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): April 20, 2023

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

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))

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

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 April 20, 2023, Republic Bancorp, Inc. announced its results of operations for the quarter ended March 31, 2023. 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 Number	Description
99.1	Republic Bancorp, Inc. Earnings Release dated April 20, 2023.
99.2	Earnings Release Financial Supplement – First Quarter 2023.
104	Cover Page Interactive Data File (formatted as Inline XBRL).

2

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: April 20, 2023	By:	/s/ Kevin Sipes
		Executive Vice President, Chief Financial Officer & Chief Accounting Officer

3

EX-99.1

Exhibit 99.1

Republic Bancorp, Inc. Reports First Quarter 2023 Net Income of $28.1 Million

LOUISVILLE, Ky.--(BUSINESS WIRE)--April 20, 2023--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 first quarter 2023 net income and Diluted Earnings per Class A Common Share (“Diluted EPS”) of $28.1 million and $1.42 per share.

As presented in the table below, Republic’s Total Company Operating net income was $31.8 million for the first quarter of 2023, an increase of $7.2 million, or 29%, over its Total Company Operating net income, a non-GAAP metric, for the first quarter of 2022. Republic’s Operating net income for the first quarter of 2023 was adjusted for the impact to net income of the Day-1 Provision and estimated merger expenses of the CBank acquisition, while its first quarter 2022 Operating net income was adjusted for the impact to net income of the termination penalty the Company received for the cancelled sale of its tax business.

											Diluted Earnings Per Class A Common Share
	Year to date										Year to date
(dollars in thousands, except per share data)	Mar. 31, 2023		Mar. 31, 2022			$ Change			% Change		Mar. 31, 2023		Mar. 31, 2022			$ Change		% Change
Total Company Net Income, As Reported	$	28,092	$	28,350		$	(258	)	(1	)%	$	1.42	$	1.42		$	-	—	%
Adjustments:
Add Back the Impact of CBank Day 1 Provisions, Net of Taxes		2,092		—			2,092		—			0.11		—			0.11	—
Add Back the Impact of CBank Merger Expenses, Net of Taxes		1,613		—			1,613		—			0.08		—			0.08	—
Reduce for the Impact of the Termination Penalty Received for Cancelled TRS Transaction, Net of Taxes		—		(3,772	)		3,772		—			—		(0.19	)		0.19	—
Total Company Operating Net Income - non-GAAP	$	31,797	$	24,578		$	7,219		29		$	1.61	$	1.23		$	0.38	31

Logan Pichel, President and CEO of the Bank commented, “When adjusting for the items noted above that are outside of our normal recurring operations, our Operating net income for both the Total Company and the Core Bank during the first quarter of 2023 were strong and significantly better than the comparable Operating net income for the first quarter of 2022. Our quarter-over-quarter growth in first quarter Operating net income reflected the continued benefits of the Bank’s sound interest rate risk management function and solid core deposit base, prudent loan growth within the Traditional Bank, disciplined expense management, and continued historically low credit losses within the Core Bank.”

Core Bank’s net income was $10.3 million for the first quarter of 2023, an increase of $2.7 million, or 35%, over its net income for the first quarter of 2022. As reflected in the table below, the Core Bank’s adjusted Operating net income was $14.0 million for the first quarter of 2023, an increase of $6.4 million, or 84%, over its adjusted Operating net income for the first quarter of 2022. Republic’s Core Bank Operating net income for the first quarter of 2023 was adjusted for the impact to net income of the Day-1 Provision and estimated merger expenses of the CBank acquisition. There were no adjustments to net income related to the Core Bank for the first quarter of 2022.

	Year to date
(dollars in thousands)	Mar. 31, 2023		Mar. 31, 2022		$ Change		% Change
Core Bank Net Income, As Reported	$	10,308	$	7,608	$	2,700	35	%
Adjustments:
Add Back the Impact of CBank Day 1 Provisions, Net of Taxes		2,092		—		2,092	—
Add Back the Impact of CBank Merger Expenses, Net of Taxes		1,613		-		1,613	—
Core Bank Operating Net Income - non-GAAP	$	14,013	$	7,608	$	6,405	84

Pichel further commented, “Within our Traditional Bank, excluding the loans we acquired as part of the CBank merger, we had another strong quarter of loan growth of $92 million to further build upon the $353 million of loan growth during 2022. The largest driver of Traditional Bank growth during the first quarter of 2023 from a market perspective was from our Louisville-based Private Banking and Commercial-related divisions along with steady contributions from Northern Kentucky/Cincinnati, Florida and Nashville. As we previously noted, we also completed our merger with CBank on March 15th adding another $218 million of loans and leases to our Traditional Bank outstanding loan balances. We are extremely excited to pair the Republic and CBank cultures together and look forward to further increasing our market share in the Greater Cincinnati area with the help of CBank’s fantastic sales team.

In addition to the strong loan growth during the first quarter within our Core Bank, we were also able to maintain another strong quarter of net interest margin of 3.98%. Our low-cost deposit base continued to be a key contributor to the year-long expansion we have experienced in our net interest margin within our Core Bank. Noninterest-bearing deposits, in particular, within our Core Bank averaged $1.49 billion for the first quarter of 2023, and represented 36% of our average total deposits of the Core Bank for the quarter. The true value of a bank’s franchise is its core deposit base, and we are extremely proud of the deposit base and corresponding franchise value we have built at Republic since our inception.

As it relates to expense control, we have implemented a lot of disciplines over the past few years to moderate our expenses and become a more efficient organization. As a result, our total Company non-interest expenses for the quarter, excluding the Day-1 CBank expenses, increased $1.8 million⁽⁴⁾, or 4%⁽⁴⁾, from the first quarter of last year. This has been a huge focus for everyone across our organization and we are extremely proud of our on-going results.

“Of course, the big story across the banking industry during the first quarter was the two bank failures. It is circumstances like this that illustrate the true value of an investment in, and a banking relationship with, a community bank such as Republic Bank. With a significant ownership stake in our Company, our management team manages the various risks of being a bank with the long-term horizon in mind. This approach to risk management is something that differentiates us from many others. Our long-term horizon for risk management is the primary reason that Republic Bank traditionally places among the best capitalized banks in the country, and our Core Bank consistently places among the best, as well, for its low credit losses. Rest assured that we will continue to operate the Company to be here for its communities, its clients, its associates, and its shareholders for many years to come,” concluded Pichel.

The following table highlights Republic’s key metrics for the three months ended March 31, 2023 and 2022. 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 April 20, 2023.

