
1,221
      
1,264
      
1,117
      
1,253
      
(82
)
    
4,773
      
4,960
      
(187
)
Legal and professional fees
    
951
      
904
      
804
      
1,365
      
1,360
      
(409
)
    
4,024
      
4,924
      
(900
)
Other (2)
    
4,322
      
3,952
      
4,120
      
4,366
      
3,848
      
474
      
16,760
      
14,568
      
2,192
  
Total noninterest expense
    
44,905
      
46,166
      
47,656
      
48,581
      
45,034
      
(129
)
    
187,308
      
183,065
      
4,243
  
                                                                         
Income before income tax expense
    
23,488
      
25,966
      
31,022
      
36,369
      
20,367
      
3,121
      
116,845
      
111,442
      
5,403
  
Income tax expense
    
4,975
      
6,070
      
6,675
      
8,019
      
3,149
      
1,826
      
25,739
      
23,831
      
1,908
  
                                                                         
Net income
  
$
18,513
    
$
19,896
    
$
24,347
    
$
28,350
    
$
17,218
    
$
1,295
    
$
91,106
    
$
87,611
    
$
3,495
  

S-4

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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 Years Ended
    
Change (8)
  
   
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
From Dec. 31, 2021 or Q4 to Q4 (10)
    
Dec. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
From Dec. 31, 2021 or 12M to 12M (10)
  
Per Share Data:
                                                      
                                                       
Basic weighted average shares outstanding
    
19,929
      
19,919
      
20,107
      
20,145
      
20,270
      
(341
)
    
20,037
      
20,675
      
(638
)
Diluted weighted average shares outstanding
    
19,981
      
19,981
      
20,169
      
20,225
      
20,379
      
(398
)
    
20,101
      
20,757
      
(656
)
                                                                         
Period-end shares outstanding:
                                                                        
     Class A Common Stock
    
17,587
      
17,587
      
17,629
      
17,834
      
17,816
      
(229
)
    
17,587
      
17,816
      
(229
)
     Class B Common Stock
    
2,160
      
2,160
      
2,161
      
2,165
      
2,165
      
(5
)
    
2,160
      
2,165
      
(5
)
                                                                         
Book value per share (4)
  
$
43.38
    
$
42.69
    
$
42.64
    
$
42.08
    
$
41.79
    
$
1.59
    
$
43.38
    
$
41.79
    
$
1.59
  
Tangible book value per share (4)
    
42.11
      
41.40
      
41.34
      
40.79
      
40.52
      
1.59
      
42.11
      
40.52
      
1.59
  
                                                                         
Earnings per share ("EPS"):
                                                                        
     Basic EPS - Class A Common Stock
  
$
0.94
    
$
1.01
    
$
1.23
    
$
1.42
    
$
0.87
    
$
0.07
    
$
4.60
    
$
4.29
    
$
0.31
  
     Basic EPS - Class B Common Stock
    
0.86
      
0.92
      
1.12
      
1.29
      
0.78
      
0.08
      
4.19
      
3.90
      
0.29
  
     Diluted EPS - Class A Common Stock
    
0.94
      
1.01
      
1.22
      
1.42
      
0.86
      
0.08
      
4.59
      
4.28
      
0.31
  
     Diluted EPS - Class B Common Stock
    
0.85
      
0.92
      
1.11
      
1.29
      
0.78
      
0.07
      
4.17
      
3.89
      
0.28
  
                                                                         
Cash dividends declared per Common share:
                                                                        
     Class A Common Stock
  
$
0.341
    
$
0.341
    
$
0.341
    
$
0.341
    
$
0.308
    
$
0.033
    
$
1.364
    
$
1.232
    
$
0.132
  
     Class B Common Stock
    
0.310
      
0.310
      
0.310
      
0.310
      
0.280
      
0.030
      
1.240
      
1.120
      
0.120
  
                                                                         
Performance Ratios:
                                                                        
                                                                         
Return on average assets
    
1.25
%
    
1.28
%
    
1.53
%
    
1.74
%
    
1.11
%
    
0.14
%
    
1.48
%
    
1.39
%
    
0.09
%
Return on average equity
    
8.65
      
9.15
      
11.23
      
13.19
      
8.15
      
0.50
      
10.68
      
10.37
      
0.31
  
Efficiency ratio (5)
    
59
      
63
      
68
      
54
      
65
      
(6
)
    
60
      
59
      
1
  
Yield on average interest-earning assets (1)
    
4.75
      
4.19
      
3.58
      
4.37
      
3.60
      
1.15
      
4.25
      
3.88
      
0.37
  
Cost of average interest-bearing liabilities
    
0.46
      
0.27
      
0.14
      
0.12
      
0.13
      
0.33
      
0.24
      
0.18
      
0.06
  
Cost of average deposits (6)
    
0.26
      
0.15
      
0.08
      
0.07
      
0.08
      
0.18
      
0.14
      
0.10
      
0.04
  
Net interest spread (1)
    
4.29
      
3.92
      
3.44
      
4.25
      
3.47
      
0.82
      
4.01
      
3.70
      
0.31
  
Net interest margin - Total Company (1)
    
4.51
      
4.05
      
3.51
      
4.30
      
3.53
      
0.98
      
4.12
      
3.79
      
0.33
  
Net interest margin - Core Bank
    
3.82
      
3.54
      
3.02
      
2.92
      
3.08
      
0.73
      
3.32
      
3.20
      
0.12
  
                                                                         
Other Information:
                                                                        
                                                                         
End of period FTEs (7) - Total Company
    
998
      
1,009
      
1,020
      
1,040
      
1,045
      
(47
)
    
998
      
1,045
      
(47
)
End of period FTEs - Core Bank
    
932
      
916
      
929
      
955
      
985
      
(53
)
    
932
      
985
      
(53
)
Number of full-service banking centers
    
42
      
42
      
42
      
42
      
42
      
—
      
42
      
42
      
—
  

S-5

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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
  
