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): July 22, 2022

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

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 July 22, 2022, Republic Bancorp, Inc. announced its results of operations for the quarter ended June 30, 2022. 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 July 22, 2022.
99.2	Earnings Release Financial Supplement – Second Quarter 2022
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: July 22, 2022	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 July 22, 2022.
99.2	Earnings Release Financial Supplement – Second Quarter 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

EX-99.1

 Exhibit 99.1

Republic Bancorp, Inc. Reports Second Quarter Net Income of $23.9 Million

LOUISVILLE, Ky.--(BUSINESS WIRE)--July 22, 2022--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”) reported second quarter 2022 net income of $23.9 million, equaling its net income for the second quarter of 2021 and resulting in Diluted Earnings per Class A Common Share (“Diluted EPS”) of $1.20. Year-to-date net income was $51.8 million, a $1.9 million, or 4%, increase from the same period in 2021, resulting in return on average assets (“ROA”) and return on average equity (“ROE”) of 1.64% and 12.21% for the first six months of 2022.

Logan Pichel, President and CEO of Republic Bank & Trust Company, commented, “Our second quarter results benefitted from a one-time payment received as a result of concluding our legal issue with Green Dot. That payment helped offset the expected decline in PPP⁽³⁾ fee income and reductions in mortgage banking and Warehouse Lending revenues resulting from significantly higher interest rates.”

The following chart presents the Company’s second quarter 2022 net income for each operating segment compared to the second quarter of 2021.

	NET INCOME
(dollars in thousands)		Three Months Ended Jun. 30,
Reportable Segment		2022		2021		$ Change		% Change
Traditional Banking - excluding PPP net income impact*		$	6,657	$	4,396	$	2,261	51	%
Traditional Banking - PPP net income impact*			125		3,437		(3,312)	(96)
Total Traditional Bank			6,782		7,833		(1,051)	(13)
Warehouse Lending			2,405		4,110		(1,705)	(41)
Mortgage Banking			(679)		1,065		(1,744)	(164)
Total Core Bank			8,508		13,008		(4,500)	(35)
Tax Refund Solutions - excluding TRS Transaction items*			2,919		7,928		(5,009)	(63)
Tax Refund Solutions - TRS Transaction items*			9,226		(752)		9,978	NM
Total Tax Refund Solutions*			12,145		7,176		4,969	69
Republic Credit Solutions			3,248		3,738		(490)	(13)
Total Republic Processing Group			15,393		10,914		4,479	41
Total Company		$	23,901	$	23,922	$	(21)	—

*See Footnote 1 for a reconciliation of non-GAAP measures to their most comparable GAAP measures.

Pichel continued, “We are encouraged by the continued growth in the fundamentals of our Traditional Bank, as evidenced by:

• +51% growth in net income, excluding PPP⁽¹⁾
• Year-to-date loan growth of $213 million, or 6%, excluding PPP, with notable growth from our Northern Kentucky/Cincinnati market, our Private, CRE, and Commercial Banking division, and our Corporate Banking division
• 16-basis-point growth in net interest margin from the first to the second quarter of 2022
• Retention of deposit balances and account relationships
• Prudent expense control
• Pristine credit quality

“Given the strength of our current balance sheet, as well as the many opportunities we continue to see across our various business segments, we are pleased overall with how we are positioned for this operating environment and are optimistic for a strong second half of 2022, and beyond,” concluded Pichel.

The following table highlights Republic’s key metrics for the three and six months ended June 30, 2022 and 2021. 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 July 22, 2022.

	Total Company Financial Performance Highlights
		Three Months Ended Jun. 30,										Six Months Ended Jun. 30,
(dollars in thousands, except per share data)		2022			2021			$ Change		% Change		2022			2021			$ Change		% Change
Income Before Income Tax Expense		$	30,440		$	30,561		$	(121)	—	%	$	66,254		$	64,305		$	1,949	3	%
Net Income			23,901			23,922			(21)	—			51,827			49,975			1,852	4
Diluted EPS			1.20			1.16			0.04	3			2.59			2.41			0.18	7
Return on Average Assets ("ROA")			1.53	%		1.49	%		NA	3			1.64	%		1.57	%		NA	4
Return on Average Equity ("ROE")			11.23			11.27			NA	—			12.21			11.86			NA	3

NA – Not applicable

Results of Operations for the Second Quarter of 2022 Compared to the Second Quarter of 2021

Core Bank⁽²⁾

Net income from Core Banking was $8.5 million for the second quarter of 2022 compared to $13.0 million for the second quarter of 2021. The decrease in net income at the Core Bank was primarily driven by a $4.4 million decrease in pre-tax PPP loan fees and interest, a $2.4 million decline in net interest income from the Warehouse Lending segment (“Warehouse”), and a $2.4 million decrease in Mortgage Banking income, with these decreases partially offset by an increase of $5.3 million in non-PPP-related Traditional Bank net interest income. The decreases in both Warehouse and Mortgage Banking income were driven by a reduction in industry-wide demand for home mortgage refinancing following a dramatic rise in long-term interest rates. The increase in non-PPP Traditional Bank net interest income was driven by strong Traditional Bank loan growth coupled with a recent rise in short-term interest rates.

Net Interest Income – Core Bank net interest income was $43.2 million for the second quarter of 2022, a $1.5 million, or 3%, decrease from the second quarter of 2021. This change was driven primarily by the following:

Traditional Bank, Excluding PPP

Excluding PPP fees and interest⁽³⁾, from the second quarter of 2021 to the second quarter of 2022, the Traditional Bank’s net interest income increased $5.3 million, or 16%, and its net interest margin (“NIM”) expanded 25 basis points to 3.06%. This increase in net interest income and related expansion in NIM resulted primarily from the following:

• Increases in the Federal Funds Target Rate (“FFTR”) during 2022 have benefitted the Traditional Bank’s high level of interest-earning cash on its balance sheet, as well as its loan and investment portfolio yields, although to a lesser degree. As a result, the Traditional Bank’s yield on interest-earning assets, excluding PPP, increased 20 basis points from the second quarter of 2021 to the second quarter of 2022.

• Average non-PPP Traditional Bank loans grew from $3.3 billion during the second quarter of 2021 to $3.6 billion during the second quarter of 2022.

Traditional Bank, PPP

The Core Bank recognized $167,000 of fees and interest on its PPP portfolio during the second quarter of 2022 compared to $4.6 million of similar fees and interest during the second quarter of 2021. The $4.4 million decrease in PPP fees and interest primarily highlighted the short-term nature of the PPP, as approximately 97% of all fees and interest eligible to be recognized under the program by the Core Bank were recognized during 2020 and 2021. As of June 30, 2022, total PPP loans of $15 million remained on the Core Bank’s balance sheet out of the original $738 million originated during 2020 and 2021, with less than $350,000 of PPP fee income left to be recognized over the remaining lives of the loans.

