8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 22, 2021

REPUBLIC BANCORP, INC.

(Exact name of registrant as specified in its charter)

Kentucky	0-24649	61-0862051
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer Identification No.)
of incorporation)

601 West Market Street, Louisville, Kentucky	40202
(Address of principal executive offices)	(zip code)

Registrant’s telephone number, including area code: (502) 584-3600

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common	RBCAA	The Nasdaq Stock Market LLC

NOT APPLICABLE
(Former Name or former Address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR    240.14d-2(b))

 ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02.
RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 22, 2021, Republic Bancorp, Inc. announced its results of operations for the quarter ended September 30, 2021. The public announcement was made by means of an earnings release, the text of which is set forth in Exhibit 99.1 hereto. A financial supplement to this earnings release is attached as Exhibit 99.2 hereto.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d)	Exhibits.
	Exhibit No.
	99.1   Republic Bancorp, Inc. Earnings Release dated October 22, 2021.
	99.2   Earnings Release Financial Supplement – Third Quarter 2021
	104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

The information in this Form 8-K, including Exhibit 99.1 and Exhibit 99.2 attached hereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of Republic Bancorp, Inc. under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Republic Bancorp, Inc.
		(Registrant)
Date: October 22, 2021	By:	/s/ Kevin Sipes
		Kevin Sipes
		Executive Vice President, Chief Financial Officer &
		Chief Accounting Officer

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Earnings Release dated October 22, 2021.
99.2	Earnings Release Financial Supplement – Third Quarter 2021
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

EX-99.1

Exhibit 99.1

Republic Bancorp, Inc. Reports 7% Increase in Third Quarter Net Income from Continuing Operations

LOUISVILLE, Ky.--(BUSINESS WIRE)--October 22, 2021--Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company of Republic Bank & Trust Company (the “Bank”).

Republic Bancorp, Inc. (“Republic” or the “Company”) is pleased to report third quarter 2021 net income from continuing operations⁽¹⁾ of $18.4 million, a 7% increase compared to the third quarter of 2020. Third quarter Diluted Earnings per Class A Common Share (“Diluted EPS”) from continuing operations was $0.91, an increase of approximately 10% over the $0.83 earned during the third quarter of 2020.

Year-to-date net income from continuing operations was $55.2 million, a $5.9 million, or 12%, increase from the same period in 2020, resulting in return on average assets (“ROA”) and return on average equity (“ROE”) from continuing operations of 1.16% and 8.72% for the first nine months of 2021.

Logan Pichel, CEO and President of Republic Bank & Trust Company, commented, “We are proud of the strong results we have posted throughout another year disrupted by the pandemic. Our third quarter of 2021 was solid, with net income from continuing operations up 7% over the third quarter of 2020 and Diluted EPS up even more thanks to our recent stock buyback program. Furthermore, our continued strategic focus on expense discipline played a large role in the 3% reduction in noninterest expense from continuing operations for the quarter.

“Within our Core Banking⁽²⁾ operations, net income was up 12% for the quarter. Strong PPP⁽³⁾ fee revenue within our Traditional Banking segment was a key component in offsetting the expected decline in Mortgage Banking income from the record levels achieved during 2020, as well as, general compression within our net interest margin resulting from the current low interest rate environment. Our Core Banking Provision⁽⁴⁾ was substantially higher during the third quarter of 2020 due to a meaningful build of our Allowance⁽⁴⁾ brought on by the uncertainty of the COVID pandemic. While some level of COVID uncertainty will likely remain in the foreseeable future, we believe our current Core Bank Allowance is at an appropriate level to cover remaining life-of-loan losses.

“Regarding our balance sheet, the story for the third quarter continues to be our record level of deposits, as we ended the third quarter with $4.9 billion in deposits, a 5% increase since December 31, 2020. As a result of our strong levels of deposits, capital and excess liquidity, we repaid our $41 million subordinated note at the end of the third quarter, which will help us moderate net interest margin compression going forward.

“Finally, we are thrilled to be recognized by Newsweek as one of America’s Best Banks 2022. Republic was named as the Best Bank in Kentucky with assets up to $10 billion based on factors including the overall health of the bank, customer service performance and features, digital and branch presence, account and loan options, and interest rate offerings and fees. We are proud of this recognition and our strong third quarter results, and we are confident that we will continue to produce solid results for our shareholders in these unprecedented times,” concluded Pichel.

The following table highlights Republic’s key metrics for the three and nine months ended September 30, 2021 and 2020. Additional financial details, including segment-level data, are provided in the financial supplement to this release. The attached digital version of this release includes the financial supplement as an appendix. The financial supplement may also be found as Exhibit 99.2 of the Company’s Form 8-K filed with the SEC on October 22, 2021.

	Total Company Financial Performance Highlights*
		Three Months Ended Sep. 30,											Nine Months Ended Sep. 30,
(dollars in thousands, except per share data)		2021			2020			$ Change			% Change		2021			2020			$ Change		% Change
Income from Continuing Operations Before Income Tax Expense		$	24,157		$	21,829		$	2,328		11	%	$	70,948		$	61,451		$	9,497	15	%
Income from Discontinued Operations Before Income Tax Expense			2,070			3,997			(1,927	)	NM			19,584			17,550			2,034	12
Income Before Income Tax Expense		$	26,227		$	25,826		$	401		2	%	$	90,532		$	79,001		$	11,531	15	%
Income from Continuing Operations, net of tax		$	18,412		$	17,275		$	1,137		7	%	$	55,240		$	49,344		$	5,896	12	%
Income from Discontinued Operations, net of tax			1,597			3,114			(1,517	)	NM			14,744			13,546			1,198	9
Net Income		$	20,009		$	20,389		$	(380	)	(2	)%	$	69,984		$	62,890		$	7,094	11	%
Diluted EPS from Continuing Operations		$	0.91		$	0.83		$	0.08		10	%	$	2.68		$	2.37		$	0.31	13	%
Diluted EPS from Discontinued Operations			0.08			0.15			(0.07	)	NM			0.71			0.65			0.06	9
Diluted EPS		$	0.99		$	0.98		$	0.01		1	%	$	3.39		$	3.02		$	0.37	12	%
Return on Average Assets ("ROA")			1.27	%		1.33	%		NA		(5	)%		1.47	%		1.41	%	NA		4	%
ROA from Continuing Operations			1.17			1.12			NA		4			1.16			1.11		NA		5
Return on Average Equity ("ROE")			9.43	%		10.05	%		NA		(6	)%		11.04	%		10.54	%	NA		5	%
ROE from Continuing Operations			8.68			8.52			NA		2			8.72			8.27		NA		5
*See Footnote 1 for additional information on the Company’s discontinued operations.
NA – Not applicable
NM – Not meaningful

Results of Operations for the Third Quarter of 2021 Compared to the Third Quarter of 2020

Core Bank⁽²⁾ (Includes Continuing Operations Only)

Net income from Core Banking was $15.5 million for the third quarter of 2021, a 12% increase from the third quarter of 2020 primarily resulting from a positive $6.1 million reduction in Provision partially offset by a $5.5 million reduction in Mortgage Banking income.