	Total Company Financial Performance Highlights
	Three Months Ended Mar. 31,
(dollars in thousands, except per share data)	2023			2022			$ Change			% Change
Income Before Income Tax Expense	$	36,114		$	36,369		$	(255	)	(1	)%
Net Income		28,092			28,350			(258	)	(1	)
Diluted EPS		1.42			1.42			-		—
Return on Average Assets ("ROA")		1.81	%		1.77	%		NA		2
Return on Average Equity ("ROE")		12.78			13.37			NA		(4	)
NA – Not applicable

Results of Operations for the First quarter of 2023 Compared to the First quarter of 2022

Core Bank⁽¹⁾

As previously noted, Operating net income for the Core Bank was $14.0 million for the first quarter of 2023 compared to $7.6 million for the first quarter of 2022. Continuing the trend from the second half of 2022, an increase in Traditional Bank net interest income was the primary driver to the Core Bank’s earnings growth for the quarter and helped to offset declines in Mortgage Banking income and net interest income within the Warehouse Lending (“Warehouse”) segment.

Net Interest Income – Core Bank net interest income was $52.3 million for the first quarter of 2023, an $11.4 million, or 28%, increase over the first quarter of 2022. In addition, the Core Bank’s net interest margin (“NIM”) increased from 2.92% during the first quarter of 2022 to 3.98% during the first quarter of 2023. This increase was driven primarily by the following in each Core Bank segment:

Traditional Bank

The Traditional Bank’s net interest income increased $14.0 million, or 39%, and its NIM expanded 117 basis points to 4.07% from the first quarter of 2022 to the first quarter of 2023. This increase in net interest income and the related expansion in NIM resulted primarily from the benefits of the Company’s low-cost core deposit base and strong year-over-year growth in average loan balances. These benefits were partially offset by a decline in the Company’s average interest-earning cash balances, with these balances near more normal, historical levels during the first quarter of 2023 as the excess liquidity from the various government stimulus programs related to COVID continued to wane throughout the industry. The following highlights some of the more impactful items affecting net interest income during the quarter for the Traditional Bank.

• Average Traditional Bank loans grew from $3.5 billion with a weighted-average yield of 3.95% during the first quarter of 2022 to $3.9 billion with a weighted average yield of 4.59% during the first quarter of 2023.

• Average investments grew to $773 million with a weighted-average yield of 2.61% during the first quarter of 2023 from $606 million with a weighted-average yield of 1.39% for the first quarter of 2022.

• The Traditional Bank’s cost of average total deposits, including the positive benefit of its average noninterest-bearing deposits, increased from 0.08% during the first quarter of 2022 to 0.47% for the first quarter of 2023.

• Average interest-earning cash was $238 million with a weighted-average yield of 4.55% during the first quarter of 2023 compared to $858 million with a weighted-average yield of 0.20% for the first quarter of 2022. The decline in average cash balances was driven generally by the cash change in cash used to fund the increases in average investments and loans along with the decreases in average deposit balances from quarter to quarter.

Warehouse Lending

Net interest income within the Warehouse segment decreased $2.4 million, or 54%, from the first quarter of 2022 to the first quarter of 2023, driven by decreases in both average outstanding balances and net interest margin. Overall, average outstanding Warehouse balances declined from $585 million during the first quarter of 2022 to $330 million for the first quarter of 2023.

In addition, the Warehouse net interest margin decreased 56 basis points from 3.09% during the first quarter of 2022 to 2.53% during the first quarter of 2023. The decline in the Warehouse net interest margin generally occurred as the rise in its funding costs, as charged through the Company’s internal funds-transfer-pricing (“FTP”) methodology, outpaced the increase in the Warehouse loan yield since rates began rising in March of 2022.

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 Mar. 31,							Three Months Ended Mar. 31,
Reportable Segment	2023		2022		Change			2023		2022		Change
Traditional Banking - Legacy	$	49,717	$	36,148	$	13,569		4.05	%	2.90	%	1.15	%
Traditional Banking - CBank**		390		-		390		NM		NM		NM
Total Traditional Banking		50,107		36,148		13,959		4.07		2.90		1.17
Warehouse Lending		2,087		4,515		(2,428	)	2.53		3.09		(0.56	)
Mortgage Banking*		61		204		(143	)	NM		NM		NM
Total Core Bank	$	52,255	$	40,867	$	11,388		3.98		2.92		1.06

	Average Loan Balances									Period-End Loan Balances
(dollars in thousands)	Three Months Ended Mar. 31,									Mar. 31,		Dec. 31,
Reportable Segment	2023		2022		$ Change			% Change		2023		2022		$ Change			% Change
Traditional Banking - Legacy	$	3,869,734	$	3,520,173	$	349,561		10	%	$	3,947,137	$	3,855,142	$	91,995		2	%
Traditional Banking - CBank		41,109		-		41,109		NM			218,040		-		218,040		NM
Total Traditional Banking		3,910,843		3,520,173		390,670		11		$	4,165,177		3,855,142		310,035		8
Warehouse Lending		329,716		584,519		(254,803	)	(44	)		457,365		403,560		53,805		13
Mortgage Banking*		2,545		18,810		(16,265	)	(86	)		1,034		1,302		(268	)	(21	)
Total Core Bank	$	4,243,104	$	4,123,502	$	119,602		3		$	4,623,576	$	4,260,004	$	363,572		9
*Includes loans held for sale ** CBank was acquired on 3/15/2023. The figures presented above include the related activity for the period 3/16/2023 to 3/31/2023. NM – Not meaningful

Provision for Expected Credit Loss Expense – The Core Bank’s Provision⁽²⁾ was a net charge of $3.1 million during the first quarter of 2023 compared to a net credit of $81,000 for the first quarter of 2022.

The net charge during the first quarter of 2023 was primarily driven by the Day-1 Provision for CBank of $2.7 million. The remaining net charge of $430,000 to the Core Bank Provision was primarily from general formula reserves applied to $92 million of Traditional Bank loan growth from December 31, 2022, to March 31, 2023, as well as $54 million of spot balance warehouse loan growth during the same period. The net credit during the first quarter of 2022 was primarily driven by a decline in formula reserves resulting from lower period-end Warehouse balances, partially offset by increased formula reserves tied to strong Traditional Bank loan growth during the quarter.

As of March 31, 2023, while its credit metrics remained solid, the Core Bank’s Allowance remained generally elevated compared to historical levels due to continued uncertainty regarding inflation and the potential impacts to the economy from Federal Reserve actions to bring inflation under control. As a percentage of total loans, the Core Bank’s Allowance⁽²⁾ increased from 1.21% as of March 31, 2022, to 1.22% as of March 31, 2023. The table below provides a view of the Company’s percentage of Allowance-to-total-loans by reportable segment.

