*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:


(in thousands)	September 30, 2022		December 31, 2021

Contractually receivable	$	4,292,481	$	4,498,671
Unearned income		(782)		(542)
Unamortized premiums		101		116
Unaccreted discounts		(533)		(641)
PPP net unamortized deferred origination (fees) and costs		(151)		(1,203)
Other net unamortized deferred origination (fees) and costs		(1,666)		161
Carrying value of loans	$	4,289,450	$	4,496,562

Paycheck Protection Program

The CARES Act was enacted in March 2020 and provided for the SBA’s PPP, which allowed the Bank to lend to its qualifying small business clients to assist them in their efforts to meet their cashflow needs during the COVID pandemic. The Economic Aid Act was enacted in December 2020 and provided for a second round of PPP loans. PPP loans are fully backed by the SBA and may be entirely forgiven if the loan client uses loan funds for qualifying reasons. As of September 30, 2022, net PPP loans of $8 million remained on the Traditional Bank’s balance sheet compared to $56 million as of December 31, 2021. PPP fees recognized by the Company for the first nine months of 2022 and 2021 were $1.3 million and $16.9 million.

Credit Quality Indicators

The following tables include loans by segment, risk category, and, for non-revolving loans, origination year. Loan segments and risk categories as of September 30, 2022 remain unchanged from those defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Regarding origination year, loan extensions and renewals are generally considered originated in the year extended or renewed unless the loan is classified as a TDR. Loan extensions and renewals classified as TDRs generally receive no change in origination date upon extension or renewal.


											Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year										Amortized		Converted
As of September 30, 2022	2022		2021		2020		2019		Prior		Cost Basis		to Term		Total

Residential real estate owner occupied:
Risk Rating
Pass or not rated	$	159,832	$	193,689	$	194,203	$	74,702	$	218,545	$	—	$	—	$	840,971
Special Mention		—		288		—		—		7,481		—		—		7,769
Substandard		760		763		1,378		1,629		10,629		—		—		15,159
Doubtful		—		—		—		—		—		—		—		—
Total	$	160,592	$	194,740	$	195,581	$	76,331	$	236,655	$	—	$	—	$	863,899

Residential real estate nonowner occupied:
Risk Rating
Pass or not rated	$	65,818	$	95,597	$	56,504	$	34,017	$	63,577	$	—	$	5,364	$	320,877
Special Mention		—		—		—		—		34		—		—		34
Substandard		—		34		—		—		92		—		—		126
Doubtful		—		—		—		—		—		—		—		—
Total	$	65,818	$	95,631	$	56,504	$	34,017	$	63,703	$	—	$	5,364	$	321,037

Commercial real estate:
Risk Rating
Pass or not rated	$	304,650	$	447,618	$	227,149	$	130,962	$	285,661	$	22,845	$	103,638	$	1,522,523
Special Mention		1,320		12,721		—		22,784		11,247		151		—		48,223
Substandard		—		—		—		—		847		—		—		847
Doubtful		—		—		—		—		—		—		—		—
Total	$	305,970	$	460,339	$	227,149	$	153,746	$	297,755	$	22,996	$	103,638	$	1,571,593

Construction and land development:
Risk Rating
Pass or not rated	$	68,101	$	75,079	$	1,214	$	653	$	612	$	1,759	$	—	$	147,418
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	68,101	$	75,079	$	1,214	$	653	$	612	$	1,759	$	—	$	147,418

Commercial and industrial:
Risk Rating
Pass or not rated	$	96,129	$	84,119	$	23,230	$	39,763	$	45,104	$	96,756	$	2,713	$	387,814
Special Mention		564		13,572		—		645		1,888		300		—		16,969
Substandard		—		—		—		91		97		—		—		188
Doubtful		—		—		—		—		—		—		—		—
Total	$	96,693	$	97,691	$	23,230	$	40,499	$	47,089	$	97,056	$	2,713	$	404,971

Paycheck Protection Program:
Risk Rating
Pass or not rated	$	—	$	5,915	$	1,940	$	—	$	—	$	—	$	—	$	7,855
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	5,915	$	1,940	$	—	$	—	$	—	$	—	$	7,855