Net Interest Income – Core Bank net interest income was $46.8 million for the third quarter of 2021, a $443,000, or 1%, increase from the third quarter of 2020. This increase was driven primarily by the following:

• The Core Bank recognized $5.7 million of fees and interest on its PPP portfolio during the third quarter of 2021 compared to $3.5 million of similar fees and interest during the same period in 2020. The $2.2 million increase in PPP fees and interest was driven significantly by the forgiveness, payoff, and paydown of $130 million of PPP loans during the third quarter of 2021. As of September 30, 2021, net PPP loans of $126 million remained on the Core Bank’s balance sheet, including $19 million in loan balances originated during 2020, $111 million in loan balances originated during 2021, and $4 million of unaccreted PPP lender fees reported as a credit offset to these originated balances. Unaccreted PPP lender fees will generally be recognized into income over the estimated remaining life of the PPP portfolio, with fee recognition accelerated if loans are forgiven or repaid earlier than estimated.

• Traditional Bank net interest income increased $1.5 million, or 4%, and the Traditional Bank net interest margin remained at 3.22% when comparing the third quarter of 2020 to the third quarter of 2021. However, excluding PPP fees and interest⁽³⁾, Traditional Bank net interest income decreased $627,000, or 2%, from the third quarter 2020, and the Traditional Bank’s net interest margin, excluding PPP loans and related fees and interest, declined from 3.28% for the third quarter of 2020 to 2.87% for the third quarter of 2021. The decline in the net interest margin was substantially driven by a 66-basis point decline in the Traditional Bank’s yield on its average non-PPP interest-earning assets from the third quarter of 2020 to the third quarter of 2021, as the majority of the Traditional Bank’s growth in non-PPP interest-earning assets during the previous 12 months was in lower-yielding cash instead of loans.

• Net interest income from the Core Bank’s Warehouse segment decreased $1.1 million, or 14%, from the third quarter of 2020 to the third quarter of 2021 driven primarily by a decrease in average outstanding balances, while the net interest margin for the Warehouse segment increased from 3.41% to 3.51% during the same time periods. Overall average outstanding Warehouse balances declined from $860 million during the third quarter of 2020 to $717 million for the third quarter of 2021, as home-mortgage refinancing dipped from record highs during 2020. Committed Warehouse lines-of-credit grew to $1.4 billion as of September 30, 2021 from $1.3 billion as of September 30, 2020, while average usage rates for Warehouse lines were 51% and 68%, respectively, during the third quarters of 2021 and 2020.

The following tables present by reportable segment the overall changes in the Core Bank’s net interest income, net interest margin, as well as average and period-end loan balances:

	Net Interest Income							Net Interest Margin
(dollars in thousands)	Three Months Ended Sep. 30,							Three Months Ended Sep. 30,
Reportable Segment	2021		2020		Change			2021		2020		Change
Traditional Banking	$	40,297	$	38,753	$	1,544		3.22	%	3.22	%	—	%
Warehouse Lending		6,291		7,345		(1,054	)	3.51		3.41		0.10
Mortgage Banking*		253		300		(47	)	NM		NM		NM
Total Core Bank	$	46,841	$	46,398	$	443		3.25	%	3.25	%	—	%

	Average Loan Balances									Period-End Loan Balances
(dollars in thousands)	Three Months Ended Sep. 30,									Sep. 30,
Reportable Segment	2021		2020		$ Change			% Change		2021		2020		$ Change			% Change
Traditional Banking	$	3,529,057	$	3,906,335	$	(377,278	)	(10	)%	$	3,476,388	$	3,856,504	$	(380,116	)	(10	)%
Warehouse Lending		717,036		860,420		(143,384	)	(17	)		750,682		1,028,675		(277,993	)	(27	)
Mortgage Banking*		29,959		26,127		3,832		15			25,791		44,860		(19,069	)	(43	)
Total Core Bank	$	4,276,052	$	4,792,882	$	(516,830	)	(11	)%	$	4,252,861	$	4,930,039	$	(677,178	)	(14	)%
*Includes loans held for sale
NM – Not meaningful

On September 30, 2021, the Company utilized its excess balance sheet liquidity to fully repay its $41 million subordinated note and redeem the related trust preferred securities. Prior to payoff, the Company paid interest on the subordinated note equal to 3-month LIBOR plus 1.42%. The repayment of the note and the redemption of the securities are expected to have an annualized pre-tax benefit of approximately $627,000 to the Company and the Core Bank’s income from continuing operations.

Provision for Expected Credit Loss Expense – The Core Bank’s Provision swung to a net credit of $267,000 for the third quarter of 2021 from a net charge of $5.9 million for the third quarter of 2020. The net credit during the third quarter of 2021 was primarily driven by a decrease in required reserves for the Core Bank’s Warehouse Lending portfolio, as Warehouse period-end balances decreased during the quarter. The charge to the Provision during the third quarter of 2020 primarily reflected ongoing economic concerns and uncertainty driven by the COVID-19 pandemic. As of September 30, 2021, while the Core Bank’s credit metrics remained solid, the Company’s Allowance remained generally elevated compared to historical levels due to the continued uncertainty caused by the pandemic and the public response to it.

As a percentage of total loans, the Core Bank’s Allowance increased from 1.05% as of September 30, 2020 to 1.22% as of September 30, 2021. The table below provides a view of the Company’s percentage of Allowance-to-total-loans by reportable segment.

	As of Sep. 30, 2021						As of Sep. 30, 2020						Year-over-Year Change
(dollars in thousands)					Allowance						Allowance		Allowance
Reportable Segment	Gross Loans		Allowance		to Loans		Gross Loans		Allowance		to Loans		to Loans		% Increase
Traditional Bank, Less PPP	$	3,350,117	$	49,487	1.48	%	$	3,341,954	$	48,657	1.46	%	0.02	%	1	%
Plus: Paycheck Protection Program		126,271		—				514,550		—
Traditional Bank	$	3,476,388	$	49,487	1.42			3,856,504		48,657	1.26		0.16		13
Warehouse Lending		750,682		1,877	0.25			1,028,675		2,572	0.25		—		—
Total Core Bank		4,227,070		51,364	1.22			4,885,179		51,229	1.05		0.17		16
Total Republic Processing Group		116,712		11,660	9.99			108,962		8,662	7.95		2.04		26
Total Company	$	4,343,782	$	63,024	1.45	%	$	4,994,141	$	59,891	1.20	%	0.25	%	21	%

The table below presents the Core Bank’s credit quality metrics:

	Quarters Ended:						Years Ended:
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
Core Banking Credit Quality Ratios	2021		2021		2021		2020		2019		2018
Nonperforming loans to total loans	0.48	%	0.49	%	0.49	%	0.50	%	0.54	%	0.40	%
Nonperforming assets to total loans (including OREO)	0.52		0.53		0.53		0.56		0.54		0.40
Delinquent loans* to total loans	0.18		0.22		0.19		0.21		0.30		0.22
Net charge-offs (recoveries) to average loans	(0.02)		—		0.03		0.03		0.11		0.06
(Quarterly rates annualized)
OREO = Other Real Estate Owned
*Loans 30-days-or-more past due

Noninterest Income – Core Bank noninterest income was $13.5 million during the third quarter of 2021, a decrease of $4.4 million, or 25%, from the third quarter of 2020. The decrease in noninterest income was driven primarily by the following:

• Mortgage Banking income decreased from $10.8 million for the third quarter of 2020 to $5.3 million for the third quarter of 2021. For the third quarter of 2021, the Core Bank originated $170 million in secondary market loans and achieved an average cash gain-as-a-percent-of-loans-sold during the quarter of 2.94%, with both figures solid by normal historical comparisons. During the third quarter of 2020, however, secondary market originations were $204 million with comparable gains-as-a-percent-of-loans-sold of 4.49%. Favorable market conditions during the third quarter of 2020 brought on by the COVID pandemic drove gains-as-a-percent-of-loans-sold to all-time record highs for the entire mortgage industry.