	As of Mar. 31, 2023						As of Dec. 31, 2022						Quarterly Change
(dollars in thousands)					Allowance						Allowance		Allowance
Reportable Segment	Gross Loans		Allowance		to Loans		Gross Loans		Allowance		to Loans		to Loans		% Change
Traditional Bank - Legacy	$	3,947,137	$	50,932	1.29	%	$	3,855,142	$	49,616	1.29	%	—	%	—	%
Traditional Banking - CBank		218,040		4,284	1.96			—		—	—		1.96		—
Total Traditional Bank		4,165,177		55,216	1.33			3,855,142		49,616	1.29		0.04		3
Warehouse Lending		457,365		1,144	0.25			403,560		1,725	0.43		(0.18	)	(41.86	)
Total Core Bank		4,622,542		56,360	1.22			4,258,702		51,341	1.21		0.01		1
Tax Refund Solutions		39,992		25,981	64.97			149,272		8,370	5.61		59.36		1,058
Republic Credit Solutions		111,700		13,780	12.34			107,828		11,945	11.08		1.26		11
Total Republic Processing Group		151,692		39,761	26.21			257,100		20,315	7.90		18.31		232
Total Company	$	4,774,234	$	96,121	2.01	%	$	4,515,802	$	71,656	1.59	%	0.42	%	26	%

	ACLL Roll-Forward
	Three Months Ended March 31,
	2023													2022
(dollars in thousands)	Beginning		CBank				Charge-					Ending		Beginning					Charge-					Ending
Reportable Segment	Balance		Adjustment*		Provision		offs			Recoveries		Balance		Balance		Provision			offs			Recoveries		Balance
Traditional Bank - Legacy	$	50,709	$	—	$	300	$	(331	)	$	254	$	50,932	$	49,407	$	327		$	(263	)	$	145	$	49,616
Traditional Banking - CBank		—		1,600		2,684		—			—		4,284		—		—			—			—		—
Total Traditional Bank		50,709		1,600		2,984		(331	)		254		55,216		49,407		327			(263	)		145		49,616
Warehouse Lending		1,009		—		135		—			—		1,144		2,126		(401	)		—			—		1,725
Total Core Bank		51,718		1,600		3,119		(331	)		254		56,360		51,533		(74	)		(263	)		145		51,341
Tax Refund Solutions		3,888		—		21,808		—			285		25,981		96		7,912			—			362		8,370
Republic Credit Solutions		14,807		—		1,839		(3,099	)		233		13,780		12,948		1,395			(2,673	)		275		11,945
Total Republic Processing Group		18,695		—		23,647		(3,099	)		518		39,761		13,044		9,307			(2,673	)		637		20,315
Total Company	$	70,413	$	1,600	$	26,766	$	(3,430	)	$	772	$	96,121	$	64,577	$	9,233		$	(2,936	)	$	782	$	71,656
* The net fair value adjustment to ACLL includes an estimate of lifetime credit losses for Purchased Credit Deteriorated loans.

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

	Quarters Ended:				Years Ended:
	Mar. 31,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
Core Banking Credit Quality Ratios	2023		2022		2022		2021		2020
Nonperforming loans to total loans	0.34	%	0.40	%	0.37	%	0.47	%	0.50	%
Nonperforming assets to total loans (including OREO)	0.38		0.44		0.40		0.51		0.56
Delinquent loans* to total loans	0.12		0.14		0.14		0.17		0.21
Net charge-offs to average loans	0.01		0.01		0.00		0.01		0.03
(Quarterly rates annualized)
OREO = Other Real Estate Owned
*Loans 30-days-or-more past due

Noninterest Income – Core Bank noninterest income was $8.5 million during the first quarter of 2023, a decrease of $1.5 million, or 15%, from the first quarter of 2022. The decrease in non-interest income was driven primarily by a reduction in Mortgage Banking income, which declined $1.9 million for the quarter. The decrease in Mortgage banking income was caused by the rise in long-term interest rates, which led to a significant slowdown in the origination of mortgage loans to be sold into the secondary market. As a result, the Core Bank sold only $17 million of loans into the secondary market during the first quarter of 2023 compared to sales of $119 million during the first quarter of 2022.

Noninterest Expense – Core Bank noninterest expense was $44.4 million for the first quarter of 2023 compared to $41.9 million for the first quarter of 2022, an increase of $2.5 million, or 6% for the quarter. Included within this increase were $2.1 million of Day-1 expenses related to the CBank merger. Excluding these merger related expenses, Core Bank non-interest expense was up a nominal $431,000⁽⁵⁾, or 1%⁽⁵⁾, over the first quarter of 2022.

Republic Processing Group⁽³⁾

The Republic Processing Group (“RPG”) reported net income of $17.8 million for the first quarter of 2023, a decrease of $3.0 million from the first quarter of 2022. The TRS segment was the primary driver for quarter-to-quarter change in net income at RPG. TRS derives substantially all its revenues during the first half of the year. TRS recorded net income of $12.4 million for the first quarter of 2023 compared to net income of $15.4 million for the same period in 2022. The following primarily drove the decrease in TRS’s net income for the quarter:

• As previously disclosed, the Bank received a contract termination fee of $5.0 million during the first quarter of 2022 related to its cancelled sale of TRS. The after-tax benefit to the TRS net income during the first quarter of 2022 was $3.8 million.
  
• Net interest income within the TRS segment was up $16.4 million from the first quarter of 2022 to the first quarter of 2023. Net interest income at TRS includes income from its prepaid card products as well as the income associated with its tax-related credit products. A further breakdown of net interest income by each of these categories are as follows:
  
  • The prepaid card product component of TRS drove a $3.1 million increase to net interest income for the segment. This increase was generally driven by a higher crediting rate applied through the Company’s internal FTP. The prepaid card FTP credit yield was 3.82% for average prepaid card-related balances of $377 million during the first quarter of 2023 compared to 0.37% for average prepaid card-related balances of $397 million during the first quarter of 2022.
    
  • Related to the segment’s tax-related products, net interest income increased $13.3 million for the quarter. Loan-related interest and fees increased $18.0 million for the quarter and was driven primarily by increase in Refund Advance (“RA”) volume driven by a new contract with a large national tax preparation provider. This increase in loan revenue was partially offset by a $4.4 million increase to the segment’s net cost of funds as applied through its internal FTP.
    
• Offsetting the rise in net interest income, TRS recorded a net charge to the Provision for RAs of $21.7 million on the $737 million in RAs originated during the first quarter of 2023. This compares to a net charge to the Provision of $8.3 million, on the $311 million of RAs originated during the first quarter of 2022. The $13.4 million increase in Provision for the first quarter of 2023 was primarily due to the increased volume from the new contract noted in the paragraph above.

