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Note 2 - Changes to Previously Reported Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Accounting Standards Update and Change in Accounting Principle [Table Text Block]

(dollars in thousands)		As Previously Reported				Adjustments				As Corrected
ASSETS
Loans receivable (net of allowance for credit losses)		$	2,534,653			$	(642	)		$	2,534,011
Other assets			56,008				425				56,433
Total Assets		$	5,700,682			$	(217	)		$	5,700,465
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Other liabilities		$	18,767			$	1,060			$	19,827
Total Liabilities			5,423,669				1,060				5,424,729
Shareholders' Equity
Retained earnings			16,620				(1,277	)			15,343
Total Shareholders' Equity			277,013				(1,277	)			275,736
Total Liabilities and Shareholders' Equity		$	5,700,682			$	(217	)		$	5,700,465

(dollars in thousands)		As Previously Reported				Adjustments				As Corrected
Provision for credit losses		$	620			$	(692	)		$	(72	)
Net interest income after provision for credit losses			35,520				692				36,212
Non-interest expenses
Legal			467				537				1,004
Total non-interest expense			31,658				537				32,195
Net income before provision for income taxes			8,209				155				8,364
Provision for income taxes			2,090				39				2,129
Net income		$	6,119			$	116			$	6,235
Net income available to common shareholders		$	5,253			$	116			$	5,369
Net income per share
Basic earnings per common share		$	0.09			$	-			$	0.09
Diluted earnings per common share		$	0.08			$	-			$	0.08

(dollars in thousands)

As Previously

Reported

Adjustments

As Corrected

Net income

$

6,119

$

116

$

6,235

Total comprehensive (loss) income

$

(45,043

)

$

116

$

(44,927

)

(dollars in thousands)		As Previously Reported				Adjustments				As Corrected
Cash flows from operating activities
Net income		$	6,119			$	116			$	6,235
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses			620				(692	)			(72	)
Increase in accrued interest receivable and other assets			(1,188	)			39				(1,149	)
Net increase (decrease) in accrued interest payable and other liabilities			2,320				537				2,857
Net cash provided by operating activities		$	16,582			$	-			$	16,582

		As Previously Reported								Adjustments				As Corrected
(dollars in thousands)		Retained Earnings / Accumulated Deficit				Total Shareholders’ Equity								Retained Earnings / Accumulated Deficit				Total Shareholders’ Equity
Balance January 1, 2022		$	13,591			$	324,242			$	-			$	13,591			$	324,242
Adjustment for adoption of ASC 2016-23, net of tax			(2,224	)			(2,224	)			(1,393	)			(3,617	)			(3,617	)
Net income			6,119				6,119				116				6,235				6,235
Balance March 31, 2022		$	16,620			$	277,013			$	(1,277	)		$	15,343			$	275,736

January 1, 2022		As Previously Reported												Adjustments				As Corrected
(dollars in thousands)		As Reported Under ASC 326				Pre-ASC 326 Adoption				Impact of ASC 326 Adoption				As Reported Under ASC 326				As Reported Under ASC 326				Impact of ASC 326 Adoption
Assets:
Loans		$	2,514,123			$	2,514,123			$	-				-			$	2,514,123			$	-

ACL on Loans:
Commercial real estate			5,892				5,802				90				(1,555	)			4,337				(1,465	)
Construction and land development			1,841				1,544				297				806				2,647				1,103
Commercial and industrial			2,316				2,856				(540	)			1,102				3,418				562
Owner occupied real estate			5,207				3,158				2,049				1,707				6,914				3,756
Consumer and other			663				629				34				4				667				38
Residential mortgage			6,025				4,922				1,103				(804	)			5,221				299
Paycheck protection program			-				-				-				-				-				-
Unallocated			-				53				(53	)			-				-				(53	)
Total ACL on Loans		$	21,944			$	18,964			$	2,980			$	1,260			$	23,204			$	4,240

Liabilities:
ACL on off-balance sheet commitments		$	-			$	-			$	-			$	597			$	597			$	597

Tax effect										$	756			$	464							$	1,220

Shareholders' equity:										$	2,224			$	1,393							$	3,617

(dollars in thousands)		As Previously Reported				Adjustments				As Corrected
Total loans receivable		$	2,562,068			$	-			$	2,562,068
Deferred costs (fees)			(4,901	)			-				(4,901	)
Allowance for credit losses			(22,514	)			(642	)			(23,156	)
Net loans receivable		$	2,534,653			$	(642	)		$	2,534,011

