4.LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES

Ending loan balances at December 31, 2019 and 2018 were as follows:


December 31, (in thousands)	2019		2018

Traditional Banking:
Residential real estate:
Owner occupied	$	949,568	$	1,001,832
Nonowner occupied		258,803		242,846
Commercial real estate		1,303,000		1,248,940
Construction & land development		159,702		175,178
Commercial & industrial		477,236		430,355
Lease financing receivables		14,040		15,031
Home equity		293,186		332,548
Consumer:
Credit cards		17,836		19,095
Overdrafts		1,522		1,102
Automobile loans		52,923		63,475
Other consumer		68,115		46,642
Total Traditional Banking		3,595,931		3,577,044
Warehouse lines of credit*		717,458		468,695
Total Core Banking		4,313,389		4,045,739

Republic Processing Group*:
Tax Refund Solutions:
Easy Advances		—		—
Other TRS loans		14,365		13,744
Republic Credit Solutions		105,397		88,744
Total Republic Processing Group		119,762		102,488

Total loans**		4,433,151		4,148,227
Allowance for loan and lease losses		(43,351)		(44,675)

Total loans, net	$	4,389,800	$	4,103,552

*Identifies loans to borrowers located primarily outside of the Bank’s market footprint.

**Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail.

The following table reconciles the contractually receivable and carrying amounts of loans at December 31, 2019 and 2018:


December 31, (in thousands)	2019		2018

Contractually receivable	$	4,432,351	$	4,147,249
Unearned income(1)		(1,139)		(1,038)
Unamortized premiums(2)		366		588
Unaccreted discounts(3)		(2,534)		(3,174)
Net unamortized deferred origination fees and costs(4)		4,107		4,602
Carrying value of loans	$	4,433,151	$	4,148,227

(1)

Unearned income relates to lease financing receivables.

(2)

Unamortized premiums predominately relate to loans acquired through the Bank’s Correspondent Lending channel.

(3)

Unaccreted discounts include accretable and non-accretable discounts and relate to loans acquired in the Bank’s 2016 Cornerstone acquisition and its 2012 FDIC-assisted transactions.

(4)

Primarily attributable to the Traditional Banking segment.

Purchased-Credit-Impaired Loans

The following table reconciles the contractually required and carrying amounts of all PCI loans at December 31, 2019 and 2018:


December 31, (in thousands)	2019		2018

Contractually required principal	$	3,420	$	4,251
Non-accretable amount		(1,303)		(1,521)
Accretable amount		(31)		(50)
Carrying value of loans	$	2,086	$	2,680

The following table presents a rollforward of the accretable amount on all PCI loans for years ended December 31, 2019, 2018 and 2017:




Years Ended December 31, (in thousands)	2019		2018		2017

Balance, beginning of period	$	(50)	$	(140)	$	(3,600)
Transfers between non-accretable and accretable*		(279)		(573)		(28)
Net accretion into interest income on loans, including loan fees		298		663		3,488
Balance, end of period	$	(31)	$	(50)	$	(140)

*Transfers are primarily attributable to changes in estimated cash flows of the underlying loans.

Credit Quality Indicators

Bank procedures for assessing and maintaining credit gradings differs slightly depending on whether a new or renewed loan is being underwritten, or whether an existing loan is being re-evaluated for potential credit quality concerns. The latter usually occurs upon receipt of updated financial information, or other pertinent data, that would potentially cause a change in the loan grade. Specific Bank procedures follow:

For new and renewed C&I, CRE and C&D loans, the Bank’s CCAD assigns the credit quality grade to the loan.

Commercial loan officers are responsible for monitoring their respective loan portfolios and reporting any adverse material changes to senior management. When circumstances warrant a review and possible change in the credit quality grade, loan officers are required to notify the Bank’s CCAD.

A senior officer meets monthly with commercial loan officers to discuss the status of past due loans and possible classified loans. These meetings are designed to give loan officers an opportunity to identify existing loans that should be downgraded.

Monthly, members of senior management along with managers of Commercial Lending, CCAD, Accounting, Special Assets and Retail Collections attend a Special Asset Committee meeting. The SAC reviews all C&I and CRE, classified, and impaired loans and discusses the relative trends and current status of these assets. In addition, the SAC reviews all classified and impaired retail residential real estate loans and all classified and impaired home equity loans. SAC also reviews the actions taken by management regarding credit-quality grades, foreclosure mitigation, loan extensions, troubled debt restructurings and collateral repossessions. Based on the information reviewed in this meeting, the SAC approves all specific loan loss allocations to be recognized by the Bank within the Allowance analysis.

All new and renewed warehouse lines of credit are approved by the Executive Loan Committee. The CCAD assigns the initial credit quality grade to warehouse facilities. Monthly, members of senior management review warehouse lending activity including data associated with the underlying collateral to the warehouse facilities, i.e., the mortgage loans associated with the balances drawn. Key performance indicators monitored include average days outstanding for each draw, average FICO credit report score for the underlying collateral, average LTV for the underlying collateral and other factors deemed relevant.

On at least an annual basis, the Bank’s internal loan review department analyzes all aggregate lending relationships with outstanding balances greater than $1 million that are internally classified as “Special Mention,” “Substandard,” “Doubtful” or “Loss.” In addition, on an annual basis, the Bank analyzes a sample of “Pass” rated loans.

The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, public information, and current economic trends. The Bank also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). The Bank analyzes loans individually, and based on this analysis, establishes a credit risk rating. The Bank uses the following definitions for risk ratings:

Risk Grade 1 — Excellent (Pass): Loans fully secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents; loans fully secured by publicly traded marketable securities where there is no impediment to liquidation; or loans to any publicly held company with a current long-term debt rating of A or better.