Including early season RAs originated during the fourth quarter of 2022, TRS had a total Allowance for RAs of $25.8 million as of March 31, 2023, representing 3.09% of all RAs originated related to the first quarter 2023 tax season. TRS’s loss rate as of June 30, 2022, was 2.85% of total originations and TRS finished 2022 with a final RA loss rate of 2.20% of total RAs originated.

• Net Refund Transfer (“RT”) revenue declined $1.2 million for the quarter. The decrease in net RT revenue was consistent with a general decline in overall RT volume across the industry.

Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 45 banking centers in communities in four metropolitan statistical areas (“MSAs”) across five states: 22 banking centers located in the Louisville MSA in Louisville, Prospect, Shelbyville, and Shepherdsville in Kentucky, and Floyds Knobs, Jeffersonville, and New Albany in Indiana; six centers in the Lexington MSA in Georgetown and Lexington in Kentucky; eight banking centers in the Cincinnati MSA in Kenwood, Norwood and West Chester in Ohio, and Bellevue, Covington, Crestview Hills, and Florence in Kentucky; seven centers in the Tampa MSA in Largo, New Port Richey, St. Petersburg, Seminole, Tampa, and Temple Terrace in Florida; and two banking centers in the Nashville MSA in Cool Springs and Green Hills, Tennessee. The Bank offers internet banking at www.republicbank.com. As of March 31, 2023, the Company has approximately $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, and other future conditions. 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, 2022. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Footnotes:

(1)	“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending, and Mortgage Banking segments.
(2)	Provision – Provision for Expected Credit Loss Expense
	Allowance – Allowance for Credit Losses on Loans
(3)	Republic Processing Group operations consist of the TRS and Republic Credit Solutions (“RCS”) segments.
(4)	The following table reconciles Total Company Noninterest Expenses excluding Day-1 CBank expenses, a non-GAAP measure.

	Noninterest Expenses
	Three Months Ended Mar. 31,
(dollars in thousands)	2023		2022		$ Change		% Change
Total Company - GAAP	$	52,443	$	48,581	$	3,862	8	%
Less: Impact of CBank Day-1 Expenses		2,073		—		2,073	NM
Traditional Banking ex CBank Day-1 Expenses - non-GAAP	$	50,370	$	48,581	$	1,789	4

(5) The following table reconciles Core Bank Noninterest Expenses excluding Day-1 CBank expenses, a non-GAAP measure.

	Noninterest Expenses
	Three Months Ended Mar. 31,
(dollars in thousands)	2023		2022		$ Change		% Change
Core Bank - GAAP	$	44,374	$	41,869	$	2,505	6	%
Less: Impact of CBank Day-1 Expenses		2,073		—		2,073	NM
Core Bank ex CBank Day-1 Expenses - non-GAAP	$	42,301	$	41,869	$	432	1
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

FIRST QUARTER 2023

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-10

S-1

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First quarter 2023

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

Balance Sheet Data
	As of															$ Change			$ Change
	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			From Dec. 31,2022			From Mar. 31, 2022
Assets:
Cash and cash equivalents	$	249,289		$	313,689		$	754,393		$	795,143		$	1,077,158		$	(64,400	)	$	(827,869	)
Investment securities, net of allowance for credit losses		725,163			707,862			662,750			655,296			614,836			17,301			110,327
Loans held for sale		18,466			19,177			24,387			39,727			28,037			(711	)		(9,571	)
Loans		4,774,234			4,515,802			4,289,450			4,362,233			4,390,243			258,432			383,991
Allowance for credit losses		(96,121	)		(70,413	)		(64,919	)		(64,449	)		(71,656	)		(25,708	)		(24,465	)
Loans, net		4,678,113			4,445,389			4,224,531			4,297,784			4,318,587			232,724			359,526
Federal Home Loan Bank stock, at cost		25,939			9,146			8,568			10,311			10,311			16,793			15,628
Premises and equipment, net		33,672			31,978			32,813			33,886			34,358			1,694			(686	)
Right-of-use assets		36,245			37,017			41,303			41,364			42,402			(772	)		(6,157	)
Goodwill		41,618			16,300			16,300			16,300			16,300			25,318			25,318
Other real estate owned ("OREO")		1,529			1,581			1,634			1,687			1,740			(52	)		(211	)
Bank owned life insurance ("BOLI")		102,322			101,687			101,013			100,396			99,773			635			2,549
Low-income housing tax credit investments		73,901			75,324			63,319			58,446			49,427			(1,423	)		24,474
Other assets and accrued interest receivable		87,834			76,393			68,652			62,136			56,940			11,441			30,894
Total assets	$	6,074,091		$	5,835,543		$	5,999,663		$	6,112,476		$	6,349,869		$	238,548		$	(275,778	)
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,013,957		$	1,908,768		$	2,013,337		$	2,093,853		$	2,226,160		$	105,189		$	(212,203	)
Interest-bearing		2,785,711			2,629,077			2,786,385			2,733,093			2,860,392			156,634			(74,681	)
Total deposits		4,799,668			4,537,845			4,799,722			4,826,946			5,086,552			261,823			(286,884	)
Securities sold under agreements to repurchase ("SSUAR") and other short-term borrowings		134,412			216,956			209,376			303,315			287,818			(82,544	)		(153,406	)
Operating lease liabilities		37,031			37,809			42,109			42,163			43,204			(778	)		(6,173	)
Federal Home Loan Bank advances		108,000			95,000			20,000			20,000			20,000			13,000			88,000
Low-income housing tax credit obligations		42,437			43,609			32,224			27,974			19,738			(1,172	)		22,699
Other liabilities and accrued interest payable		70,341			47,711			53,169			48,212			50,981			22,630			19,360
Total liabilities		5,191,889			4,978,930			5,156,600			5,268,610			5,508,293			212,959			(316,404	)
Stockholders' equity		882,202			856,613			843,063			843,866			841,576			25,589			40,626
Total liabilities and stockholders' equity	$	6,074,091		$	5,835,543		$	5,999,663		$	6,112,476		$	6,349,869		$	238,548		$	(275,778	)

