REPUBLIC BANCORP INC /KY/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

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EX-99.1 - EXHIBIT 99.1 - REPUBLIC BANCORP INC /KY/	a52464839ex99_1.htm
8-K - REPUBLIC BANCORP, INC. 8-K - REPUBLIC BANCORP INC /KY/	a52464839.htm

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2021

TABLE OF CONTENTS

	YEAR TO YEAR COMPARISON	S-2

	Balance Sheet Data	S-2
	Average Balance Sheet Data (Continuing Operations)	S-2
	Income Statement Data	S-3
	Selected Data and Ratios	S-4
	Credit Quality Data and Ratios	S-6

	QUARTERLY COMPARISON	S-7

	Balance Sheet Data	S-7
	Average Balance Sheet Data (Continuing Operations)	S-7
	Income Statement Data	S-8
	Selected Data and Ratios	S-9
	Credit Quality Data and Ratios	S-11

	SEGMENT DATA	S-12

	Quarter to Date Income Statement by Segment	S-13
	Year to Date Income Statement by Segment	S-14

	FOOTNOTES	S-15

S-1

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021

(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
	Jun. 30, 2021			Dec. 31, 2020			Jun. 30, 2020
Assets:
Cash and cash equivalents	$	747,007		$	485,587		$	$560,195
Investment securities, net of allowance for credit losses		573,027			580,270			545,607
Loans held for sale		56,833			51,643			52,992
Loans for discontinued operations (1)		23			23,765			289
Loans		4,554,198			4,789,338			5,064,803
Allowance for credit losses		(60,291	)		(61,067	)		(55,097	)
Loans, net		4,493,907			4,728,271			5,009,706
Federal Home Loan Bank stock, at cost		11,670			17,397			25,629
Premises and equipment, net		38,682			39,512			42,753
Right-of-use assets		40,698			43,345			34,450
Goodwill		16,300			16,300			16,300
Other real estate owned ("OREO")		1,898			2,499			2,194
Bank owned life insurance ("BOLI")		99,008			68,018			67,217
Other assets and accrued interest receivable		104,257			111,718			103,243
Total assets	$	6,183,310		$	6,168,325		$	$6,460,575

Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,015,449		$	1,871,539		$	$1,780,043
Interest-bearing		2,955,145			2,842,765			3,196,685
Deposits held for assumption (1)		46,984			18,877			41,357
Total deposits		5,017,578			4,733,181			5,018,085

Securities sold under agreements to repurchase and other short-term borrowings		142,895			211,026			177,397
Operating lease liabilities		41,621			44,340			35,571
Federal Reserve Paycheck Protection Program Liquidity Facility		—			—			169,209
Federal Home Loan Bank advances		25,000			235,000			137,500
Subordinated note		41,240			41,240			41,240
Other liabilities and accrued interest payable		69,886			80,215			85,954
Total liabilities		5,338,220			5,345,002			5,664,956

Stockholders' equity		845,090			823,323			795,619
Total liabilities and stockholders' equity	$	6,183,310		$	6,168,325		$	$6,460,575

Average Balance Sheet Data (Continuing Operations) (1)
	Three Months Ended Jun. 30,				Six Months Ended Jun. 30,
	2021		2020		2021		2020
Assets:
Federal funds sold and other interest-earning deposits	$	988,171	$	331,344	$	885,972	$	408,109
Investment securities, including FHLB stock		562,509		605,776		563,243		562,751
Loans, including loans held for sale		4,528,640		4,845,273		4,572,564		4,586,224
Total interest-earning assets		6,079,320		5,782,393		6,021,779		5,557,084
Total assets		6,435,422		6,088,152		6,360,534		5,845,797

Liabilities and Stockholders' Equity:
Noninterest-bearing deposits	$	2,142,055	$	1,611,026	$	2,054,131	$	1,348,541
Interest-bearing deposits		3,020,168		2,827,424		2,964,900		2,807,984
Securities sold under agreements to repurchase and other short-term borrowings		253,903		316,682		313,360		377,705
Federal Reserve Paycheck Protection Program Liquidity Facility		—		122,769		—		61,384
Federal Home Loan Bank advances		25,000		263,296		34,033		317,307
Subordinated note		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		3,340,311		3,571,411		3,353,533		3,605,620
Stockholders' equity		849,305		797,227		842,826		788,064

S-2

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (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 Jun. 30,						Six Months Ended Jun. 30,
	2021			2020			2021			2020

Total interest income (2)	$	51,284		$	56,904		$	106,566		$	118,537
Total interest expense		1,646			5,092			3,550			14,253
Net interest income		49,638			51,812			103,016			104,284

Provision for expected credit loss expense		1,450			2,086			828			9,713

Noninterest income:
Service charges on deposit accounts		3,071			2,451			5,944			5,587
Mortgage banking income		4,182			8,398			11,375			13,193
Interchange fee income		3,368			2,725			6,339			5,219
Program fees		3,549			1,138			5,774			3,762
Increase in cash surrender value of BOLI		600			395			990			784
Net gains (losses) on OREO		(44	)		1			(55	)		4
Other		1,035			575			1,635			1,812
Total noninterest income		15,761			15,683			32,002			30,361