Lease financing receivables:
Risk Rating
Pass or not rated	$	5,343	$	2,201	$	512	$	1,773	$	1,504	$	—	$	—	$	11,333
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	5,343	$	2,201	$	512	$	1,773	$	1,504	$	—	$	—	$	11,333

Aircraft:
Risk Rating
Pass or not rated	$	46,255	$	57,010	$	36,777	$	18,293	$	7,763	$	—	$	—	$	166,098
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		215		—		—		215
Doubtful		—		—		—		—		—		—		—		—
Total	$	46,255	$	57,010	$	36,777	$	18,293	$	7,978	$	—	$	—	$	166,313

Home equity:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	227,274	$	—	$	227,274
Special Mention		—		—		—		—		—		365		—		365
Substandard		—		—		—		—		—		1,399		—		1,399
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	229,038	$	—	$	229,038


											Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year (Continued)										Amortized		Converted
As of September 30, 2022	2022		2021		2020		2019		Prior		Cost Basis		to Term		Total

Consumer:
Risk Rating
Pass or not rated	$	505	$	541	$	218	$	2,961	$	5,194	$	14,995	$	—	$	24,414
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		19		50		—		—		69
Doubtful		—		—		—		—		—		—		—		—
Total	$	505	$	541	$	218	$	2,980	$	5,244	$	14,995	$	—	$	24,483

Warehouse:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	442,238	$	—	$	442,238
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	442,238	$	—	$	442,238

TRS:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	295	$	—	$	295
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	295	$	—	$	295

RCS:
Risk Rating
Pass or not rated	$	11,116	$	2,870	$	1,558	$	709	$	29,360	$	52,927	$	—	$	98,540
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		437		—		437
Doubtful		—		—		—		—		—		—		—		—
Total	$	11,116	$	2,870	$	1,558	$	709	$	29,360	$	53,364	$	—	$	98,977

Grand Total:
Risk Rating
Pass or not rated	$	757,749	$	964,639	$	543,305	$	303,833	$	657,320	$	859,089	$	111,715	$	4,197,650
Special Mention		1,884		26,581		—		23,429		20,650		816		—		73,360
Substandard		760		797		1,378		1,739		11,930		1,836		—		18,440
Doubtful		—		—		—		—		—		—		—		—
Grand Total	$	760,393	$	992,017	$	544,683	$	329,001	$	689,900	$	861,741	$	111,715	$	4,289,450


											Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year										Amortized		Converted
As of December 31, 2021	2021		2020		2019		2018		Prior		Cost Basis		to Term		Total

Residential real estate owner occupied:
Risk Rating
Pass or not rated	$	218,981	$	213,010	$	89,186	$	50,301	$	226,852	$	—	$	—	$	798,330
Special Mention		301		—		—		33		8,209		—		—		8,543
Substandard		45		870		679		1,189		11,075		—		—		13,858
Doubtful		—		—		—		—		—		—		—		—
Total	$	219,327	$	213,880	$	89,865	$	51,523	$	246,136	$	—	$	—	$	820,731

Residential real estate nonowner occupied:
Risk Rating
Pass or not rated	$	107,041	$	65,786	$	44,376	$	29,292	$	55,872	$	—	$	3,729	$	306,096
Special Mention		—		—		—		—		132		—		—		132
Substandard		—		—		—		—		95		—		—		95
Doubtful		—		—		—		—		—		—		—		—
Total	$	107,041	$	65,786	$	44,376	$	29,292	$	56,099	$	—	$	3,729	$	306,323

Commercial real estate:
Risk Rating
Pass or not rated	$	472,095	$	256,039	$	153,224	$	94,212	$	286,223	$	25,188	$	80,211	$	1,367,192
Special Mention		20,059		2,399		29,639		11,207		18,778		—		—		82,082
Substandard		—		111		266		2,453		3,905		—		—		6,735
Doubtful		—		—		—		—		—		—		—		—
Total	$	492,154	$	258,549	$	183,129	$	107,872	$	308,906	$	25,188	$	80,211	$	1,456,009