S-2

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First quarter 2023 (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															Three Months Ended						$ Change (8)
	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Mar. 31, 2023			Mar. 31, 2022			3M to 3M
Assets:
Interest-earning assets:
Federal funds sold and other interest-earning deposits	$	241,211		$	553,695		$	727,626		$	813,956		$	861,822		$	241,211		$	861,822		$	(620,611	)
Investment securities, including FHLB stock		773,172			693,825			694,781			691,427			606,182			773,172			606,182			166,990
Loans, including loans held for sale		4,665,543			4,353,256			4,306,169			4,339,432			4,355,255			4,665,543			4,355,255			310,288
Total interest-earning assets		5,679,926			5,600,776			5,728,576			5,844,815			5,823,259			5,679,926			5,823,259			(143,333	)
Allowance for credit losses		(83,195	)		(65,290	)		(65,262	)		(72,037	)		(69,287	)		(83,195	)		(69,287	)		(13,908	)
Noninterest-earning assets:
Noninterest-earning cash and cash equivalents		295,905			115,416			108,069			172,382			354,165			295,905			354,165			(58,260	)
Premises and equipment, net		32,232			32,518			33,307			34,322			35,460			32,232			35,460			(3,228	)
Bank owned life insurance		102,004			101,361			100,740			100,152			99,532			102,004			99,532			2,472
Other assets		186,169			153,721			171,392			161,548			180,913			186,169			180,913			5,256
Total assets	$	6,213,041		$	5,938,502		$	6,076,822		$	6,241,182		$	6,424,042		$	6,213,041		$	6,424,042		$	(211,001	)
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits	$	2,663,099		$	2,704,764		$	2,777,124		$	2,779,941		$	2,827,496		$	2,663,099		$	2,827,496		$	(164,397	)
SSUARs and other short-term borrowings		202,910			247,123			220,149			294,388			300,169			202,910			300,169			(97,259	)
Federal Home Loan Bank advances		245,344			21,630			20,000			20,000			23,333			245,344			23,333			222,011
Total interest-bearing liabilities		3,111,353			2,973,517			3,017,273			3,094,329			3,150,998			3,111,353			3,150,998			(39,645	)
Noninterest-bearing liabilities and Stockholders’ equity:
Noninterest-bearing deposits		2,089,162			1,994,233			2,096,206			2,196,794			2,312,233			2,089,162			2,312,233			(223,071	)
Other liabilities		133,321			114,196			108,964			100,118			112,699			133,321			112,699			20,622
Stockholders' equity		879,205			856,556			854,379			849,941			848,112			879,205			848,112			31,093
Total liabilities and stockholders’ equity	$	6,213,041		$	5,938,502		$	6,076,822		$	6,241,182		$	6,424,042		$	6,213,041		$	6,424,042		$	(211,001	)

S-3

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First quarter 2023 (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															Three Months Ended						$ Change (8)
	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Mar. 31, 2023			Mar. 31, 2022			3M to 3M
Total interest income (1)	$	100,356		$	66,555		$	60,617		$	52,902		$	64,110		$	100,356		$	64,110		$	36,246
Total interest expense		7,714			3,442			2,020			1,088			943			7,714			943			6,771
Net interest income		92,642			63,113			58,597			51,814			63,167			92,642			63,167			29,475
Provision (2)		26,766			7,844			1,573			3,705			9,226			26,766			9,226			17,540
Noninterest income:
Service charges on deposit accounts		3,299			3,428			3,409			3,363			3,226			3,299			3,226			73
Net refund transfer fees		10,807			486			593			3,950			12,051			10,807			12,051			(1,244	)
Mortgage banking income (3)		800			622			1,154			1,763			2,657			800			2,657			(1,857	)
Interchange fee income		3,051			3,272			3,322			3,461			3,070			3,051			3,070			(19	)
Program fees (3)		3,241			3,501			4,932			3,885			3,854			3,241			3,854			(613	)
Increase in cash surrender value of BOLI		635			674			617			623			612			635			612			23
Net losses on OREO		(53	)		(53	)		(53	)		(52	)		(53	)		(53	)		(53	)		—
Contract termination fee		—			—			—			—			5,000			—			5,000			(5,000	)
Legal settlement		—			—			—			13,000			—			—			—			—
Other		901			1,194			1,134			576			592			901			592			309
Total noninterest income		22,681			13,124			15,108			30,569			31,009			22,681			31,009			(8,328	)
Noninterest expense:
Salaries and employee benefits		29,961			25,763			27,269			28,896			29,312			29,961			29,312			649
Technology, equipment, and communication		7,228			7,276			7,235			7,229			7,214			7,228			7,214			14
Occupancy		3,406			3,139			3,211			3,224			3,440			3,406			3,440			(34	)
Marketing and development		1,574			1,856			1,951			1,720			1,348			1,574			1,348			226
FDIC insurance expense		637			427			423			399			419			637			419			218
Interchange related expense		1,499			1,171			1,221			1,264			1,117			1,499			1,117			382
Legal and professional fees		1,061			951			904			804			1,365			1,061			1,365			(304	)
Merger expense		2,073			—			—			—			—			2,073			—			2,073
Other (2)		5,004			4,322			3,952			4,120			4,366			5,004			4,366			638
Total noninterest expense		52,443			44,905			46,166			47,656			48,581			52,443			48,581			3,862
Income before income tax expense		36,114			23,488			25,966			31,022			36,369			36,114			36,369			(255	)
Income tax expense		8,022			4,975			6,070			6,675			8,019			8,022			8,019			3
Net income	$	28,092		$	18,513		$	19,896		$	24,347		$	28,350		$	28,092		$	28,350		$	(258	)

S-4

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First quarter 2023 (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 Three Months Ended						Change (8)
	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Mar. 31, 2023			Mar. 31, 2022			From Mar. 31,2022 or 3M to 3M
Per Share Data:
Basic weighted average shares outstanding		19,935			19,929			19,919			20,107			20,145			19,935			20,145			(210	)
Diluted weighted average shares outstanding		19,990			19,981			19,981			20,169			20,225			19,990			20,225			(235	)
Period-end shares outstanding:
Class A Common Stock		17,585			17,587			17,587			17,629			17,834			17,585			17,834			(249	)
Class B Common Stock		2,160			2,160			2,160			2,161			2,165			2,160			2,165			(5	)
Book value per share (4)	$	44.68		$	43.38		$	42.69		$	42.64		$	42.08		$	44.68		$	42.08		$	2.60
Tangible book value per share (4)		42.00			42.11			41.40			41.34			40.79			42.00			40.79			1.21
Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	1.42		$	0.94		$	1.01		$	1.23		$	1.42		$	1.42		$	1.42		$	-
Basic EPS - Class B Common Stock		1.30			0.86			0.92			1.12			1.29			1.30			1.29			0.01
Diluted EPS - Class A Common Stock		1.42			0.94			1.01			1.22			1.42			1.42			1.42			-
Diluted EPS - Class B Common Stock		1.29			0.85			0.92			1.11			1.29			1.29			1.29			-
Cash dividends declared per Common share:
Class A Common Stock	$	0.374		$	0.341		$	0.341		$	0.341		$	0.341		$	0.374		$	0.341		$	0.033
Class B Common Stock		0.340			0.310			0.310			0.310			0.310			0.340			0.310			0.030
Performance Ratios:
Return on average assets		1.81	%		1.25	%		1.28	%		1.53	%		1.74	%		1.81	%		1.77	%		0.04	%
Return on average equity		12.78			8.65			9.15			11.23			13.19			12.78			13.37			(0.59	)
Efficiency ratio (5)		45			59			63			68			54			45			54			(9	)
Yield on average interest-earning assets (1)		7.07			4.75			4.19			3.58			4.37			7.07			4.40			2.67
Cost of average interest-bearing liabilities		0.99			0.46			0.27			0.14			0.12			0.99			0.12			0.87
Cost of average deposits (6)		0.41			0.26			0.15			0.08			0.07			0.41			0.07			0.34
Net interest spread (1)		6.08			4.29			3.92			3.44			4.25			6.08			4.28			1.80
Net interest margin - Total Company (1)		6.52			4.51			4.05			3.51			4.30			6.52			4.34			2.18
Net interest margin - Core Bank		3.98			3.82			3.54			3.02			2.92			3.98			2.92			1.05
Other Information:
End of period FTEs (7) - Total Company		1,031			998			1,009			1,020			1,040			1,031			1,040			(9	)
End of period FTEs - Core Bank		972			932			916			929			955			972			955			17
Number of full-service banking centers		45			42			42			42			42			42			42			3

