EX-99.2 3 a52691692ex99_2.htm EXHIBIT 99.2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2022

TABLE OF CONTENTS


	BALANCE SHEET DATA	S-2

	AVERAGE BALANCE SHEET DATA	S-3

	INCOME STATEMENT DATA	S-4

	SELECTED DATA AND RATIOS	S-5

	LOAN COMPOSITION	S-6

	ALLOWANCE FOR CREDIT LOSSES ON LOANS	S-6

	CREDIT QUALITY DATA AND RATIOS	S-7

	SEGMENT DATA	S-8

	FOOTNOTES	S-10

S-1

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022

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

Balance Sheet Data
	As of
	Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021
Assets:
Cash and cash equivalents	$	1,077,158		$	756,971		$	1,011,247		$	747,007		$	984,857
Investment securities, net of allowance for credit losses		614,836			542,045			543,449			573,027			532,443
Loans held for sale		28,037			52,077			40,546			56,833			79,307
Loans		4,390,243			4,496,562			4,343,806			4,554,221			4,666,593
Allowance for credit losses		(71,656	)		(64,577	)		(63,024	)		(60,291	)		(75,336	)
Loans, net		4,318,587			4,431,985			4,280,782			4,493,930			4,591,257
Federal Home Loan Bank stock, at cost		10,311			10,311			10,311			11,670			13,153
Premises and equipment, net		34,358			36,073			37,499			38,682			38,324
Right-of-use assets		42,402			38,825			39,257			40,698			41,911
Goodwill		16,300			16,300			16,300			16,300			16,300
Other real estate owned ("OREO")		1,740			1,792			1,845			1,898			2,015
Bank owned life insurance ("BOLI")		99,773			99,161			99,634			99,008			68,408
Other assets and accrued interest receivable		106,367			108,092			106,764			104,257			108,565
Total assets	$	6,349,869		$	6,093,632		$	6,187,634		$	6,183,310		$	6,476,540

Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,226,714		$	1,990,781		$	2,086,548		$	2,062,433		$	2,276,348
Interest-bearing		2,860,392			2,849,637			2,861,399			2,955,145			2,995,144
Total deposits		5,087,106			4,840,418			4,947,947			5,017,578			5,271,492

Securities sold under agreements to
repurchase and other short-term borrowings ("SSUAR")		287,818			290,967			260,583			142,895			175,580
Operating lease liabilities		43,204			39,672			40,151			41,621			42,854
Federal Home Loan Bank advances		20,000			25,000			25,000			25,000			25,000
Subordinated note		—			—			—			41,240			41,240
Other liabilities and accrued interest payable		71,412			63,343			75,296			69,886			82,665
Total liabilities		5,509,540			5,259,400			5,348,977			5,338,220			5,638,831

Stockholders' equity		840,329			834,232			838,657			845,090			837,709
Total liabilities and stockholders' equity	$	6,349,869		$	6,093,632		$	6,187,634		$	6,183,310		$	6,476,540

S-2

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022 (continued)

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

Average Balance Sheet Data
	Three Months Ended															Three Months Ended
	Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Mar. 31, 2022			Mar. 31, 2021
Assets:

Interest-earning assets:
Federal funds sold and other interest-earning deposits	$	861,822		$	848,215		$	924,859		$	938,728		$	510,433		$	861,822		$	510,433
Investment securities, including FHLB stock		606,182			540,227			555,934			562,509			563,985			606,182			563,985
Loans, including loans held for sale		4,355,255			4,385,547			4,404,270			4,546,683			4,745,656			4,355,255			4,745,656
Total interest-earning assets		5,823,259			5,773,989			5,885,063			6,047,920			5,820,074			5,823,259			5,820,074

Allowance for credit losses		(69,287	)		(63,711	)		(61,562	)		(74,258	)		(66,561	)		(69,287	)		(66,561	)

Noninterest-earning assets:
Noninterest-earning cash and cash equivalents		354,165			137,556			140,037			144,327			249,842			354,165			249,842
Premises and equipment, net		35,460			37,055			38,377			39,119			39,185			35,460			39,185
Bank owned life insurance		99,532			99,978			99,386			97,257			68,257			99,532			68,257
Other assets		180,779			192,755			187,286			186,197			191,497			180,779			191,497

Total assets	$	6,423,908		$	6,177,622		$	6,288,587		$	6,440,562		$	6,302,294		$	6,423,908		$	6,302,294