Noninterest expense:
Salaries and employee benefits		26,106			25,106			53,522			50,198
Technology, equipment, and communication		7,321			6,804			14,253			13,564
Occupancy		3,250			3,302			6,809			6,518
Marketing and development		1,120			969			1,851			1,710
FDIC insurance expense		418			299			714			299
Bank franchise tax expense		452			911			777			1,693
Interchange related expense		1,288			1,173			2,432			2,249
Other real estate owned and other repossession expense		2			21			(32	)		39
Legal and professional fees		448			1,003			1,601			2,097
Other		2,885			3,613			5,472			6,943
Total noninterest expense		43,290			43,201			87,399			85,310

Income from continuing operations before income tax expense		20,659			22,208			46,791			39,622
Income tax expense		4,157			4,453			9,963			7,553
Income from continuing operations		16,502			17,755			36,828			32,069
Discontinued operations (1) (2):
Income (loss) from discontinued operations before income taxes		9,902			(2,611	)		17,514			13,553
Income tax expense (benefit)		2,482			(660	)		4,367			3,121
Income (loss) from discontinued operations, net of tax		7,420			(1,951	)		13,147			10,432

Net income	$	23,922		$	15,804		$	49,975		$	42,501

S-3

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (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 for Discontinued Operations (1)
	Three Months Ended Jun. 30,						Six Months Ended Jun. 30,
	2021			2020			2021		2020

Total interest income (2)	$	433		$	650		$	15,001	$	22,316
Total interest expense		30			257			196		1,657
Net interest income		403			393			14,805		20,659

Provision for expected credit loss expense		(5,773	)		4,448			10,111		19,581

Noninterest income:
Net refund transfer fees		5,921			2,913			18,642		18,736
Interchange fee income		113			83			169		141
Other		58			72			77		82
Total noninterest income		6,092			3,068			18,888		18,959

Noninterest expense:
Salaries and employee benefits		1,304			1,218			3,225		2,748
Other		1,062			406			2,843		3,736
Total noninterest expense		2,366			1,624			6,068		6,484

Income (loss) from discontinued operations before income taxes		9,902			(2,611	)		17,514		13,553
Income tax expense (benefit)		2,482			(660	)		4,367		3,121
Income (loss) from discontinued operations, net of tax	$	7,420		$	(1,951	)	$	13,147	$	10,432

S-4

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (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

	Three Months Ended Jun. 30,						Six Months Ended Jun. 30,
	2021			2020			2021			2020
Per Share Data:

Basic weighted average shares outstanding		20,894			21,004			20,951			21,023
Diluted weighted average shares outstanding		20,949			21,029			21,016			21,065

Period-end shares outstanding:
Class A Common Stock		18,421			18,708			18,421			18,708
Class B Common Stock		2,166			2,200			2,166			2,200

Book value per share (3)	$	41.05		$	38.05		$	41.05		$	38.05
Tangible book value per share (3)		39.85			36.93			39.85			36.93

Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	1.16		$	0.77		$	2.42		$	2.04
Basic EPS - Class B Common Stock		1.05			0.69			2.19			1.86
Diluted EPS - Class A Common Stock		1.16			0.76			2.41			2.04
Diluted EPS - Class B Common Stock		1.05			0.69			2.19			1.85

Earnings per share from continuing operations:
Basic EPS - Class A Common Stock	$	0.80		$	0.86		$	1.78		$	1.54
Basic EPS - Class B Common Stock		0.73			0.78			1.62			1.40
Diluted EPS - Class A Common Stock		0.80			0.86			1.78			1.54
Diluted EPS - Class B Common Stock		0.73			0.78			1.61			1.40

Cash dividends declared per Common share:
Class A Common Stock	$	0.308		$	0.286		$	0.616		$	0.572
Class B Common Stock		0.280			0.260			0.560			0.520

Performance Ratios:

Return on average assets		1.49	%		1.04	%		1.57	%		1.45	%
Return on average assets from continuing operations		1.03			1.17			1.16			1.10
Return on average equity		11.27			7.93			11.86			10.79
Return on average equity from continuing operations		7.77			8.91			8.74			8.14
Efficiency ratio from continuing operations (4)		66			64			65			63
Yield on average interest-earning assets from continuing operations (2)		3.37			3.94			3.54			4.27
Cost of average interest-bearing liabilities from continuing operations		0.20			0.57			0.21			0.79
Cost of average deposits from continuing operations (5)		0.10			0.31			0.12			0.45
Net interest spread from continuing operations (2)		3.17			3.37			3.33			3.48
Net interest margin from continuing operations - Total Company (2)		3.27			3.58			3.42			3.75
Net interest margin from continuing operations - Core Bank (6)		3.03			3.23			3.24			3.43

Other Information:

End of period FTEs (7) - Total Company		1,072			1,094			1,072			1,094
End of period FTEs - Core Bank		981			1,001			981			1,001
Number of full-service banking centers		42			42			42			42

S-5

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (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						As of and for the
	Three Months Ended Jun. 30,						Six Months Ended Jun. 30,
	2021			2020			2021			2020
Credit Quality Asset Balances:

Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	21,621		$	19,884		$	21,621		$	19,884
Loans past due 90-days-or-more and still on accrual		723			535			723			535
Total nonperforming loans		22,344			20,419			22,344			20,419
OREO		1,898			2,194			1,898			2,194
Total nonperforming assets	$	24,242		$	22,613		$	24,242		$	22,613

Nonperforming Assets - Core Bank (6):
Loans on nonaccrual status	$	21,621		$	19,884		$	21,621		$	19,884
Loans past due 90-days-or-more and still on accrual		—			—			—			—
Total nonperforming loans		21,621			19,884			21,621			19,884
OREO		1,898			2,194			1,898			2,194
Total nonperforming assets	$	23,519		$	22,078		$	23,519		$	22,078

Delinquent loans:
Delinquent loans - Core Bank	$	9,909		$	7,861		$	9,909		$	7,861
Delinquent loans - RPG (8)		8,809			6,185			8,809			6,185
Total delinquent loans - Total Company	$	18,718		$	14,046		$	18,718		$	14,046


Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.49	%		0.40	%		0.49	%		0.40	%
Nonperforming assets to total loans (including OREO)		0.53			0.45			0.53			0.45
Nonperforming assets to total assets		0.39			0.35			0.39			0.35
Allowance for credit losses to total loans		1.32			1.09			1.32			1.09
Allowance for credit losses to nonperforming loans		270			270			270			270
Delinquent loans to total loans (9)		0.41			0.28			0.41			0.28
Net charge-offs to average loans (annualized)		0.95			1.80			0.52			1.03
Net charge-offs from continuing operations to average loans (annualized)		0.05			0.19			0.07			0.19

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.49	%		0.40	%		0.49	%		0.40	%
Nonperforming assets to total loans (including OREO)		0.53			0.44			0.53			0.44
Nonperforming assets to total assets		0.42			0.36			0.42			0.36
Allowance for credit losses to total loans		1.16			0.92			1.16			0.92
Allowance for credit losses to nonperforming loans		238			230			238			230
Delinquent loans to total loans		0.22			0.16			0.22			0.16
Net charge-offs to average loans (annualized)		—			0.04			0.02			0.01

S-6

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (continued)

(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
	Quarterly Comparison
	Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020
Assets:
Cash and cash equivalents	$	747,007		$	984,857		$	485,587		$	342,028		$	$560,195
Investment securities, net of allowance for credit losses		573,027			532,443			580,270			607,556			545,607
Loans held for sale		56,833			79,307			51,643			56,752			52,992
Loans for discontinued operations (1)		23			36,473			23,765			233			289
Loans		4,554,198			4,630,120			4,789,338			4,994,141			5,064,803
Allowance for credit losses		(60,291	)		(75,336	)		(61,067	)		(59,891	)		(55,097	)
Loans, net		4,493,907			4,554,784			4,728,271			4,934,250			5,009,706
Federal Home Loan Bank stock, at cost		11,670			13,153			17,397			19,634			25,629
Premises and equipment, net		38,682			38,324			39,512			40,946			42,753
Right-of-use assets		40,698			41,911			43,345			43,643			34,450
Goodwill		16,300			16,300			16,300			16,300			16,300
Other real estate owned		1,898			2,015			2,499			2,056			2,194
Bank owned life insurance		99,008			68,408			68,018			67,617			67,217
Other assets and accrued interest receivable		104,257			108,565			111,718			109,431			103,243
Total assets	$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446		$	$6,460,575

Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	2,015,449		$	2,170,109		$	1,871,539		$	1,855,502		$	$1,780,043
Interest-bearing		2,955,145			2,995,144			2,842,765			3,115,911			3,196,685
Deposits held for assumption (1)		46,984			106,239			18,877			20,916			41,357
Total deposits		5,017,578			5,271,492			4,733,181			4,992,329			5,018,085

Securities sold under agreements to repurchase and other short-term borrowings		142,895			175,580			211,026			126,172			177,397
Operating lease liabilities		41,621			42,854			44,340			44,710			35,571
Federal Reserve Paycheck Protection Program Liquidity Facility		—			—			—			—			169,209
Federal Home Loan Bank advances		25,000			25,000			235,000			132,500			137,500
Subordinated note		41,240			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable		69,886			82,665			80,215			93,133			85,954
Total liabilities		5,338,220			5,638,831			5,345,002			5,430,084			5,664,956

Stockholders' equity		845,090			837,709			823,323			810,362			795,619
Total liabilities and stockholders' equity	$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446		$	$6,460,575