Risk Grade 2 — Good (Pass): Loans to businesses that have strong financial statements containing an unqualified opinion from a Certified Public Accounting firm and at least three consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five-year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans that are guaranteed or otherwise backed by the full faith and credit of the U.S. government or an agency thereof, such as the Small Business Administration; or loans to publicly held companies with current long-term debt ratings of Baa or better.

Risk Grade 3 — Satisfactory (Pass): Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered.

Risk Grade 4 — Satisfactory/Monitored (Pass): Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory loans due to weak balance sheets, marginal earnings or cash flow, or other uncertainties. These loans warrant a higher than average level of monitoring to ensure that weaknesses do not advance. The level of risk in a Satisfactory/Monitored loan is within acceptable underwriting guidelines so long as the loan is given the proper level of management supervision.

Risk Grade 5 — Special Mention: Loans that possess some credit deficiency or potential weakness that deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) credit weaknesses are considered potential and are not defined impairments to the primary source of repayment.

Purchased Credit Impaired Loans — Group 1: To the extent that a PCI loan’s performance does not reflect an increased risk of loss of contractual principal beyond the non-accretable yield established as part of its initial day-one evaluation, such loan would be classified in the PCI-1 category, whose credit risk is considered by management equivalent to a non-PCI “Special Mention” loan within the Bank’s credit rating matrix. PCI-1 loans are considered impaired if, based on current information and events, it is probable that the future estimated cash flows of the loan have deteriorated from management’s initial acquisition day estimate. Provisions are made for impaired PCI-1 loans to further discount the loan and allow its yield to conform to at least management’s initial expectations. Any improvement in the expected performance of a PCI-1 loan would result in a reversal of the Provision to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income.

Purchased Credit Impaired Loans — Substandard: If during the Bank’s periodic evaluations of its PCI loan portfolio, management deems a PCI-1 loan to have an increased risk of loss of contractual principal beyond the non-accretable yield established as part of its initial day-one evaluation, such loan would be classified PCI-Sub within the Bank’s credit risk matrix. Management deems the risk of default and overall credit risk of a PCI-Sub loan to be greater than a PCI-1 loan and more analogous to a non-PCI “Substandard” loan within the Bank’s credit rating matrix. PCI-Sub loans are considered to be impaired. Any improvement in the expected performance of a PCI-Sub loan would result in a reversal of the Provision to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income.

Risk Grade 6 — Substandard: One or more of the following characteristics may be exhibited in loans classified as Substandard:

Loans that possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss.

Loans are inadequately protected by the current net worth and paying capacity of the obligor.

The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees.

Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected.

Unusual courses of action are needed to maintain a high probability of repayment.

The borrower is not generating enough cash flow to repay loan principal, however, it continues to make interest payments.

The Bank is forced into a subordinated or unsecured position due to flaws in documentation.

The Bank is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.

There is significant deterioration in market conditions to which the borrower is highly vulnerable.

Risk Grade 7 — Doubtful: One or more of the following characteristics may be present in loans classified as Doubtful:

Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable.

The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.

The possibility of loss is high but because of certain important pending factors, which may strengthen the loan, loss classification is deferred until the exact status of repayment is known.

Risk Grade 8 — Loss: Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified “Loss” when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.

For all real estate and consumer loans, including small-dollar RPG loans, which do not meet the scope above, the Bank uses a grading system based on delinquency and nonaccrual status. Loans that are 90 days or more past due or on nonaccrual are graded Substandard. Occasionally, a real estate loan below scope may be graded as “Special Mention” or “Substandard” if the loan is cross-collateralized with a classified C&I or CRE loan.

Purchased loans accounted for under ASC Topic 310-20 are accounted for as any other Bank-originated loan, potentially becoming nonaccrual or impaired, as well as being risk rated under the Bank’s standard practices and procedures. In addition, these loans are considered in the determination of the Allowance once day-one fair values are final.

Management separately monitors PCI loans and no less than quarterly reviews them against the factors and assumptions used in determining day-one fair values. In addition to its quarterly evaluation, a PCI loan is typically reviewed when it is modified or extended, or when information becomes available to the Bank that provides additional insight regarding the loan’s performance, the status of the borrower, or the quality or value of the underlying collateral.

If a troubled debt restructuring is performed on a PCI loan, the loan is considered impaired under the applicable TDR accounting standards and transferred out of the PCI population. The loan may require an additional Provision if its restructured cash flows are less than management’s initial day-one expectations. PCI loans for which the Bank simply chooses to extend the maturity date are generally not considered TDRs and remain in the PCI population.

The following tables include loans by risk category based on the Bank’s internal analysis performed:


December 31, 2019			Special				Doubtful /		PCI Loans -		PCI Loans -		Total Rated
(in thousands)	Pass		Mention		Substandard		Loss		Group 1		Substandard		Loans*

Traditional Banking:
Residential real estate:
Owner occupied	$	—	$	12,153	$	14,441	$	—	$	140	$	1,281	$	28,015
Nonowner occupied		—		487		1,285		—		—		—		1,772
Commercial real estate		1,286,623		4,623		11,123		—		631		—		1,303,000
Construction & land development		157,165		2,339		198		—		—		—		159,702
Commercial & industrial		473,094		2,152		1,968		—		22		—		477,236
Lease financing receivables		14,040		—		—		—		—		—		14,040
Home equity		—		—		3,276		—		4		6		3,286
Consumer:
Credit cards		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—
Automobile loans		—		—		247		—		—		—		247
Other consumer		—		—		351		—		—		2		353
Total Traditional Banking		1,930,922		21,754		32,889		—		797		1,289		1,987,651
Warehouse lines of credit		717,458		—		—		—		—		—		717,458
Total Core Banking		2,648,380		21,754		32,889		—		797		1,289		2,705,109