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:
Interest-bearing deposits	$	2,827,496		$	2,857,403		$	2,908,135		$	3,020,168		$	2,909,017		$	2,827,496		$	2,909,017
SSUARs		300,169			318,785			242,867			169,888			192,669			300,169			192,669
Federal Home Loan Bank advances		23,333			25,000			25,000			25,000			43,167			23,333			43,167
Subordinated note		—			—			40,791			41,240			41,240			—			41,240
Total interest-bearing liabilities		3,150,998			3,201,188			3,216,793			3,256,296			3,186,093			3,150,998			3,186,093

Noninterest-bearing liabilities and Stockholders’ equity:
Noninterest-bearing deposits		2,313,549			2,028,910			2,118,200			2,226,070			2,146,036			2,313,549			2,146,036
Other liabilities		112,331			102,694			104,659			108,891			133,953			112,331			133,953
Stockholders' equity		847,030			844,830			848,935			849,305			836,212			847,030			836,212

Total liabilities and stock-holders’ equity	$	6,423,908		$	6,177,622		$	6,288,587		$	6,440,562		$	6,302,294		$	6,423,908		$	6,302,294

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022 (continued)

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

Income Statement Data
	Three Months Ended															Three Months Ended
	Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Mar. 31, 2022			Mar. 31, 2021

Total interest income (1)	$	63,555		$	51,379		$	53,772		$	51,552		$	69,557		$	63,555		$	69,557
Total interest expense		943			1,038			1,340			1,511			1,777			943			1,777
Net interest income		62,612			50,341			52,432			50,041			67,780			62,612			67,780

Provision for expected credit loss expense (2)		9,226			2,577			1,292			(4,323	)		15,262			9,226			15,262

Noninterest income:
Service charges on deposit accounts		3,226			3,332			3,277			3,071			2,873			3,226			2,873
Net refund transfer fees		12,051			326			1,280			5,921			12,721			12,051			12,721
Mortgage banking income (3)		2,657			3,339			5,280			4,182			7,193			2,657			7,193
Interchange fee income		3,070			3,291			3,263			3,481			3,027			3,070			3,027
Program fees (3)		3,854			4,217			4,530			3,549			2,225			3,854			2,225
Increase in cash surrender value of BOLI		612			626			626			600			390			612			390
Net losses on OREO		(53	)		(53	)		(52	)		(44	)		(11	)		(53	)		(11	)
Contract termination fee		5,000			—			—			—			—			5,000			—
Other		584			1,552			1,135			1,093			619			584			619
Total noninterest income		31,001			16,630			19,339			21,853			29,037			31,001			29,037

Noninterest expense:
Salaries and employee benefits		29,312			26,350			26,991			27,410			29,337			29,312			29,337
Technology, equipment, and communication		7,214			7,161			7,312			7,384			7,043			7,214			7,043
Occupancy		3,440			3,188			3,195			3,251			3,559			3,440			3,559
Marketing and development		1,348			1,023			1,234			1,097			726			1,348			726
FDIC insurance expense		419			402			325			418			446			419			446
Interchange related expense		1,117			1,253			1,275			1,288			1,144			1,117			1,144
Legal and professional fees		1,365			1,360			884			1,466			1,214			1,365			1,214
Other (2)		4,358			3,848			3,036			3,342			4,342			4,358			4,342
Total noninterest expense		48,573			44,585			44,252			45,656			47,811			48,573			47,811

Income before income tax expense		35,814			19,809			26,227			30,561			33,744			35,814			33,744
Income tax expense		7,888			3,004			6,218			6,639			7,691			7,888			7,691

Net income	$	27,926		$	16,805		$	20,009		$	23,922		$	26,053		$	27,926		$	26,053

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022 (continued)

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

Selected Data and Ratios
	As of and for the Three Months Ended															As of and for the Three Months Ended
	Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Mar. 31, 2022			Mar. 31, 2021
Per Share Data:

Basic weighted average shares outstanding		20,145			20,270			20,508			20,894			20,997			20,145			20,997
Diluted weighted average shares outstanding		20,225			20,379			20,591			20,949			21,062			20,225			21,062

Period-end shares outstanding:
Class A Common Stock		17,834			17,816			18,040			18,421			18,628			17,834			18,628
Class B Common Stock		2,165			2,165			2,165			2,166			2,198			2,165			2,198

Book value per share (4)	$	42.02		$	41.75		$	41.51		$	41.05		$	40.22		$	42.02		$	40.22
Tangible book value per share (4)		40.73			40.48			40.26			39.85			39.07			40.73			39.07

Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	1.40		$	0.84		$	0.99		$	1.16		$	1.26		$	1.40		$	1.26
Basic EPS - Class B Common Stock		1.27			0.77			0.90			1.05			1.14			1.27			1.14
Diluted EPS - Class A Common Stock		1.40			0.84			0.99			1.16			1.25			1.40			1.25
Diluted EPS - Class B Common Stock		1.27			0.76			0.90			1.05			1.14			1.27			1.14

Cash dividends declared per Common share:
Class A Common Stock	$	0.341		$	0.308		$	0.308		$	0.308		$	0.308		$	0.341		$	0.308
Class B Common Stock		0.310			0.280			0.280			0.280			0.280			0.310			0.280

Performance Ratios:

Return on average assets		1.74	%		1.09	%		1.27	%		1.49	%		1.65	%		1.74	%		1.65	%
Return on average equity		13.19			7.96			9.43			11.27			12.46			13.19			12.46
Efficiency ratio (5)		55			67			62			64			49			55			49
Yield on average interest-earning assets (1)		4.37			3.56			3.65			3.41			4.78			4.37			4.78
Cost of average interest-bearing liabilities		0.12			0.13			0.17			0.19			0.22			0.12			0.22
Cost of average deposits (6)		0.07			0.08			0.09			0.10			0.12			0.07			0.12
Net interest spread (1)		4.25			3.43			3.48			3.22			4.56			4.25			4.56
Net interest margin - Total Company (1)		4.30			3.49			3.56			3.31			4.66			4.30			4.66
Net interest margin - Core Bank		2.92			3.08			3.25			3.03			3.46			2.92			3.46

Other Information:

End of period FTEs (7) - Total Company		1,040			1,045			1,052			1,072			1,086			1,040			1,086
End of period FTEs - Core Bank		955			958			966			981			990			955			990
Number of full-service banking centers		42			42			42			42			42			42			42

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022 (continued)

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

Loan Composition and Allowance for Credit Losses on Loans
	As of
	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021
Loan Composition

Traditional Banking:
Residential real estate:
Owner occupied	$	808,658	$	820,731	$	827,898	$	852,947	$	851,869
Nonowner occupied		314,933		306,323		294,818		289,290		271,829
Commercial real estate		1,556,575		1,456,009		1,393,241		1,389,003		1,344,394
Construction & land development		129,970		129,337		105,968		95,180		102,113
Commercial & industrial		342,175		340,363		333,795		330,302		312,537
Paycheck Protection Program		18,276		56,014		126,271		250,933		383,311
Lease financing receivables		10,396		8,637		9,427		9,249		9,930
Aircraft		151,284		142,894		130,398		121,112		106,081
Home equity		210,364		210,578		215,282		217,621		226,280
Consumer:
Credit cards		14,654		14,510		14,781		14,754		14,200
Overdrafts		716		683		753		717		474
Automobile loans		11,846		14,448		17,533		21,190		25,624
Other consumer		939		1,432		6,223		6,796		7,325
Total Traditional Banking		3,570,786		3,501,959		3,476,388		3,599,094		3,655,967
Warehouse lines of credit		690,200		850,550		750,682		840,155		865,844
Total Core Banking		4,260,986		4,352,509		4,227,070		4,439,249		4,521,811

Republic Processing Group:
Tax Refund Solutions:
Easy Advances		16,475		—		—		—		30,703
Other TRS loans		25,132		50,987		25		23		5,770
Republic Credit Solutions		87,650		93,066		116,711		114,949		108,309
Total Republic Processing Group		129,257		144,053		116,736		114,972		144,782

Total loans - Total Company	$	4,390,243	$	4,496,562	$	4,343,806	$	4,554,221	$	4,666,593

Allowance for Credit Losses on Loans ("Allowance")

Traditional Banking	$	49,616	$	49,407	$	49,487	$	49,362	$	49,387
Warehouse Lending		1,725		2,126		1,877		2,100		2,165
Total Core Banking		51,341		51,533		51,364		51,462		51,552

Tax Refund Solutions		8,370		96		—		—		16,029
Republic Credit Solutions		11,945		12,948		11,660		8,829		7,755
Total Republic Processing Group		20,315		13,044		11,660		8,829		23,784

Total Allowance - Total Company	$	71,656	$	64,577	$	63,024	$	60,291	$	75,336

Allowance to Total Loans

Traditional Banking	1.39	%	1.41	%	1.42	%	1.37	%	1.35	%
Warehouse Lending	0.25		0.25		0.25		0.25		0.25
Total Core Banking	1.20		1.18		1.22		1.16		1.14