Average Balance Sheet Data (Continuing Operations) (1)
	Quarterly Comparison
	Jun. 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sep. 30, 2020		Jun. 30, 2020
Assets:
Federal funds sold and other interest-earning deposits	$	988,171	$	782,637	$	321,075	$	315,597	$	331,344
Investment securities, including FHLB stock		562,509		563,985		610,287		600,943		605,776
Loans, including loans held for sale		4,528,640		4,616,976		4,908,350		4,907,630		4,845,273
Total interest-earning assets		6,079,320		5,963,598		5,839,712		5,824,170		5,782,393
Total assets		6,435,422		6,284,812		6,170,486		6,151,538		6,088,152

Liabilities and Stockholders' Equity:
Noninterest-bearing deposits	$	2,142,055	$	1,965,230	$	1,871,226	$	1,846,552	$	1,611,026
Interest-bearing deposits		3,020,168		2,909,017		2,977,579		2,939,063		2,827,424
Securities sold under agreements to repurchase and other short-term borrowings		253,903		373,476		241,440		241,742		316,682
Federal Reserve Paycheck Protection Program Liquidity Facility		—		—		—		53,338		122,769
Federal Home Loan Bank advances		25,000		43,167		88,533		126,250		263,296
Subordinated note		41,240		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		3,340,311		3,366,900		3,348,792		3,401,633		3,571,411
Stockholders' equity		849,305		836,274		823,109		811,351		797,227

S-7

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (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
	Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020

Total interest income (2)	$	51,284		$	55,282		$	57,908		$	55,905		$	56,904
Total interest expense		1,646			1,904			2,880			3,856			5,092
Net interest income		49,638			53,378			55,028			52,049			51,812

Provision for expected credit loss expense		1,450			(622	)		2,534			5,842			2,086

Noninterest income:
Service charges on deposit accounts		3,071			2,873			3,011			3,017			2,451
Mortgage banking income		4,182			7,193			7,879			10,775			8,398
Interchange fee income		3,368			2,971			2,889			2,874			2,725
Program fees		3,549			2,225			1,846			1,487			1,138
Increase in cash surrender value of BOLI		600			390			401			400			395
Net gains (losses) on OREO		(44	)		(11	)		(30	)		(14	)		1
Other		1,035			600			701			861			575
Total noninterest income		15,761			16,241			16,697			19,400			15,683

Noninterest expense:
Salaries and employee benefits		26,106			27,416			25,220			25,207			25,106
Technology, equipment, and communication		7,321			6,932			7,595			7,402			6,804
Occupancy		3,250			3,559			3,545			3,367			3,302
Marketing and development		1,120			731			1,079			864			969
FDIC insurance expense		418			296			366			345			299
Bank franchise tax expense		452			325			972			972			911
Interchange related expense		1,288			1,144			998			1,056			1,173
Other real estate owned and other repossession expense		2			(34	)		1			6			21
Legal and professional fees		448			1,153			700			1,240			1,003
FHLB advance prepayment penalties		—			—			2,108			—			—
Other		2,885			2,587			3,150			3,319			3,613
Total noninterest expense		43,290			44,109			45,734			43,778			43,201

Income from continuing operations before income tax expense		20,659			26,132			23,457			21,829			22,208
Income tax expense		4,157			5,806			3,309			4,554			4,453
Income from continuing operations		16,502			20,326			20,148			17,275			17,755
Discontinued operations (1) (2):
Income (loss) from discontinued operations before income taxes		9,902			7,612			175			3,997			(2,611	)
Income tax expense (benefit)		2,482			1,885			(33	)		883			(660	)
Income (loss) from discontinued operations, net of tax		7,420			5,727			208			3,114			(1,951	)

Net income	$	23,922		$	26,053		$	20,356		$	20,389		$	15,804

S-8

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (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 for Discontinued Operations (1)
	Three Months Ended
	Jun. 30, 2021			Mar. 31, 2021		Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020

Total interest income (2)	$	433		$	14,568	$	98		$	205		$	650
Total interest expense		30			166		6			2			257
Net interest income		403			14,402		92			203			393

Provision for expected credit loss expense		(5,773	)		15,884		(2,050	)		(4,342	)		4,448

Noninterest income:
Net refund transfer fees		5,921			12,721		409			1,152			2,913
Interchange fee income		113			56		28			37			83
Other		58			19		2			8			72
Total noninterest income		6,092			12,796		439			1,197			3,068

Noninterest expense:
Salaries and employee benefits		1,304			1,921		1,333			1,460			1,218
Other		1,062			1,781		1,073			285			406
Total noninterest expense		2,366			3,702		2,406			1,745			1,624

Income (loss) from discontinued operations before income taxes		9,902			7,612		175			3,997			(2,611	)
Income tax expense (benefit)		2,482			1,885		(33	)		883			(660	)
Income (loss) from discontinued operations, net of tax	$	7,420		$	5,727	$	208		$	3,114		$	(1,951	)

S-9

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (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
	Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020
Per Share Data:

Basic weighted average shares outstanding		20,894			20,997			21,037			21,026			21,004
Diluted weighted average shares outstanding		20,949			21,062			21,072			21,046			21,029