   
Dec. 31, 2022
    
Sep. 30, 2022
    
Jun. 30, 2022
    
Mar. 31, 2022
    
Dec. 31, 2021
    
From Dec. 31, 2021
  
Loan Composition
                                    
                                     
Traditional Banking:
                                    
Residential real estate:
                                    
Owner occupied
  
$
911,427
    
$
863,899
    
$
832,137
    
$
808,658
    
$
820,731
    
$
90,696
  
Nonowner occupied
    
321,358
      
321,037
      
313,534
      
314,933
      
306,323
      
15,035
  
Commercial real estate
    
1,599,510
      
1,571,593
      
1,569,119
      
1,556,575
      
1,456,009
      
143,501
  
Construction & land development
    
153,875
      
147,418
      
137,452
      
129,970
      
129,337
      
24,538
  
Commercial & industrial
    
310,902
      
404,971
      
394,175
      
342,175
      
340,363
      
(29,461
)
Paycheck Protection Program
    
4,980
      
7,855
      
14,657
      
18,276
      
56,014
      
(51,034
)
Lease financing receivables
    
10,505
      
11,333
      
11,345
      
10,396
      
8,637
      
1,868
  
Aircraft
    
179,785
      
166,313
      
159,958
      
151,284
      
142,894
      
36,891
  
Home equity
    
241,739
      
229,038
      
214,069
      
210,364
      
210,578
      
31,161
  
Consumer:
                                                
Credit cards
    
15,473
      
14,897
      
15,419
      
14,654
      
14,510
      
963
  
Overdrafts
    
726
      
723
      
901
      
716
      
683
      
43
  
Automobile loans
    
6,731
      
7,890
      
9,579
      
11,846
      
14,448
      
(7,717
)
Other consumer
    
98,131
      
973
      
1,245
      
939
      
1,432
      
96,699
  
Total Traditional Banking
    
3,855,142
      
3,747,940
      
3,673,590
      
3,570,786
      
3,501,959
      
353,183
  
Warehouse lines of credit
    
403,560
      
442,238
      
596,678
      
690,200
      
850,550
      
(446,990
)
Total Core Banking
    
4,258,702
      
4,190,178
      
4,270,268
      
4,260,986
      
4,352,509
      
(93,807
)
                                                 
Republic Processing Group:
                                                
Tax Refund Solutions:
                                                
Refund Advances
    
—
      
—
      
—
      
16,475
      
—
      
—
  
Other TRS loans
    
149,272
      
295
      
149
      
25,132
      
50,987
      
98,285
  
Republic Credit Solutions
    
107,828
      
98,977
      
91,816
      
87,650
      
93,066
      
14,762
  
Total Republic Processing Group
    
257,100
      
99,272
      
91,965
      
129,257
      
144,053
      
113,047
  
                                                 
Total loans - Total Company
  
$
4,515,802
    
$
4,289,450
    
$
4,362,233
    
$
4,390,243
    
$
4,496,562
    
$
19,240
  
                                                 
Allowance for Credit Losses on Loans ("Allowance")
                                  
                                                 
Traditional Banking
  
$
50,709
    
$
49,231
    
$
49,727
    
$
49,616
    
$
49,407
    
$
1,302
  
Warehouse Lending
    
1,009
      
1,105
      
1,491
      
1,725
      
2,126
      
(1,117
)
Total Core Banking
    
51,718
      
50,336
      
51,218
      
51,341
      
51,533
      
185
  
                                                 
Tax Refund Solutions
    
3,888
      
—
      
—
      
8,370
      
96
      
3,792
  
Republic Credit Solutions
    
14,807
      
14,583
      
13,231
      
11,945
      
12,948
      
1,859
  
Total Republic Processing Group
    
18,695
      
14,583
      
13,231
      
20,315
      
13,044
      
5,651
  
                                                 
Total Allowance - Total Company
  
$
70,413
    
$
64,919
    
$
64,449
    
$
71,656
    
$
64,577
    
$
5,836
  
                                                 
Allowance to Total Loans
                                                
                                                 
Traditional Banking
    
1.32
%
    
1.31
%
    
1.35
%
    
1.39
%
    
1.41
%
    
(0.09
)%
Warehouse Lending
    
0.25
      
0.25
      
0.25
      
0.25
      
0.25
      
—
  
Total Core Banking
    
1.21
      
1.20
      
1.20
      
1.20
      
1.18
      
0.03
  
                                                 
Tax Refund Solutions
    
2.60
      
—
      
—
      
20.12
      
0.19
      
2.41
  
Republic Credit Solutions
    
13.73
      
14.73
      
14.41
      
13.63
      
13.91
      
(0.18
)
Total Republic Processing Group
    
7.27
      
14.69
      
14.39
      
15.72
      
9.06
      
(1.79
)
                                                 
Total Company
    
1.56
      
1.51
      
1.48
      
1.63
      
1.44
      
0.12
  

S-6

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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 Years Ended
    
Change (8)
  
   
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
From Dec. 31, 2021 or Q4 to Q4 (10)
    
Dec. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
From Dec. 31, 2021 or 12M to 12M (10)
  
Credit Quality Asset Balances and Net Charge-off ("NCO") Data:
                                            
                                                       
Nonperforming Assets - Total Company:
                                                      
Loans on nonaccrual status
  
$
15,562
    
$
16,322
    
$
16,168
    
$
16,935
    
$
20,504
    
$
(4,942
)
  
$
15,562
    
$
20,504
    
$
(4,942
)
Loans past due 90-days-or-more and still on accrual
    
756
      
37
      
42
      
31
      
48
      
708
      
756
      
48
      
708
  
     Total nonperforming loans
    
16,318
      
16,359
      
16,210
      
16,966
      
20,552
      
(4,234
)
    
16,318
      
20,552
      
(4,234
)
OREO
    
1,581
      
1,634
      
1,687
      
1,740
      
1,792
      
(211
)
    