Warehouse Lending

Net interest income within the Core Bank’s Warehouse segment decreased $2.4 million, or 39%, from the second quarter of 2021 to the second quarter of 2022. Overall, average outstanding Warehouse balances declined from $727 million during the second quarter of 2021 to $579 million for the second quarter of 2022, with the Warehouse net interest margin decreasing 79 basis points from 3.48% during the second quarter of 2021 to 2.69% during the second quarter of 2022. Committed Warehouse lines of credit remained at $1.4 billion from June 30, 2021 to June 30, 2022, while average usage rates for Warehouse lines were 41% and 51%, respectively, during the second quarters of 2022 and 2021.

In general, the decline in net interest income within Warehouse Lending was driven largely by a sharp rise in long-term interest rates during the first half of 2022, which led to a decrease in mortgage refinancing demand, a sharp drop in Warehouse line usage, and an overall decrease in outstanding Warehouse balances. In addition, Warehouse’s net interest margin was negatively impacted during the second quarter of 2022, as many adjustable rate Warehouse lines remained below their interest rate floors. These interest rate floors, which benefitted Warehouse’s net interest margin significantly during 2020 and 2021 when market rates declined to historical lows, negatively impacted its net interest margin during the first half of 2022, as its cost of funding rose while its loan yield remained relatively stable. The negative impact of these floors is expected to diminish in the near term as interest rates on many Warehouse lines are expected to begin exceeding their floors during the third quarter of 2022, assuming currently projected FFTR increases come to fruition.

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 Jun. 30,						Three Months Ended Jun. 30,
Reportable Segment	2022		2021		Change		2022		2021		Change
Traditional Banking - excluding PPP	$	38,991	$	33,696	$	5,295	3.06	%	2.81	%	0.25	%
Traditional Banking - PPP		167		4,582		(4,415)	NM		NM		NM
Warehouse Lending		3,886		6,324		(2,438)	2.69		3.48		(0.79)
Mortgage Banking*		153		140		13	NM		NM		NM
Total Core Bank	$	43,197	$	44,742	$	(1,545)	3.02		3.03		(0.01)

	Average Loan Balances								Period-End Loan Balances
(dollars in thousands)	Three Months Ended Jun. 30,								Jun. 30,
Reportable Segment	2022		2021		$ Change		% Change		2022		2021		$ Change		% Change
Traditional Banking - excluding PPP	$	3,603,093	$	3,302,374	$	300,719	9	%	$	3,658,933	$	3,348,161	$	310,772	9	%
Traditional Banking - PPP		16,668		349,643		(332,975)	(95)			14,657		250,933		(236,276)	(94)
Warehouse Lending		578,676		727,091		(148,415)	(20)			596,678		840,155		(243,477)	(29)
Mortgage Banking*		10,189		28,740		(18,551)	(65)			8,491		32,401		(23,910)	(74)
Total Core Bank	$	4,208,626	$	4,407,848	$	(199,222)	(5)		$	4,278,759	$	4,471,650	$	(192,891)	(4)
*Includes loans held for sale NM – Not meaningful

Provision for Expected Credit Loss Expense – The Core Bank’s Provision⁽⁴⁾ was a net credit of $88,000 for the second quarter of 2022 compared to a net credit of $142,000 for the second quarter of 2021. The net credit during the second quarter of 2022 was primarily driven by the following:

• The Core Bank recorded a credit to the Provision of $1.4 million during the second quarter of 2022 following the payoff or upgrade of loans previously downgraded during the height of the pandemic.

• The Core Bank recorded a credit to the Provision of $234,000 during the second quarter of 2022 resulting from formula reserves applied to a decrease in outstanding Warehouse balances from $690 million as of March 31, 2022 to $597 million as of June 30, 2022.

• Offsetting the above, the Core Bank recorded a net charge to the Provision of $1.5 million during the second quarter of 2022 resulting primarily from formula reserves applied to $106 million of growth in non-PPP Traditional Bank loans from March 31, 2022 to June 30, 2022.

The credit to the Core Bank Provision during the second quarter of 2021 generally reflected an improving economy following the lifting of many pandemic-related restrictions. As of June 30, 2022, while the Core Bank’s credit metrics remained solid, the Company’s Allowance⁽⁴⁾ remained generally elevated compared to historical levels due to continued economic uncertainty resulting from inflation not seen in the United States since the early 1980s.

As a percentage of total loans, the Core Bank’s Allowance increased from 1.16% as of June 30, 2021 to 1.20% as of June 30, 2022. The table below provides a view of the Company’s percentage of Allowance-to-total-loans by reportable segment.

	As of Jun. 30, 2022						As of Jun. 30, 2021						Year-over-Year Change
(dollars in thousands)					Allowance						Allowance		Allowance
Reportable Segment	Gross Loans		Allowance		to Loans		Gross Loans		Allowance		to Loans		to Loans		% Change
Traditional Bank, Less PPP	$	3,658,933	$	49,727	1.36	%	$	3,348,161	$	49,362	1.47	%	(0.11)	%	(7)	%
Plus: Paycheck Protection Program		14,657		—				250,933		—
Traditional Bank	$	3,673,590	$	49,727	1.35			3,599,094		49,362	1.37		(0.02)		(1)
Warehouse Lending		596,678		1,491	0.25			840,155		2,100	0.25		—		—
Total Core Bank		4,270,268		51,218	1.20			4,439,249		51,462	1.16		0.04		3
Tax Refund Solutions		149		—	—			23		—	—		—		—
Republic Credit Solutions		91,816		13,231	14.41			114,949		8,829	7.68		6.73		88
Total Republic Processing Group		91,965		13,231	14.39			114,972		8,829	7.68		6.71		87
Total Company	$	4,362,233	$	64,449	1.48		$	4,554,221	$	60,291	1.32		0.16		12

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

	Quarters Ended:				Years Ended:
	Jun. 30,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
Core Banking Credit Quality Ratios	2022		2022		2021		2020		2019
Nonperforming loans to total loans	0.38	%	0.40	%	0.47	%	0.50	%	0.54	%
Nonperforming assets to total loans (including OREO)	0.42		0.44		0.51		0.56		0.54
Delinquent loans* to total loans	0.13		0.14		0.17		0.21		0.30
Net charge-offs to average loans	—		0.01		0.01		0.03		0.11
(Quarterly rates annualized)
OREO = Other Real Estate Owned

*Loans 30-days-or-more past due

Noninterest Income – Core Bank noninterest income was $9.5 million during the second quarter of 2022, a decrease of $2.7 million, or 22%, from the second quarter of 2021. The decrease in noninterest income was driven primarily by the following:

• A significant and rapid rise in long-term interest rates during 2022 led to a significant slowdown in the origination and subsequent sale of mortgage loans into the secondary market for the Core Bank. As of June 30, 2022, the 30-year mortgage rate was hovering near levels not generally seen since 2008. As a result, Mortgage Banking income decreased from $4.2 million during the second quarter of 2021 to $1.8 million for the second quarter of 2022.
  