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		—		—		—		—		—		—
Other TRS loans		—		—		53		—		—		—		53
Republic Credit Solutions		—		—		355		—		—		—		355
Total Republic Processing Group		—		—		408		—		—		—		408

Total rated loans	$	2,648,380	$	21,754	$	33,297	$	—	$	797	$	1,289	$	2,705,517


December 31, 2018			Special				Doubtful /		PCI Loans -		PCI Loans -		Total Rated
(in thousands)	Pass		Mention		Substandard		Loss		Group 1		Substandard		Loans*

Traditional Banking:
Residential real estate:
Owner occupied	$	—	$	14,536	$	12,072	$	—	$	170	$	1,476	$	28,254
Nonowner occupied		—		575		1,889		—		—		—		2,464
Commercial real estate		1,239,576		5,281		3,162		—		921		—		1,248,940
Construction & land development		175,113		—		65		—		—		—		175,178
Commercial & industrial		428,897		813		620		—		25		—		430,355
Lease financing receivables		15,031		—		—		—		—		—		15,031
Home equity		—		—		1,361		—		5		81		1,447
Consumer:
Credit cards		—		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—		—
Automobile loans		—		—		91		—		—		—		91
Other consumer		—		—		462		—		—		2		464
Total Traditional Banking		1,858,617		21,205		19,722		—		1,121		1,559		1,902,224
Warehouse lines of credit		468,695		—		—		—		—		—		468,695
Total Core Banking		2,327,312		21,205		19,722		—		1,121		1,559		2,370,919

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		—		—		—		—		—		—
Other TRS loans		—		—		—		—		—		—		—
Republic Credit Solutions		—		—		138		—		—		—		138
Total Republic Processing Group		—		—		138		—		—		—		138

Total rated loans	$	2,327,312	$	21,205	$	19,860	$	—	$	1,121	$	1,559	$	2,371,057

* The above tables exclude all non-classified or non-rated residential real estate, home equity and consumer loans at the respective period ends.

Subprime Lending

Both the Traditional Banking segment and the RCS segment of the Company have certain classes of loans that are considered to be “subprime” strictly due to the credit score of the borrower at the time of origination.

Traditional Bank loans considered subprime totaled approximately $52 million and $49 million at December 31, 2019 and 2018. Approximately $23 million and $18 million of the outstanding Traditional Bank subprime loan portfolio at December 31, 2019 and 2018 were originated for CRA purposes. Management does not consider these loans to possess significantly higher credit risk due to other underwriting qualifications.

The RCS segment originates a short-term line-of-credit product. The Bank has traditionally sold 90% of the balances maintained through this product within three days of loan origination and retained a 10% interest. This product is unsecured and made to borrowers with subprime or near prime credit scores. The aggregate outstanding balance held-for-investment for this portfolio totaled $28 million and $32 million at December 31, 2019 and 2018.

Allowance for Loan and Lease Losses

The following tables present the activity in the Allowance by portfolio class for the years ended December 31, 2019, 2018, and 2017:


	Allowance Rollforward
	Years Ended December 31,
	2019										2018
	Beginning				Charge-				Ending		Beginning				Charge-				Ending
(in thousands)	Balance		Provision		offs		Recoveries		Balance		Balance		Provision		offs		Recoveries		Balance

Traditional Banking:
Residential real estate:
Owner occupied	$	6,035	$	(1,087)	$	(610)	$	391	$	4,729	$	6,474	$	170	$	(855)	$	246	$	6,035
Nonowner occupied		1,662		125		(73)		23		1,737		1,396		559		(332)		39		1,662
Commercial real estate		10,030		1,859		(1,407)		4		10,486		9,043		863		(7)		131		10,030
Construction & land development		2,555		(403)		—		—		2,152		2,364		161		—		30		2,555
Commercial & industrial		2,873		1,505		(1,505)		9		2,882		2,198		824		(200)		51		2,873
Lease financing receivables		158		(11)		—		—		147		174		(16)		—		—		158
Home equity		3,477		(764)		(64)		72		2,721		3,754		(473)		(115)		311		3,477
Consumer:
Credit cards		1,140		226		(402)		56		1,020		607		906		(416)		43		1,140
Overdrafts		1,102		1,155		(1,310)		222		1,169		974		1,082		(1,215)		261		1,102
Automobile loans		724		(42)		(79)		9		612		687		57		(24)		4		724
Other consumer		591		(119)		(263)		341		550		1,162		(423)		(444)		296		591
Total Traditional Banking		30,347		2,444		(5,713)		1,127		28,205		28,833		3,710		(3,608)		1,412		30,347
Warehouse lines of credit		1,172		622		—		—		1,794		1,314		(142)		—		—		1,172
Total Core Banking		31,519		3,066		(5,713)		1,127		29,999		30,147		3,568		(3,608)		1,412		31,519

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		10,643		(13,425)		2,782		—		—		10,760		(12,478)		1,718		—
Other TRS loans		107		606		(692)		213		234		12		159		(74)		10		107
Republic Credit Solutions		13,049		11,443		(12,566)		1,192		13,118		12,610		16,881		(17,692)		1,250		13,049
Total Republic Processing Group		13,156		22,692		(26,683)		4,187		13,352		12,622		27,800		(30,244)		2,978		13,156

Total	$	44,675	$	25,758	$	(32,396)	$	5,314	$	43,351	$	42,769	$	31,368	$	(33,852)	$	4,390	$	44,675


	Allowance Rollforward
	Year Ended December 31, 2017
	Beginning				Charge-				Ending
(in thousands)	Balance		Provision		offs		Recoveries		Balance