1,581
      
1,792
      
(211
)
     Total nonperforming assets
  
$
17,899
    
$
17,993
    
$
17,897
    
$
18,706
    
$
22,344
    
$
(4,445
)
  
$
17,899
    
$
22,344
    
$
(4,445
)
                                                                         
Nonperforming Assets - Core Bank:
                                                                        
Loans on nonaccrual status
  
$
15,562
    
$
16,322
    
$
16,168
    
$
16,935
    
$
20,504
    
$
(4,942
)
  
$
15,562
    
$
20,504
    
$
(4,942
)
Loans past due 90-days-or-more and still on accrual
    
—
      
—
      
—
      
—
      
1
      
(1
)
    
—
      
1
      
(1
)
     Total nonperforming loans
    
15,562
      
16,322
      
16,168
      
16,935
      
20,505
      
(4,943
)
    
15,562
      
20,505
      
(4,943
)
OREO
    
1,581
      
1,634
      
1,687
      
1,740
      
1,792
      
(211
)
    
1,581
      
1,792
      
(211
)
     Total nonperforming assets
  
$
17,143
    
$
17,956
    
$
17,855
    
$
18,675
    
$
22,297
    
$
(5,154
)
  
$
17,143
    
$
22,297
    
$
(5,154
)
                                                                         
Delinquent Loans:
                                                                        
Delinquent loans - Core Bank
  
$
6,060
    
$
4,368
    
$
5,352
    
$
5,863
    
$
7,430
    
$
(1,370
)
  
$
6,060
    
$
7,430
    
$
(1,370
)
RPG
    
9,200
      
7,522
      
6,099
      
10,352
      
6,035
      
3,165
      
9,200
      
6,035
      
3,165
  
Total delinquent loans - Total Company
  
$
15,260
    
$
11,890
    
$
11,451
    
$
16,215
    
$
13,465
    
$
1,795
    
$
15,260
    
$
13,465
    
$
1,795
  
                                                                         
NCOs (Recoveries) by Segment:
                                                                        
Traditional Bank
  
$
238
    
$
(187
)
  
$
(5
)
  
$
118
    
$
175
    
$
63
    
$
164
    
$
385
    
$
(221
)
Warehouse Lending loans
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Core Bank loans
    
238
      
(187
)
    
(5
)
    
118
      
175
      
63
      
164
      
385
      
(221
)
Tax Refund Solutions
    
(909
)
    
(1,296
)
    
8,730
      
(362
)
    
(1,263
)
    
354
      
6,163
      
6,745
      
(582
)
Republic Credit Solutions
    
3,021
      
2,656
      
2,147
      
2,398
      
2,119
      
902
      
10,222
      
4,299
      
5,923
  
RPG
    
2,112
      
1,360
      
10,877
      
2,036
      
856
      
1,256
      
16,385
      
11,044
      
5,341
  
     Total NCOs (recoveries) - Total Company
  
$
2,350
    
$
1,173
    
$
10,872
    
$
2,154
    
$
1,031
    
$
1,319
    
$
16,549
    
$
11,429
    
$
5,120
  
                                                                         
Credit Quality Ratios - Total Company:
                                                                        
                                                                         
Nonperforming loans to total loans
    
0.36
%
    
0.38
%
    
0.37
%
    
0.39
%
    
0.46
%
    
(0.10
)%
    
0.36
%
    
0.46
%
    
(0.10
)%
Nonperforming assets to total loans (including OREO)
    
0.40
      
0.42
      
0.41
      
0.43
      
0.50
      
(0.10
)
    
0.40
      
0.50
      
(0.10
)
Nonperforming assets to total assets
    
0.31
      
0.30
      
0.29
      
0.29
      
0.37
      
(0.06
)
    
0.31
      
0.37
      
(0.06
)
Allowance for credit losses to total loans
    
1.56
      
1.51
      
1.48
      
1.63
      
1.44
      
0.12
      
1.56
      
1.44
      
0.12
  
Allowance for credit losses to nonperforming loans
    
432
      
397
      
398
      
422
      
314
      
118
      
432
      
314
      
118
  
Delinquent loans to total loans (9)
    
0.34
      
0.28
      
0.26
      
0.37
      
0.30
      
0.04
      
0.34
      
0.30
      
0.04
  
NCOs (recoveries) to average loans (annualized)
    
0.22
      
0.11
      
1.00
      
0.20
      
0.09
      
0.13
      
0.38
      
0.25
      
0.13
  
                                                                         
Credit Quality Ratios - Core Bank:
                                                                        
                                                                         
Nonperforming loans to total loans
    
0.37
%
    
0.39
%
    
0.38
%
    
0.40
%
    
0.47
%
    
(0.10
)%
    
0.37
%
    
0.47
%
    
(0.10
)%
Nonperforming assets to total loans (including OREO)
    
0.40
      
0.43
      
0.42
      
0.44
      
0.51
      
(0.11
)
    
0.40
      
0.51
      
(0.11
)
Nonperforming assets to total assets
    
0.32
      
0.33
      
0.32
      
0.33
      
0.40
      
(0.08
)
    
0.32
      
0.40
      
(0.08
)
Allowance for credit losses to total loans
    
1.21
      
1.20
      
1.20
      
1.20
      
1.18
      
0.03
      
1.21
      
1.18
      
0.03
  
Allowance for credit losses to nonperforming loans
    
332
      
308
      
317
      
303
      
251
      
81
      
332
      
251
      
81
  
Delinquent loans to total loans
    
0.14
      
0.10
      
0.13
      
0.14
      
0.17
      
(0.03
)
    
0.14
      
0.17
      
(0.03
)
NCOs (recoveries) to average loans (annualized)
    
0.02
      
(0.02
)
    
—
      
0.01
      
0.02
      
—
      
—
      
0.01
      
(0.01
)
                                                                         
TRS Refund Advances ("RAs")
                                                                        