Tax Refund Solutions	20.12		0.19		—		—		43.95
Republic Credit Solutions	13.63		13.91		9.99		7.68		7.16
Total Republic Processing Group	15.72		9.06		9.99		7.68		16.43

Total Company	1.63		1.44		1.45		1.32		1.61

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022 (continued)

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

Credit Quality Data and Ratios
	As of and for the Three Months Ended															As of and for the Three Months Ended
	Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Mar. 31, 2022			Mar. 31, 2021
Credit Quality Asset Balances and Net Charge-off ("NCO") Data:

Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	16,935		$	20,504		$	20,252		$	21,621		$	22,004		$	16,935		$	22,004
Loans past due 90-days-or-more and still on accrual		31			48			691			723			517			31			517
Total nonperforming loans		16,966			20,552			20,943			22,344			22,521			16,966			22,521
OREO		1,740			1,792			1,845			1,898			2,015			1,740			2,015
Total nonperforming assets	$	18,706		$	22,344		$	22,788		$	24,242		$	24,536		$	18,706		$	24,536

Nonperforming Assets - Core Bank:
Loans on nonaccrual status	$	16,935		$	20,504		$	20,252		$	21,621		$	22,004		$	16,935		$	22,004
Loans past due 90-days-or-more and still on accrual		—			1			—			—			—			—			—
Total nonperforming loans		16,935			20,505			20,252			21,621			22,004			16,935			22,004
OREO		1,740			1,792			1,845			1,898			2,015			1,740			2,015
Total nonperforming assets	$	18,675		$	22,297		$	22,097		$	23,519		$	24,019		$	18,675		$	24,019

Delinquent Loans:
Delinquent loans - Core Bank	$	5,863		$	7,430		$	7,692		$	9,909		$	8,560		$	5,863		$	8,560
RPG		10,352			6,035			9,701			8,809			6,426			10,352			6,426
Total delinquent loans - Total Company	$	16,215		$	13,465		$	17,393		$	18,718		$	14,986		$	16,215		$	14,986

NCOs (Recoveries) by Segment:
Traditional Bank	$	118		$	175		$	(167	)	$	(5	)	$	382		$	118		$	382
Warehouse Lending loans		—			—			—			—			—			—			—
Core Bank loans		118			175			(167	)		(5	)		382			118			382
Tax Refund Solutions		(362	)		(1,263	)		(2,261	)		10,256			13			(362	)		13
Republic Credit Solutions		2,398			2,119			989			518			673			2,398			673
RPG		2,036			856			(1,272	)		10,774			686			2,036			686
Total NCOs (recoveries) - Total Company	$	2,154		$	1,031		$	(1,439	)	$	10,769		$	1,068		$	2,154		$	1,068

Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.39	%		0.46	%		0.48	%		0.49	%		0.48	%		0.39	%		0.48	%
Nonperforming assets to total loans (including OREO)		0.43			0.50			0.52			0.53			0.53			0.43			0.53
Nonperforming assets to total assets		0.29			0.37			0.37			0.39			0.38			0.29			0.38
Allowance for credit losses to total loans		1.63			1.44			1.45			1.32			1.61			1.63			1.61
Allowance for credit losses to nonperforming loans		422			314			301			270			335			422			335
Delinquent loans to total loans (8)		0.37			0.30			0.40			0.41			0.32			0.37			0.32
NCOs (recoveries) to average loans (annualized)		0.20			0.09			(0.13	)		0.95			0.09			0.20			0.09

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.40	%		0.47	%		0.48	%		0.49	%		0.49	%		0.40	%		0.49	%
Nonperforming assets to total loans (including OREO)		0.44			0.51			0.52			0.53			0.53			0.44			0.53
Nonperforming assets to total assets		0.33			0.40			0.39			0.42			0.42			0.33			0.42
Allowance for credit losses to total loans		1.20			1.18			1.22			1.16			1.14			1.20			1.14
Allowance for credit losses to nonperforming loans		303			251			254			238			234			303			234
Delinquent loans to total loans		0.14			0.17			0.18			0.22			0.19			0.14			0.19
NCOs (recoveries) to average loans (annualized)		0.01			0.02			(0.02	)		—			0.03			0.01			0.03

TRS Easy Advances ("EAs")