  For the second quarter of 2022, the Core Bank sold $68 million in secondary market loans and achieved an average cash-gain-as-a-percent-of-loans-sold during the quarter of 2.85%. During the second quarter of 2021, however, with long-term mortgage interest rates substantially lower, secondary market loan sales were $176 million with comparable cash-gain-as-a-percent-of-loans-sold consistent at 2.85%.
  

• Additionally, the Core Bank’s Other Noninterest Income for the second quarter of 2021 included a $399,000 non-recurring gain recognized from the sale of a former banking center property in Hudson, Florida.

Noninterest Expense – Core Bank noninterest expense was $42.2 million for the second quarter of 2022 compared to $41.0 million for the second quarter of 2021, an increase of 3%. The increase in noninterest income was driven primarily by the following:

• Salaries and Benefits expense increased $817,000, or 3%, to $25.0 million for the second quarter of 2022, driven primarily by higher health-benefits costs and annual merit increases and partially offset by a 52-count reduction in full-time equivalent employees.
• Other noninterest expense increased $744,000, or 25%, to $3.7 million for the second quarter of 2022, driven primarily by an increase in the following:
  • Meals, Entertainment, and Travel expenses increased $309,000, with in-person community outreach and business related travel increasing toward pre-pandemic levels during 2022.
  • Provision for losses on off-balance sheet commitments increased $141,000, driven primarily by an increase in the Bank’s committed but unused lines of credit during the previous 12 months.

Republic Processing Group⁽⁵⁾

The Republic Processing Group (“RPG”) reported net income of $15.4 million for the second quarter of 2022 compared to $10.9 million for the same period in 2021. RPG adjusted net income⁽¹⁾ for the second quarter of 2022, which excludes a previously disclosed $13.0 million pre-tax legal settlement paid to Republic Bank & Trust Company (“RB&T”), as well as $699,000 in related expenses, was $6.2 million. Notable items impacting net income for each of the RPG reporting segments during the second quarters of 2022 and 2021 were as follows:

Tax Refund Solutions (“TRS”)

The TRS segment derives substantially all of its revenues during the first and second quarters of the year. TRS recorded net income of $12.1 million for the second quarter of 2022 compared to $7.2 million for the same period in 2021. The following primarily drove the increase in TRS’s net income for the quarter:

• TRS recorded $13.0 million of noninterest income during the second quarter of 2022, partially offset by $699,000 in related expenses, resulting from the previously disclosed legal-settlement payment to RB&T. This second quarter 2022 legal-settlement payment to RB&T was in addition to the related $5.0 million contract termination fee paid to RB&T during the first quarter of 2022. For more information on RB&T’s now-settled lawsuit, see the Company’s Form 8-K filed with the SEC on June 3, 2022.

• Partially offsetting the above, TRS recorded a $6.1 million negative swing in its Provision expense from the second quarter of 2021 to the second quarter of 2022. While the overall net total Provision is a positive benefit on a year-to-date basis, the later timing of payments received during 2021 versus 2022 resulted in a large credit to the Provision during the second quarter of 2021 versus a minimal additional expense to the Provision during the second quarter of 2022. Easy Advances (“EAs”) are originated only during the first two months of each year, with losses on those originations initially estimated during the same two-month origination period. All unpaid EAs are charged off by June 30^th of each year, with first quarter loss estimates trued-up to actual charge-offs incurred through a second quarter Provision charge or credit. EAs collected during the second half of each year are recorded as recoveries of previously charged-off loans.
  
  During the second quarter of 2022, TRS trued-up its first quarter EA loss estimate with a charge to the Provision of $564,000, increasing its weighted average net EA loss rate from an estimated 2.67% as of March 31, 2022 to 2.85% as of June 30, 2022. During the second quarter of 2021, TRS trued-up its first quarter EA loss estimate with a credit to the Provision of $5.8 million, decreasing its estimated net EA loss rate from 6.41% as of March 31, 2021 to 4.10% as of June 30, 2021. The significant true-up credit to the Provision during the second quarter of 2021 resulted primarily from a higher volume of loan payments received by the Company during the second quarter, exceeding the conservative estimates originally made by the Company during the first quarter of 2021 when the tax season experienced a two-week delay to its start.

For the 2022 and 2021 tax seasons, the following table presents information regarding EA originations, actual charge-offs, first quarter Provision estimates, and second quarter Provision true-ups:

(dollars in thousands)		2022 Tax Season			2021 Tax Season				2022/2021 Change
EAs originated during the first two months of the year	(a)	$	311,207		$	250,045			$	61,162
Actual EA losses incurred compared to loss estimates ($):
Actual losses recognized for the first six months ended June 30,	(b)	$	8,879		$	10,226			$	(1,347	)
First quarter Provision estimate made during three months ended March 31,	(c)		8,315			16,019				(7,704	)
Second quarter Provision true-up for three months ended June 30,	(d)	$	564		$	(5,793	)		$	6,357
EA actual losses incurred compared to loss estimates (%):
Actual losses recognized for the first six months ended June 30,	(b)/(a)		2.85	%		4.09		%		(1.24	)%
First quarter Provision estimate made during three months ended March 31,	(c)/(a)		2.67			6.41				(3.74	)
Second quarter Provision true-up for three months ended June 30,	(d)/(a)		0.18	%		(2.32	)	%		2.50	%

• TRS’s Net Refund Transfer (“RT”) fees decreased $2.0 million, or 33%, from $5.9 million for the second quarter of 2021 to $4.0 million for the same period in 2022. The decrease was primarily driven by an 8% overall decrease in RT volume from the 2021 to the 2022 tax season, with 4% of that decrease driven by the loss of one of TRS’s tax providers following the announcement of the now-cancelled May 2021 Asset Purchase Agreement. Also impacting the decrease in net RT fees from the second quarter of 2021 to the second quarter of 2022 was the previously mentioned two-week delay in the 2021 tax season, which pushed a greater percentage of RT volume into the second quarter of 2021.

Republic Credit Solutions (“RCS”)

Net income at RCS decreased to $3.2 million for the second quarter of 2022 from $3.7 million for the second quarter of 2021. The decrease in RCS’s net income primarily resulted from higher Provisions on its line-of-credit products, as the net charge-offs and the required up-front loan loss reserves for the programs have increased as the combined total outstanding balances of the programs approach pre-pandemic levels.

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 $6.1 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, other future conditions, and the impact of the COVID 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, 2021. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Footnotes:

(1) The following table provides a reconciliation of financial measures in accordance with GAAP to the Company’s adjusted results, which are non-GAAP measures that exclude significant, unusual items. Management uses these non-GAAP measures to evaluate the on-going performance of the Company. Non-GAAP measures are not formally defined by GAAP or codified in the federal banking regulations, and other entities may use calculation methods that differ from those used by the Company.