Traditional Banking:
Residential real estate:
Owner occupied	$	7,531	$	(1,014)	$	(300)	$	257	$	6,474
Nonowner occupied		1,139		272		(30)		15		1,396
Commercial real estate		8,078		826		—		139		9,043
Construction & land development		1,850		508		—		6		2,364
Commercial & industrial		1,511		842		(189)		34		2,198
Lease financing receivables		136		38		—		—		174
Home equity		3,757		37		(222)		182		3,754
Consumer:
Credit cards		490		247		(168)		38		607
Overdrafts		675		1,031		(960)		228		974
Automobile loans		526		188		(30)		3		687
Other consumer		771		948		(884)		327		1,162
Total Traditional Banking		26,464		3,923		(2,783)		1,229		28,833
Warehouse lines of credit		1,464		(150)		—		—		1,314
Total Core Banking		27,928		3,773		(2,783)		1,229		30,147

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		6,789		(8,121)		1,332		—
Other TRS loans		25		(254)		—		241		12
Republic Credit Solutions		4,967		17,396		(10,659)		906		12,610
Total Republic Processing Group		4,992		23,931		(18,780)		2,479		12,622

Total	$	32,920	$	27,704	$	(21,563)	$	3,708	$	42,769

Nonperforming Loans and Nonperforming Assets

Detail of nonperforming loans and nonperforming assets and select credit quality ratios follows:


December 31, (dollars in thousands)	2019			2018

Loans on nonaccrual status*	$	23,332		$	15,993
Loans past due 90-days-or-more and still on accrual**		157			145
Total nonperforming loans		23,489			16,138
Other real estate owned		113			160
Total nonperforming assets	$	23,602		$	16,298

Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.53	%		0.39	%
Nonperforming assets to total loans (including OREO)		0.53			0.39
Nonperforming assets to total assets		0.42			0.31

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.54	%		0.40	%
Nonperforming assets to total loans (including OREO)		0.54			0.40
Nonperforming assets to total assets		0.43			0.32

*Loans on nonaccrual status include impaired loans.

**Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans.

The following table presents the recorded investment in nonaccrual loans and loans past due 90-days-or-more and still on accrual by class of loans:


					Past Due 90-Days-or-More
	Nonaccrual				and Still Accruing Interest*
December 31, (in thousands)	2019		2018		2019		2018

Traditional Banking:
Residential real estate:
Owner occupied	$	12,220	$	11,182	$	—	$	—
Nonowner occupied		623		669		—		—
Commercial real estate		6,865		2,318		—		—
Construction & land development		143		—		—		—
Commercial & industrial		1,424		630		—		—
Lease financing receivables		—		—		—		—
Home equity		1,865		1,095		—		—
Consumer:
Credit cards		—		—		—		—
Overdrafts		—		—		—		—
Automobile loans		179		75		—		—
Other consumer		13		24		—		13
Total Traditional Banking		23,332		15,993		—		13
Warehouse lines of credit		—		—		—		—
Total Core Banking		23,332		15,993		—		13

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		—		—		—
Other TRS loans		—		—		53		4
Republic Credit Solutions		—		—		104		128
Total Republic Processing Group		—		—		157		132

Total	$	23,332	$	15,993	$	157	$	145

* Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans.

Nonaccrual loans and loans past due 90-days-or-more and still on accrual include both smaller balance, primarily retail, homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Nonaccrual loans are typically returned to accrual status when all the principal and interest amounts contractually due are brought current and held current for six consecutive months and future contractual payments are reasonably assured. TDRs on nonaccrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance under the modified terms.

The Bank considers the performance of the loan portfolio and its impact on the Allowance. For residential and consumer loan classes, the Bank also evaluates credit quality based on the aging status of the loan and by payment activity. The following tables present the recorded investment in residential and consumer loans based on payment activity as of December 31, 2019 and 2018:


	Residential Real Estate						Consumer
															Republic
	Owner		Nonowner		Home		Credit				Automobile		Other		Credit
December 31, 2019 (in thousands)	Occupied		Occupied		Equity		Cards		Overdrafts		Loans		Consumer		Solutions

Performing	$	937,348	$	258,180	$	291,321	$	17,836	$	1,522	$	52,744	$	68,102	$	105,293
Nonperforming		12,220		623		1,865		—		—		179		13		104

Total	$	949,568	$	258,803	$	293,186	$	17,836	$	1,522	$	52,923	$	68,115	$	105,397


	Residential Real Estate						Consumer
															Republic
	Owner		Nonowner		Home		Credit				Automobile		Other		Credit
December 31, 2018 (in thousands)	Occupied		Occupied		Equity		Cards		Overdrafts		Loans		Consumer		Solutions

Performing	$	990,650	$	242,177	$	331,453	$	19,095	$	1,102	$	63,400	$	46,605	$	88,616
Nonperforming		11,182		669		1,095		—		—		75		37		128

Total	$	1,001,832	$	242,846	$	332,548	$	19,095	$	1,102	$	63,475	$	46,642	$	88,744

Delinquent Loans

The following tables present the aging of the recorded investment in loans by class of loans:


	30 - 59			60 - 89			90 or More
December 31, 2019	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Traditional Banking:
Residential real estate:
Owner occupied	$	1,460		$	1,153		$	1,821		$	4,434		$	945,134	$	949,568
Nonowner occupied		—			—			539			539			258,264		258,803
Commercial real estate		155			—			3,145			3,300			1,299,700		1,303,000
Construction & land development		—			—			—			—			159,702		159,702
Commercial & industrial		200			128			1,027			1,355			475,881		477,236
Lease financing receivables		—			—			—			—			14,040		14,040
Home equity		1,810			166			942			2,918			290,268		293,186
Consumer:
Credit cards		80			75			—			155			17,681		17,836
Overdrafts		278			4			1			283			1,239		1,522
Automobile loans		16			15			18			49			52,874		52,923
Other consumer		2			6			1			9			68,106		68,115
Total Traditional Banking		4,001			1,547			7,494			13,042			3,582,889		3,595,931
Warehouse lines of credit		—			—			—			—			717,458		717,458
Total Core Banking		4,001			1,547			7,494			13,042			4,300,347		4,313,389