                                                                         
RAs originated
  
$
97,505
    
$
—
    
$
-
    
$
311,207
    
$
—
    
$
97,505
    
$
408,712
    
$
250,045
    
$
158,667
  
Net (credit) charge to the Provision for RAs
    
2,888
      
(1,296
)
    
564
      
8,315
      
(1,261
)
    
4,149
      
10,471
      
6,723
      
3,748
  
RAs NCOs (recoveries)
  
$
(909
)
  
$
(1,296
)
  
$
8,879
    
$
-
    
$
(1,261
)
  
$
352
    
$
6,674
    
$
6,723
    
$
(49
)

S-7

Republic Bancorp, Inc.
Earnings Release Financial Supplement
Fourth 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 December 31, 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
Fourth quarter 2022 (continued)

Segment information for the quarters and years ended December 31, 2022 and 2021 follows:

                                                 
   
Three Months Ended December 31, 2022
  
   
Core Banking
    
Republic Processing Group
        
                     
Total
    
Tax
    
Republic
              
   
Traditional
    
Warehouse
    
Mortgage
    
Core
    
Refund
    
Credit
    
Total
    
Total
  
(dollars in thousands)
  
Banking
    
Lending
    
Banking
    
Banking
    
Solutions
    
Solutions
    
RPG
    
Company
  
                                                 
Net interest income
  
$
49,675
    
$
2,317
    
$
50
    
$
52,042
    
$
2,964
    
$
8,107
    
$
11,071
    
$
63,113
  
                                                                 
Provision for expected credit loss expense
    
1,716
      
(96
)
    
—
      
1,620
      
2,979
      
3,245
      
6,224
      
7,844
  
                                                                 
Net refund transfer fees
    
—
      
—
      
—
      
—
      
486
      
—
      
486
      
486
  
Mortgage banking income
    
—
      
—
      
622
      
622
      
—
      
—
      
—
      
622
  
Program fees
    
—
      
—
      
—
      
—
      
685
      
2,816
      
3,501
      
3,501
  
Other noninterest income
    
8,351
      
12
      
23
      
8,386
      
129
      
—
      
129
      
8,515
  
Total noninterest income
    
8,351
      
12
      
645
      
9,008
      
1,300
      
2,816
      
4,116
      
13,124
  
                                                                 
Total noninterest expense
    
35,299
      
766
      
2,385
      
38,450
      
3,791
      
2,664
      
6,455
      
44,905
  
                                                                 
Income (loss) before income tax expense
    
21,011
      
1,659
      
(1,690
)
    
20,980
      
(2,506
)
    
5,014
      
2,508
      
23,488
  
Income tax expense (benefit)
    
4,685
      
371
      
(371
)
    
4,685
      
(726
)
    
1,016
      
290
      
4,975
  
                                                                 
Net income (loss)
  
$
16,326
    
$
1,288
    
$
(1,319
)
  
$
16,295
    
$
(1,780
)
  
$
3,998
    
$
2,218
    
$
18,513
  
                                                                 
Period-end assets
  
$
4,893,761
    
$
405,052
    
$
13,938
    
$
5,312,751
    
$
409,259
    
$
112,521
    
$
521,780
    
$
5,834,531
  
                                                                 
Net interest margin
    
3.94
%
    
2.28
%
  
NM
      
3.82
%
  
NM
    
NM
    
NM
      
4.51
%
                                                                 
Net-revenue concentration*
    
76
%
    
3
%
    
1
%
    
80
%
    
6
%
    
14
%
    
20
%
    
100
%


   
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
(10)
   
RPG
    
Company
  
                                                 
Net interest income
  
$
37,572
    
$
5,831
    
$
279
    
$
43,682
    
$
244
    
$
6,973
    
$
7,217
    
$
50,899
  
                                                                 
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
      
3,869
      
4,666
      
4,666
  
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
      
3,869
      
5,045
      
17,079
  
                                                                 
Total noninterest expense
    
35,184
      
1,060
      
2,972
      
39,216
      
4,379
      
1,439
      
5,818
      
45,034
  
                                                                 
Income before income tax expense
    
10,930
      
4,536
      
697
      
16,163
      
(1,792
)
    
5,996
      
4,204
      
20,367
  
Income tax expense
    
969
      
1,043
      
153
      
2,165
      
(503
)
    
1,487
      
984
      
3,149
  
                                                                 
Net income
  
$
9,961
    
$
3,493
    
$
544
    
$
13,998
    
$
(1,289
)
  
$
4,509
    
$
3,220
    
$
17,218
  
                                                                 
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
      
3.53
%
                                                                 
Net-revenue concentration*
    
68
%
    
9
%
    
5
%
    
82
%
    
2
%
    
16
%
    
18
%
    
100
%

S-9

   
Year Ended December 31, 2022
  
   
Core Banking
    
Republic Processing Group
        
                     
Total
    
Tax
    
Republic
              
   
Traditional
    
Warehouse
    
Mortgage
    
Core
    
Refund
    
Credit
    
Total
    
Total
  
(dollars in thousands)
  
Banking
    
Lending
    
Banking
    
Banking
    
Solutions
    
Solutions
    
RPG
    
Company
  
                                                 
Net interest income
  
$
171,543
    
$
13,729
    
$
519
    
$
185,791
    
$
21,715
    
$
29,185
    
$
50,900
    
$
236,691
  
                                                                 
Provision for expected credit loss expense
    
1,429
      
(1,117
)
    
—
      
312
      
9,955
      
12,081
      
22,036
      
22,348
  
                                                                 
Net refund transfer fees
    
—
      
—
      
—
      
—
      
17,080
      
—
      
17,080
      
17,080
  
Mortgage banking income
    
—
      
—
      
6,196
      
6,196
      
—
      
—
      
—
      
6,196
  
Program fees
    
—
      
—
      
—
      
—
      
2,872
      
13,300
      
16,172
      
16,172
  
Contract termination fee
    
—
      
—
      
—
      
—
      
5,000
      
—
      
5,000
      
5,000
  
Legal settlement
    
—
      
—
      
—
      
—
      
13,000
      
—
      
13,000
      
13,000
  
Other noninterest income
    
31,648
      
50
      
136
      
31,834
      
528
      
—
      
528
      
32,362
  
Total noninterest income
    
31,648
      
50
      
6,332
      
38,030
      
38,480
      
13,300
      
51,780
      
89,810
  
                                                                 
Total noninterest expense
    
149,681
      
3,604
      
9,912
      
163,197
      
15,717
      
8,394
      
24,111
      
187,308
  
                                                                 
Income (loss) before income tax expense
    
52,081
      
11,292
      
(3,061
)
    