EAs originated	$	311,207		$	—		$	—		$	—		$	250,045		$	311,207		$	250,045
Net (credit) charge to the Provision for EAs		8,315			(1,261	)		(2,242	)		(5,793	)		16,019			8,315			16,019
Net Provision to YTD EAs originated		2.67	%		(0.50	)%		(0.90	)%		(2.32	)%		6.41	%		2.67	%		6.41	%
EAs NCOs (recoveries)	$	—		$	(1,261	)	$	(2,242	)	$	10,226		$	—		$	—		$	—
EA NCOs (recoveries) to YTD EAs originated		—	%		(0.50	)%		(0.90	)%		4.09	%		—	%		—	%		—	%

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022 (continued)

Segment Data:

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

As of March 31, 2022, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking, Tax Refund Solutions (“TRS”), and Republic Credit Solutions (“RCS”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute Republic Processing Group (“RPG”) operations.

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


Reportable Segment:	Nature of Operations:	Primary Drivers of Net Revenue:

Core Banking:

Traditional Banking	Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels.	Loans, investments, and deposits

Warehouse Lending	Provides short-term, revolving credit facilities to mortgage bankers across the United States.	Mortgage warehouse lines of credit

Mortgage Banking	Primarily originates, sells and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint.	Loan sales and servicing

Republic Processing Group:

Tax Refund Solutions	TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint.	Loans, refund transfers, and prepaid cards.

Republic Credit Solutions	Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers.	Unsecured, consumer loans

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

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022 (continued)

Segment information for the quarters ended March 31, 2022 and 2021 follows:

	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		$	6,341		$	21,745		$	62,612

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
Other noninterest income		7,234			13			34			7,281			158			—			158			7,439
Total noninterest income		7,234			13			2,691			9,938			17,936			3,127			21,063			31,001

Total noninterest expense		38,219			952			2,690			41,861			5,145			1,567			6,712			48,573

Income before income tax expense		4,843			3,977			205			9,025			20,283			6,506			26,789			35,814
Income tax expense		472			904			45			1,421			4,906			1,561			6,467			7,888

Net income	$	4,371		$	3,073		$	160		$	7,604		$	15,377		$	4,945		$	20,322		$	27,926

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				4.30	%

Net-revenue concentration*		46	%		5	%		3	%		54	%		36	%		10	%		46	%		100	%

	Three Months Ended March 31, 2021
	Core Banking												Republic Processing Group
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company

Net interest income	$	41,102		$	6,772		$	409		$	48,283		$	14,676		$	4,821		$	19,497		$	67,780

Provision for expected credit loss expense		(5	)		(242	)		—			(247	)		15,884			(375	)		15,509			15,262

Net refund transfer fees		—			—			—			—			12,721			—			12,721			12,721
Mortgage banking income		—			—			7,193			7,193			—			—			—			7,193
Program fees		—			—			—			—			896			1,329			2,225			2,225
Other noninterest income		6,784			14			28			6,826			72			—			72			6,898
Total noninterest income		6,784			14			7,221			14,019			13,689			1,329			15,018			29,037

Total noninterest expense		37,328			1,028			3,121			41,477			5,302			1,032			6,334			47,811

Income before income tax expense		10,563			6,000			4,509			21,072			7,179			5,493			12,672			33,744
Income tax expense		2,125			1,434			992			4,551			1,770			1,370			3,140			7,691

Net income	$	8,438		$	4,566		$	3,517		$	16,521		$	5,409		$	4,123		$	9,532		$	26,053

Period-end assets	$	4,789,840		$	865,655		$	78,760		$	5,734,255		$	625,690		$	116,595		$	742,285		$	6,476,540

Net interest margin		3.47	%		3.43	%	NM				3.46	%	NM			NM			NM				4.66	%

Net-revenue concentration*		50	%		7	%		8	%		65	%		29	%		6	%		35	%		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.

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

First Quarter 2022 (continued)

Footnotes:

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

	Three Months Ended										Three Months Ended
(dollars in thousands)	Mar. 31, 2022		Dec. 31, 2021		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021		Mar. 31, 2022		Mar. 31, 2021

Traditional Bank excluding PPP fees	$	1,451	$	1,126	$	1,152	$	963	$	895	$	1,451	$	895
Traditional Bank - PPP fees		879		2,850		5,182		3,676		5,757		879		5,757
Warehouse Lending		574		662		779		789		871		574		871
Total Core Bank		2,904		4,638		7,113		5,428		7,523		2,904		7,523
TRS - Easy Advances		13,444		43		76		294		12,789		13,444		12,789
TRS - Other Loan Fees		662		—		—		4		1,652		662		1,652
RCS		5,702		5,694		4,167		3,568		3,770		5,702		3,770
Total RPG		19,808		5,737		4,243		3,866		18,211		19,808		18,211