• Offsetting the decrease in Mortgage Banking income were increases in Service Charges on Deposits of $259,000 and Interchange Income of $326,000. These increases largely reflect a rise in consumer spending activity at substantially higher levels than the period of pandemic-driven restricted spending during the third quarter of 2020.

Noninterest Expense – Core Bank noninterest expense was $40.2 million for the third quarter of 2021 compared to $41.1 million for the third quarter of 2020. The decrease in noninterest expense was driven primarily by the following:

• Bank Franchise Tax expense decreased $696,000. As previously reported, Kentucky enacted HB354 in March 2019 and as a result, the Bank transitioned from a capital-based bank franchise tax to corporate income tax on January 1, 2021 for Kentucky state taxes.

• Other expenses decreased $959,000 primarily resulting from lower supplies expense, freight expense, fraud-related expenses, and Provision for off-balance sheet credit exposures.

• Salaries and Benefits increased from $23.2 million during the third quarter of 2020 to $24.0 million for the third quarter of 2021, driven primarily by annual merit increases, which averaged approximately 3%, along with higher equity-based compensation expenses. These increases to compensation expense were partially offset by lower salaries resulting from a reduction in full-time equivalent employees (“FTEs”), which decreased from 997 FTEs as of December 31, 2020 to 966 FTEs as of September 30, 2021.

Republic Processing Group⁽⁵⁾ (Includes Continuing and Discontinued Operations)

RPG reported net income from continuing operations of $2.9 million for the third quarter of 2021 compared to $3.5 million for the same period in 2020. The decrease in earnings primarily reflected an increase in Provision partially offset by an increase in revenue, with both increases primarily driven by volatility in RPG’s primary line-of-credit product offered through RCS. Balances on this product rose $4.5 million during the third quarter of 2021, driving higher general formula reserves to the Provision and higher fee income, while balances decreased $1.3 million during the same quarter in 2020, having the opposite effect on Provision and fee income. Balance volatility during both periods was generally impacted by Company marketing strategies and government stimulus programs.

Net income from RPG’s discontinued operations at Tax Refund Solutions was $1.6 million during the third quarter of 2021 compared to net income of $3.1 million during the same period in 2020. The $1.5 million decrease in net income primarily reflected fewer recoveries on previously charged-off Easy Advance loans (“EAs”) from period to period. EA recoveries, which positively reduce Provision expense, were $2.3 million during the third quarter of 2021 compared to $4.3 million during the third quarter of 2020.

With the third quarter EA paydowns, the percent of unpaid EAs to total EAs originated was 3.19% as of September 30, 2021. This compares to 3.93% as of September 30, 2020, a positive difference of 74 basis points. With all unpaid EAs having been charged off as of June 30, 2021, any EA payments received during the fourth quarter of 2021 will continue to represent recovery credits directly to income.

Total Company Income Taxes

The Company’s effective tax rate, when considering both discontinued and continuing operations, increased to 23.7% for the third quarter of 2021 compared to 21.1% for the same period in 2020. The higher effective rate during the third quarter of 2021 primarily reflected the Bank’s transition from a capital-based bank franchise tax to a Kentucky corporate income tax on January 1, 2021. The current Kentucky corporate income tax rate is 5%.

Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 42 full-service banking centers throughout five states: twenty-eight banking centers in eight Kentucky communities – Covington, Crestview Hills, Florence, Georgetown, Lexington, Louisville, Shelbyville, and Shepherdsville; three banking centers in southern Indiana – Floyds Knobs, Jeffersonville, and New Albany; seven banking centers in six Florida communities (Tampa MSA) – Largo, New Port Richey, St. Petersburg, Seminole, Tampa, and Temple Terrace; two banking centers in two Tennessee communities (Nashville MSA) – Cool Springs and Green Hills; and two banking centers in two Ohio communities (Cincinnati MSA) – Norwood and West Chester. The Bank offers internet banking at www.republicbank.com. The Company has $6.2 billion in assets and is headquartered in Louisville, Kentucky. The Company’s Class A Common Stock is listed under the symbol “RBCAA” on the NASDAQ Global Select Market.

Republic Bank. It’s just easier here. ^®

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in the preceding paragraphs are based on our current expectations and assumptions regarding our business, the future impact to our balance sheet and income statement resulting from changes in interest rates, the yield curve, the ability to develop products and strategies in order to meet the Company’s long-term strategic goals, the economy, and other future conditions, including, but not limited to, closing the sale of the TRS business to Green Dot, the timing of PPP loan forgiveness, and the impact of the COVID-19 pandemic. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Actual results could differ materially based upon factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including those factors set forth as “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2020. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Footnotes:
(1)	On May 13, 2021, the Bank entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Green Dot providing for the purchase by Green Dot, upon the terms and subject to the conditions set forth therein, of substantially all of the assets and operations of the Bank’s Tax Refund Solutions business (the “Sale Transaction”).
	As a result of the Purchase Agreement and the Sale Transaction, the results for the Company, RPG, and its TRS segment are presented within this press release to reflect continuing versus discontinued operations. RPG’s continuing operations include its Republic Credit Solutions (“RCS”) segment, its Republic Payment Solutions (“RPS”) division, and certain overhead costs previously allocated to TRS that will remain with RPG. Discontinued operations are those expected to be sold. These discontinued operations have historically contained the majority of TRS’s revenue and expense. Interest income and expense for continuing and discontinued operations also include intercompany interest charged and earned based on the Company’s funds transfer pricing methodology.
	On October 4, 2021, Green Dot announced that it had been unable to obtain the Federal Reserve’s approval of or non-objection to the Sale Transaction and that, as a result, Green Dot would not consummate the Sale Transaction. On October 5, 2021, the Bank filed a lawsuit against Green Dot in the Delaware Court of Chancery alleging breach of contract. In so doing, the Bank seeks, among other relief, specific performance to require that Green Dot proceed with the Sale Transaction as the parties had agreed to in the Purchase Agreement. Due to the inherent uncertainties of legal proceedings, the Company cannot predict the outcome of these proceedings at this time.
(2)	“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending, and Mortgage Banking segments.
(3)	PPP – The U.S. Small Business Administration’s Paycheck Protection Program
	The Company earns lender fees and 1.0% coupon interest on its PPP portfolio. Due to the short-term nature of the PPP, management believes Traditional Bank net interest income excluding PPP fees and interest is a more appropriate measure to analyze the Traditional Bank’s net interest income and net interest margin. The following table reconciles Traditional Bank net interest income and net interest margin to Traditional Bank net interest income and net interest margin excluding PPP fees and interest, a non-GAAP measure. Net interest margin excluding PPP fees and interest presented below also excludes average PPP loans of $186 million and $513 million for the quarters ended September 30, 2021 and 2020.