60,312
      
34,523
      
22,010
      
56,533
      
116,845
  
Income tax expense (benefit)
    
11,104
      
2,539
      
(673
)
    
12,970
      
7,847
      
4,922
      
12,769
      
25,739
  
                                                                 
Net income (loss)
  
$
40,977
    
$
8,753
    
$
(2,388
)
  
$
47,342
    
$
26,676
    
$
17,088
    
$
43,764
    
$
91,106
  
                                                                 
Period-end assets
  
$
4,893,761
    
$
405,052
    
$
13,938
    
$
5,312,751
    
$
409,259
    
$
112,521
    
$
521,780
    
$
5,834,531
  
                                                                 
Net interest margin
    
3.38
%
    
2.69
%
  
NM
      
3.32
%
  
NM
    
NM
    
NM
      
4.12
%
                                                                 
Net-revenue concentration*
    
63
%
    
4
%
    
2
%
    
69
%
    
18
%
    
13
%
    
31
%
    
100
%


   
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
(10)
   
RPG
    
Company
  
                                                 
Net interest income
  
$
157,249
    
$
25,218
    
$
1,081
    
$
183,548
    
$
15,837
    
$
23,355
    
$
39,192
    
$
222,740
  
                                                                 
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
      
11,066
      
14,237
      
14,237
  
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
      
11,066
      
34,841
      
86,575
  
                                                                 
Total noninterest expense
    
145,376
      
4,210
      
12,356
      
161,942
      
16,344
      
4,779
      
21,123
      
183,065
  
                                                                 
Income before income tax expense
    
43,403
      
21,346
      
8,910
      
73,659
      
16,585
      
21,198
      
37,783
      
111,442
  
Income tax expense
    
7,685
      
4,962
      
1,960
      
14,607
      
3,964
      
5,260
      
9,224
      
23,831
  
                                                                 
Net income
  
$
35,718
    
$
16,384
    
$
6,950
    
$
59,052
    
$
12,621
    
$
15,938
    
$
28,559
    
$
87,611
  
                                                                 
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
      
3.79
%
                                                                 
Net-revenue concentration*
    
61
%
    
8
%
    
7
%
    
76
%
    
13
%
    
11
%
    
24
%
    
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 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)
    
Years Ended
    
$ Change (8)
  
(dollars in thousands)
  
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
Q4 to Q4
    
Dec. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
12M to 12M
  
                                                       
Traditional Bank excluding PPP fees
  
$
883
    
$
911
    
$
1,545
    
$
1,451
    
$
1,126
    
$
(243
)
  
$
4,790
    
$
4,136
    
$
654
  
Traditional Bank - PPP fees
    
60
      
152
      
124
      
879
      
2,850
      
(2,790
)
    
1,215
      
17,465
      
(16,250
)
Warehouse Lending
    
272
      
402
      
500
      
574
      
662
      
(390
)
    
1,748
      
3,101
      
(1,353
)
Total Core Bank
    
1,215
      
1,465
      
2,169
      
2,904
      
4,638
      
(3,423
)
    
7,753
      
24,702
      
(16,949
)
TRS - Refund Advances
    
50
      
81
      
81
      
13,444
      
43
      
7
      
13,656
      
13,202
      
454
  
TRS - Other Loan Fees
    
825
      
(1
)
    
2
      
662
      
—
      
825
      
1,488
      
1,656
      
(168
)
RCS
    
7,501
      
7,196
      
6,364
      
6,257
      
5,695
      
1,806
      
27,318
      
19,345
      
7,973
  
Total RPG
    
8,376
      
7,276
      
6,447
      
20,363
      
5,738
      
2,638
      
42,462
      
34,203
      
8,259
  
                                                                         
Total loan fees - Total Company
  
$
9,591
    
$
8,741
    
$
8,616
    
$
23,267
    
$
10,376
    
$
(785
)
  
$
50,215
    
$
58,905
    
$
(8,690
)
 

(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 Years Ended
    
$ Change (8)
  
(dollars in thousands)
  
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
Q4 to Q4
    
Dec. 31, 2022 (10)
    
Dec. 31, 2021 (10)
    
12M to 12M
  
                                                       
Mortgage Loans Held for Sale
  
                                                 
                                                       
Balance, beginning of period
  
$
2,912
    
$
8,491
    
$
13,302
    
$
29,393
    
$
25,791
    
$
(22,879
)
  
$
29,393
    
$
46,867
    
$
(17,474
)
Originations
    
10,359
      
32,856
      
61,489
      
100,661
      
155,468
      
(145,109
)
    
205,365
      
680,714
      
(475,349
)
Proceeds from sales
    
(12,207
)
    
(39,220
)
    
(67,759
)
    
(119,212
)
    
(155,186
)
    
142,979
      
(238,398
)
    
(717,847
)
    
479,449
  
Net gain on sale
    
238
      
785
      
1,459
      
2,460
      
3,320
      
(3,082
)
    
4,942
      
19,659
      
(14,717
)
Balance, end of period
  
$
1,302
    
$
2,912
    
$
8,491
    
$
13,302
    
$
29,393
    
$
(28,091
)
  
$
1,302
    
$
29,393
    
$
(28,091
)
                                                                         