March 31, 2022		As Previously Reported
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
March 31, 2022
Allowance for credit losses:
Individually evaluated for impairment		$	915			$	-			$	2,268			$	323			$	103			$	-			$	-			$	-			$	3,609
Collectively evaluated for impairment			4,455				1,268				1,177				4,461				815				6,729				-				-				18,905
Total allowance for credit losses		$	5,370			$	1,268			$	3,445			$	4,784			$	918			$	6,729			$	-			$	-			$	22,514

		Adjustments
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
March 31, 2022
Allowance for credit losses:
Individually evaluated for impairment		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Collectively evaluated for impairment			(1,322	)			842				1,039				1,382				(190	)			(1,109	)			-				-				642
Total allowance for credit losses		$	(1,322	)		$	842			$	1,039			$	1,382			$	(190	)		$	(1,109	)		$	-			$	-			$	642

		As Corrected
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
March 31, 2022
Allowance for credit losses:
Individually evaluated for impairment		$	915			$	-			$	2,268			$	323			$	103			$	-			$	-			$	-			$	3,609
Collectively evaluated for impairment			3,133				2,110				2,216				5,843				625				5,620				-				-				19,547
Total allowance for credit losses		$	4,048			$	2,110			$	4,484			$	6,166			$	728			$	5,620			$	-			$	-			$	23,156

		As Previously Reported
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance January 1, 2022:		$	5,802			$	1,544			$	2,856			$	3,158			$	629			$	4,922				-			$	53			$	18,964
Day 1 effect of CECL			90				297				(540	)			2,049				34				1,103				-				(53	)			2,980
Charge-offs			-				-				-				-				(67	)			-				-				-				(67	)
Recoveries			-				-				10				7				-				-				-				-				17
Provisions			(522	)			(573	)			1,119				(430	)			322				704				-				-				620
Ending balance March 31, 2022:		$	5,370			$	1,268			$	3,445			$	4,784			$	918			$	6,729			$	-			$	-			$	22,514

		Adjustments
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance January 1, 2022			-				-				-				-				-				-				-				-				-
Day 1 effect of CECL			(1,555	)			806				1,102				1,707				4				(804	)			-				-				1,260
Charge-offs			-				-				-				-				-				-				-				-				-
Recoveries			-				-				-				-				-				-				-				-				-
Provisions			233				36				(63	)			(325	)			(194	)			(305	)			-				-				(618	)
Ending balance March 31, 2022:		$	(1,322	)		$	842			$	1,039			$	1,382			$	(190	)		$	(1,109	)		$	-			$	-			$	642

		As Corrected
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residentia l Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance January 1, 2022		$	5,802			$	1,544			$	2,856			$	3,158			$	629			$	4,922			$	-			$	53			$	18,964
Day 1 effect of CECL			(1,465	)			1,103				562				3,756				38				299				-				(53	)			4,240
Charge-offs			-				-				-				-				(67	)			-				-				-				(67	)
Recoveries			-				-				10				7				-				-				-				-				17
Provisions (credits)⁽¹⁾			(289	)			(537	)			1,056				(755	)			128				399				-				-				2
Ending balance March 31, 2022:		$	4,048			$	2,110			$	4,484			$	6,166			$	728			$	5,620			$	-			$	-			$	23,156

(dollars in thousands)		Actual
At March 31, 2022:		As Previously Reported				Adjustment				Corrected
Total risk based capital
Republic			11.25	%			-0.02	%			11.23	%
Company			11.61	%			-0.02	%			11.59	%
Tier one risk based capital
Republic			10.54	%			-0.04	%			10.50	%
Company			10.90	%			-0.04	%			10.86	%
CET 1 risk based capital
Republic			10.54	%			-0.04	%			10.50	%
Company			9.45	%			-0.04	%			9.41	%
Tier one leveraged capital
Republic			5.83	%			-0.02	%			5.81	%
Company			6.04	%			-0.02	%			6.02	%