	Net Interest Income									Net Interest Margin
	Three Months Ended Sep. 30,									Three Months Ended Sep. 30,
(dollars in thousands)	2021		2020		$ Change			% Change		2021		2020		Change
Traditional Banking - GAAP	$	40,297	$	38,753	$	1,544		4	%	3.22	%	3.22	%	—	%
Less: PPP fees and interest		5,668		3,497		2,171		62		0.35		(0.06	)	0.41
Traditional Banking ex PPP lender fees - non-GAAP	$	34,629	$	35,256	$	(627	)	(2	)%	2.87		3.28		(0.41	)

(4)	Provision – Provision for Expected Credit Loss Expense
	Allowance – Allowance for Credit Losses on Loans
(5)	Republic Processing Group operations consist of the Tax Refund Solutions and Republic Credit Solutions segments.
NM – Not meaningful
NA – Not applicable

Contacts

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

EX-99.2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2021

TABLE OF CONTENTS

YEAR TO YEAR COMPARISON	S-2
Balance Sheet Data	S-2
Average Balance Sheet Data (Continuing Operations)	S-2
Income Statement Data	S-3
Selected Data and Ratios	S-5
Credit Quality Data and Ratios	S-7
QUARTERLY COMPARISON	S-7
Balance Sheet Data	S-7
Average Balance Sheet Data (Continuing Operations)	S-7
Income Statement Data	S-8
Selected Data and Ratios	S-10
Credit Quality Data and Ratios	S-11
SEGMENT DATA	S-12
Quarter to Date Income Statement by Segment	S-13
Year to Date Income Statement by Segment	S-14
FOOTNOTES	S-15

S-1

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021

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

Balance Sheet Data
	Sep. 30, 2021			Dec. 31, 2020			Sep. 30, 2020
Assets:
Cash and cash equivalents	$	1,011,247		$	485,587		$	342,028
Investment securities, net of allowance for credit losses		543,449			580,270			607,556
Loans held for sale		40,546			51,643			56,752
Loans of discontinued operations (1)		24			23,765			233
Loans		4,343,782			4,789,338			4,994,141
Allowance for credit losses		(63,024	)		(61,067	)		(59,891	)
Loans, net		4,280,758			4,728,271			4,934,250
Federal Home Loan Bank stock, at cost		10,311			17,397			19,634
Premises and equipment, net		37,499			39,512			40,946
Right-of-use assets		39,257			43,345			43,643
Goodwill		16,300			16,300			16,300
Other real estate owned ("OREO")		1,845			2,499			2,056
Bank owned life insurance ("BOLI")		99,634			68,018			67,617
Other assets and accrued interest receivable		106,764			111,718			109,431
Total assets	$	6,187,634		$	6,168,325		$	6,240,446
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,053,485		$	1,871,539		$	1,855,502
Interest-bearing		2,861,399			2,842,765			3,115,911
Deposits of discontinued operations (1)		33,063			18,877			20,916
Total deposits		4,947,947			4,733,181			4,992,329
Securities sold under agreements to repurchase and other short-term borrowings		260,583			211,026			126,172
Operating lease liabilities		40,151			44,340			44,710
Federal Home Loan Bank advances		25,000			235,000			132,500
Subordinated note		—			41,240			41,240
Other liabilities and accrued interest payable		75,296			80,215			93,133
Total liabilities		5,348,977			5,345,002			5,430,084
Stockholders' equity		838,657			823,323			810,362
Total liabilities and stockholders' equity	$	6,187,634		$	6,168,325		$	6,240,446

Average Balance Sheet Data  (Continuing Operations) (1)
	Three Months Ended Sep. 30,				Nine Months Ended Sep. 30,
	2021		2020		2021		2020
Assets:
Federal funds sold and other interest-earning deposits	$	930,823	$	315,597	$	901,086	$	377,046
Investment securities, including FHLB stock		555,934		600,943		560,780		575,575
Loans, including loans held for sale		4,404,600		4,907,630		4,515,961		4,694,141
Total interest-earning assets		5,891,357		5,824,170		5,977,827		5,646,762
Total assets		6,288,014		6,151,538		6,336,094		5,948,459
Liabilities and Stockholders' Equity:
Noninterest-bearing deposits	$	2,074,941	$	1,817,820	$	2,061,144	$	1,506,109
Interest-bearing deposits		2,908,134		2,939,063		2,945,770		2,851,995
Securities sold under agreements to
repurchase and other short-term borrowings		286,126		241,742		304,182		332,053
Federal Reserve Paycheck Protection Program Liquidity Facility		—		53,338		—		58,683
Federal Home Loan Bank advances		25,000		126,250		30,989		253,157
Subordinated note		40,792		41,240		41,089		41,240
Total interest-bearing liabilities		3,260,052		3,401,633		3,322,030		3,537,128
Stockholders' equity		848,935		811,351		844,885		795,883

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Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Income Statement Data
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2021			2020			2021			2020
Total interest income (2)	$	53,700		$	55,905		$	160,266		$	174,442
Total interest expense		1,391			3,856			4,941			18,109
Net interest income		52,309			52,049			155,325			156,333
Provision for expected credit loss expense		3,553			5,842			4,381			15,555
Noninterest income:
Service charges on deposit accounts		3,277			3,017			9,221			8,604
Mortgage banking income		5,280			10,775			16,655			23,968
Interchange fee income		3,200			2,874			9,539			8,093
Program fees		4,530			1,487			10,304			5,249
Increase in cash surrender value of BOLI		626			400			1,616			1,184
Net losses on OREO		(52	)		(14	)		(107	)		(10	)
Other		1,134			861			2,769			2,673
Total noninterest income		17,995			19,400			49,997			49,761
Noninterest expense:
Salaries and employee benefits		25,948			25,207			79,470			75,405
Technology, equipment, and communication		7,226			7,402			21,479			20,966
Occupancy		3,195			3,367			10,004			9,885
Marketing and development		1,234			864			3,085			2,574
FDIC insurance expense		325			345			1,039			644
Bank franchise tax expense		329			972			1,106			2,665
Interchange related expense		1,275			1,056			3,707			3,305
Other real estate owned and other repossession expense		—			6			(32	)		45
Legal and professional fees		581			1,240			2,182			3,337
Other		2,481			3,319			7,953			10,262
Total noninterest expense		42,594			43,778			129,993			129,088
Income from continuing operations before income tax expense		24,157			21,829			70,948			61,451
Income tax expense		5,745			4,554			15,708			12,107
Income from continuing operations		18,412			17,275			55,240			49,344
Discontinued operations (1) (2):
Income from discontinued operations before income taxes		2,070			3,997			19,584			17,550
Income tax expense		473			883			4,840			4,004
Income from discontinued operations, net of tax		1,597			3,114			14,744			13,546
Net income	$	20,009		$	20,389		$	69,984		$	62,890

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Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Income Statement Data for Discontinued Operations (1)
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2021			2020			2021		2020
Total interest income (2)	$	127		$	205		$	15,128	$	22,521
Total interest expense		4			2			200		1,659
Net interest income		123			203			14,928		20,862
Provision for expected credit loss expense		(2,261	)		(4,342	)		7,850		15,239
Noninterest income:
Net refund transfer fees		1,280			1,152			19,922		19,888
Interchange fee income		63			37			232		178
Other		1			8			78		90
Total noninterest income		1,344			1,197			20,232		20,156
Noninterest expense:
Salaries and employee benefits		1,043			1,460			4,268		4,208
Other		615			285			3,458		4,021
Total noninterest expense		1,658			1,745			7,726		8,229
Income from discontinued operations before income taxes		2,070			3,997			19,584		17,550
Income tax expense		473			883			4,840		4,004
Income from discontinued operations, net of tax	$	1,597		$	3,114		$	14,744	$	13,546