S-5

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First quarter 2023 (continued)

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

Loan Composition and Allowance for Credit Losses on Loans
	As of															Change			Change
	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			From Dec. 31,2022			From Mar. 31, 2022
Loan Composition
Traditional Banking:
Residential real estate:
Owner occupied	$	972,214		$	911,427		$	863,899		$	832,137		$	808,658		$	60,787		$	163,556
Nonowner occupied		328,529			321,358			321,037			313,534			314,933			7,171			13,596
Commercial real estate		1,682,573			1,599,510			1,571,593			1,569,119			1,556,575			83,063			125,998
Construction & land development		167,829			153,875			147,418			137,452			129,970			13,954			37,859
Commercial & industrial		478,101			413,387			412,826			408,832			360,451			64,714			117,650
Lease financing receivables		73,270			10,505			11,333			11,345			10,396			62,765			62,874
Aircraft		184,344			179,785			166,313			159,958			151,284			4,559			33,060
Home equity		250,050			241,739			229,038			214,069			210,364			8,311			39,686
Consumer:
Credit cards		16,775			15,473			14,897			15,419			14,654			1,302			2,121
Overdrafts		775			726			723			901			716			49			59
Automobile loans		5,267			6,731			7,890			9,579			11,846			(1,464	)		(6,579	)
Other consumer		5,450			626			973			1,245			939			4,824			4,511
Total Traditional Banking		4,165,177			3,855,142			3,747,940			3,673,590			3,570,786			310,035			594,391
Warehouse lines of credit		457,365			403,560			442,238			596,678			690,200			53,805			(232,835	)
Total Core Banking		4,622,542			4,258,702			4,190,178			4,270,268			4,260,986			363,840			361,556
Republic Processing Group:
Tax Refund Solutions:
Refund Advances		31,665			97,505			—			—			16,475			(65,840	)		15,190
Other TRS commercial & industrial loans		8,327			51,767			295			149			25,132			(43,440	)		(16,805	)
Republic Credit Solutions		111,700			107,828			98,977			91,816			87,650			3,872			24,050
Total Republic Processing Group		151,692			257,100			99,272			91,965			129,257			(105,408	)		22,435
Total loans - Total Company	$	4,774,234		$	4,515,802		$	4,289,450		$	4,362,233		$	4,390,243		$	258,432		$	383,991
Allowance for Credit Losses on Loans ("Allowance")
Traditional Banking	$	55,216		$	50,709		$	49,231		$	49,727		$	49,616		$	4,507		$	5,600
Warehouse Lending		1,144			1,009			1,105			1,491			1,725			135			(581	)
Total Core Banking		56,360			51,718			50,336			51,218			51,341			4,642			5,019
Tax Refund Solutions		25,981			3,888			—			—			8,370			22,093			17,611
Republic Credit Solutions		13,780			14,807			14,583			13,231			11,945			(1,027	)		1,835
Total Republic Processing Group		39,761			18,695			14,583			13,231			20,315			21,066			19,446
Total Allowance - Total Company	$	96,121		$	70,413		$	64,919		$	64,449		$	71,656		$	25,708		$	24,465
Allowance to Total Loans
Traditional Banking		1.33	%		1.32	%		1.31	%		1.35	%		1.39	%		0.01	%		(0.06	)%
Warehouse Lending		0.25			0.25			0.25			0.25			0.25			—			—
Total Core Banking		1.22			1.21			1.20			1.20			1.20			0.01			0.02
Tax Refund Solutions		64.97			2.60			—			—			20.12			62.37			44.85
Republic Credit Solutions		12.34			13.73			14.73			14.41			13.63			(1.39	)		(1.29	)
Total Republic Processing Group		26.21			7.27			14.69			14.39			15.72			18.94			10.49
Total Company		2.01			1.56			1.51			1.48			1.63			0.45			0.38