	NON-GAAP RECONCILIATION BY SEGMENT
(dollars in thousands)		Three Months Ended Jun. 30,
Reportable Segment		2022		2021		$ Change			% Change
Income Before Income Tax Expense:
Traditional Banking - GAAP		$	8,429	$	9,388	$	(959	)	(10	)%
Less: Net interest income from PPP fees and interest			167		4,582		(4,415	)	(96	)
Traditional Banking - Non-GAAP		$	8,262	$	4,806	$	3,456		72
TRS - GAAP		$	15,610	$	9,502	$	6,108		64	%
Less: Noninterest income related to TRS Transaction*			13,000		—		13,000		NM
Add: Noninterest expense related to TRS Transaction*			699		1,000		(301	)	NM
TRS - Non-GAAP		$	3,309	$	10,502	$	(7,193	)	(68	)
RPG - GAAP		$	19,784	$	14,470	$	5,314		37	%
Less: Noninterest income related to TRS Transaction*			13,000		—		13,000		NM
Add: Noninterest expense related to TRS Transaction*			699		1,000		(301	)	NM
RPG - Non-GAAP		$	7,483	$	15,470	$	(7,987	)	(52	)
Net Income:
Traditional Banking - GAAP		$	6,782	$	7,833	$	(1,051	)	(13	)%
Less: Impact of net interest income from PPP fees and interest			125		3,437		(3,312	)	(96	)
Traditional Banking - Non-GAAP		$	6,657	$	4,396	$	2,261		51
TRS - GAAP		$	12,145	$	7,176	$	4,969		69	%
Less: Noninterest income related to TRS Transaction* (tax effected)			9,750		—		9,750		NM
Add: Noninterest expense related to TRS Transaction* (tax effected)			524		752		(228	)	NM
TRS - Non-GAAP		$	2,919	$	7,928	$	(5,009	)	(63	)
RPG - GAAP		$	15,393	$	10,914	$	4,479		41	%
Less: Noninterest income related to TRS Transaction* (tax effected)			9,750		—		9,750		NM
Add: Noninterest expense related to TRS Transaction* (tax effected)			524		752		(228	)	NM
RPG - Non-GAAP		$	6,167	$	11,666	$	(5,499	)	(47	)

*The TRS Transaction relates to the now-cancelled May 13, 2021 Asset Purchase Agreement for the sale of substantially all of TRS assets and operations. During the second quarter of 2022, RB&T received a pre-tax $13 million legal settlement payment and incurred $699,000 of related expenses in relation to the TRS Transaction. During the second quarter of 2021, RB&T incurred $1.0 million of expenses related to the TRS Transaction.

NM – Not meaningful

(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 Income									Interest-Earning Assets									Net Interest Margin
	Three Months Ended Jun. 30,									Three Months Ended Jun. 30,									Three Months Ended Jun. 30,
(dollars in thousands)	2022		2021		$ Change			% Change		2022		2021		$ Change			% Change		2022		2021		% Change
Traditional Banking - GAAP	$	39,158	$	38,278	$	880		2	%	$	5,121,492	$	5,149,602	$	(28,110	)	(1	)%	3.06	%	2.97	%	0.09	%
Less: Impact of PPP fees and interest		167		4,582		(4,415	)	(96	)		16,668		349,643		(332,975	)	(95	)	—		0.16		(0.16	)
Traditional Banking ex PPP fees and interest - non-GAAP	$	38,991	$	33,696	$	5,295		16		$	5,104,824	$	4,799,959	$	304,865		6		3.06		2.81		0.25

(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

SECOND QUARTER 2022

TABLE OF CONTENTS

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

S-1

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022

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

Balance Sheet Data
	As of
	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021
Assets:
Cash and cash equivalents	$	795,143		$	1,077,158		$	756,971		$	1,011,247		$	747,007
Investment securities, net of allowance for credit losses		655,296			614,836			542,045			543,449			573,027
Loans held for sale		39,727			28,037			52,077			40,546			56,833
Loans		4,362,233			4,390,243			4,496,562			4,343,806			4,554,221
Allowance for credit losses		(64,449	)		(71,656	)		(64,577	)		(63,024	)		(60,291	)
Loans, net		4,297,784			4,318,587			4,431,985			4,280,782			4,493,930
Federal Home Loan Bank stock, at cost		10,311			10,311			10,311			10,311			11,670
Premises and equipment, net		33,886			34,358			36,073			37,499			38,682
Right-of-use assets		41,364			42,402			38,825			39,257			40,698
Goodwill		16,300			16,300			16,300			16,300			16,300
Other real estate owned ("OREO")		1,687			1,740			1,792			1,845			1,898
Bank owned life insurance ("BOLI")		100,396			99,773			99,161			99,634			99,008
Other assets and accrued interest receivable		120,582			106,367			108,092			106,764			104,257
Total assets	$	6,112,476		$	6,349,869		$	6,093,632		$	6,187,634		$	6,183,310
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,094,436		$	2,226,714		$	1,990,781		$	2,086,548		$	2,062,433
Interest-bearing		2,733,093			2,860,392			2,849,637			2,861,399			2,955,145
Total deposits		4,827,529			5,087,106			4,840,418			4,947,947			5,017,578
Securities sold under agreements to
repurchase ("SSUAR") and other short-term borrowings		303,315			287,818			290,967			260,583			142,895
Operating lease liabilities		42,163			43,204			39,672			40,151			41,621
Federal Home Loan Bank advances		20,000			20,000			25,000			25,000			25,000
Subordinated note		—			—			—			—			41,240
Other liabilities and accrued interest payable		77,295			71,412			63,343			75,296			69,886
Total liabilities		5,270,302			5,509,540			5,259,400			5,348,977			5,338,220
Stockholders' equity		842,174			840,329			834,232			838,657			845,090
Total liabilities and stockholders' equity	$	6,112,476		$	6,349,869		$	6,093,632		$	6,187,634		$	6,183,310

S-2

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022 (continued)