Period-end shares outstanding:
Class A Common Stock		18,421			18,628			18,697			18,715			18,708
Class B Common Stock		2,166			2,198			2,199			2,200			2,200

Book value per share (3)	$	41.05		$	40.22		$	39.40		$	38.75		$	38.05
Tangible book value per share (3)		39.85			39.07			38.27			37.63			36.93

Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	1.16		$	1.26		$	0.98		$	0.98		$	0.77
Basic EPS - Class B Common Stock		1.05			1.14			0.89			0.89			0.69
Diluted EPS - Class A Common Stock		1.16			1.25			0.98			0.98			0.76
Diluted EPS - Class B Common Stock		1.05			1.14			0.89			0.89			0.69

Earnings per share from continuing operations:
Basic EPS - Class A Common Stock	$	0.80		$	0.71		$	0.97		$	0.84		$	0.86
Basic EPS - Class B Common Stock		0.73			0.64			0.88			0.76			0.78
Diluted EPS - Class A Common Stock		0.80			0.71			0.97			0.84			0.86
Diluted EPS - Class B Common Stock		0.73			0.64			0.88			0.76			0.78

Cash dividends declared per Common share:
Class A Common Stock	$	0.308		$	0.308		$	0.286		$	0.286		$	0.286
Class B Common Stock		0.280			0.280			0.260			0.260			0.260

Performance Ratios:

Return on average assets		1.49	%		1.65	%		1.32	%		1.33	%		1.04	%
Return on average assets from continuing operations		1.03			1.29			1.31			1.12			1.17
Return on average equity		11.27			12.46			9.89			10.05			7.93
Return on average equity from continuing operations		7.77			9.72			9.79			8.52			8.91
Efficiency ratio from continuing operations (4)		66			63			64			61			64
Yield on average interest-earning assets from continuing operations (2)		3.37			3.71			3.97			3.84			3.94
Cost of average interest-bearing liabilities from continuing operations		0.20			0.23			0.34			0.45			0.57
Cost of average deposits from continuing operations (5)		0.10			0.13			0.19			0.24			0.31
Net interest spread from continuing operations (2)		3.17			3.48			3.63			3.39			3.37
Net interest margin from continuing operations - Total Company (2)		3.27			3.58			3.77			3.57			3.58
Net interest margin from continuing operations - Core Bank (6)		3.03			3.46			3.48			3.25			3.23

Other Information:

End of period FTEs (7) - Total Company		1,072			1,086			1,094			1,085			1,094
End of period FTEs - Core Bank		981			990			997			993			1,001
Number of full-service banking centers		42			42			42			42			42

S-10

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (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
	Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020
Credit Quality Asset Balances:

Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	21,621		$	22,004		$	23,548		$	20,910		$	19,884
Loans past due 90-days-or-more and still on accrual		723			517			47			175			535
Total nonperforming loans		22,344			22,521			23,595			21,085			20,419
OREO		1,898			2,015			2,499			2,056			2,194
Total nonperforming assets	$	24,242		$	24,536		$	26,094		$	23,141		$	22,613

Nonperforming Assets - Core Bank (6):
Loans on nonaccrual status	$	21,621		$	22,004		$	23,548		$	20,910		$	19,884
Loans past due 90-days-or-more and still on accrual		—			—			5			—			—
Total nonperforming loans		21,621			22,004			23,553			20,910			19,884
OREO		1,898			2,015			2,499			2,056			2,194
Total nonperforming assets	$	23,519		$	24,019		$	26,052		$	22,966		$	22,078

Delinquent Loans:
Delinquent loans - Core Bank	$	9,909		$	8,560		$	9,713		$	11,069		$	7,861
Delinquent loans - RPG (8)		8,809			6,426			10,234			5,984			6,185
Total delinquent loans - Total Company	$	18,718		$	14,986		$	19,947		$	17,053		$	14,046


Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.49	%		0.48	%		0.49	%		0.42	%		0.40	%
Nonperforming assets to total loans (including OREO)		0.53			0.53			0.54			0.46			0.45
Nonperforming assets to total assets		0.39			0.38			0.42			0.37			0.35
Allowance for credit losses to total loans		1.32			1.61			1.27			1.20			1.09
Allowance for credit losses to nonperforming loans		270			335			259			284			270
Delinquent loans to total loans (9)		0.41			0.32			0.41			0.34			0.28
Net charge-offs (recoveries) to average loans (annualized)		0.95			0.09			(0.04	)		(0.27	)		1.80
Net charge-offs from continuing operations to average loans (annualized)		0.05			0.09			0.13			0.07			0.19

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.49	%		0.49	%		0.50	%		0.43	%		0.40	%
Nonperforming assets to total loans (including OREO)		0.53			0.53			0.56			0.47			0.44
Nonperforming assets to total assets		0.42			0.42			0.45			0.39			0.36
Allowance for credit losses to total loans		1.16			1.14			1.11			1.05			0.92
Allowance for credit losses to nonperforming loans		238			234			221			245			230
Delinquent loans to total loans		0.22			0.19			0.21			0.23			0.16
Net charge-offs to average loans (annualized)		—			0.03			0.07			0.03			0.04