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—			—			—			—			—		—
Other TRS loans		35			31			53			119			14,246		14,365
Republic Credit Solutions		6,054			1,485			104			7,643			97,754		105,397
Total Republic Processing Group		6,089			1,516			157			7,762			112,000		119,762

Total	$	10,090		$	3,063		$	7,651		$	20,804		$	4,412,347	$	4,433,151
Delinquency ratio***		0.23	%		0.07	%		0.17	%		0.47	%

*All loans past due 90-days-or-more, excluding small balance consumer loans, were on nonaccrual status.

**Delinquent status may be determined by either the number of days past due or number of payments past due.

***Represents total loans 30-days-or-more past due by aging category divided by total loans.


	30 - 59			60 - 89			90 or More
December 31, 2018	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Traditional Banking:
Residential real estate:
Owner occupied	$	1,137		$	748		$	3,640		$	5,525		$	996,307	$	1,001,832
Nonowner occupied		349			—			659			1,008			241,838		242,846
Commercial real estate		511			—			588			1,099			1,247,841		1,248,940
Construction & land development		—			—			—			—			175,178		175,178
Commercial & industrial		—			—			25			25			430,330		430,355
Lease financing receivables		—			—			—			—			15,031		15,031
Home equity		558			—			226			784			331,764		332,548
Consumer:
Credit cards		82			46			1			129			18,966		19,095
Overdrafts		223			5			2			230			872		1,102
Automobile loans		—			28			—			28			63,447		63,475
Other consumer		27			7			13			47			46,595		46,642
Total Traditional Banking		2,887			834			5,154			8,875			3,568,169		3,577,044
Warehouse lines of credit		—			—			—			—			468,695		468,695
Total Core Banking		2,887			834			5,154			8,875			4,036,864		4,045,739

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—			—			—			—			—		—
Other TRS loans		2			4			4			10			13,734		13,744
Republic Credit Solutions		5,734			1,215			128			7,077			81,667		88,744
Total Republic Processing Group		5,736			1,219			132			7,087			95,401		102,488

Total	$	8,623		$	2,053		$	5,286		$	15,962		$	4,132,265	$	4,148,227
Delinquency ratio***		0.21	%		0.05	%		0.13	%		0.38	%

*All loans past due 90 days-or-more, excluding small-dollar consumer loans, were on nonaccrual status.

**Delinquent status may be determined by either the number of days past due or number of payments past due.

***Represents total loans 30-days-or-more past due divided by total loans.

Impaired Loans

Information regarding the Bank’s impaired loans follows:


Years Ended December 31, (in thousands)	2019		2018		2017

Loans with no allocated Allowance	$	33,061	$	19,555	$	18,540
Loans with allocated Allowance		17,289		21,880		27,076
Total recorded investment in impaired loans	$	50,350	$	41,435	$	45,616

Amount of the allocated Allowance	$	2,512	$	3,764	$	4,685
Average of individually impaired loans during the year		45,400		45,620		47,361
Interest income recognized during impairment		1,342		1,245		1,392
Cash basis interest income recognized		—		—		—

Approximately $2 million and $3 million of impaired loans at December 31, 2019 and 2018 were PCI loans.

The following tables present the balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method as of December 31, 2019 and 2018:


	Allowance for Loan and Lease Losses								Loans
	Individually				PCI with				Individually				PCI with		PCI without
December 31, 2019	Evaluated		Collectively		Post-Acquisition		Total		Evaluated		Collectively		Post-Acquisition		Post-Acquisition		Total		Allowance to
(dollars in thousands)	Excluding PCI		Evaluated		Impairment		Allowance		Excluding PCI		Evaluated		Impairment		Impairment		Loans		Total Loans

Traditional Banking:
Residential real estate:
Owner occupied	$	1,207	$	3,337	$	185	$	4,729	$	25,384	$	922,764	$	1,420	$	—	$	949,568		0.50	%
Nonowner occupied		—		1,737		—		1,737		1,448		257,355		—		—		258,803		0.67
Commercial real estate		426		10,054		6		10,486		15,144		1,287,225		631		—		1,303,000		0.80
Construction & land development		—		2,152		—		2,152		198		159,504		—		—		159,702		1.35
Commercial & industrial		22		2,860		—		2,882		1,989		475,225		—		22		477,236		0.60
Lease financing receivables		—		147		—		147		—		14,040		—		—		14,040		1.05
Home equity		174		2,547		—		2,721		3,276		289,900		10		—		293,186		0.93
Consumer:
Credit cards		—		1,020		—		1,020		—		17,836		—		—		17,836		5.72
Overdrafts		—		1,169		—		1,169		—		1,522		—		—		1,522		76.81
Automobile loans		43		569		—		612		247		52,676		—		—		52,923		1.16
Other consumer		333		217		—		550		350		67,762		2		1		68,115		0.81
Total Traditional Banking		2,205		25,809		191		28,205		48,036		3,545,809		2,063		23		3,595,931		0.78
Warehouse lines of credit		—		1,794		—		1,794		—		717,458		—		—		717,458		0.25
Total Core Banking		2,205		27,603		191		29,999		48,036		4,263,267		2,063		23		4,313,389		0.70