S-6

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First quarter 2023 (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 Three Months Ended						Change (8)
	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Mar. 31, 2023			Mar. 31, 2022			From Mar. 31,2022 or 3M to 3M
Credit Quality Asset Balances and Net Charge-off ("NCO") Data:
Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	15,833		$	15,562		$	16,322		$	16,168		$	16,935		$	15,833		$	16,935		$	(1,102	)
Loans past due 90-days-or-more and still on accrual		777			756			37			42			31			777			31			746
Total nonperforming loans		16,610			16,318			16,359			16,210			16,966			16,610			16,966			(356	)
OREO		1,529			1,581			1,634			1,687			1,740			1,529			1,740			(211	)
Total nonperforming assets	$	18,139		$	17,899		$	17,993		$	17,897		$	18,706		$	18,139		$	18,706		$	(567	)
Nonperforming Assets - Core Bank:
Loans on nonaccrual status	$	15,833		$	15,562		$	16,322		$	16,168		$	16,935		$	15,833		$	16,935		$	(1,102	)
Loans past due 90-days-or-more and still on accrual		—			—			—			—			—			—			—			—
Total nonperforming loans		15,833			15,562			16,322			16,168			16,935			15,833			16,935			(1,102	)
OREO		1,529			1,581			1,634			1,687			1,740			1,529			1,740			(211	)
Total nonperforming assets	$	17,362		$	17,143		$	17,956		$	17,855		$	18,675		$	17,362		$	18,675		$	(1,313	)
Delinquent Loans:
Delinquent loans - Core Bank	$	5,537		$	6,060		$	4,368		$	5,352		$	5,863		$	5,537		$	5,863		$	(326	)
RPG		30,587			9,200			7,522			6,099			10,352			30,587			10,352			20,235
Total delinquent loans - Total Company	$	36,124		$	15,260		$	11,890		$	11,451		$	16,215		$	36,124		$	16,215		$	19,909
NCOs (Recoveries) by Segment:
Traditional Bank	$	77		$	238		$	(187	)	$	(5	)	$	118		$	77		$	118		$	(41	)
Warehouse Lending loans		—			—			—			—			—			—			—			—
Core Bank loans		77			238			(187	)		(5	)		118			77			118			(41	)
Tax Refund Solutions		(285	)		(909	)		(1,296	)		8,730			(362	)		(285	)		(362	)		77
Republic Credit Solutions		2,866			3,021			2,656			2,147			2,398			2,866			2,398			468
RPG		2,581			2,112			1,360			10,877			2,036			2,581			2,036			545
Total NCOs (recoveries) - Total Company	$	2,658		$	2,350		$	1,173		$	10,872		$	2,154		$	2,658		$	2,154		$	504
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans		0.35	%		0.36	%		0.38	%		0.37	%		0.39	%		0.35	%		0.39	%		(0.04	)%
Nonperforming assets to total loans (including OREO)		0.38			0.40			0.42			0.41			0.43			0.38			0.43			(0.05	)
Nonperforming assets to total assets		0.30			0.31			0.30			0.29			0.29			0.30			0.29			0.01
Allowance for credit losses to total loans		2.01			1.56			1.51			1.48			1.63			2.01			1.63			0.38
Allowance for credit losses to nonperforming loans		579			432			397			398			422			579			422			157
Delinquent loans to total loans (9)		0.76			0.34			0.28			0.26			0.37			0.76			0.37			0.39
NCOs (recoveries) to average loans (annualized)		0.23			0.22			0.11			1.00			0.20			0.23			0.20			0.03
Credit Quality Ratios - Core Bank:
Nonperforming loans to total loans		0.34	%		0.37	%		0.39	%		0.38	%		0.40	%		0.34	%		0.40	%		(0.06	)%
Nonperforming assets to total loans (including OREO)		0.38			0.40			0.43			0.42			0.44			0.38			0.44			(0.06	)
Nonperforming assets to total assets		0.32			0.32			0.33			0.32			0.33			0.32			0.33			(0.01	)
Allowance for credit losses to total loans		1.22			1.21			1.20			1.20			1.20			1.22			1.20			0.02
Allowance for credit losses to nonperforming loans		356			332			308			317			303			356			303			53
Delinquent loans to total loans		0.12			0.14			0.10			0.13			0.14			0.12			0.14			(0.02	)
NCOs (recoveries) to average loans (annualized)		0.01			0.02			(0.02	)		—			0.01			0.01			0.01			(0.00	)
TRS Refund Advances ("RAs")
RAs originated	$	737,047		$	97,505		$	—		$	—		$	311,207		$	737,047		$	311,207		$	425,840
Net (credit) charge to the Provision for RAs		21,715			2,888			(1,296	)		564			8,315			21,715			8,315			13,400
RAs NCOs (recoveries)	$	(285	)	$	(909	)	$	(1,296	)	$	8,879		$	—		$	(285	)	$	—		$	(285	)

S-7

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First quarter 2023 (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 March 31, 2023, 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 2022 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

First quarter 2023 (continued)

Segment information for the quarters and years ended March 31, 2023 and 2022 follows:

	Three Months Ended March 31, 2023
	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	$	50,107		$	2,087		$	61		$	52,255		$	31,765		$	8,622		$	40,387		$	92,642
Provision for expected credit loss expense		2,984			135			—			3,119			21,808			1,839			23,647			26,766
Net refund transfer fees		—			—			—			—			10,807			—			10,807			10,807
Mortgage banking income		—			—			800			800			—			—			—			800
Program fees		—			—			—			—			707			2,534			3,241			3,241
Other noninterest income		7,654			11			17			7,682			126			25			151			7,833
Total noninterest income		7,654			11			817			8,482			11,640			2,559			14,199			22,681
Total noninterest expense		40,852			968			2,554			44,374			5,648			2,421			8,069			52,443
Income (loss) before income tax expense		13,925			995			(1,676	)		13,244			15,949			6,921			22,870			36,114
Income tax expense (benefit)		3,082			223			(369	)		2,936			3,541			1,545			5,086			8,022
Net income (loss)	$	10,843		$	772		$	(1,307	)	$	10,308		$	12,408		$	5,376		$	17,784		$	28,092
Period-end assets	$	4,974,002		$	458,675		$	13,421		$	5,446,098		$	511,150		$	116,843		$	627,993		$	6,074,091
Net interest margin		4.07	%		2.53	%	NM				3.98	%	NM			NM			NM				6.52	%
Net-revenue concentration*		49	%		2	%		1	%		52	%		38	%		10	%		48	%		100	%

	Three Months Ended March 31, 2022
	Core Banking												Republic Processing Group
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company
Net interest income	$	36,148		$	4,515		$	204		$	40,867		$	15,404		$	6,896		$	22,300		$	63,167
Provision for expected credit loss expense		320			(401	)		—			(81	)		7,912			1,395			9,307			9,226
Net refund transfer fees		—			—			—			—			12,051			—			12,051			12,051
Mortgage banking income		—			—			2,657			2,657			—			—			—			2,657
Program fees		—			—			—			—			727			3,127			3,854			3,854
Contract termination fee		—			—			—			—			5,000			—			5,000			5,000
Legal settlement		5,000			—			—			5,000			—			—			—			5,000
Other noninterest income		2,242			13			34			2,289			158			—			158			2,447
Total noninterest income		7,242			13			2,691			9,946			17,936			3,127			21,063			31,009
Total noninterest expense		38,227			952			2,690			41,869			5,145			1,567			6,712			48,581
Income before income tax expense		4,843			3,977			205			9,025			20,283			7,061			27,344			36,369
Income tax expense		468			904			45			1,417			4,906			1,696			6,602			8,019
Net income	$	4,375		$	3,073		$	160		$	7,608		$	15,377		$	5,365		$	20,742		$	28,350
Period-end assets	$	4,984,918		$	689,204		$	28,573		$	5,702,695		$	552,101		$	95,073		$	647,174		$	6,349,869
Net interest margin		2.90	%		3.09	%	NM				2.92	%	NM			NM			NM				4.34	%
Net-revenue concentration*		46	%		5	%		3	%		54	%		35	%		11	%		46	%		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