Construction and land development:
Risk Rating
Pass or not rated	$	88,743	$	30,593	$	2,599	$	1,155	$	128	$	1,925	$	—	$	125,143
Special Mention		—		524		3,670		—		—		—		—		4,194
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	88,743	$	31,117	$	6,269	$	1,155	$	128	$	1,925	$	—	$	129,337

Commercial and industrial:
Risk Rating
Pass or not rated	$	105,148	$	34,361	$	54,524	$	18,110	$	44,972	$	60,454	$	2,541	$	320,110
Special Mention		15,015		1,921		785		34		1,956		350		—		20,061
Substandard		—		13		179		—		—		—		—		192
Doubtful		—		—		—		—		—		—		—		—
Total	$	120,163	$	36,295	$	55,488	$	18,144	$	46,928	$	60,804	$	2,541	$	340,363


											Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year (Continued)										Amortized		Converted
As of December 31, 2021	2021		2020		2019		2018		Prior		Cost Basis		to Term		Total

Paycheck Protection Program:
Risk Rating
Pass or not rated	$	40,607	$	15,407	$	—	$	—	$	—	$	—	$	—	$	56,014
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	40,607	$	15,407	$	—	$	—	$	—	$	—	$	—	$	56,014

Lease financing receivables:
Risk Rating
Pass or not rated	$	2,638	$	839	$	2,641	$	1,264	$	1,255	$	—	$	—	$	8,637
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	2,638	$	839	$	2,641	$	1,264	$	1,255	$	—	$	—	$	8,637

Aircraft:
Risk Rating
Pass or not rated	$	65,886	$	43,301	$	22,933	$	9,119	$	1,655	$	—	$	—	$	142,894
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	65,886	$	43,301	$	22,933	$	9,119	$	1,655	$	—	$	—	$	142,894

Home equity:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	208,429	$	—	$	208,429
Special Mention		—		—		—		—		—		279		—		279
Substandard		—		—		—		—		—		1,870		—		1,870
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	210,578	$	—	$	210,578
Consumer:
Risk Rating
Pass or not rated	$	978	$	417	$	4,694	$	4,326	$	5,768	$	14,613	$	—	$	30,796
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		22		61		194		—		—		277
Doubtful		—		—		—		—		—		—		—		—
Total	$	978	$	417	$	4,716	$	4,387	$	5,962	$	14,613	$	—	$	31,073

Warehouse:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	850,550	$	—	$	850,550
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	850,550	$	—	$	850,550

TRS:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	50,987	$	—	$	50,987
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	50,987	$	—	$	50,987

RCS:
Risk Rating
Pass or not rated	$	5,524	$	3,409	$	1,642	$	869	$	3,699	$	77,544	$	—	$	92,687
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		379		—		379
Doubtful		—		—		—		—		—		—		—		—
Total	$	5,524	$	3,409	$	1,642	$	869	$	3,699	$	77,923	$	—	$	93,066

Grand Total:
Risk Rating
Pass or not rated	$	1,107,641	$	663,162	$	375,819	$	208,648	$	626,424	$	1,289,690	$	86,481	$	4,357,865
Special Mention		35,375		4,844		34,094		11,274		29,075		629		—		115,291
Substandard		45		994		1,146		3,703		15,269		2,249		—		23,406
Doubtful		—		—		—		—		—		—		—		—
Grand Total	$	1,143,061	$	669,000	$	411,059	$	223,625	$	670,768	$	1,292,568	$	86,481	$	4,496,562

Allowance for Credit Losses on Loans

The following table presents the activity in the ACLL by portfolio class:


	ACLL Rollforward
	Three Months Ended September 30,
	2022										2021
	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	$	8,445	$	(3)	$	—	$	24	$	8,466	$	8,977	$	(677)	$	—	$	329	$	8,629
Nonowner occupied		2,733		63		—		—		2,796		2,551		47		—		—		2,598
Commercial real estate		24,341		(1,413)		—		275		23,203		23,307		286		—		3		23,596
Construction & land development		3,591		331		—		—		3,922		3,299		376		—		—		3,675
Commercial & industrial		3,768		82		—		124		3,974		4,117		(139)		(35)		16		3,959
Paycheck Protection Program		—		—		—		—		—		—		—		—		—		—
Lease financing receivables		119		—		—		—		119		97		2		—		—		99
Aircraft		400		16		—		—		416		303		23		—		—		326
Home equity		4,113		279		—		7		4,399		4,305		(63)		—		5		4,247
Consumer:
Credit cards		994		(41)		(27)		33		959		949		22		(40)		20		951
Overdrafts		901		57		(288)		53		723		717		143		(195)		88		753
Automobile loans		122		(30)		—		9		101		273		(34)		(19)		6		226
Other consumer		200		(24)		(38)		15		153		467		(28)		(25)		14		428
Total Traditional Banking		49,727		(683)		(353)		540		49,231		49,362		(42)		(314)		481		49,487
Warehouse lines of credit		1,491		(386)		—		—		1,105		2,100		(223)		—		—		1,877
Total Core Banking		51,218		(1,069)		(353)		540		50,336		51,462		(265)		(314)		481		51,364

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		(1,296)		—		1,296		—		—		(2,242)		—		2,242		—
Other TRS loans		—		—		—		—		—		—		(19)		—		19		—
Republic Credit Solutions		13,231		4,008		(2,922)		266		14,583		8,829		3,820		(1,064)		75		11,660
Total Republic Processing Group		13,231		2,712		(2,922)		1,562		14,583		8,829		1,559		(1,064)		2,336		11,660

Total	$	64,449	$	1,643	$	(3,275)	$	2,102	$	64,919	$	60,291	$	1,294	$	(1,378)	$	2,817	$	63,024


	ACLL Rollforward
	Nine Months Ended September 30,
	2022										2021
	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	$	8,647	$	(272)	$	—	$	91	$	8,466	$	9,715	$	(1,461)	$	—	$	375	$	8,629
Nonowner occupied		2,700		94		—		2		2,796		2,466		131		—		1		2,598
Commercial real estate		23,769		(843)		—		277		23,203		23,606		336		(428)		82		23,596
Construction & land development		4,128		(206)		—		—		3,922		3,274		401		—		—		3,675
Commercial & industrial		3,487		346		—		141		3,974		2,797		1,170		(35)		27		3,959
Paycheck Protection Program		—		—		—		—		—		—		—		—		—		—
Lease financing receivables		91		28		—		—		119		106		(7)		—		—		99
Aircraft		357		59		—		—		416		253		73		—		—		326
Home equity		4,111		169		—		119		4,399		4,990		(789)		—		46		4,247
Consumer:
Credit cards		934		50		(97)		72		959		929		108		(130)		44		951
Overdrafts		683		560		(696)		176		723		587		351		(444)		259		753
Automobile loans		186		(98)		—		13		101		399		(178)		(19)		24		226
Other consumer		314		(137)		(68)		44		153		577		(137)		(56)		44		428
Total Traditional Banking		49,407		(250)		(861)		935		49,231		49,699		(2)		(1,112)		902		49,487
Warehouse lines of credit		2,126		(1,021)		—		—		1,105		2,407		(530)		—		—		1,877
Total Core Banking		51,533		(1,271)		(861)		935		50,336		52,106		(532)		(1,112)		902		51,364

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		7,583		(11,505)		3,922		—		—		7,984		(10,226)		2,242		—
Other TRS loans		96		(607)		(154)		665		—		158		(134)		(21)		(3)		—
Republic Credit Solutions		12,948		8,836		(8,005)		804		14,583		8,803		5,037		(2,427)		247		11,660
Total Republic Processing Group		13,044		15,812		(19,664)		5,391		14,583		8,961		12,887		(12,674)		2,486		11,660

Total	$	64,577	$	14,541	$	(20,525)	$	6,326	$	64,919	$	61,067	$	12,355	$	(13,786)	$	3,388	$	63,024

The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of September 30, 2022 was primarily based on a static pool analysis of each of the Company’s loan pools using the Company’s loss experience from 2013 through 2022, supplemented by qualitative factor adjustments for current and forecasted conditions. The Company employs one-year forecasts of unemployment and CRE values within its ACLL model, with reversion to long-term averages following the forecasted period. The cumulative loss rate within the Company’s ACLL also includes estimated losses based on an individual evaluation of loans which are either collateral dependent or which do not share risk characteristics with pooled loans, e.g., TDRs.