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Selected Data and Ratios
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2021			2020			2021			2020
Per Share Data:
Basic weighted average shares outstanding		20,508			21,026			20,807			21,031
Diluted weighted average shares outstanding		20,591			21,046			20,879			21,068
Period-end shares outstanding:
Class A Common Stock		18,040			18,715			18,040			18,715
Class B Common Stock		2,165			2,200			2,165			2,200
Book value per share (3)	$	41.51		$	38.75		$	41.51		$	38.75
Tangible book value per share (3)		40.26			37.63			40.26			37.63
Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	0.99		$	0.98		$	3.40		$	3.02
Basic EPS - Class B Common Stock		0.90			0.89			3.10			2.75
Diluted EPS - Class A Common Stock		0.99			0.98			3.39			3.02
Diluted EPS - Class B Common Stock		0.90			0.89			3.09			2.74
Earnings per share from continuing operations:
Basic EPS - Class A Common Stock	$	0.91		$	0.83		$	2.69		$	2.37
Basic EPS - Class B Common Stock		0.83			0.75			2.45			2.16
Diluted EPS - Class A Common Stock		0.91			0.83			2.68			2.37
Diluted EPS - Class B Common Stock		0.83			0.75			2.44			2.15
Cash dividends declared per Common share:
Class A Common Stock	$	0.308		$	0.286		$	0.924		$	0.858
Class B Common Stock		0.280			0.260			0.840			0.780
Performance Ratios:
Return on average assets		1.27	%		1.33	%		1.47	%		1.41	%
Return on average assets from continuing operations		1.17			1.12			1.16			1.11
Return on average equity		9.43			10.05			11.04			10.54
Return on average equity from continuing operations		8.68			8.52			8.72			8.27
Efficiency ratio from continuing operations (4)		61			61			63			63
Yield on average interest-earning assets from continuing operations (2)		3.65			3.84			3.57			4.12
Cost of average interest-bearing liabilities from continuing operations		0.17			0.45			0.20			0.68
Cost of average deposits from continuing operations (5)		0.09			0.24			0.11			0.38
Net interest spread from continuing operations (2)		3.48			3.39			3.37			3.44
Net interest margin from continuing operations - Total Company (2)		3.55			3.57			3.46			3.69
Net interest margin from continuing operations - Core Bank (6)		3.25			3.25			3.24			3.37
Other Information:
End of period FTEs (7) - Total Company		1,052			1,085			1,052			1,085
End of period FTEs - Core Bank		966			993			966			993
Number of full-service banking centers		42			42			42			42

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Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Credit Quality Data and Ratios	As of and for the						As of and for the
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2021			2020			2021			2020
Credit Quality Asset Balances:
Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	20,252		$	20,910		$	20,252		$	20,910
Loans past due 90-days-or-more and still on accrual		691			175			691			175
Total nonperforming loans		20,943			21,085			20,943			21,085
OREO		1,845			2,056			1,845			2,056
Total nonperforming assets	$	22,788		$	23,141		$	22,788		$	23,141
Nonperforming Assets - Core Bank (6):
Loans on nonaccrual status	$	20,252		$	20,910		$	20,252		$	20,910
Loans past due 90-days-or-more and still on accrual		—			—			—			—
Total nonperforming loans		20,252			20,910			20,252			20,910
OREO		1,845			2,056			1,845			2,056
Total nonperforming assets	$	22,097		$	22,966		$	22,097		$	22,966
Delinquent loans:
Delinquent loans - Core Bank	$	7,692		$	11,069		$	7,692		$	11,069
Delinquent loans - RPG (8)		9,701			5,984			9,701			5,984
Total delinquent loans - Total Company	$	17,393		$	17,053		$	17,393		$	17,053
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans		0.48	%		0.42	%		0.48	%		0.42	%
Nonperforming assets to total loans (including OREO)		0.52			0.46			0.52			0.46
Nonperforming assets to total assets		0.37			0.37			0.37			0.37
Allowance for credit losses to total loans		1.45			1.20			1.45			1.20
Allowance for credit losses to nonperforming loans		301			284			301			284
Delinquent loans to total loans (9)		0.40			0.34			0.40			0.34
Net charge-offs (recoveries) to average loans (annualized)		(0.13	)		(0.27	)		0.31			0.59
Net charge-offs from continuing operations to average loans (annualized)		0.07			0.07			0.07			0.15
Credit Quality Ratios - Core Bank:
Nonperforming loans to total loans		0.48	%		0.43	%		0.48	%		0.43	%
Nonperforming assets to total loans (including OREO)		0.52			0.47			0.52			0.47
Nonperforming assets to total assets		0.39			0.39			0.39			0.39
Allowance for credit losses to total loans		1.22			1.05			1.22			1.05
Allowance for credit losses to nonperforming loans		254			245			254			245
Delinquent loans to total loans		0.18			0.23			0.18			0.23
Net charge-offs (recoveries) to average loans (annualized)		(0.02	)		0.03			0.01			0.01

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Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Balance Sheet Data
	Quarterly Comparison
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Assets:
Cash and cash equivalents	$	1,011,247		$	747,007		$	984,857		$	485,587		$	342,028
Investment securities, net of allowance for credit losses		543,449			573,027			532,443			580,270			607,556
Loans held for sale		40,546			56,833			79,307			51,643			56,752
Loans of discontinued operations (1)		24			23			36,473			23,765			233
Loans		4,343,782			4,554,198			4,630,120			4,789,338			4,994,141
Allowance for credit losses		(63,024	)		(60,291	)		(75,336	)		(61,067	)		(59,891	)
Loans, net		4,280,758			4,493,907			4,554,784			4,728,271			4,934,250
Federal Home Loan Bank stock, at cost		10,311			11,670			13,153			17,397			19,634
Premises and equipment, net		37,499			38,682			38,324			39,512			40,946
Right-of-use assets		39,257			40,698			41,911			43,345			43,643
Goodwill		16,300			16,300			16,300			16,300			16,300
Other real estate owned		1,845			1,898			2,015			2,499			2,056
Bank owned life insurance		99,634			99,008			68,408			68,018			67,617
Other assets and accrued interest receivable		106,764			104,257			108,565			111,718			109,431
Total assets	$	6,187,634		$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,053,485		$	2,015,449		$	2,170,109		$	1,871,539		$	1,855,502
Interest-bearing		2,861,399			2,955,145			2,995,144			2,842,765			3,115,911
Deposits of discontinued operations (1)		33,063			46,984			106,239			18,877			20,916
Total deposits		4,947,947			5,017,578			5,271,492			4,733,181			4,992,329
Securities sold under agreements to
repurchase and other short-term borrowings		260,583			142,895			175,580			211,026			126,172
Operating lease liabilities		40,151			41,621			42,854			44,340			44,710
Federal Reserve Paycheck Protection Program Liquidity Facility		—			—			—			—			—
Federal Home Loan Bank advances		25,000			25,000			25,000			235,000			132,500
Subordinated note		—			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable		75,296			69,886			82,665			80,215			93,133
Total liabilities		5,348,977			5,338,220			5,638,831			5,345,002			5,430,084
Stockholders' equity		838,657			845,090			837,709			823,323			810,362
Total liabilities and stockholders' equity	$	6,187,634		$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446