Total loan fees - Total Company	$	22,712	$	10,375	$	11,356	$	9,294	$	25,734	$	22,712	$	25,734

(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
(dollars in thousands)	Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Mar. 31, 2022			Mar. 31, 2021

Mortgage Loans Held for Sale

Balance, beginning of period	$	29,393		$	25,791		$	32,401		$	63,636		$	46,867		$	29,393		$	46,867
Originations		100,661			155,468			170,482			141,177			213,587			100,661			213,587
Proceeds from sales		(119,212	)		(155,186	)		(182,422	)		(176,424	)		(203,815	)		(119,212	)		(203,815	)
Net gain on sale		2,460			3,320			5,330			4,012			6,997			2,460			6,997
Balance, end of period	$	13,302		$	29,393		$	25,791		$	32,401		$	63,636		$	13,302		$	63,636

RCS Consumer Loans Held for Sale

Balance, beginning of period	$	22,684		$	14,755		$	24,432		$	15,671		$	4,776		$	22,684		$	4,776
Originations		245,214			321,118			257,018			186,771			117,274			245,214			117,274
Proceeds from sales		(256,280	)		(316,597	)		(270,463	)		(180,826	)		(107,683	)		(256,280	)		(107,683	)
Net gain on sale		3,117			3,408			3,768			2,816			1,304			3,117			1,304
Balance, end of period	$	14,735		$	22,684		$	14,755		$	24,432		$	15,671		$	14,735		$	15,671

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Table of Contents

(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, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021

Total stockholders' equity - GAAP (a)	$	840,329		$	834,232		$	838,657		$	845,090		$	837,709
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		9,502			9,196			8,867			8,335			7,711
Less: Core deposit intangible		—			—			—			—			53
Tangible stockholders' equity - Non-GAAP (c)	$	814,527		$	808,736		$	813,490		$	820,455		$	813,645

Total assets - GAAP (b)	$	6,349,869		$	6,093,632		$	6,187,634		$	6,183,310		$	6,476,540
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		9,502			9,196			8,867			8,335			7,711
Less: Core deposit intangible		—			—			—			-			53
Tangible assets - Non-GAAP (d)	$	6,324,067		$	6,068,136		$	6,162,467		$	6,158,675		$	6,452,476

Total stockholders' equity to total assets - GAAP (a/b)		13.23	%		13.69	%		13.55	%		13.67	%		12.93	%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)		12.88	%		13.33	%		13.20	%		13.32	%		12.61	%

Number of shares outstanding (e)		19,999			19,981			20,205			20,587			20,826

Book value per share - GAAP (a/e)	$	42.02		$	41.75		$	41.51		$	41.05		$	40.22
Tangible book value per share - Non-GAAP (c/e)		40.73			40.48			40.26			39.85			39.07

(5)

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

	Three Months Ended															Three Months Ended March 31, 2022
(dollars in thousands)	Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021			Jun. 30, 2021			Mar. 31, 2021			Mar. 31, 2022			Mar. 31, 2021

Net interest income - GAAP	$	62,612		$	50,341		$	52,432		$	50,041		$	67,780		$	62,612		$	67,780
Noninterest income - GAAP		31,001			16,630			19,339			21,853			29,037			31,001			29,037
Less: Contract termination fee		5,000			—			—			—			—			5,000			—
Less: Net gain (loss) on securities		(120	)		(23	)		(10	)		(1	)		(35	)		(120	)		(35	)
Total adjusted income - Non-GAAP (a)	$	88,733		$	66,994		$	71,781		$	71,895		$	96,852		$	88,733		$	96,852

Noninterest expense - GAAP (b)	$	48,573		$	44,585		$	44,252		$	45,656		$	47,811		$	48,573		$	47,811

Efficiency Ratio - Non-GAAP (b/a)		55	%		67	%		62	%		64	%		49	%		55	%		49	%

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

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

(8)

The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due. Delinquent loans as of March 31, 2022 included $4.5 million of Easy Advances, which do not have a contractual due date but the Company considered an EA delinquent in 2022 if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority.

NM – Not meaningful

NA – Not applicable

YTD – Year to date

CONTACT:

Republic Bancorp, Inc.

Kevin Sipes

Executive Vice President & Chief Financial Officer

(502) 560-8628

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