S-11

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (continued)

Segment Data:

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

As of June 30, 2021, 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 TRS segment includes continuing and discontinued 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:

Continuing Operations	Continuing operations of TRS include its RPS division and certain indirect costs that are expected to remain with RPG. The RPS division of TRS offers general-purpose reloadable cards primarily to clients outside of the Bank’s market footprint.	Prepaid Cards

Discontinued Operations	The Bank signed a definitive agreement in May 2021 to sell its TRS operations to Green Dot. These TRS operations have traditionally represented the significant majority of revenue and expense generated at the TRS segment. The TRS operations to be sold offer tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. TRS products are primarily provided to clients outside of the Bank’s market footprint.	Loans and refund transfers

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 2020 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value.

S-12

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (continued)

Segment information for the quarters and six months ended June 30, 2021 and 2020 follows:

	Three Months Ended June 30, 2021
	Core Banking												Republic Processing Group ("RPG")
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company

Net interest income	$	38,278		$	6,324		$	140		$	44,742		$	220		$	4,676		$	4,896		$	49,638

Provision for expected credit loss expense		(77	)		(65	)		—			(142	))		—			1,592			1,592			1,450

Mortgage banking income		—			—			4,182			4,182			—			—			—			4,182
Program fees		—			—			—			—			715			2,834			3,549			3,549
Other noninterest income		7,970			14			50			8,034			(4	)		—			(4	)		8,030
Total noninterest income		7,970			14			4,232			12,216			711			2,834			3,545			15,761

Total noninterest expense		36,937			1,066			3,006			41,009			1,331			950			2,281			43,290

Income (loss) from continuing operations before income tax expense		9,388			5,337			1,366			16,091			(400	)		4,968			4,568			20,659
Income tax expense (benefit)		1,555			1,227			301			3,083			(156	)		1,230			1,074			4,157
Income (loss) from continuing operations		7,833			4,110			1,065			13,008			(244	)		3,738			3,494			16,502

Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			9,902			—			9,902			9,902
Income tax expense		—			—			—			—			2,482			—			2,482			2,482
Income from discontinued operations, net of tax		—			—			—			—			7,420			—			7,420			7,420

Net income	$	7,833		$	4,110		$	1,065		$	13,008		$	7,176		$	3,738		$	10,914		$	23,922

Period-end assets	$	4,774,765		$	840,083		$	46,816		$	5,661,664		$	389,999		$	131,647		$	521,646		$	6,183,310

Net interest margin from continuing operations		2.97	%		3.48	%	NM				3.03	%	NM			NM			NM				3.27	%

Net-revenue concentration from continuing operations*		71	%		10	%		7	%		88	%		1	%		11	%		12	%		100	%

	Three Months Ended June 30, 2020
	Core Banking												Republic Processing Group ("RPG")
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company

Net interest income	$	39,035		$	6,063		$	419		$	45,517		$	688		$	5,607		$	6,295		$	51,812

Provision for expected credit loss expense		3,080			449			—			3,529			—			(1,443	)		(1,443	)		2,086

Mortgage banking income		—			—			8,398			8,398			—			—			—			8,398
Program fees		—			—			—			—			618			520			1,138			1,138
Other noninterest income		6,126			17			8			6,151			(4	)		—			(4	)		6,147
Total noninterest income		6,126			17			8,406			14,549			614			520			1,134			15,683

Total noninterest expense		36,688			811			2,689			40,188			2,110			903			3,013			43,201

Income (loss) from continuing operations before income tax expense		5,393			4,820			6,136			16,349			(808	)		6,667			5,859			22,208
Income tax expense (benefit)		729			1,085			1,288			3,102			(193	)		1,544			1,351			4,453
Income (loss) from continuing operations		4,664			3,735			4,848			13,247			(615	)		5,123			4,508			17,755

Discontinued operations:
Income (loss) from discontinued operations before income taxes		—			—			—			—			(2,611	)		—			(2,611	)		(2,611	)
Income tax expense (benefit)		—			—			—			—			(660	)		—			(660	)		(660	)
Income (loss) from discontinued operations, net of tax		—			—			—			—			(1,951	)		—			(1,951	)		(1,951	)

Net income (loss)	$	4,664		$	3,735		$	4,848		$	13,247		$	(2,566	)	$	5,123		$	2,557		$	15,804

Period-end assets	$	4,967,759		$	1,028,400		$	54,518		$	6,050,677		$	306,583		$	103,315		$	409,898		$	6,460,575

Net interest margin from continuing operations		3.26	%		3.01	%	NM				3.23	%	NM			NM			NM				3.58	%

Net-revenue concentration from continuing operations*		67	%		9	%		13	%		89	%		2	%		9	%		11	%		100	%