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

Average Balance Sheet Data
	Three Months Ended															Six Months Ended
	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Jun. 30, 2022			Jun. 30, 2021
Assets:
Interest-earning assets:
Federal funds sold and other interest-earning deposits	$	813,956		$	861,822		$	848,215		$	924,859		$	938,728		$	837,757		$	725,764
Investment securities, including FHLB stock		691,427			606,182			540,227			555,934			562,509			649,040			563,243
Loans, including loans held for sale		4,339,432			4,355,255			4,385,547			4,404,270			4,546,747			4,347,299			4,645,662
Total interest-earning assets		5,844,815			5,823,259			5,773,989			5,885,063			6,047,984			5,834,096			5,934,669
Allowance for credit losses		(72,037	)		(69,287	)		(63,711	)		(61,562	)		(74,258	)		(70,670	)		(70,390	)
Noninterest-earning assets:
Noninterest-earning cash and cash equivalents		172,382			354,165			137,556			140,037			144,327			262,772			196,793
Premises and equipment, net		34,322			35,460			37,055			38,377			39,119			34,888			39,152
Bank owned life insurance		100,152			99,532			99,978			99,386			97,257			99,844			82,837
Other assets		164,090			180,779			192,755			187,286			186,133			172,389			188,785
Total assets	$	6,243,724		$	6,423,908		$	6,177,622		$	6,288,587		$	6,440,562		$	6,333,319		$	6,371,846
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits	$	2,779,941		$	2,827,496		$	2,857,403		$	2,908,135		$	3,020,168		$	2,803,587		$	2,964,900
SSUARs and other short-term borrowings		294,388			300,169			318,785			242,867			169,888			297,263			181,216
Federal Home Loan Bank advances		20,000			23,333			25,000			25,000			25,000			21,657			34,033
Subordinated note		—			—			—			40,791			41,240			—			41,240
Total interest-bearing liabilities		3,094,329			3,150,998			3,201,188			3,216,793			3,256,296			3,122,507			3,221,389
Noninterest-bearing liabilities and Stockholders’ equity:
Noninterest-bearing deposits		2,197,300			2,313,549			2,028,910			2,118,200			2,226,070			2,255,104			2,186,274
Other liabilities		100,937			112,331			102,694			104,659			108,891			106,603			121,357
Stockholders' equity		851,158			847,030			844,830			848,935			849,305			849,105			842,826
Total liabilities and stock-holders’ equity	$	6,243,724		$	6,423,908		$	6,177,622		$	6,288,587		$	6,440,562		$	6,333,319		$	6,371,846

S-3

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022 (continued)

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

Income Statement Data
	Three Months Ended															Six Months Ended
	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Jun. 30, 2022			Jun. 30, 2021
Total interest income (1)	$	52,320		$	63,555		$	51,379		$	54,469		$	51,815		$	115,875		$	121,458
Total interest expense		1,088			943			1,038			1,340			1,511			2,031			3,288
Net interest income		51,232			62,612			50,341			53,129			50,304			113,844			118,170
Provision for expected credit loss expense (2)		3,705			9,226			2,577			1,292			(4,323	)		12,931			10,939
Noninterest income:
Service charges on deposit accounts		3,363			3,226			3,332			3,277			3,071			6,589			5,944
Net refund transfer fees		3,950			12,051			326			1,280			5,923			16,001			18,644
Mortgage banking income (3)		1,763			2,657			3,339			5,280			4,182			4,420			11,375
Interchange fee income		3,461			3,070			3,291			3,263			3,481			6,531			6,508
Program fees (3)		3,885			3,854			4,668			4,018			3,342			7,739			5,551
Increase in cash surrender value of BOLI		623			612			626			626			600			1,235			990
Net losses on OREO		(52	)		(53	)		(53	)		(52	)		(44	)		(105	)		(55	)
Contract termination fee		—			5,000			—			—			—			5,000			—
Legal settlement		13,000			—			—			—			—			13,000			—
Other		573			584			1,552			1,133			1,093			1,157			1,712
Total noninterest income		30,566			31,001			17,081			18,825			21,648			61,567			50,669
Noninterest expense:
Salaries and employee benefits		28,896			29,312			26,350			26,991			27,410			58,208			56,747
Technology, equipment, and communication		7,229			7,214			7,342			7,498			7,444			14,443			14,511
Occupancy		3,224			3,440			3,188			3,195			3,251			6,664			6,810
Marketing and development		1,720			1,348			1,291			1,233			1,094			3,068			1,866
FDIC insurance expense		399			419			402			325			418			818			864
Interchange related expense		1,264			1,117			1,253			1,275			1,288			2,381			2,432
Legal and professional fees		804			1,365			1,360			884			1,466			2,169			2,680
Other (2)		4,117			4,358			3,850			3,034			3,343			8,475			7,685
Total noninterest expense		47,653			48,573			45,036			44,435			45,714			96,226			93,595
Income before income tax expense		30,440			35,814			19,809			26,227			30,561			66,254			64,305
Income tax expense		6,539			7,888			3,004			6,218			6,639			14,427			14,330
Net income	$	23,901		$	27,926		$	16,805		$	20,009		$	23,922		$	51,827		$	49,975

S-4

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022 (continued)

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

Selected Data and Ratios
	As of and for the Three Months Ended															As of and for the Six Months Ended
	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Jun. 30, 2022			Jun. 30, 2021
Per Share Data:
Basic weighted average shares outstanding		20,107			20,145			20,270			20,508			20,894			20,131			20,951
Diluted weighted average shares outstanding		20,169			20,225			20,379			20,591			20,949			20,202			21,016
Period-end shares outstanding:
Class A Common Stock		17,629			17,834			17,816			18,040			18,421			17,629			18,421
Class B Common Stock		2,161			2,165			2,165			2,165			2,166			2,161			2,166
Book value per share (4)	$	42.56		$	42.02		$	41.75		$	41.51		$	41.05		$	42.56		$	41.05
Tangible book value per share (4)		41.26			40.73			40.48			40.26			39.85			41.26			39.85
Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	1.20		$	1.40		$	0.84		$	0.99		$	1.16		$	2.60		$	2.42
Basic EPS - Class B Common Stock		1.09			1.27			0.77			0.90			1.05			2.37			2.20
Diluted EPS - Class A Common Stock		1.20			1.40			0.84			0.99			1.16			2.59			2.41
Diluted EPS - Class B Common Stock		1.09			1.27			0.76			0.90			1.05			2.36			2.19
Cash dividends declared per Common share:
Class A Common Stock	$	0.341		$	0.341		$	0.308		$	0.308		$	0.308		$	0.682		$	0.616
Class B Common Stock		0.310			0.310			0.280			0.280			0.280			0.620			0.560
Performance Ratios:
Return on average assets		1.53	%		1.74	%		1.09	%		1.27	%		1.49	%		1.64	%		1.57	%
Return on average equity		11.23			13.19			7.96			9.43			11.27			12.21			11.86
Efficiency ratio (5)		68			55			66			61			62			61			55
Yield on average interest-earning assets (1)		3.58			4.37			3.56			3.65			3.41			3.97			4.09
Cost of average interest-bearing liabilities		0.14			0.12			0.13			0.17			0.19			0.13			0.20
Cost of average deposits (6)		0.08			0.07			0.08			0.09			0.10			0.07			0.11
Net interest spread (1)		3.44			4.25			3.43			3.48			3.22			3.84			3.89
Net interest margin - Total Company (1)		3.51			4.30			3.49			3.56			3.33			3.90			3.98
Net interest margin - Core Bank		3.02			2.92			3.08			3.25			3.03			2.97			3.24
Other Information:
End of period FTEs (7) - Total Company		1,020			1,040			1,045			1,052			1,072			1,020			1,072
End of period FTEs - Core Bank		929			955			958			966			981			929			981
Number of full-service banking centers		42			42			42			42			42			42			42

S-5

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022 (continued)