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		—		—		—		—		—		—		—		—		—
Other TRS loans		—		234		—		234		—		14,365		—		—		14,365		1.63
Republic Credit Solutions		116		13,002		—		13,118		251		105,146		—		—		105,397		12.45
Total Republic Processing Group		116		13,236		—		13,352		251		119,511		—		—		119,762		11.15
Total	$	2,321	$	40,839	$	191	$	43,351	$	48,287	$	4,382,778	$	2,063	$	23	$	4,433,151		0.98	%


	Allowance for Loan and Lease Losses								Loans
	Individually				PCI with				Individually				PCI with		PCI without
December 31, 2018	Evaluated		Collectively		Post-Acquisition		Total		Evaluated		Collectively		Post-Acquisition		Post-Acquisition		Total		Allowance to
(dollars in thousands)	Excluding PCI		Evaluated		Impairment		Allowance		Excluding PCI		Evaluated		Impairment		Impairment		Loans		Total Loans

Traditional Banking:
Residential real estate:
Owner occupied	$	2,052	$	3,602	$	381	$	6,035	$	25,242	$	974,945	$	1,645	$	—	$	1,001,832		0.60	%
Nonowner occupied		4		1,658		—		1,662		2,406		240,440		—		—		242,846		0.68
Commercial real estate		294		9,727		9		10,030		8,104		1,239,915		919		2		1,248,940		0.80
Construction & land development		4		2,551		—		2,555		65		175,113		—		—		175,178		1.46
Commercial & industrial		130		2,743		—		2,873		1,020		429,310		—		25		430,355		0.67
Lease financing receivables		—		158		—		158		—		15,031		—		—		15,031		1.05
Home equity		286		3,117		74		3,477		1,361		331,101		86		—		332,548		1.05
Consumer:
Credit cards		—		1,140		—		1,140		—		19,095		—		—		19,095		5.97
Overdrafts		—		1,102		—		1,102		—		1,102		—		—		1,102		100.00
Automobile loans		91		633		—		724		91		63,384		—		—		63,475		1.14
Other consumer		421		170		—		591		449		46,190		3		—		46,642		1.27
Total Traditional Banking		3,282		26,601		464		30,347		38,738		3,535,626		2,653		27		3,577,044		0.85
Warehouse lines of credit		—		1,172		—		1,172		—		468,695		—		—		468,695		0.25
Total Core Banking		3,282		27,773		464		31,519		38,738		4,004,321		2,653		27		4,045,739		0.78

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		—		—		—		—		—		—		—		—		—
Other TRS loans		—		107		—		107		—		13,744		—		—		13,744		0.78
Republic Credit Solutions		18		13,031		—		13,049		44		88,700		—		—		88,744		14.70
Total Republic Processing Group		18		13,138		—		13,156		44		102,444		—		—		102,488		12.84
Total	$	3,300	$	40,911	$	464	$	44,675	$	38,782	$	4,106,765	$	2,653	$	27	$	4,148,227		1.08	%

The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2019, 2018, and 2017. The difference between the “Unpaid Principal Balance” and “Recorded Investment” columns represents life-to-date partial write downs/charge-offs taken on individual impaired credits.


	As of						Year Ended
	December 31, 2019						December 31, 2019
											Cash Basis
	Unpaid						Average		Interest		Interest
	Principal		Recorded		Allocated		Recorded		Income		Income
(in thousands)	Balance		Investment		Allowance		Investment		Recognized		Recognized

Impaired loans with no allocated Allowance:
Residential real estate:
Owner occupied	$	14,768	$	13,893	$	—	$	12,655	$	191	$	—
Nonowner occupied		1,515		1,448		—		1,425		57		—
Commercial real estate		15,028		12,547		—		7,514		298		—
Construction & land development		198		198		—		65		2		—
Commercial & industrial		3,308		1,792		—		913		35		—
Lease financing receivables		—		—		—		—		—		—
Home equity		3,107		3,023		—		2,140		75		—
Consumer		206		160		—		76		4		—
Impaired loans with allocated Allowance:
Residential real estate:
Owner occupied		12,954		12,911		1,392		13,824		502		—
Nonowner occupied		—		—		—		108		—		—
Commercial real estate		3,228		3,228		432		3,624		151		—
Construction & land development		—		—		—		30		—		—
Commercial & industrial		197		197		22		2,054		3		—
Lease financing receivables		—		—		—		—		—		—
Home equity		263		263		174		417		8		—
Consumer		701		690		492		555		16		—
Total impaired loans	$	55,473	$	50,350	$	2,512	$	45,400	$	1,342	$	—


	As of						Year Ended
	December 31, 2018						December 31, 2018
											Cash Basis
	Unpaid						Average		Interest		Interest
	Principal		Recorded		Allocated		Recorded		Income		Income
(in thousands)	Balance		Investment		Allowance		Investment		Recognized		Recognized

Impaired loans with no allocated Allowance:
Residential real estate:
Owner occupied	$	12,058	$	11,085	$	—	$	11,202	$	198	$	—
Nonowner occupied		2,729		2,350		—		2,561		87		—
Commercial real estate		5,688		4,607		—		5,040		151		—
Construction & land development		—		—		—		119		—		—
Commercial & industrial		712		604		—		755		3		—
Lease financing receivables		—		—		—		—		—		—
Home equity		919		876		—		682		17		—
Consumer		33		33		—		49		2		—
Impaired loans with allocated Allowance:
Residential real estate:
Owner occupied		16,215		15,802		2,433		17,754		528		—
Nonowner occupied		78		56		4		136		—		—
Commercial real estate		4,416		4,416		303		5,495		206		—
Construction & land development		65		65		4		113		3		—
Commercial & industrial		416		416		130		158		19		—
Lease financing receivables		—		—		—		—		—		—
Home equity		572		571		360		925		9		—
Consumer		554		554		530		631		22		—
Total impaired loans	$	44,455	$	41,435	$	3,764	$	45,620	$	1,245	$	—