Average Balance Sheet Data  (Continuing Operations) (1)
	Quarterly Comparison
	Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sep. 30, 2020
Assets:
Federal funds sold and other interest-earning deposits	$	930,823	$	988,171	$	782,637	$	321,075	$	315,597
Investment securities, including FHLB stock		555,934		562,509		563,985		610,287		600,943
Loans, including loans held for sale		4,404,600		4,528,640		4,616,976		4,908,350		4,907,630
Total interest-earning assets		5,891,357		6,079,320		5,963,598		5,839,712		5,824,170
Total assets		6,288,014		6,435,422		6,284,812		6,170,486		6,151,538
Liabilities and Stockholders' Equity:
Noninterest-bearing deposits	$	2,074,941	$	2,142,055	$	1,965,230	$	1,871,226	$	1,817,820
Interest-bearing deposits		2,908,134		3,020,168		2,909,017		2,977,579		2,939,063
Securities sold under agreements to
repurchase and other short-term borrowings		286,126		253,903		373,476		241,440		241,742
Federal Reserve Paycheck Protection Program Liquidity Facility		—		—		—		—		53,338
Federal Home Loan Bank advances		25,000		25,000		43,167		88,533		126,250
Subordinated note		40,792		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		3,260,052		3,340,311		3,366,900		3,348,792		3,401,633
Stockholders' equity		848,935		849,305		836,274		823,109		811,351

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Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Income Statement Data
	Three Months Ended
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Total interest income (2)	$	53,700		$	51,284		$	55,282		$	57,908		$	55,905
Total interest expense		1,391			1,646			1,904			2,880			3,856
Net interest income		52,309			49,638			53,378			55,028			52,049
Provision for expected credit loss expense		3,553			1,450			(622	)		2,534			5,842
Noninterest income:
Service charges on deposit accounts		3,277			3,071			2,873			3,011			3,017
Mortgage banking income		5,280			4,182			7,193			7,879			10,775
Interchange fee income		3,200			3,368			2,971			2,889			2,874
Program fees		4,530			3,549			2,225			1,846			1,487
Increase in cash surrender value of BOLI		626			600			390			401			400
Net losses on OREO		(52	)		(44	)		(11	)		(30	)		(14	)
Other		1,134			1,035			600			701			861
Total noninterest income		17,995			15,761			16,241			16,697			19,400
Noninterest expense:
Salaries and employee benefits		25,948			26,106			27,416			25,220			25,207
Technology, equipment, and communication		7,226			7,321			6,932			7,595			7,402
Occupancy		3,195			3,250			3,559			3,545			3,367
Marketing and development		1,234			1,120			731			1,079			864
FDIC insurance expense		325			418			296			366			345
Bank franchise tax expense		329			452			325			972			972
Interchange related expense		1,275			1,288			1,144			998			1,056
Other real estate owned and other repossession expense		—			2			(34	)		1			6
Legal and professional fees		581			448			1,153			700			1,240
FHLB advance prepayment penalties		—			—			—			2,108			—
Other		2,481			2,885			2,587			3,150			3,319
Total noninterest expense		42,594			43,290			44,109			45,734			43,778
Income from continuing operations before income tax expense		24,157			20,659			26,132			23,457			21,829
Income tax expense		5,745			4,157			5,806			3,309			4,554
Income from continuing operations		18,412			16,502			20,326			20,148			17,275
Discontinued operations (1) (2):
Income from discontinued operations before income taxes		2,070			9,902			7,612			175			3,997
Income tax expense (benefit)		473			2,482			1,885			(33	)		883
Income from discontinued operations, net of tax		1,597			7,420			5,727			208			3,114
Net income	$	20,009		$	23,922		$	26,053		$	20,356		$	20,389

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Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Income Statement Data for Discontinued Operations (1)
	Three Months Ended
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021		Dec. 31, 2020			Sep. 30, 2020
Total interest income (2)	$	127		$	433		$	14,568	$	98		$	205
Total interest expense		4			30			166		6			2
Net interest income		123			403			14,402		92			203
Provision for expected credit loss expense		(2,261	)		(5,773	)		15,884		(2,050	)		(4,342	)
Noninterest income:
Net refund transfer fees		1,280			5,921			12,721		409			1,152
Interchange fee income		63			113			56		28			37
Other		1			58			19		2			8
Total noninterest income		1,344			6,092			12,796		439			1,197
Noninterest expense:
Salaries and employee benefits		1,043			1,304			1,921		1,333			1,460
Other		615			1,062			1,781		1,073			285
Total noninterest expense		1,658			2,366			3,702		2,406			1,745
Income from discontinued operations before income taxes		2,070			9,902			7,612		175			3,997
Income tax expense (benefit)		473			2,482			1,885		(33	)		883
Income from discontinued operations, net of tax	$	1,597		$	7,420		$	5,727	$	208		$	3,114

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Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Selected Data and Ratios
	As of and for the Three Months Ended
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Per Share Data:
Basic weighted average shares outstanding		20,508			20,894			20,997			21,037			21,026
Diluted weighted average shares outstanding		20,591			20,949			21,062			21,072			21,046
Period-end shares outstanding:
Class A Common Stock		18,040			18,421			18,628			18,697			18,715
Class B Common Stock		2,165			2,166			2,198			2,199			2,200
Book value per share (3)	$	41.51		$	41.05		$	40.22		$	39.40		$	38.75
Tangible book value per share (3)		40.26			39.85			39.07			38.27			37.63
Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	0.99		$	1.16		$	1.26		$	0.98		$	0.98
Basic EPS - Class B Common Stock		0.90			1.05			1.14			0.89			0.89
Diluted EPS - Class A Common Stock		0.99			1.16			1.25			0.98			0.98
Diluted EPS - Class B Common Stock		0.90			1.05			1.14			0.89			0.89
Earnings per share from continuing operations:
Basic EPS - Class A Common Stock	$	0.91		$	0.80		$	0.71		$	0.97		$	0.83
Basic EPS - Class B Common Stock		0.83			0.73			0.64			0.88			0.75
Diluted EPS - Class A Common Stock		0.91			0.80			0.71			0.97			0.83
Diluted EPS - Class B Common Stock		0.83			0.73			0.64			0.88			0.75
Cash dividends declared per Common share:
Class A Common Stock	$	0.308		$	0.308		$	0.308		$	0.286		$	0.286
Class B Common Stock		0.280			0.280			0.280			0.260			0.260
Performance Ratios:
Return on average assets		1.27	%		1.49	%		1.65	%		1.32	%		1.33	%
Return on average assets from continuing operations		1.17			1.03			1.29			1.31			1.12
Return on average equity		9.43			11.27			12.46			9.89			10.05
Return on average equity from continuing operations		8.68			7.77			9.72			9.79			8.52
Efficiency ratio from continuing operations (4)		61			66			63			64			61
Yield on average interest-earning assets from continuing operations (2)		3.65			3.37			3.71			3.97			3.84
Cost of average interest-bearing liabilities from continuing operations		0.17			0.20			0.23			0.34			0.45
Cost of average deposits from continuing operations (5)		0.09			0.10			0.13			0.19			0.24
Net interest spread from continuing operations (2)		3.48			3.17			3.48			3.63			3.39
Net interest margin from continuing operations - Total Company (2)		3.55			3.27			3.58			3.77			3.57
Net interest margin from continuing operations - Core Bank (6)		3.25			3.03			3.46			3.48			3.25
Other Information:
End of period FTEs (7) - Total Company		1,052			1,072			1,086			1,094			1,085
End of period FTEs - Core Bank		966			981			990			997			993
Number of full-service banking centers		42			42			42			42			42