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

Loan Composition and Allowance for Credit Losses on Loans
	As of
	Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021
Loan Composition
Traditional Banking:
Residential real estate:
Owner occupied	$	832,137	$	808,658	$	820,731	$	827,898	$	852,947
Nonowner occupied		313,534		314,933		306,323		294,818		289,290
Commercial real estate		1,569,119		1,556,575		1,456,009		1,393,241		1,389,003
Construction & land development		137,452		129,970		129,337		105,968		95,180
Commercial & industrial		394,175		342,175		340,363		333,795		330,302
Paycheck Protection Program		14,657		18,276		56,014		126,271		250,933
Lease financing receivables		11,345		10,396		8,637		9,427		9,249
Aircraft		159,958		151,284		142,894		130,398		121,112
Home equity		214,069		210,364		210,578		215,282		217,621
Consumer:
Credit cards		15,419		14,654		14,510		14,781		14,754
Overdrafts		901		716		683		753		717
Automobile loans		9,579		11,846		14,448		17,533		21,190
Other consumer		1,245		939		1,432		6,223		6,796
Total Traditional Banking		3,673,590		3,570,786		3,501,959		3,476,388		3,599,094
Warehouse lines of credit		596,678		690,200		850,550		750,682		840,155
Total Core Banking		4,270,268		4,260,986		4,352,509		4,227,070		4,439,249
Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		16,475		—		—		—
Other TRS loans		149		25,132		50,987		25		23
Republic Credit Solutions		91,816		87,650		93,066		116,711		114,949
Total Republic Processing Group		91,965		129,257		144,053		116,736		114,972
Total loans - Total Company	$	4,362,233	$	4,390,243	$	4,496,562	$	4,343,806	$	4,554,221

Allowance for Credit Losses on Loans ("Allowance")
Traditional Banking	$	49,727	$	49,616	$	49,407	$	49,487	$	49,362
Warehouse Lending		1,491		1,725		2,126		1,877		2,100
Total Core Banking		51,218		51,341		51,533		51,364		51,462
Tax Refund Solutions		—		8,370		96		—		—
Republic Credit Solutions		13,231		11,945		12,948		11,660		8,829
Total Republic Processing Group		13,231		20,315		13,044		11,660		8,829
Total Allowance - Total Company	$	64,449	$	71,656	$	64,577	$	63,024	$	60,291

Allowance to Total Loans
Traditional Banking	1.35	%	1.39	%	1.41	%	1.42	%	1.37	%
Warehouse Lending	0.25		0.25		0.25		0.25		0.25
Total Core Banking	1.20		1.20		1.18		1.22		1.16
Tax Refund Solutions	—		20.12		0.19		—		—
Republic Credit Solutions	14.41		13.63		13.91		9.99		7.68
Total Republic Processing Group	14.39		15.72		9.06		9.99		7.68
Total Company	1.48		1.63		1.44		1.45		1.32

S-6

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022 (continued)

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

Credit Quality Data and Ratios
	As of and for the Three Months Ended															As of and for the Six Months Ended
	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Jun. 30, 2022			Jun. 30, 2021
Credit Quality Asset Balances and Net Charge-off ("NCO") Data:
Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	16,168		$	16,935		$	20,504		$	20,252		$	21,621		$	16,168		$	21,621
Loans past due 90-days-or-more and still on accrual		42			31			48			691			723			42			723
Total nonperforming loans		16,210			16,966			20,552			20,943			22,344			16,210			22,344
OREO		1,687			1,740			1,792			1,845			1,898			1,687			1,898
Total nonperforming assets	$	17,897		$	18,706		$	22,344		$	22,788		$	24,242		$	17,897		$	24,242
Nonperforming Assets - Core Bank:
Loans on nonaccrual status	$	16,168		$	16,935		$	20,504		$	20,252		$	21,621		$	16,168		$	21,621
Loans past due 90-days-or-more and still on accrual		—			—			1			—			—			—			—
Total nonperforming loans		16,168			16,935			20,505			20,252			21,621			16,168			21,621
OREO		1,687			1,740			1,792			1,845			1,898			1,687			1,898
Total nonperforming assets	$	17,855		$	18,675		$	22,297		$	22,097		$	23,519		$	17,855		$	23,519
Delinquent Loans:
Delinquent loans - Core Bank	$	5,352		$	5,863		$	7,430		$	7,692		$	9,909		$	5,352		$	9,909
RPG		6,099			10,352			6,035			9,701			8,809			6,099			8,809
Total delinquent loans - Total Company	$	11,451		$	16,215		$	13,465		$	17,393		$	18,718		$	11,451		$	18,718
NCOs (Recoveries) by Segment:
Traditional Bank	$	(5	)	$	118		$	175		$	(167	)	$	(5	)	$	113		$	377
Warehouse Lending loans		—			—			—			—			—			—			—
Core Bank loans		(5	)		118			175			(167	)		(5	)		113			377
Tax Refund Solutions		8,728			(362	)		(1,263	)		(2,261	)		10,256			8,366			10,269
Republic Credit Solutions		2,149			2,398			2,119			989			518			4,547			1,191
RPG		10,877			2,036			856			(1,272	)		10,774			12,913			11,460
Total NCOs (recoveries) - Total Company	$	10,872		$	2,154		$	1,031		$	(1,439	)	$	10,769		$	13,026		$	11,837
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans		0.37	%		0.39	%		0.46	%		0.48	%		0.49	%		0.37	%		0.49	%
Nonperforming assets to total loans (including OREO)		0.41			0.43			0.50			0.52			0.53			0.41			0.53
Nonperforming assets to total assets		0.29			0.29			0.37			0.37			0.39			0.29			0.39
Allowance for credit losses to total loans		1.48			1.63			1.44			1.45			1.32			1.48			1.32
Allowance for credit losses to nonperforming loans		398			422			314			301			270			398			270
Delinquent loans to total loans (8)		0.26			0.37			0.30			0.40			0.41			0.26			0.41
NCOs (recoveries) to average loans (annualized)		1.00			0.20			0.09			(0.13	)		0.95			0.60			0.51
Credit Quality Ratios - Core Bank:
Nonperforming loans to total loans		0.38	%		0.40	%		0.47	%		0.48	%		0.49	%		0.38	%		0.49	%
Nonperforming assets to total loans (including OREO)		0.42			0.44			0.51			0.52			0.53			0.42			0.53
Nonperforming assets to total assets		0.32			0.33			0.40			0.39			0.42			0.32			0.42
Allowance for credit losses to total loans		1.20			1.20			1.18			1.22			1.16			1.20			1.16
Allowance for credit losses to nonperforming loans		317			303			251			254			238			317			238
Delinquent loans to total loans		0.13			0.14			0.17			0.18			0.22			0.13			0.22
NCOs (recoveries) to average loans (annualized)		—			0.01			0.02			(0.02	)		—			0.01			0.02
TRS Easy Advances ("EAs")
EAs originated	$	—		$	311,207		$	—		$	—		$	—		$	311,207		$	250,045
Net (credit) charge to the Provision for EAs		564			8,315			(1,261	)		(2,242	)		(5,793	)		8,879			10,226
Net Provision to YTD EAs originated		0.18	%		2.67	%		(0.50	)%		(0.90	)%		(2.32	)%		2.85	%		4.09	%
EAs NCOs (recoveries)	$	8,879		$	—		$	(1,261	)	$	(2,242	)	$	10,226		$	8,879		$	10,226
EA NCOs (recoveries) to YTD EAs originated		2.85	%		—	%		(0.50	)%		(0.90	)%		4.09	%		2.85	%		4.09	%

S-7

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022 (continued)

Segment Data:

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

As of June 30, 2022, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking, Tax Refund Solutions (“TRS”), and Republic Credit Solutions (“RCS”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute Republic Processing Group (“RPG”) operations.