(dollars in thousands)		As Previously Reported				Adjustments				As Adjusted
ASSETS
Loans receivable (net of allowance for credit losses)		$	2,731,556			$	(1,870	)		$	2,729,686
Other assets			72,283				593				72,876
Total Assets		$	5,856,882			$	(1,277	)		$	5,855,605
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Other liabilities		$	22,954			$	505			$	23,459
Total Liabilities		$	5,621,959			$	505			$	5,622,464
Shareholders' Equity
Retained earnings		$	20,474			$	(1,782	)		$	18,692
Total Shareholders' Equity			234,923				(1,782	)			233,141
Total Liabilities and Shareholders' Equity		$	5,856,882			$	(1,277	)		$	5,855,605

(dollars in thousands)		As Previously Reported				Adjustments				As Corrected
Provision for credit losses		$	(380	)		$	1,210			$	830
Net interest income after provision for credit losses			38,780				(1,210	)			37,570
Non-interest expenses
Legal			6,859				(537	)			6,322
Total non-interest expense			37,787				(537	)			37,250
Net income before provision for income taxes			5,866				(673	)			5,193
Provision for income taxes			1,368				(168	)			1,200
Net income		$	4,498			$	(505	)		$	3,993
Net income available to common shareholders		$	3,854			$	(505	)		$	3,349
Net income per share
Basic earnings per common share			0.06				(0.01	)			0.05
Diluted earnings per common share			0.06				(0.01	)			0.05

(dollars in thousands)		As Previously Reported				Adjustments				As Corrected
Provision for credit losses		$	240			$	518			$	758
Net interest income after provision for credit losses			74,300				(518	)			73,782
Net income before provision for income taxes			14,075				(518	)			13,557
Provision for income taxes			3,458				(129	)			3,329
Net income		$	10,617			$	(389	)		$	10,228
Net income available to common shareholders		$	9,107			$	(389	)		$	8,718
Net income per share
Basic earnings per common share			0.15				(0.01	)			0.14
Diluted earnings per common share			0.14				(0.01	)			0.13

(dollars in thousands)

As Previously

Reported

Adjustments

As Corrected

Net income

$

4,498

$

(505

)

$

3,993

Total comprehensive (loss) income

$

(41,998

)

$

(505

)

$

(42,503

)

(dollars in thousands)

As Previously

Reported

Adjustments

As Corrected

Net income

$

10,617

$

(389

)

$

10,228

Total comprehensive (loss) income

$

(87,041

)

$

(389

)

$

(87,430

)

(dollars in thousands)		As Previously Reported				Adjustments				As Corrected
Cash flows from operating activities
Net income		$	10,617			$	(389	)		$	10,228
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses			240				518				758
Increase in accrued interest receivable and other assets			(2,435	)			(129	)			(2,564	)
Net cash provided by operating activities		$	27,418			$	-			$	27,418

		As Previously Reported								Adjustments				As Corrected
(dollars in thousands)		Retained Earnings / Accumulated Deficit				Total Shareholders’ Equity								Retained Earnings / Accumulated Deficit				Total Shareholders’ Equity
Balance April 1, 2022		$	16,620			$	277,013			$	(1,277	)		$	15,343			$	275,736
Net income			4,489				4,498				(505	)			3,993				3,993
Balance June 30, 2022		$	20,474			$	234,923			$	(1,782	)		$	18,692			$	233,141

		As Previously Reported								Adjustments				As Corrected
(dollars in thousands)		Retained Earnings / Accumulated Deficit				Total Shareholders’ Equity								Retained Earnings / Accumulated Deficit				Total Shareholders’ Equity
Balance January 1, 2022		$	13,591			$	324,242			$	-			$	13,591			$	324,242
Adjustment for adoption of ASC 2016-23, net of tax			(2,224	)			(2,224	)			(1,393	)			(3,617	)			(3,617	)
Net income			6,119				10,617				(389	)			5,730				10,228
Balance June 30, 2022		$	20,474			$	234,923			$	(1,782	)		$	18,692			$	233,141

(dollars in thousands)		As Previously Reported				Adjustments				As Corrected
Total loans receivable		$	2,754,394			$	-			$	2,754,394
Deferred costs (fees)			(3,711	)			-				(3,711	)
Allowance for credit losses			(19,127	)			(1,870	)			(20,997	)
Net loans receivable		$	2,731,556			$	(1,870	)		$	2,729,686