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

Credit Quality Data and Ratios
	As of and for the Three Months Ended
	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Credit Quality Asset Balances:
Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	20,252		$	21,621		$	22,004		$	23,548		$	20,910
Loans past due 90-days-or-more and still on accrual		691			723			517			47			175
Total nonperforming loans		20,943			22,344			22,521			23,595			21,085
OREO		1,845			1,898			2,015			2,499			2,056
Total nonperforming assets	$	22,788		$	24,242		$	24,536		$	26,094		$	23,141
Nonperforming Assets - Core Bank (6):
Loans on nonaccrual status	$	20,252		$	21,621		$	22,004		$	23,548		$	20,910
Loans past due 90-days-or-more and still on accrual		—			—			—			5			—
Total nonperforming loans		20,252			21,621			22,004			23,553			20,910
OREO		1,845			1,898			2,015			2,499			2,056
Total nonperforming assets	$	22,097		$	23,519		$	24,019		$	26,052		$	22,966
Delinquent Loans:
Delinquent loans - Core Bank	$	7,692		$	9,909		$	8,560		$	9,713		$	11,069
Delinquent loans - RPG (8)		9,701			8,809			6,426			10,234			5,984
Total delinquent loans - Total Company	$	17,393		$	18,718		$	14,986		$	19,947		$	17,053
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans		0.48	%		0.49	%		0.48	%		0.49	%		0.42	%
Nonperforming assets to total loans (including OREO)		0.52			0.53			0.53			0.54			0.46
Nonperforming assets to total assets		0.37			0.39			0.38			0.42			0.37
Allowance for credit losses to total loans		1.45			1.32			1.61			1.27			1.20
Allowance for credit losses to nonperforming loans		301			270			335			259			284
Delinquent loans to total loans (9)		0.40			0.41			0.32			0.41			0.34
Net charge-offs (recoveries) to average loans (annualized)		(0.13	)		0.95			0.09			(0.04	)		(0.27	)
Net charge-offs from continuing operations to average loans (annualized)		0.07			0.05			0.09			0.13			0.07
Credit Quality Ratios - Core Bank:
Nonperforming loans to total loans		0.48	%		0.49	%		0.49	%		0.50	%		0.43	%
Nonperforming assets to total loans (including OREO)		0.52			0.53			0.53			0.56			0.47
Nonperforming assets to total assets		0.39			0.42			0.42			0.45			0.39
Allowance for credit losses to total loans		1.22			1.16			1.14			1.11			1.05
Allowance for credit losses to nonperforming loans		254			238			234			221			245
Delinquent loans to total loans		0.18			0.22			0.19			0.21			0.23
Net charge-offs (recoveries) to average loans (annualized)		(0.02	)		—			0.03			0.07			0.03

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

Segment Data:

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

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

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

Reportable Segment:	Nature of Operations:	Primary Drivers of Net Revenue:
Core Banking:
Traditional Banking	Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels.	Loans, investments, and deposits
Warehouse Lending	Provides short-term, revolving credit facilities to mortgage bankers across the United States.	Mortgage warehouse lines of credit
Mortgage Banking	Primarily originates, sells and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint.	Loan sales and servicing
Republic Processing Group:
Tax Refund Solutions:
Continuing Operations	Continuing operations of TRS include its RPS division and certain indirect costs that are expected to remain with the Bank. The RPS division of TRS offers general-purpose reloadable cards primarily to clients outside of the Bank’s market footprint.	Prepaid Cards
Discontinued Operations	The Bank agreed to sell its TRS business to Green Dot in May 2021. The TRS business has traditionally contained the significant majority of revenue and expense generated at the TRS segment. The TRS business contracted to be sold offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. TRS products are primarily provided to clients outside of the Bank’s market footprint.	Loans and refund transfers
Republic Credit Solutions	Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers.	Unsecured, consumer loans

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

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

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

	Three Months Ended September 30, 2021
	Core Banking												Republic Processing Group ("RPG")
	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company
(dollars in thousands)
Net interest income	$	40,297		$	6,291		$	253		$	46,841		$	171		$	5,297		$	5,468		$	52,309
Provision for expected credit loss expense		(44	)		(223	)		—			(267	)		—			3,820			3,820			3,553
Mortgage banking income		—			—			5,280			5,280			—			—			—			5,280
Program fees		—			—			—			—			763			3,767			4,530			4,530
Other noninterest income		8,108			15			62			8,185			—			—			—			8,185
Total noninterest income		8,108			15			5,342			13,465			763			3,767			4,530			17,995
Total noninterest expense		35,927			1,056			3,257			40,240			1,308			1,046			2,354			42,594
Income (loss) from continuing operations before income tax expense		12,522			5,473			2,338			20,333			(374	)		4,198			3,824			24,157
Income tax expense (benefit)		3,038			1,258			514			4,810			(102	)		1,037			935			5,745
Income (loss) from continuing operations		9,484			4,215			1,824			15,523			(272	)		3,161			2,889			18,412
Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			2,070			—			2,070			2,070
Income tax expense		—			—			—			—			473			—			473			473
Income from discontinued operations, net of tax		—			—			—			—			1,597			—			1,597			1,597
Net income	$	9,484		$	4,215		$	1,824		$	15,523		$	1,325		$	3,161		$	4,486		$	20,009
Period-end assets	$	4,907,503		$	750,266		$	41,196		$	5,698,965		$	365,552		$	123,117		$	488,669		$	6,187,634
Net interest margin from continuing operations		3.22	%		3.51	%	NM				3.25	%	NM			NM			NM				3.55	%
Net-revenue concentration from continuing operations*		69	%		9	%		8	%		86	%		1	%		13	%		14	%		100	%

	Three Months Ended September 30, 2020
	Core Banking												Republic Processing Group ("RPG")
	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company
(dollars in thousands)
Net interest income	$	38,753		$	7,345		$	300		$	46,398		$	675		$	4,976		$	5,651		$	52,049
Provision for expected credit loss expense		5,857			(3	)		—			5,854			—			(12	)		(12	)		5,842
Mortgage banking income		—			—			10,775			10,775			—			—			—			10,775
Program fees		—			—			—			—			643			844			1,487			1,487
Other noninterest income		7,138			(21	)		21			7,138			—			—			—			7,138
Total noninterest income		7,138			(21	)		10,796			17,913			643			844			1,487			19,400
Total noninterest expense		36,415			1,875			2,832			41,122			1,481			1,175			2,656			43,778
Income (loss) from continuing operations before income tax expense		3,619			5,452			8,264			17,335			(163	)		4,657			4,494			21,829
Income tax expense (benefit)		558			1,226			1,736			3,520			(40	)		1,074			1,034			4,554
Income (loss) from continuing operations		3,061			4,226			6,528			13,815			(123	)		3,583			3,460			17,275
Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			3,997			—			3,997			3,997
Income tax expense		—			—			—			—			883			—			883			883
Income from discontinued operations, net of tax		—			—			—			—			3,114			—			3,114			3,114
Net income	$	3,061		$	4,226		$	6,528		$	13,815		$	2,991		$	3,583		$	6,574		$	20,389
Period-end assets	$	4,769,848		$	1,026,790		$	61,809		$	5,858,447		$	269,337		$	112,662		$	381,999		$	6,240,446
Net interest margin from continuing operations		3.22	%		3.41	%	NM				3.25	%	NM			NM			NM				3.57	%
Net-revenue concentration from continuing operations*		64	%		10	%		16	%		90	%		2	%		8	%		10	%		100	%