RCS Consumer Loans Held for Sale
                                                                        
                                                                         
Balance, beginning of period
  
$
21,475
    
$
31,236
    
$
14,735
    
$
22,684
    
$
14,755
    
$
6,720
    
$
22,684
    
$
4,776
    
$
17,908
  
Originations
    
225,588
      
292,131
      
282,782
      
245,214
      
321,118
      
(95,530
)
    
1,045,715
      
882,180
      
163,535
  
Proceeds from sales
    
(231,999
)
    
(306,093
)
    
(269,429
)
    
(256,280
)
    
(316,597
)
    
84,598
      
(1,063,801
)
    
(875,570
)
    
(188,231
)
Net gain on sale
    
2,811
      
4,201
      
3,148
      
3,117
      
3,408
      
(597
)
    
13,277
      
11,298
      
1,979
  
Balance, end of period
  
$
17,875
    
$
21,475
    
$
31,236
    
$
14,735
    
$
22,684
    
$
(4,809
)
  
$
17,875
    
$
22,684
    
$
(4,809
)

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)
  
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
  
                               
Total stockholders' equity - GAAP (a)
  
$
856,613
    
$
843,063
    
$
843,866
    
$
841,576
    
$
835,054
  
Less: Goodwill
    
16,300
      
16,300
      
16,300
      
16,300
      
16,300
  
Less: Mortgage servicing rights
    
8,769
      
9,177
      
9,407
      
9,502
      
9,196
  
Tangible stockholders' equity - Non-GAAP (c)
  
$
831,544
    
$
817,586
    
$
818,159
    
$
815,774
    
$
809,558
  
                                         
Total assets - GAAP (b)
  
$
5,834,531
    
$
5,999,663
    
$
6,112,476
    
$
6,349,869
    
$
6,093,632
  
Less: Goodwill
    
16,300
      
16,300
      
16,300
      
16,300
      
16,300
  
Less: Mortgage servicing rights
    
8,769
      
9,177
      
9,407
      
9,502
      
9,196
  
Tangible assets - Non-GAAP (d)
  
$
5,809,462
    
$
5,974,186
    
$
6,086,769
    
$
6,324,067
    
$
6,068,136
  
                                         
Total stockholders' equity to total assets - GAAP (a/b)
    
14.68
%
    
14.05
%
    
13.81
%
    
13.25
%
    
13.70
%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)
    
14.31
%
    
13.69
%
    
13.44
%
    
12.90
%
    
13.34
%
                                         
Number of shares outstanding (e)
    
19,747
      
19,747
      
19,790
      
19,999
      
19,981
  
                                         
Book value per share - GAAP (a/e)
  
$
43.38
    
$
42.69
    
$
42.64
    
$
42.08
    
$
41.79
  
Tangible book value per share - Non-GAAP (c/e)
    
42.11
      
41.40
      
41.34
      
40.79
      
40.52
  
 
(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
      
Year Ended December 31, 2022
  
(dollars in thousands)
  
Dec. 31, 2022
    
Sep. 30, 2022 (10)
    
Jun. 30, 2022 (10)
    
Mar. 31, 2022 (10)
    
Dec. 31, 2021 (10)
      
Dec. 31, 2022 (10)
    
Dec. 31, 2021 (10)
  
                                             
Net interest income - GAAP
  
$
63,113
    
$
58,597
    
$
51,814
    
$
63,167
    
$
50,899
      
$
236,691
    
$
222,740
  
Noninterest income - GAAP
    
13,124
      
15,108
      
30,569
      
31,009
      
17,079
        
89,810
      
86,575
  
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
    
1
      
2
      
(102
)
    
(120
)
    
(23
)
      
(219
)
    
(69
)
Total adjusted income - Non-GAAP (a)
  
$
76,236
    
$
73,703
    
$
69,485
    
$
89,296
    
$
68,001
      
$
308,720
    
$
309,384
  
                                                           
                                                           
Noninterest expense - GAAP
  
$
44,905
    
$
46,166
    
$
47,656
    
$
48,581
    
$
45,034
      
$
187,308
    
$
183,065
  
Less: Expenses related to TRS Transaction
    
—
      
88
      
699
      
127
      
611
        
914
      
1,300
  
Adjusted noninterest expense - Non-GAAP (b)
  
$
44,905
    
$
46,078
    
$
46,957
    
$
48,454
    
$
44,423
      
$
186,394
    
$
181,765
  
                                                           
Efficiency Ratio - Non-GAAP (b/a)
    
59
%
    
63
%
    
68
%
    
54
%
    
65
%
      
60
%
    
59
%
                                                           

(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 Refund Advances (“RA”), which do not have a contractual due date, but the Company considered an RA delinquent in 2022 if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority.

(10)
During the fourth quarter of 2022, the Company identified a prior period accounting error in the form of an immaterial understatement of revenue, solely related to one RCS line of credit product. The financial reporting periods affected by this error include the Company’s previously reported audited consolidated financial statements for the fiscal year ended December 31, 2021, and the Company’s previously reported interim unaudited consolidated financial statements for each of the quarterly and fiscal year-to-date periods ended June 30, 2021; September 30, 2021; March 31, 2022; June 30, 2022; and September 30, 2022; and the unaudited consolidated quarterly financial data for the quarter ending December 31, 2021 (collectively the “previously reported financial statements”). The three-month period ended December 31, 2021, and the year-end period December 31, 2021, also reflected certain immaterial revisions to reclassify certain gains and losses on the sale of the same RCS line of credit product. This reclassification impacts noninterest income, noninterest expense, and interest income with no impact to net income.