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

S-13

	Six Months Ended June 30, 2021
	Core Banking												Republic Processing Group ("RPG")
										Total			Tax			Republic
	Traditional			Warehouse			Mortgage			Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking			Banking			Solutions			Solutions			RPG			Company

Net interest income	$	79,380		$	13,096			549		$	93,025		$	494		$	9,497		$	9,991		$	103,016

Provision for expected credit loss expense		(82	)		(307	)		—			(389	)		—			1,217			1,217			828

Mortgage banking income		—			—			11,375			11,375			—			—			—			11,375
Program fees		—			—			—			—			1,611			4,163			5,774			5,774
Other noninterest income		14,754			28			78			14,860			(7	)		—			(7	)		14,853
Total noninterest income		14,754			28			11,453			26,235			1,604			4,163			5,767			32,002

Total noninterest expense		74,265			2,094			6,127			82,486			2,931			1,982			4,913			87,399

Income (loss) from continuing operations before income tax expense		19,951			11,337			5,875			37,163			(833	)		10,461			9,628			46,791
Income tax expense (benefit)		3,680			2,661			1,293			7,634			(271	)		2,600			2,329			9,963
Income (loss) from continuing operations		16,271			8,676			4,582			29,529			(562	)		7,861			7,299			36,828

Discontinued operations:
Income from discontinued operations before income taxes		—			—			—			—			17,514			—			17,514			17,514
Income tax expense		—			—			—			—			4,367			—			4,367			4,367
Income from discontinued operations, net of tax		—			—			—			—			13,147			—			13,147			13,147

Net income	$	16,271		$	8,676		$	4,582		$	29,529		$	12,585		$	7,861		$	20,446		$	49,975

Period-end assets	$	4,774,765		$	840,083		$	46,816		$	5,661,664		$	389,999		$	131,647		$	521,646		$	6,183,310

Net interest margin from continuing operations		3.21	%		3.45	%	NM				3.24	%	NM			NM			NM				3.42	%

Net-revenue concentration from continuing operations*		69	%		10	%		9	%		88	%		2	%		10	%		12	%		100	%

	Six Months Ended June 30, 2020
	Core Banking											Republic Processing Group ("RPG")
									Total			Tax			Republic
	Traditional			Warehouse			Mortgage		Core			Refund			Credit			Total			Total
(dollars in thousands)	Banking			Lending			Banking		Banking			Solutions			Solutions			RPG			Company

Net interest income	$	79,656		$	10,370		$	632	$	90,658		$	947		$	12,679		$	13,626		$	104,284

Provision for expected credit loss expense		8,669			781			—		9,450			—			263			263			9,713

Mortgage banking income		—			—			13,193		13,193			—			—			—			13,193
Program fees		—			—			—		—			930			2,832			3,762			3,762
Other noninterest income		13,361			28			32		13,421			(15	)		—			(15	)		13,406
Total noninterest income		13,361			28			13,225		26,614			915			2,832			3,747			30,361

Total noninterest expense		73,335			1,614			4,685		79,634			3,879			1,797			5,676			85,310

Income (loss) from continuing operations before income tax expense		11,013			8,003			9,172		28,188			(2,017	)		13,451			11,434			39,622
Income tax expense (benefit)		1,189			1,801			1,926		4,916			(477	)		3,114			2,637			7,553
Income (loss) from continuing operations		9,824			6,202			7,246		23,272			(1,540	)		10,337			8,797			32,069

Discontinued operations:
Income from discontinued operations before income taxes		—			—			—		—			13,553			—			13,553			13,553
Income tax expense		—			—			—		—			3,121			—			3,121			3,121
Income from discontinued operations, net of tax		—			—			—		—			10,432			—			10,432			10,432

Net income	$	9,824		$	6,202		$	7,246	$	23,272		$	8,892		$	10,337		$	19,229		$	42,501

Period-end assets	$	4,967,759		$	1,028,400		$	54,518	$	6,050,677		$	306,583		$	103,315		$	409,898		$	6,460,575

Net interest margin from continuing operations		3.52	%		2.86	%	NM			3.43	%	NM			NM			NM				3.75	%

Net-revenue concentration from continuing operations*		69	%		8	%		105		87	%		1	%		12	%		13	%		100	%

S-14

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Second Quarter 2021 (continued)

Footnotes:

(1)

On May 14, 2021, the Bank entered into a definitive agreement to sell Republic Processing Group's TRS business to Green Dot. Due to the Green Dot agreement, results for the Company, the Republic Processing Group, and the TRS segment are presented within this release to reflect continuing versus discontinued operations. TRS’s continuing operations include its RPS division and certain overhead costs previously allocated to TRS that will remain with RPG. Discontinued operations are those expected to be sold to Green Dot. Interest income and expense for continuing and discontinued operations also include intercompany interest charged and earned based on the Company’s funds transfer pricing methodology.

For all periods presented, loans for discontinued operations are included within loans held for sale on the Company’s balance sheet and deposits of discontinued operations are presented as deposits held for assumption.