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

Reportable Segment:	Nature of Operations:	Primary Drivers of Net Revenue:
Core Banking:
Traditional Banking	Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels.	Loans, investments, and deposits
Warehouse Lending	Provides short-term, revolving credit facilities to mortgage bankers across the United States.	Mortgage warehouse lines of credit
Mortgage Banking	Primarily originates, sells and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint.	Loan sales and servicing
Republic Processing Group:
Tax Refund Solutions	TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint.	Loans, refund transfers, and prepaid cards.
Republic Credit Solutions	Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers.	Unsecured, consumer loans

The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies in the Company’s 2021 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value.

S-8

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022 (continued)

Segment information for the quarters and six months ended June 30, 2022 and 2021 follows:

	Three Months Ended June 30, 2022
	Core Banking												Republic Processing Group
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company
Net interest income	$	39,158		$	3,886		$	153		$	43,197		$	1,638		$	6,397		$	8,035		$	51,232
Provision for expected credit loss expense		146			(234	)		—			(88	)		360			3,433			3,793			3,705
Net refund transfer fees		—			—			—			—			3,950			—			3,950			3,950
Mortgage banking income		—			—			1,763			1,763			—			—			—			1,763
Program fees		—			—			—			—			736			3,149			3,885			3,885
Legal settlement		—			—			—			—			13,000			—			13,000			13,000
Other noninterest income		7,731			12			46			7,789			179			—			179			7,968
Total noninterest income		7,731			12			1,809			9,552			17,865			3,149			21,014			30,566
Total noninterest expense		38,314			1,035			2,832			42,181			3,533			1,939			5,472			47,653
Income (loss) before income tax expense		8,429			3,097			(870	)		10,656			15,610			4,174			19,784			30,440
Income tax expense (benefit)		1,647			692			(191	)		2,148			3,465			926			4,391			6,539
Net income (loss)	$	6,782		$	2,405		$	(679	)	$	8,508		$	12,145		$	3,248		$	15,393		$	23,901
Period-end assets	$	4,997,734		$	596,031		$	22,342		$	5,616,107		$	382,156		$	114,213		$	496,369		$	6,112,476
Net interest margin		3.06	%		2.69	%	NM				3.02	%	NM			NM			NM				3.51	%
Net-revenue concentration*		57	%		5	%		2	%		64	%		24	%		12	%		36	%		100	%

	Three Months Ended June 30, 2021
	Core Banking												Republic Processing Group
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company
Net interest income	$	38,278		$	6,324		$	140		$	44,742		$	623		$	4,939		$	5,562		$	50,304
Provision for expected credit loss expense		(77	)		(65	)		—			(142	)		(5,773	)		1,592			(4,181	)		(4,323	)
Net refund transfer fees		2			—			—			2			5,921			—			5,921			5,923
Mortgage banking income		—			—			4,182			4,182			—			—			—			4,182
Program fees		—			—			—			—			715			2,627			3,342			3,342
Other noninterest income		7,970			14			50			8,034			167			—			167			8,201
Total noninterest income		7,972			14			4,232			12,218			6,803			2,627			9,430			21,648
Total noninterest expense		36,939			1,066			3,006			41,011			3,697			1,006			4,703			45,714
Income before income tax expense		9,388			5,337			1,366			16,091			9,502			4,968			14,470			30,561
Income tax expense		1,555			1,227			301			3,083			2,326			1,230			3,556			6,639
Net income	$	7,833		$	4,110		$	1,065		$	13,008		$	7,176		$	3,738		$	10,914		$	23,922
Period-end assets	$	4,774,765		$	840,083		$	46,816		$	5,661,664		$	389,999		$	131,647		$	521,646		$	6,183,310
Net interest margin		2.97	%		3.48	%	NM				3.03	%	NM			NM			NM				3.33	%
Net-revenue concentration*		64	%		9	%		6	%		79	%		10	%		11	%		21	%		100	%

_______________________ 

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

S-9

	Six Months Ended June 30, 2022
	Core Banking												Republic Processing Group
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company
Net interest income	$	75,306		$	8,401		$	357		$	84,064		$	17,042		$	12,738		$	29,780		$	113,844
Provision for expected credit loss expense		466			(635	)		—			(169	)		8,272			4,828			13,100			12,931
Net refund transfer fees		—			—			—			—			16,001			—			16,001			16,001
Mortgage banking income		—			—			4,420			4,420			—			—			—			4,420
Program fees		—			—			—			—			1,463			6,276			7,739			7,739
Contract termination fee		—			—			—			—			5,000			—			5,000			5,000
Legal settlement		—			—			—			—			13,000			—			13,000			13,000
Other noninterest income		14,965			25			80			15,070			337			—			337			15,407
Total noninterest income		14,965			25			4,500			19,490			35,801			6,276			42,077			61,567
Total noninterest expense		76,533			1,987			5,522			84,042			8,678			3,506			12,184			96,226
Income (loss) before income tax expense		13,272			7,074			(665	)		19,681			35,893			10,680			46,573			66,254
Income tax expense (benefit)		2,119			1,596			(146	)		3,569			8,371			2,487			10,858			14,427
Net income (loss)	$	11,153		$	5,478		$	(519	)	$	16,112		$	27,522		$	8,193		$	35,715		$	51,827
Period-end assets	$	4,997,734		$	596,031		$	22,342		$	5,616,107		$	382,156		$	114,213		$	496,369		$	6,112,476
Net interest margin		2.98	%		2.89	%	NM				2.97	%	NM			NM			NM				3.90	%
Net-revenue concentration*		51	%		5	%		3	%		59	%		30	%		11	%		41	%		100	%