S-12

Based on the Company’s evaluation of this error in consideration of the Financial Accounting Standards Board (“FASB) Accounting Standards Codification (“ASC”) 250 and the SEC Staff’s Accounting Bulletins Nos. 99 (“SAB 99”) and 108 (“SAB 108”) and interpretations therewith, the Company concluded this error was not material, on an individual or aggregate basis, to the Company’s previously reported financial statements and correction of the error would not be material to the current year financial statements, including any interim periods. However, the Company corrected this error as a voluntary immaterial revision to the accompanying financial supplement, as of and for the fiscal years ended December 31, 2022, and 2021, in the periods in which the error occurred. In addition, the Company expects to present the corrected interim 2022 amounts in its 2023 consolidated interim financial statements upon the filing of its Quarterly Reports on Form 10-Q on a quarterly basis and a year-to-date basis as a voluntary immaterial revision to all applicable 2022 periods. The Company also expects to present the corrected 2021 and 2022 amounts upon the filing of the Annual Report on Form 10-K for the year ended December 31, 2022, as a voluntary immaterial revision to all applicable 2021 and 2022 periods.


Consolidated Income Statement
                  
($ in thousands, except per share data)
  
Period Ended March 31, 2022 (Unaudited)
  
   
3 Months
    
Immaterial
    
3 Months
  
   
As Reported
    
Revision
    
Revised
  
                   
Interest Income
  
$
63,555
    
$
555
    
$
64,110
  
Net Interest Income
    
62,612
      
555
      
63,167
  
Income before income taxes
    
35,814
      
555
      
36,369
  
Income tax expense
    
7,888
      
131
      
8,019
  
Net income
    
27,926
      
424
      
28,350
  
                         
Basic EPS - Class A Common Stock
  
$
1.40
    
$
0.02
    
$
1.42
  
Basic EPS - Class B Common Stock
    
1.27
      
0.02
      
1.29
  
Diluted EPS - Class A Common Stock
    
1.40
      
0.02
      
1.42
  
Diluted EPS - Class B Common Stock
    
1.27
      
0.02
      
1.29
  

Consolidated Balance Sheet
                  
($ in thousands)
  
Period Ended March 31, 2022 (Unaudited)
  
   
Period End Balance
    
Immaterial
    
Period End Balance
  
   
As Reported
    
Revision
    
Revised
  
                   
Total Liabilities
  
$
5,509,540
    
$
(1,247
)
  
$
5,508,293
  
Total Stockholders' Equity
    
840,329
      
1,247
      
841,576
  

Consolidated Income Statement
                                    
($ in thousands, except per share data)
  
Period Ended June 30, 2022 (Unaudited)
  
   
3 Months
    
Immaterial
    
3 Months
    
6 Months
    
Immaterial
    
6 Months
  
   
As Reported
    
Revision
    
Revised
    
As Reported
    
Revision
    
Revised
  
                                     
Interest Income
  
$
52,320
    
$
582
    
$
52,902
    
$
115,875
    
$
1,137
    
$
117,012
  
Net Interest Income
    
51,232
      
582
      
51,814
      
113,844
      
1,137
      
114,981
  
Income before income taxes
    
30,440
      
582
      
31,022
      
66,254
      
1,137
      
67,391
  
Income tax expense
    
6,539
      
136
      
6,675
      
14,427
      
267
      
14,694
  
Net income
    
23,901
      
446
      
24,347
      
51,827
      
870
      
52,697
  
                                                 
Basic EPS - Class A Common Stock
  
$
1.20
    
$
0.03
    
$
1.23
    
$
2.60
    
$
0.05
    
$
2.65
  
Basic EPS - Class B Common Stock
    
1.09
      
0.03
      
1.12
      
2.37
      
0.04
      
2.41
  
Diluted EPS - Class A Common Stock
    
1.20
      
0.02
      
1.22
      
2.59
      
0.05
      
2.64
  
Diluted EPS - Class B Common Stock
    
1.09
      
0.02
      
1.11
      
2.36
      
0.04
      
2.40
  

Consolidated Balance Sheet
                  
($ in thousands)
  
Period Ended June 30, 2022 (Unaudited)
  
   
Period End Balance
    
Immaterial
    
Period End Balance
  
   
As Reported
    
Revision
    
Revised
  
                   
Total Liabilities
  
$
5,270,302
    
$
(1,692
)
  
$
5,268,610
  
Total Stockholders' Equity
    
842,174
      
1,692
      
843,866
  

S-13

Consolidated Income Statement
                                    
($ in thousands, except per share data)
  
Period Ended September 30, 2022 (Unaudited)
  
   
3 Months
    
Immaterial
    
3 Months
    
9 Months
    
Immaterial
    
9 Months
  
   
As Reported
    
Revision
    
Revised
    
As Reported
    
Revision
    
Revised
  
                                     
Interest Income
  
$
60,056
    
$
561
    
$
60,617
    
$
175,931
    
$
1,698
    
$
177,629
  
Net Interest Income
    
58,036
      
561
      
58,597
      
171,880
      
1,698
      
173,578
  
Income before income taxes
    
25,405
      
561
      
25,966
      
91,659
      
1,698
      
93,357
  
Income tax expense
    
5,922
      
148
      
6,070
      
20,349
      
415
      
20,764
  
Net income
    
19,483
      
413
      
19,896
      
71,310
      
1,283
      
72,593
  
                                                 
Basic EPS - Class A Common Stock
  
$
0.99
    
$
0.02
    
$
1.01
    
$
3.60
    
$
0.06
    
$
3.66
  
Basic EPS - Class B Common Stock
    
0.90
      
0.02
      
0.92
      
3.27
      
0.06
      
3.33
  
Diluted EPS - Class A Common Stock
    
0.99
      
0.02
      
1.01
      
3.58
      
0.07
      
3.65
  
Diluted EPS - Class B Common Stock
    
0.90
      
0.02
      
0.92
      
3.26
      
0.06
      
3.32
  

Consolidated Balance Sheet
                  
($ in thousands)
  
Period Ended September 30, 2022 (Unaudited)
  
   
Period End Balance
    
Immaterial
    
Period End Balance
  
   
As Reported
    
Revision
    
Revised
  
                   
Total Liabilities
  
$
5,158,705
    
$
(2,105
)
  
$
5,156,600
  
Total Stockholders' Equity
    
840,958
      
2,105
      
843,063
  

Consolidated Income Statement
                                    
($ in thousands, except per share data)
  