For its CRE loan pool, the Company employed a one-year forecast of CRE vacancy rates through March 31, 2021 but discontinued use of this forecast during the second quarter of 2021 in favor of a one-year forecast of general CRE values. This change in forecast method had no material impact on the Company’s ACLL.

Nonperforming Loans and Nonperforming Assets

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


(dollars in thousands)	September 30, 2022			December 31, 2021

Loans on nonaccrual status*	$	16,322		$	20,504
Loans past due 90-days-or-more and still on accrual**		37			48
Total nonperforming loans		16,359			20,552
Other real estate owned		1,634			1,792
Total nonperforming assets	$	17,993		$	22,344

Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.38	%		0.46	%
Nonperforming assets to total loans (including OREO)		0.42			0.50
Nonperforming assets to total assets		0.30			0.37

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.39	%		0.47	%
Nonperforming assets to total loans (including OREO)		0.43			0.51
Nonperforming assets to total assets		0.33			0.40

*	Loans on nonaccrual status include collateral-dependent loans.

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

The following tables present 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*
(in thousands)	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021

Traditional Banking:
Residential real estate:
Owner occupied	$	13,604	$	12,039	$	—	$	—
Nonowner occupied		125		95		—		—
Commercial real estate		1,051		6,557		—		—
Construction & land development		—		—		—		—
Commercial & industrial		—		13		—		—
Paycheck Protection Program		—		—		—		—
Lease financing receivables		—		—		—		—
Aircraft		—		—		—		—
Home equity		1,291		1,700		—		—
Consumer:
Credit cards		—		—		—		—
Overdrafts		—		—		—		1
Automobile loans		35		97		—		—
Other consumer		216		3		—		—
Total Traditional Banking		16,322		20,504		—		1
Warehouse lines of credit		—		—		—		—
Total Core Banking		16,322		20,504		—		1

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—		—		—		—
Other TRS loans		—		—		—		—
Republic Credit Solutions		—		—		37		47
Total Republic Processing Group		—		—		37		47

Total	$	16,322	$	20,504	$	37	$	48

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


							Three Months Ended		Nine Months Ended
	As of September 30, 2022						September 30, 2022		September 30, 2022

	Nonaccrual		Nonaccrual		Total		Interest Income		Interest Income
	Loans with		Loans without		Nonaccrual		Recognized		Recognized
(in thousands)	ACLL		ACLL		Loans		on Nonaccrual Loans*		on Nonaccrual Loans*

Residential real estate:
Owner occupied	$	1,738	$	11,866	$	13,604	$	163	$	734
Nonowner occupied		62		63		125		1		1
Commercial real estate		1,051		—		1,051		680		1,325
Construction & land development		—		—		—		—		—
Commercial & industrial		—		—		—		—		—
Paycheck Protection Program		—		—		—		—		—
Lease financing receivables		—		—		—		—		—
Aircraft		—		—		—		—		—
Home equity		8		1,283		1,291		31		185
Consumer		19		232		251		4		12
Total	$	2,878	$	13,444	$	16,322	$	879	$	2,257

* Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period.


							Three Months Ended		Nine Months Ended
	As of December 31, 2021						September 30, 2021		September 30, 2021

	Nonaccrual		Nonaccrual		Total		Interest Income		Interest Income
	Loans with		Loans without		Nonaccrual		Recognized		Recognized
(in thousands)	ACLL		ACLL		Loans		on Nonaccrual Loans*		on Nonaccrual Loans*

Residential real estate:
Owner occupied	$	1,944	$	10,095	$	12,039	$	225	$	672
Nonowner occupied		31		64		95		2		5
Commercial real estate		4,105		2,452		6,557		16		125
Construction & land development		—		—		—		—		—
Commercial & industrial		—		13		13		—		2
Paycheck Protection Program		—		—		—		—		—
Lease financing receivables		—		—		—		—		—
Aircraft		—		—		—		—		—
Home equity		—		1,700		1,700		19		121
Consumer		17		83		100		4		8
	$	6,097	$	14,407	$	20,504	$	266	$	933

* Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period.