		As Previously Reported
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance March 31, 2022:		$	5,370			$	1,268			$	3,445			$	4,784			$	918			$	6,729			$	-			$	-			$	22,514
Charge-offs			(621	)			-				(2,161	)			(787	)			(115	)			-				-				-				(3,684	)
Recoveries			-				-				7				590				80				-				-				-				677
Provisions (credits)			104				(472	)			(147	)			(448	)			(164	)			747				-				-				(380	)
Ending balance: June 30, 2022:		$	4,853			$	796			$	1,144			$	4,139			$	719			$	7,476			$	-			$	-			$	19,127

		Adjustments
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance March 31, 2022:		$	(1,322	)		$	842			$	1,039			$	1,382			$	(190	)		$	(1,109	)		$	-			$	-			$	642
Charge-offs			-				-				-				-				-				-				-				-				-
Recoveries			-				-				-				-				-				-				-				-				-
Provisions (credits)			10				(116	)			140				442				162				590				-				-				1,228
Ending balance: June 30, 2022:		$	(1,312	)		$	726			$	1,179			$	1,824			$	(28	)		$	(519	)		$	-			$	-			$	1,870

		As Corrected
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance March 31, 2022:		$	4,048			$	2,110			$	4,484			$	6,166			$	728			$	5,620			$	-			$	-			$	23,156
Charge-offs			(621	)			-				(2,161	)			(787	)			(115	)			-				-				-				(3,684	)
Recoveries			-				-				7				590				80				-				-				-				677
Provisions (credits)⁽¹⁾			114				(588	)			(7	)			(6	)			(2	)			1,337				-				-				848
Ending balance: June 30, 2022:		$	3,541			$	1,522			$	2,323			$	5,963			$	691			$	6,957			$	-			$	-			$	20,997

		As Previously Reported
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance December 31, 2021:		$	5,802			$	1,544			$	2,856			$	3,158			$	629			$	4,922			$	-			$	53			$	18,964
Day 1 effect of CECL			90				297				(540	)			2,049				34				1,103				-				(53	)			2,980
Charge-offs			(621	)			-				(2,161	)			(787	)			(182	)			-				-				-				(3,751	)
Recoveries			-				-				16				597				81				-				-				-				694
Provisions (credits)			(418	)			(1,045	)			973				(878	)			157				1,451				-				-				240
Ending balance June 30, 2022:		$	4,853			$	796			$	1,144			$	4,139			$	719			$	7,476			$	-			$	-			$	19,127

		Adjustments
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance December 31, 2021:		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Day 1 effect of CECL			(1,555	)			806				1,102				1,707				4				(804	)			-				-				1,260
Charge-offs			-				-				-				-				-				-				-				-				-
Recoveries			-				-				-				-				-				-				-				-				-
Provisions (credits)			243				(80	)			77				117				(32	)			285				-				-				610
Ending balance June 30, 2022:		$	(1,312	)		$	726			$	1,179			$	1,824			$	(28	)		$	(519	)		$	-			$	-			$	1,870

		As Corrected
(dollars in thousands)		Commercial Real Estate				Construction and Land Development				Commercial and Industrial				Owner Occupied Real Estate				Consumer and Other				Residential Mortgage				Paycheck Protection Program				Unallocated				Total
Allowance for Credit Losses:
Beginning balance December 31, 2021:		$	5,802			$	1,544			$	2,856			$	3,158			$	629			$	4,922			$	-			$	53			$	18,964
Day 1 effect of CECL			(1,465	)			1,103				562				3,756				38				299				-				(53	)			4,240
Charge-offs			(621	)			-				(2,161	)			(787	)			(182	)			-				-				-				(3,751	)
Recoveries			-				-				16				597				81				-				-				-				694
Provisions (credits)⁽¹⁾			(175	)			(1,125	)			1,050				(761	)			125				1,736				-				-				850
Ending balance June 30, 2022:		$	3,541			$	1,522			$	2,323			$	5,963			$	691			$	6,957			$	-			$	-			$	20,997

(dollars in thousands)		Actual
At June 30, 2022:		As Previously Reported				Adjustment				Corrected
Total risk based capital
Republic			10.81	%			0.00	%			10.81	%
Company			10.97	%			0.00	%			10.97	%
Tier one risk based capital
Republic			10.24	%			-0.06	%			10.18	%
Company			10.40	%			-0.05	%			10.35	%
CET 1 risk based capital
Republic			10.24	%			-0.06	%			10.18	%
Company			9.03	%			-0.05	%			8.98	%
Tier one leveraged capital
Republic			5.83	%			-0.03	%			5.80	%
Company			5.94	%			-0.03	%			5.91	%