Period Ended June 30, 2021 (Unaudited)
  
   
3 Months
    
Immaterial
    
3 Months
    
6 Months
    
Immaterial
    
6 Months
  
   
As Reported
    
Revision
    
Revised
    
As Reported
    
Revision
    
Revised
  
                                     
Interest Income
  
$
51,815
    
$
45
    
$
51,860
    
$
121,458
    
$
45
    
$
121,503
  
Net Interest Income
    
50,304
      
45
      
50,349
      
118,170
      
45
      
118,215
  
Income before income taxes
    
30,561
      
45
      
30,606
      
64,305
      
45
      
64,350
  
Income tax expense
    
6,639
      
9
      
6,648
      
14,330
      
9
      
14,339
  
Net income
    
23,922
      
36
      
23,958
      
49,975
      
36
      
50,011
  
                                                 
Basic EPS - Class A Common Stock
  
$
1.16
    
$
—
    
$
1.16
    
$
2.42
    
$
—
    
$
2.42
  
Basic EPS - Class B Common Stock
    
1.05
      
0.01
      
1.06
      
2.20
      
—
      
2.20
  
Diluted EPS - Class A Common Stock
    
1.16
      
—
      
1.16
      
2.41
      
—
      
2.41
  
Diluted EPS - Class B Common Stock
    
1.05
      
—
      
1.05
      
2.19
      
—
      
2.19
  

Consolidated Balance Sheet
                  
($ in thousands)
  
Period Ended June 30, 2021 (Unaudited)
  
   
Period End Balance
    
Immaterial
    
Period End Balance
  
   
As Reported
    
Revision
    
Revised
  
                   
Total Liabilities
  
$
5,338,220
    
$
(36
)
  
$
5,338,184
  
Total Stockholders' Equity
    
845,090
      
36
      
845,126
  

Consolidated Income Statement
                                    
($ in thousands, except per share data)
  
Period Ended September 30, 2021 (Unaudited)
  
   
3 Months
    
Immaterial
    
3 Months
    
9 Months
    
Immaterial
    
9 Months
  
   
As Reported
    
Revision
    
Revised
    
As Reported
    
Revision
    
Revised
  
                                     
Interest Income
  
$
54,469
    
$
497
    
$
54,966
    
$
175,927
    
$
542
    
$
176,469
  
Net Interest Income
    
53,129
      
497
      
53,626
      
171,299
      
542
      
171,841
  
Income before income taxes
    
26,227
      
497
      
26,724
      
90,532
      
542
      
91,074
  
Income tax expense
    
6,218
      
124
      
6,342
      
20,548
      
133
      
20,681
  
Net income
    
20,009
      
373
      
20,382
      
69,984
      
409
      
70,393
  
                                                 
Basic EPS - Class A Common Stock
  
$
0.99
    
$
0.02
    
$
1.01
    
$
3.40
    
$
0.02
    
$
3.42
  
Basic EPS - Class B Common Stock
    
0.90
      
0.02
      
0.92
      
3.10
      
0.02
      
3.12
  
Diluted EPS - Class A Common Stock
    
0.99
      
0.02
      
1.01
      
3.39
      
0.02
      
3.41
  
Diluted EPS - Class B Common Stock
    
0.90
      
0.01
      
0.91
      
3.09
      
0.01
      
3.10
  

Consolidated Balance Sheet
                  
($ in thousands)
  
Period Ended September 30, 2021 (Unaudited)
  
   
Period End Balance
    
Immaterial
    
Period End Balance
  
   
As Reported
    
Revision
    
Revised
  
                   
Total Liabilities
  
$
5,348,977
    
$
(409
)
  
$
5,348,568
  
Total Stockholders' Equity
    
838,657
      
409
      
839,066
  

S-14

Consolidated Income Statement
                                    
($ in thousands, except per share data)
  
Period Ended December 31, 2021 (Unaudited)
    
Period Ended December 31, 2021 (Unaudited)
  
   
3 Months
    
Immaterial
    
3 Months
    
12 Months
    
Immaterial
    
12 Months
  
   
As Reported
    
Revision
    
Revised
    
As Reported
    
Revision
    
Revised
  
                                     
Interest Income
  
$
51,379
    
$
558
    
$
51,937
    
$
226,260
    
$
2,146
    
$
228,406
  
Net Interest Income
    
50,341
      
558
      
50,899
      
220,594
      
2,146
      
222,740
  
Noninterest Income
    
16,630
      
449
      
17,079
      
86,859
      
(284
 )
   
86,575
  
Noninterest Expense
    
44,585
      
449
      
45,034
      
182,304
      
761
      
183,065
  
Income before income taxes
    
19,809
      
558
      
20,367
      
110,341
      
1,101
      
111,442
  
Income tax expense
    
3,004
      
145
      
3,149
      
23,552
      
279
      
23,831
  
Net income
    
16,805
      
413
      
17,218
      
86,789
      
822
      
87,611
  
                                                 
Basic EPS - Class A Common Stock
  
$
0.84
    
$
0.03
    
$
0.87
    
$
4.25
    
$
0.04
    
$
4.29
  
Basic EPS - Class B Common Stock
    
0.77
      
0.01
      
0.78
      
3.87
      
0.03
      
3.90
  
Diluted EPS - Class A Common Stock
    
0.84
      
0.02
      
0.86
      
4.24
      
0.04
      
4.28
  
Diluted EPS - Class B Common Stock
    
0.76
      
0.02
      
0.78
      
3.85
      
0.04
      
3.89
  

Consolidated Balance Sheet
                  
($ in thousands)
  
Period Ended December 31, 2021 (Unaudited)
  
   
Period End Balance
    
Immaterial
    
Period End Balance
  
   
As Reported
    
Revision
    
Revised
  
                   
Total Liabilities
  
$
5,259,400
    
$
(822
)
  
$
5,258,578
  
Total Stockholders' Equity
    
834,232
      
822
      
835,054
  


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

S-15