	As of						Year Ended
	December 31, 2017						December 31, 2017
											Cash Basis
	Unpaid						Average		Interest		Interest
	Principal		Recorded		Allocated		Recorded		Income		Income
(in thousands)	Balance		Investment		Allowance		Investment		Recognized		Recognized

Impaired loans with no allocated Allowance:
Residential real estate:
Owner occupied	$	11,664	$	10,789	$	—	$	11,253	$	179	$	—
Non owner occupied		1,784		1,704		—		1,526		86		—
Commercial real estate		5,504		4,430		—		4,863		71		—
Construction & land development		591		591		—		565		29		—
Commercial & industrial		20		20		—		116		4		—
Lease financing receivables		—		—		—		—		—		—
Home equity		1,071		981		—		1,205		11		—
Consumer		25		25		—		62		1		—
Impaired loans with allocated Allowance:
Residential real estate:
Owner occupied		18,676		18,654		2,681		20,212		655		—
Non owner occupied		361		358		6		416		14		—
Commercial real estate		6,124		6,124		455		5,501		294		—
Construction & land development		142		142		107		209		3		—
Commercial & industrial		288		288		288		225		8		—
Lease financing receivables		—		—		—		—		—		—
Home equity		743		743		536		820		17		—
Consumer		767		767		612		388		20		—
Total impaired loans	$	47,760	$	45,616	$	4,685	$	47,361	$	1,392	$	—

Troubled Debt Restructurings

A TDR is a situation where, due to a borrower’s financial difficulties, the Bank grants a concession to the borrower that the Bank would not otherwise have considered. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of their debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Bank’s internal underwriting policy.

All TDRs are considered “Impaired,” including PCI loans subsequently restructured. The majority of the Bank’s commercial related and construction TDRs involve a restructuring of financing terms such as a reduction in the payment amount to require only interest and escrow (if required) and/or extending the maturity date of the debt. The substantial majority of the Bank’s residential real estate TDR concessions involve reducing the client’s loan payment through a rate reduction for a set period based on the borrower’s ability to service the modified loan payment. Retail loans may also be classified as TDRs due to legal modifications, such as bankruptcies.

Nonaccrual loans modified as TDRs typically remain on nonaccrual status and continue to be reported as nonperforming loans for a minimum of six consecutive months. Accruing loans modified as TDRs are evaluated for nonaccrual status based on a current evaluation of the borrower’s financial condition and ability and willingness to service the modified debt. At December 31, 2019 and 2018, $10 million and $8 million of TDRs were on nonaccrual status.

Detail of TDRs differentiated by loan type and accrual status follows:


	Troubled Debt			Troubled Debt			Total
	Restructurings on			Restructurings on			Troubled Debt
	Nonaccrual Status			Accrual Status			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2019 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate	53	$	4,402	141	$	15,368	194	$	19,770
Commercial real estate	4		4,040	9		4,885	13		8,925
Construction & land development	—		—	1		54	1		54
Commercial & industrial	4		1,424	3		22	7		1,446
Consumer	—		—	1,613		586	1,613		586
Total troubled debt restructurings	61	$	9,866	1,767	$	20,915	1,828	$	30,781


	Troubled Debt			Troubled Debt			Total
	Restructurings on			Restructurings on			Troubled Debt
	Nonaccrual Status			Accrual Status			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2018 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate	60	$	6,378	156	$	17,232	216	$	23,610
Commercial real estate	3		1,203	14		6,571	17		7,774
Construction & land development	—		—	1		65	1		65
Commercial & industrial	2		571	3		408	5		979
Consumer	—		—	256		435	256		435
Total troubled debt restructurings	65	$	8,152	430	$	24,711	495	$	32,863

The Bank considers a TDR to be performing to its modified terms if the loan is in accrual status and not past due 30 days-or-more as of the reporting date. A summary of the categories of TDR loan modifications outstanding and respective performance under modified terms at December 31, 2019 and 2018 follows:


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2019 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Interest only payments	1	$	904	—	$	—	1	$	904
Rate reduction	118		13,847	5		352	123		14,199
Principal deferral	8		845	2		179	10		1,024
Legal modification	54		3,200	6		443	60		3,643
Total residential TDRs	181		18,796	13		974	194		19,770

Commercial related and construction/land development loans:
Interest only payments	3		1,568	—		—	3		1,568
Rate reduction	3		1,207	1		45	4		1,252
Principal deferral	11		5,981	1		597	12		6,578
Legal modification	—		—	2		1,027	2		1,027
Total commercial TDRs	17		8,756	4		1,669	21		10,425

Consumer loans:
Principal deferral	1,612		577	—		—	1,612		577
Legal modification	1		9	—		—	1		9
Total consumer TDRs	1,613		586	—		—	1,613		586

Total troubled debt restructurings	1,811	$	28,138	17	$	2,643	1,828	$	30,781


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2018 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Interest only payments	—	$	—	1	$	970	1	$	970
Rate reduction	145		16,892	12		978	157		17,870
Principal deferral	11		1,171	4		1,871	15		3,042
Legal modification	35		1,500	8		228	43		1,728
Total residential TDRs	191		19,563	25		4,047	216		23,610

Commercial related and construction/land development loans:
Interest only payments	2		752	—		—	2		752
Rate reduction	8		2,962	—		—	8		2,962
Principal deferral	12		5,076	—		—	12		5,076
Legal modification	—		—	1		28	1		28
Total commercial TDRs	22		8,790	1		28	23		8,818

Consumer loans:
Rate reduction	1		16	—		—	1		16
Principal deferral	255		419	—		—	255		419
Total consumer TDRs	256		435	—		—	256		435

Total troubled debt restructurings	469	$	28,788	26	$	4,075	495	$	32,863

As of December 31, 2019 and 2018, 91% and 88% of the Bank’s TDRs were performing according to their modified terms. The Bank had provided $2 million and $3 million of specific reserve allocations to clients whose loan terms have been modified in TDRs as of December 31, 2019 and 2018. The Bank had no commitments to lend any additional material amounts to its existing TDR relationships at December 31, 2019 and 2018.