Average Balance Sheet Data for continuing operations excludes average assets, average liabilities, interest income, and interest expense for discontinued operations; however, loans to and borrowings from discontinued operations are included along with their related income and expense based on the Company’s funds transfer pricing methodology.

(2)

The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The amount of loan fee income included in total interest income from continuing operations was $9.0 million and $7.5 million for the quarters ended and $20.3 million and $15.4 million for the six months ended June 30, 2021 and 2020.

The amount of loan fee income included in total interest income from continuing operations per quarter was as follows: $9.0 million (quarter ended June 30, 2021); $11.3 million (quarter ended March 31, 2021); $10.8 million (quarter ended December 31, 2020); $7.8 million (quarter ended September 30, 2020); and $7.5 million (quarter ended June 30, 2020).

Included in the above totals, fee income recognized on PPP loans totaled $3.7 million (quarter ended June 30, 2021); $5.8 million (quarter ended March 31, 2021); $4.8 million (quarter ended December 31, 2020); $2.1 million (quarter ended September 30, 2020); and $1.6 million (quarter ended June 30, 2020).

Loan fees included in discontinued operations totaled $298,000 and $207,000 for the quarters ended $14.7 million and $20.8 million for the six months ended June 30, 2021 and 2020. Loan fees per quarter included in discontinued operations totaled $298,000 (quarter ended June 30, 2021); $14.4 million (quarter ended March 31, 2021); $68,000 (quarter ended December 31, 2020); $135,000 (quarter ended September 30, 2020); and $207,000 (quarter ended June 30, 2020).

S-15

(3)

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.

	Quarterly Comparison
(dollars in thousands, except per share data)	Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020

Total stockholders' equity - GAAP (a)	$	845,090		$	837,709		$	823,323		$	810,362		$	795,619
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		8,335			7,711			7,095			6,674			6,711
Less: Core deposit intangible		—			53			189			283			377
Tangible stockholders' equity - Non-GAAP (c)	$	820,455		$	813,645		$	799,739		$	787,105		$	772,231

Total assets - GAAP (b)	$	6,183,310		$	6,476,540		$	6,168,325		$	6,240,446		$	6,460,575
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		8,335			7,711			7,095			6,674			6,711
Less: Core deposit intangible		—			53			189			283			377
Tangible assets - Non-GAAP (d)	$	6,158,675		$	6,452,476		$	6,144,741		$	6,217,189		$	6,437,187

Total stockholders' equity to total assets - GAAP (a/b)		13.67	%		12.93	%		13.35	%		12.99	%		12.31	%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)		13.32	%		12.61	%		13.02	%		12.66	%		12.00	%

Number of shares outstanding (e)		20,587			20,826			20,896			20,915			20,908

Book value per share - GAAP (a/e)	$	41.05		$	40.22		$	39.40		$	38.75		$	38.05
Tangible book value per share - Non-GAAP (c/e)		39.85			39.07			38.27			37.63			36.93

(4)	The efficiency ratio for continuing operations, 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 net gains (losses) on sales, calls, and impairment of investment securities.

	Three Months Ended Jun. 30,						Six Months Ended Jun. 30,
(dollars in thousands)	2021			2020			2021			2020

Net interest income - GAAP	$	49,638		$	51,812		$	103,016		$	104,284
Noninterest income - GAAP		15,761			15,683			32,002			30,361
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities		(1	)		16			(35	)		40
Total adjusted income - Non-GAAP (a)	$	65,400		$	67,479		$	135,053		$	134,605

Noninterest expense - GAAP (b)	$	43,290		$	43,201		$	87,399		$	85,310

Efficiency Ratio from continuing operations- Non-GAAP (b/a)		66	%		64	%		65	%		63	%

	Three Months Ended
(dollars in thousands)	Jun. 30, 2021			Mar. 31, 2021			Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020

Net interest income - GAAP	$	49,638		$	53,378		$	55,028		$	52,049		$	51,812
Noninterest income - GAAP		15,761			16,241			16,697			19,400			15,683
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities		(1	)		(35	)		(12	)		5			16
Total adjusted income - Non-GAAP (a)	$	65,400		$	69,654		$	71,737		$	71,444		$	67,479

Noninterest expense - GAAP (b)	$	43,290		$	44,109		$	45,734		$	43,778		$	43,201

Efficiency Ratio from continuing operations- Non-GAAP (b/a)		66	%		63	%		64	%		61	%		64	%

(5)	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.

(6)	“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending, and Mortgage Banking segments.

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

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(8)	Republic Processing Group operations consist of the Tax Refund Solutions and Republic Credit Solutions segments.

(9)	The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due.

NM – Not meaningful

NA – Not applicable

CONTACT:

Republic Bancorp, Inc.

Kevin Sipes

Executive Vice President & Chief Financial Officer

(502) 560-8628

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REPUBLIC BANCORP INC /KY/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - July 23, 2021

Attached files

REPUBLIC BANCORP INC /KY/ Reports