	Six Months Ended June 30, 2021
	Core Banking												Republic Processing Group
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company
Net interest income	$	79,380		$	13,096		$	549		$	93,025		$	15,299		$	9,846		$	25,145		$	118,170
Provision for expected credit loss expense		(82	)		(307	)		—			(389	)		10,111			1,217			11,328			10,939
Net refund transfer fees		2			—			—			2			18,642			—			18,642			18,644
Mortgage banking income		—			—			11,375			11,375			—			—			—			11,375
Program fees		—			—			—			—			1,611			3,940			5,551			5,551
Other noninterest income		14,754			28			78			14,860			239			—			239			15,099
Total noninterest income		14,756			28			11,453			26,237			20,492			3,940			24,432			50,669
Total noninterest expense		74,267			2,094			6,127			82,488			8,999			2,108			11,107			93,595
Income before income tax expense		19,951			11,337			5,875			37,163			16,681			10,461			27,142			64,305
Income tax expense		3,680			2,661			1,293			7,634			4,096			2,600			6,696			14,330
Net income	$	16,271		$	8,676		$	4,582		$	29,529		$	12,585		$	7,861		$	20,446		$	49,975
Period-end assets	$	4,774,765		$	840,083		$	46,816		$	5,661,664		$	389,999		$	131,647		$	521,646		$	6,183,310
Net interest margin		3.21	%		3.45	%	NM				3.24	%	NM			NM			NM				3.98	%
Net-revenue concentration*		56	%		8	%		7	%		71	%		21	%		8	%		29	%		100	%

___________________

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

S-10

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2022 (continued)

Footnotes:

(1) The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The following table presents the Company’s loan fees by segment:

	Three Months Ended										Six Months Ended
(dollars in thousands)	Jun. 30, 2022		Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Jun. 30, 2022		Jun. 30, 2021
Traditional Bank excluding PPP fees	$	1,545	$	1,451	$	1,126	$	1,152	$	963	$	2,996	$	1,858
Traditional Bank - PPP fees		124		879		2,850		5,182		3,676		1,003		9,433
Warehouse Lending		500		574		662		779		789		1,074		1,660
Total Core Bank		2,169		2,904		4,638		7,113		5,428		5,073		12,951
TRS - Easy Advances		81		13,444		43		76		294		13,525		13,083
TRS - Other Loan Fees		2		662		—		—		4		664		1,656
RCS		5,782		5,702		5,695		4,862		3,832		11,484		7,688
Total RPG		5,865		19,808		5,738		4,938		4,130		25,673		22,427
Total loan fees - Total Company	$	8,034	$	22,712	$	10,376	$	12,051	$	9,558	$	30,746	$	35,378

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

(3) In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Mortgage Banking segment, while consumer loans originated for sale are originated and sold through the RCS segment. Gains on sale of mortgage loans are recorded as a component of Mortgage Banking income.  Gains on sale of consumer loans are recorded as a component of Program Fees.

	As of and for the Three Months Ended															As of and for the Six Months Ended
(dollars in thousands)	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Jun. 30, 2022			Jun. 30, 2021
Mortgage Loans Held for Sale
Balance, beginning of period	$	13,302		$	29,393		$	25,791		$	32,401		$	63,636		$	29,393		$	46,867
Originations		61,489			100,661			155,468			170,482			141,177			162,150			354,764
Proceeds from sales		(67,759	)		(119,212	)		(155,186	)		(182,422	)		(176,424	)		(186,971	)		(380,239	)
Net gain on sale		1,459			2,460			3,320			5,330			4,012			3,919			11,009
Balance, end of period	$	8,491		$	13,302		$	29,393		$	25,791		$	32,401		$	8,491		$	32,401
RCS Consumer Loans Held for Sale
Balance, beginning of period	$	14,735		$	22,684		$	14,755		$	24,432		$	15,671		$	22,684		$	4,776
Originations		282,782			245,214			321,118			257,018			186,771			527,996			304,045
Proceeds from sales		(269,429	)		(256,280	)		(316,597	)		(270,463	)		(180,826	)		(525,709	)		(288,510	)
Net gain on sale		3,148			3,117			3,408			3,768			2,816			6,265			4,121
Balance, end of period	$	31,236		$	14,735		$	22,684		$	14,755		$	24,432		$	31,236		$	24,432

S-11

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

	As of
(dollars in thousands, except per share data)	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021
Total stockholders' equity - GAAP (a)	$	842,174		$	840,329		$	834,232		$	838,657		$	845,090
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		9,407			9,502			9,196			8,867			8,335
Tangible stockholders' equity - Non-GAAP (c)	$	816,467		$	814,527		$	808,736		$	813,490		$	820,455
Total assets - GAAP (b)	$	6,112,476		$	6,349,869		$	6,093,632		$	6,187,634		$	6,183,310
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		9,407			9,502			9,196			8,867			8,335
Tangible assets - Non-GAAP (d)	$	6,086,769		$	6,324,067		$	6,068,136		$	6,162,467		$	6,158,675
Total stockholders' equity to total assets - GAAP (a/b)		13.78	%		13.23	%		13.69	%		13.55	%		13.67	%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)		13.41	%		12.88	%		13.33	%		13.20	%		13.32	%
Number of shares outstanding (e)		19,790			19,999			19,981			20,205			20,587
Book value per share - GAAP (a/e)	$	42.56		$	42.02		$	41.75		$	41.51		$	41.05
Tangible book value per share - Non-GAAP (c/e)		41.26			40.73			40.48			40.26			39.85

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

	Three Months Ended															Six Months Ended June 30, 2022
(dollars in thousands)	Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Jun. 30, 2022			Jun. 30, 2021
Net interest income - GAAP	$	51,232		$	62,612		$	50,341		$	53,129		$	50,304		$	113,844		$	118,170
Noninterest income - GAAP		30,566			31,001			17,081			18,825			21,648			61,567			50,669
Less: Contract termination fee related to TRS Transaction		—			5,000			—			—			—			5,000			—
Less: Legal settlement related to TRS Transaction		13,000			—			—			—			—			13,000			—
Less: Net gain (loss) on securities		(102	)		(120	)		(23	)		(10	)		(1	)		(222	)		(35	)
Total adjusted income - Non-GAAP (a)	$	68,900		$	88,733		$	67,445		$	71,964		$	71,953		$	157,633		$	168,874
Noninterest expense - GAAP	$	47,653		$	48,573		$	45,036		$	44,435		$	45,714		$	96,226		$	93,595
Less: Expenses related to TRS Transaction		699			127			611			300			1,000			826			1,000
Adjusted noninterest expense - Non-GAAP (b)	$	46,954		$	48,446		$	44,425		$	44,135		$	44,714		$	95,400		$	92,595
Efficiency Ratio - Non-GAAP (b/a)		68	%		55	%		66	%		61	%		62	%		61	%		55	%

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

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

(8) The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due. Delinquent loans as of March 31, 2022 included $4.7 million of Easy Advances, which do not have a contractual due date but the Company considered an EA delinquent in 2022 if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority.

NM – Not meaningful

NA – Not applicable

YTD – Year to date

CONTACT:

Republic Bancorp, Inc.

Kevin Sipes

Executive Vice President & Chief Financial Officer

(502) 560-8628

S-12

XML

Document and Entity Information	Jul. 22, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 22, 2022
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