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

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Table of Contents

	Nine Months Ended September 30, 2021
	Core Banking												Republic Processing Group ("RPG")
	Traditional Banking			Warehouse Lending			Mortgage Banking			Total Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company
(dollars in thousands)
Net interest income	$	119,677		$	19,387		$	802		$	139,866		$	665		$	14,794		$	15,459		$	155,325
Provision for expected credit loss expense		(126	)		(530	)		—			(656	)		—			5,037			5,037			4,381
Mortgage banking income		—			—			16,655			16,655			—			—			—			16,655
Program fees		—			—			—			—			2,374			7,930			10,304			10,304
Other noninterest income		22,862			43			140			23,045			(7	)		—			(7	)		23,038
Total noninterest income		22,862			43			16,795			39,700			2,367			7,930			10,297			49,997
Total noninterest expense		110,192			3,150			9,384			122,726			4,239			3,028			7,267			129,993
Income (loss) from continuing operations before income tax expense		32,473			16,810			8,213			57,496			(1,207	)		14,659			13,452			70,948
Income tax expense (benefit)		6,718			3,919			1,807			12,444			(373	)		3,637			3,264			15,708
Income (loss) from continuing operations		25,755			12,891			6,406			45,052			(834	)		11,022			10,188			55,240
Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			19,584			—			19,584			19,584
Income tax expense		—			—			—			—			4,840			—			4,840			4,840
Income from discontinued operations, net of tax		—			—			—			—			14,744			—			14,744			14,744
Net income	$	25,755		$	12,891		$	6,406		$	45,052		$	13,910		$	11,022		$	24,932		$	69,984
Period-end assets	$	4,907,503		$	750,266		$	41,196		$	5,698,965		$	365,552		$	123,117		$	488,669		$	6,187,634
Net interest margin from continuing operations		3.21	%		3.47	%	NM				3.24	%	NM			NM			NM				3.46	%
Net-revenue concentration from continuing operations*		70	%		9	%		9	%		88	%		1	%		11	%		12	%		100	%

	Nine Months Ended September 30, 2020
	Core Banking												Republic Processing Group ("RPG")
	Traditional Banking			Warehouse Lending			Mortgage Banking			Core Banking			Tax Refund Solutions			Republic Credit Solutions			Total RPG			Total Company
(dollars in thousands)
Net interest income	$	118,409		$	17,715		$	932		$	137,056		$	1,622		$	17,655		$	19,277		$	156,333
Provision for expected credit loss expense		14,526			778			—			15,304			—			251			251			15,555
Mortgage banking income		—			—			23,968			23,968			—			—			—			23,968
Program fees		—			—			—			—			1,573			3,676			5,249			5,249
Other noninterest income		20,499			7			53			20,559			(15	)		—			(15	)		20,544
Total noninterest income		20,499			7			24,021			44,527			1,558			3,676			5,234			49,761
Total noninterest expense		109,750			3,489			7,517			120,756			5,360			2,972			8,332			129,088
Income (loss) from continuing operations before income tax expense		14,632			13,455			17,436			45,523			(2,180	)		18,108			15,928			61,451
Income tax expense (benefit)		1,747			3,027			3,662			8,436			(517	)		4,188			3,671			12,107
Income (loss) from continuing operations		12,885			10,428			13,774			37,087			(1,663	)		13,920			12,257			49,344
Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			17,550			—			17,550			17,550
Income tax expense		—			—			—			—			4,004			—			4,004			4,004
Income from discontinued operations, net of tax		—			—			—			—			13,546			—			13,546			13,546
Net income	$	12,885		$	10,428		$	13,774		$	37,087		$	11,883		$	13,920		$	25,803		$	62,890
Period-end assets	$	4,769,848		$	1,026,790		$	61,809		$	5,858,447		$	269,337		$	112,662		$	381,999		$	6,240,446
Net interest margin from continuing operations		3.41	%		3.07	%	NM				3.37	%	NM			NM			NM				3.69	%
Net-revenue concentration from continuing operations*		67	%		9	%		12	%		88	%		2	%		10	%		12	%		100	%

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

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Third Quarter 2021 (continued)

Footnotes:

(1)
On May 13, 2021, the Bank entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Green Dot providing for the purchase by Green Dot, upon the terms and subject to the conditions set forth therein, of substantially all of the assets and operations of the Bank’s Tax Refund Solutions business (the “Sale Transaction”).

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

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

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

(2)
The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The amount of loan fee income included in total interest income from continuing operations was $11.3 million and $7.8 million for the quarters ended and $31.6 million and $23.1 million for the nine months ended September 30, 2021 and 2020.

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

 

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

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(3)
The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity in accordance with applicable regulatory requirements, a non-GAAP disclosure. The Company provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.

	Quarterly Comparison
(dollars in thousands, except per share data)	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Total stockholders' equity - GAAP (a)	$	838,657		$	845,090		$	837,709		$	823,323		$	810,362
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		8,867			8,335			7,711			7,095			6,674
Less: Core deposit intangible		—			—			53			189			283
Tangible stockholders' equity - Non-GAAP (c)	$	813,490		$	820,455		$	813,645		$	799,739		$	787,105
Total assets - GAAP (b)	$	6,187,634		$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		8,867			8,335			7,711			7,095			6,674
Less: Core deposit intangible		—			—			53			189			283
Tangible assets - Non-GAAP (d)	$	6,162,467		$	6,158,675		$	6,452,476		$	6,144,741		$	6,217,189
Total stockholders' equity to total assets - GAAP (a/b)		13.55	%		13.67	%		12.93	%		13.35	%		12.99	%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)		13.20	%		13.32	%		12.61	%		13.02	%		12.66	%
Number of shares outstanding (e)		20,205			20,587			20,826			20,896			20,915
Book value per share - GAAP (a/e)	$	41.51		$	41.05		$	40.22		$	39.40		$	38.75
Tangible book value per share - Non-GAAP (c/e)		40.26			39.85			39.07			38.27			37.63

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

	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
(dollars in thousands)	2021			2020			2021			2020
Net interest income - GAAP	$	52,309		$	52,049		$	155,325		$	156,333
Noninterest income - GAAP		17,995			19,400			49,997			49,761
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities		(10	)		5			(46	)		61
Total adjusted income - Non-GAAP (a)	$	70,314		$	71,444		$	205,368		$	206,033
Noninterest expense - GAAP (b)	$	42,594		$	43,778		$	129,993		$	129,088
Efficiency Ratio from continuing operations- Non-GAAP (b/a)		61	%		61	%		63	%		63	%

	Three Months Ended
(dollars in thousands)	Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020
Net interest income - GAAP	$	52,309		$	49,638		$	53,378		$	55,028		$	52,049
Noninterest income - GAAP		17,995			15,761			16,241			16,697			19,400
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities		(10	)		(1	)		(35	)		(12	)		5
Total adjusted income - Non-GAAP (a)	$	70,314		$	65,400		$	69,654		$	71,737		$	71,444
Noninterest expense - GAAP (b)	$	42,594		$	43,290		$	44,109		$	45,734		$	43,778
Efficiency Ratio from continuing operations- Non-GAAP (b/a)		61	%		66	%		63	%		64	%		61	%

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

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

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

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Table of Contents

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

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

NM – Not meaningful

NA – Not applicable

CONTACT:

Republic Bancorp, Inc.

Kevin Sipes

Executive Vice President & Chief Financial Officer

(502) 560-8628

S-17

XML

Document and Entity Information	Oct. 22, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 22, 2021
Entity Registrant Name	REPUBLIC BANCORP, INC.
Entity Incorporation, State or Country Code	KY
Entity File Number	0-24649
Entity Tax Identification Number	61-0862051
Entity Address, Address Line One	601 West Market Street
Entity Address, City or Town	Louisville
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40202
City Area Code	502
Local Phone Number	584-3600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000921557
Title of 12(b) Security	Class A Common
Trading Symbol	RBCAA
Security Exchange Name	NASDAQ