Nonaccrual loans and loans past due 90-days-or-more and still on accrual include both smaller balance, primarily retail, homogeneous 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.

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
September 30, 2022	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Traditional Banking:
Residential real estate:
Owner occupied	$	1,373		$	1,512		$	876		$	3,761		$	860,138	$	863,899
Nonowner occupied		—			—			41			41			320,996		321,037
Commercial real estate		—			—			—			—			1,571,593		1,571,593
Construction & land development		—			—			—			—			147,418		147,418
Commercial & industrial		1			—			—			1			404,970		404,971
Paycheck Protection Program		—			—			—			—			7,855		7,855
Lease financing receivables		—			—			—			—			11,333		11,333
Aircraft		—			—			—			—			166,313		166,313
Home equity		—			—			315			315			228,723		229,038
Consumer:
Credit cards		23			10			—			33			14,864		14,897
Overdrafts		155			2			—			157			566		723
Automobile loans		18			31			4			53			7,837		7,890
Other consumer		5			1			1			7			966		973
Total Traditional Banking		1,575			1,556			1,237			4,368			3,743,572		3,747,940
Warehouse lines of credit		—			—			—			—			442,238		442,238
Total Core Banking		1,575			1,556			1,237			4,368			4,185,810		4,190,178

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—			—			—			—			—		—
Other TRS loans		—			—			—			—			295		295
Republic Credit Solutions		5,809			1,676			37			7,522			91,455		98,977
Total Republic Processing Group		5,809			1,676			37			7,522			91,750		99,272

Total	$	7,384		$	3,232		$	1,274		$	11,890		$	4,277,560	$	4,289,450
Delinquency ratio***		0.17	%		0.08	%		0.03	%		0.28	%

* 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, 2021	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Traditional Banking:
Residential real estate:
Owner occupied	$	606		$	383		$	610		$	1,599		$	819,132	$	820,731
Nonowner occupied		—			—			—			—			306,323		306,323
Commercial real estate		—			—			5,292			5,292			1,450,717		1,456,009
Construction & land development		—			—			—			—			129,337		129,337
Commercial & industrial		8			—			13			21			340,342		340,363
Paycheck Protection Program		—			—			—			—			56,014		56,014
Lease financing receivables		—			—			—			—			8,637		8,637
Aircraft		—			—			—			—			142,894		142,894
Home equity		38			35			241			314			210,264		210,578
Consumer:
Credit cards		19			11			—			30			14,480		14,510
Overdrafts		160			3			1			164			519		683
Automobile loans		—			—			9			9			14,439		14,448
Other consumer		1			—			—			1			1,431		1,432
Total Traditional Banking		832			432			6,166			7,430			3,494,529		3,501,959
Warehouse lines of credit		—			—			—			—			850,550		850,550
Total Core Banking		832			432			6,166			7,430			4,345,079		4,352,509

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		—			—			—			—			—		—
Other TRS loans		—			—			—			—			50,987		50,987
Republic Credit Solutions		5,010			978			47			6,035			87,031		93,066
Total Republic Processing Group		5,010			978			47			6,035			138,018		144,053

Total	$	5,842		$	1,410		$	6,213		$	13,465		$	4,483,097	$	4,496,562
Delinquency ratio***		0.13	%		0.03	%		0.14	%		0.30	%

* All loans past due 90-days-or-more, excluding smaller 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.