A summary of the categories of TDR loan modifications and respective performance as of December 31, 2019, 2018, and 2017 that were modified during the years ended December 31, 2019, 2018, and 2017 follows:


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2019 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Rate reduction	1	$	365	—	$	—	1	$	365
Principal deferral	—		—	—		—	—		—
Legal modification	26		1,958	5		417	31		2,375
Total residential TDRs	27		2,323	5		417	32		2,740

Commercial related and construction/land development loans:
Interest only payments	2		1,423	—		—	2		1,423
Principal deferral	4		3,199	—		—	4		3,199
Legal modification	—		—	2		1,027	2		1,027
Total commercial TDRs	6		4,622	2		1,027	8		5,649

Consumer loans:
Principal deferral	1,279		201	—		—	1,279		201
Legal modification	1		9	—		—	1		9
Total consumer TDRs	1,280		210	—		—	1,280		210

Total troubled debt restructurings	1,313	$	7,155	7	$	1,444	1,320	$	8,599


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2018 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Interest only payments	—	$	—	1	$	970	1	$	970
Rate reduction	2		465	—		—	2		465
Principal deferral	3		43	3		1,849	6		1,892
Legal modification	7		121	1		18	8		139
Total residential TDRs	12		629	5		2,837	17		3,466
Commercial related and construction/land development loans:
Principal deferral	6		1,402	—		—	6		1,402
Legal modification	—		—	1		28	1		28
Total commercial TDRs	6		1,402	1		28	7		1,430

Consumer loans:
Principal deferral	1		52	—		—	1		52
Total consumer TDRs	1		52	—		—	1		52

Total troubled debt restructurings	19	$	2,083	6	$	2,865	25	$	4,948

The tables above are inclusive of loans that were TDRs at the end of previous years and were re-modified, e.g., a maturity date extension during the current year.


	Troubled Debt			Troubled Debt
	Restructurings			Restructurings			Total
	Performing to			Not Performing to			Troubled Debt
	Modified Terms			Modified Terms			Restructurings
	Number of	Recorded		Number of	Recorded		Number of	Recorded
December 31, 2017 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Interest only payments	1	$	219	—	$	—	1	$	219
Rate reduction	4		1,013	—		—	4		1,013
Legal modification	6		351	2		197	8		548
Total residential TDRs	11		1,583	2		197	13		1,780

Commercial related and construction/land development loans:
Principal deferral	2		266	—		—	2		266
Total commercial TDRs	2		266	—		—	2		266

Consumer loans:
Principal deferral	830		637	—		—	830		637
Total consumer TDRs	830		637	—		—	830		637

Total troubled debt restructurings	843	$	2,486	2	$	197	845	$	2,683

The table above is inclusive of loans that were TDRs at the end of previous years and were re-modified, e.g., a maturity date extension during the current year.

As of December 31, 2019, 2018, and 2017, 83%, 42% and 93% of the Bank’s TDRs that occurred during the years ended December 31, 2019, 2018, and 2017 were performing according to their modified terms. The Bank provided approximately $220,000, $472,000 and $885,000 in specific reserve allocations to clients whose loan terms were modified in TDRs during 2019, 2018 and 2017.

There was no significant change between the pre and post modification loan balances at December 31, 2019, 2018, and 2017.

The following tables present loans by class modified as troubled debt restructurings within the previous 12 months of December 31, 2019, 2018, and 2017 and for which there was a payment default during 2019, 2018, and 2017:


	2019			2018			2017
	Number of	Recorded		Number of	Recorded		Number of	Recorded
Years Ended December 31, (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate:
Owner occupied	4	$	248	6	$	2,920	2	$	197
Commercial real estate	1		541	1		28	—		—
Commercial & industrial	2		1,027	—		—	—		—
Consumer	1,279		201	—		—	823		129

Total	1,286	$	2,017	7	$	2,948	825	$	326

Foreclosures

The following table presents the carrying amount of foreclosed properties held at December 31, 2019 and 2018 as a result of the Bank obtaining physical possession of such properties:


December 31, (in thousands)	2019		2018

Residential real estate	$	113	$	160

Total other real estate owned	$	113	$	160

The following table presents the recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction as of December 31, 2019 and 2018:


December 31, (in thousands)	2019		2018

Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure	$	2,201	$	3,293

Easy Advances

The Company’s TRS segment offered its EA product during the first two months of 2019 and 2018. The Company based its estimated provision for loan losses of EAs on current year EA delinquency information and prior year IRS funding patterns of federal tax refunds. Each year, all unpaid EAs are charged off by June 30th.

Information regarding EAs follows:


Years Ended December 31, (dollars in thousands)	2019			2018			2017

Easy Advances originated	$	388,970		$	430,210		$	328,523
Net charge to the Provision for Easy Advances		10,643			10,760			6,789
Provision to total Easy Advances originated		2.74	%		2.50	%		2.07	%
Easy Advances net charge-offs	$	10,643		$	10,760		$	6,789
Easy Advances net charge-offs to total Easy Advances originated		2.74	%		2.50	%		2.07	%