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First quarter 2023 (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											Three Months Ended				$ Change (8)
(dollars in thousands)	Mar. 31, 2023		Dec. 31, 2022		Sep. 30, 2022			Jun. 30, 2022		Mar. 31, 2022		Mar. 31, 2023		Mar. 31, 2022		3M to 3M
Traditional Bank excluding PPP fees	$	936	$	883	$	911		$	1,545	$	1,451	$	936	$	1,451	$	(515	)
Traditional Bank - PPP fees		7		60		152			124		879		7		879		(872	)
Warehouse Lending		248		272		402			500		574		248		574		(326	)
Total Core Bank		1,191		1,215		1,465			2,169		2,904		1,191		2,904		(1,713	)
TRS - Refund Advances		31,404		50		81			81		13,444		31,404		13,444		17,960
TRS - Other Loan Fees		933		825		(1	)		2		662		933		662		271
RCS		7,962		7,501		7,196			6,364		6,257		7,962		6,257		1,705
Total RPG		40,299		8,376		7,276			6,447		20,363		40,299		20,363		19,936
Total loan fees - Total Company	$	41,490	$	9,591	$	8,741		$	8,616	$	23,267	$	41,490	$	23,267	$	18,223

(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 Three Months Ended						$ Change (8)
(dollars in thousands)	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Mar. 31, 2023			Mar. 31, 2022			3M to 3M
Mortgage Loans Held for Sale
Balance, beginning of period	$	1,302		$	2,912		$	8,491		$	13,302		$	29,393		$	1,302		$	29,393		$	(28,091	)
Originations		15,942			10,359			32,856			61,489			100,661			15,942			100,661			(84,719	)
Proceeds from sales		(16,630	)		(12,207	)		(39,220	)		(67,759	)		(119,212	)		(16,630	)		(119,212	)		102,582
Net gain on sale		420			238			785			1,459			2,460			420			2,460			(2,040	)
Balance, end of period	$	1,034		$	1,302		$	2,912		$	8,491		$	13,302		$	1,034		$	13,302		$	(12,268	)
RCS Consumer Loans Held for Sale
Balance, beginning of period	$	17,875		$	21,475		$	31,236		$	14,735		$	22,684		$	17,875		$	22,684		$	(4,809	)
Originations		207,222			225,588			292,131			282,782			245,214			207,222			245,214			(37,992	)
Proceeds from sales		(210,199	)		(231,999	)		(306,093	)		(269,429	)		(256,280	)		(210,199	)		(256,280	)		46,081
Net gain on sale		2,534			2,811			4,201			3,148			3,117			2,534			3,117			(583	)
Balance, end of period	$	17,432		$	17,875		$	21,475		$	31,236		$	14,735		$	17,432		$	14,735		$	2,697

S-10

(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)	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022
Total stockholders' equity - GAAP (a)	$	882,202		$	856,613		$	843,063		$	843,866		$	841,576
Less: Goodwill		41,618			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		8,406			8,769			9,177			9,407			9,502
Less: Core deposit intangible		2,813			—			—			—			—
Tangible stockholders' equity - Non-GAAP (c)	$	829,365		$	831,544		$	817,586		$	818,159		$	815,774
Total assets - GAAP (b)	$	6,074,091		$	5,835,543		$	5,999,663		$	6,112,476		$	6,349,869
Less: Goodwill		41,618			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		8,406			8,769			9,177			9,407			9,502
Less: Core deposit intangible		2,813			—			—			—			—
Tangible assets - Non-GAAP (d)	$	6,021,254		$	5,810,474		$	5,974,186		$	6,086,769		$	6,324,067
Total stockholders' equity to total assets - GAAP (a/b)		14.52	%		14.68	%		14.05	%		13.81	%		13.25	%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)		13.77	%		14.31	%		13.69	%		13.44	%		12.90	%
Number of shares outstanding (e)		19,745			19,747			19,747			19,790			19,999
Book value per share - GAAP (a/e)	$	44.68		$	43.38		$	42.69		$	42.64		$	42.08
Tangible book value per share - Non-GAAP (c/e)		42.00			42.11			41.40			41.34			40.79

(5) The efficiency ratio, a non-GAAP measure with no GAAP comparable, equals total noninterest expense divided by the sum of net interest income and noninterest income. The ratio excludes material nonrecurring revenues and expenses related to the now-cancelled TRS Transaction, as well as net gains (losses) on sales, calls, and impairment of investment securities.

	Three Months Ended															Three Months Ended
(dollars in thousands)	Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Mar. 31, 2023			Mar. 31, 2022
Net interest income - GAAP	$	92,642		$	63,113		$	58,597		$	51,814		$	63,167		$	92,642		$	63,167
Noninterest income - GAAP		22,681			13,124			15,108			30,569			31,009			22,681			31,009
Less: Contract termination fee related to TRS Transaction		—			—			—			—			5,000			—			5,000
Less: Legal settlement related to TRS Transaction		—			—			—			13,000			—			—			—
Less: Net gain (loss) on securities		1			1			2			(102	)		(120	)		1			(120	)
Total adjusted income - Non-GAAP (a)	$	115,322		$	76,236		$	73,703		$	69,485		$	89,296		$	115,322		$	89,296
Noninterest expense - GAAP	$	52,443		$	44,905		$	46,166		$	47,656		$	48,581		$	52,443		$	48,581
Less: Expenses related to TRS Transaction		—			—			88			699			127			—			127
Adjusted noninterest expense - Non-GAAP (b)	$	52,443		$	44,905		$	46,078		$	46,957		$	48,454		$	52,443		$	48,454
Efficiency Ratio - Non-GAAP (b/a)		45	%		59	%		63	%		68	%		54	%		45	%		54	%

(6)	The cost of average deposits ratio equals annualized total interest expense on deposits divided by total average interest-bearing deposits plus total average noninterest-bearing deposits.
(7)	FTEs – Full-time-equivalent employees.
(8)	Quarter (“Q”) to Quarter changes compare the most recent quarter or quarter end to the same quarter or quarter end of a year prior. Year-to-date changes compare the most recent period or period end to the same period or period end of a year prior. Year-to-date changes are expressed as either 3M to 3M  (three months), 6M to 6M (six months), 9M to 9M (nine months), or 12M to 12M (twelve months).
(9)	The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due. Delinquent loans as of March 31, 2023, included $18.5 million of Refund Advances (“RA”), which do not have a contractual due date, but the Company considered an RA delinquent in 2023 if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority.

NM – Not meaningful

S-11

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	Apr. 20, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 20, 2023
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