Collateral-Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans by class of loans:


	September 30, 2022				December 31, 2021
	Secured		Secured		Secured		Secured
	by Real		by Personal		by Real		by Personal
(in thousands)	Estate		Property		Estate		Property

Traditional Banking:
Residential real estate:
Owner occupied	$	17,702	$	—	$	14,798	$	—
Nonowner occupied		125		—		95		—
Commercial real estate		848		—		6,736		—
Construction & land development		—		—		—		—
Commercial & industrial		—		188		—		192
Paycheck Protection Program		—		—		—		—
Lease financing receivables		—		—		—		—
Aircraft		—		—		—		—
Home equity		1,505		—		1,976		—
Consumer		—		258		—		274
Total Traditional Banking	$	20,180	$	446	$	23,605	$	466

Collateral-dependent loans are generally secured by real estate or personal property. If there is insufficient collateral value to secure the Company’s recorded investment in these loans, they are charged down to collateral value less estimated selling costs, when selling costs are applicable. Selling costs range from 10% to 13%, with those percentages based on annual studies performed by the Company.

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.

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. As of September 30, 2022 and December 31, 2021, $3 million and $6 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
September 30, 2022 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate	71	$	3,356	77	$	7,058	148	$	10,414
Commercial real estate	—		—	1		865	1		865
Commercial & industrial	—		—	1		1	1		1
Consumer	1		10	1,887		418	1,888		428
Total troubled debt restructurings	72	$	3,366	1,966	$	8,342	2,038	$	11,708


	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, 2021 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Residential real estate	63	$	3,179	89	$	7,856	152	$	11,035
Commercial real estate	2		2,575	2		1,239	4		3,814
Commercial & industrial	2		45	1		1	3		46
Consumer	1		12	2,269		479	2,270		491
Total troubled debt restructurings	68	$	5,811	2,361	$	9,575	2,429	$	15,386

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 as of September 30, 2022 and December 31, 2021 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
September 30, 2022 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Rate reduction	73	$	6,632	2	$	119	75	$	6,751
Principal deferral	6		552	1		157	7		709
Legal modification	57		2,639	9		315	66		2,954
Total residential TDRs	136		9,823	12		591	148		10,414

Commercial related and construction/land development loans:
Rate reduction	1		865	—		—	1		865
Principal deferral	1		1	—		—	1		1
Total commercial TDRs	2		866	—		—	2		866

Consumer loans:
Principal deferral	1,885		414	—		—	1,885		414
Legal modification	3		14	—		—	3		14
Total consumer TDRs	1,888		428	—		—	1,888		428

Total troubled debt restructurings	2,026	$	11,117	12	$	591	2,038	$	11,708


	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, 2021 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Interest only payments	—		—	—		—	—	$	—
Rate reduction	82	$	7,461	4	$	303	86		7,764
Principal deferral	7		729	—		—	7		729
Legal modification	48		2,100	11		442	59		2,542
Total residential TDRs	137		10,290	15		745	152		11,035

Commercial related and construction/land development loans:
Interest only payments	—		—	—		—	—		—
Rate reduction	1		919	—		—	1		919
Principal deferral	5		477	1		2,464	6		2,941
Total commercial TDRs	6		1,396	1		2,464	7		3,860

Consumer loans:
Principal deferral	2,266		470	—		—	2,266		470
Legal modification	4		21	—		—	4		21
Total consumer TDRs	2,270		491	—		—	2,270		491

Total troubled debt restructurings	2,413	$	12,177	16	$	3,209	2,429	$	15,386

As of September 30, 2022 and December 31, 2021, 95% and 79% of the Bank’s TDR balances were performing according to their modified terms. The Bank had provided $804,000 and $2 million of specific ACLL allocations to clients whose loan terms have been modified in TDRs as of September 30, 2022 and December 31, 2021. The Bank had no commitments to lend any additional material amounts to its existing TDR relationships as of September 30, 2022 or December 31, 2021.

A summary of the categories of TDR loan modifications by respective performance as of September 30, 2022 and 2021 that were modified during the three months ended September 30, 2022 and 2021 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
September 30, 2022 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Legal modification	10	$	443	1	$	47	11	$	490
Total residential TDRs	10		443	1		47	11		490

Consumer loans:
Principal deferral	332		62	—		—	332		62
Total consumer TDRs	332		62	—		—	332		62

Total troubled debt restructurings	342	$	505	1	$	47	343	$	552


	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
September 30, 2021 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Legal modification	3	$	142	1	$	14	4	$	156
Total residential TDRs	3		142	1		14	4		156

Consumer loans:
Principal deferral	124		13	—		—	124		13
Total consumer TDRs	124		13	—		—	124		13

Total troubled debt restructurings	127	$	155	1	$	14	128	$	169

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

As of September 30, 2022 and 2021, 91% and 92% of the Bank’s TDR balances that occurred during the third quarters of 2022 and 2021 were performing according to their modified terms. The Bank provided approximately $30,000 and $6,000 in specific ACLL allocations to clients whose loan terms were modified in TDRs during the third quarters of 2022 and 2021.

There was no significant change between the pre and post modification loan balances for the three months ending September 30, 2022 and 2021.

A summary of the categories of TDR loan modifications by respective performance as of September 30, 2022 and 2021 that were modified during the nine months ended September 30, 2022 and 2021 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
September 30, 2022 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Legal modification	17	$	954	1	$	47	18	$	1,001
Total residential TDRs	17		954	1		47	18		1,001

Consumer loans:
Principal deferral	605		109	—		—	605		109
Total consumer TDRs	605		109	—		—	605		109

Total troubled debt restructurings	622	$	1,063	1	$	47	623	$	1,110


	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
September 30, 2021 (dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate loans (including home equity loans):
Principal deferral	—	$	—	1	$	160	1		160
Legal modification	6		378	5		288	11		666
Total residential TDRs	6		378	6		448	12		826

Consumer loans:
Principal deferral	556		72	—		—	556		72
Legal modification	1		3	—		—	1		3
Total consumer TDRs	557		75	—		—	557		75

Total troubled debt restructurings	563	$	453	6	$	448	569	$	901

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

As of September 30, 2022 and 2021, 96% and 50% of the Bank’s TDR balances that occurred during the first nine months of 2022 and 2021 were performing according to their modified terms. The Bank provided approximately $53,000 and $38,000 in specific ACLL allocations to clients whose loan terms were modified in TDRs during the first nine months of 2022 and 2021.

There was no significant change between the pre and post modification loan balances for the nine months ending September 30, 2022 and 2021.

The following table presents loans by class modified as troubled debt restructurings within the previous 12 months of September 30, 2022 and 2021 and for which there was a payment default during the three and/or nine months ended September 30, 2022 and 2021.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
		Recorded		Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment		Loans	Investment

Residential real estate:
Owner occupied	1	$	47	2	$	179	3	$	83	6	$	468
Commercial real estate	—		—	—		—	—		—	1		116
Home equity	—		—	1		14	1		10	1		14

Total	1	$	47	3	$	193	4	$	93	8	$	598

Foreclosures

The following table presents the carrying amount of foreclosed properties held as a result of the Bank obtaining physical possession of such properties:


(in thousands)	September 30, 2022		December 31, 2021

Commercial real estate	$	1,634	$	1,792

Total other real estate owned	$	1,634	$	1,792

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 requirements of the applicable jurisdiction:


(in thousands)	September 30, 2022		December 31, 2021

Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure	$	762	$	508

Easy Advances

The Company’s TRS segment offered its EA product during the first two months of 2022 and 2021. During the first quarter of each year, the Company bases its estimated Provision for EAs on the current year’s EA delinquency information and prior years’ tax refund payment patterns subsequent to the first quarter. Unpaid EAs are charged-off by June 30^th of each year, with EAs collected during the second half of each year recorded as recoveries of previously charged-off loans, unless such collections are subject to guarantor reimbursement under a loan-loss guaranty.

Information regarding EAs follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in thousands)	2022		2021		2022			2021

Easy Advances originated	$	—	$	—	$	311,207		$	250,045
Net charge (credit) to the Provision for Easy Advances		(1,296)		(2,242)		7,583			7,984
Provision to total Easy Advances originated		NA		NA		2.44	%		3.19	%
Easy Advances net charge-offs (recoveries)	$	(1,296)	$	(2,242)	$	7,583		$	7,984
Easy Advances net charge-offs (recoveries) to total Easy Advances originated		NA		NA		2.44	%		3.19	%