UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): January 29, 2021

REPUBLIC BANCORP, INC.

(Exact name of registrant as specified in its charter)

Kentucky	0-24649	61-0862051
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer Identification No.)
of incorporation)

601 West Market Street, Louisville, Kentucky		40202
(Address of principal executive offices)		(zip code)

Registrant’s telephone number, including area code: (502) 584-3600

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common	RBCAA	The Nasdaq Stock Market

NOT APPLICABLE
(Former Name or former Address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 29, 2021, Republic Bancorp, Inc. announced its results of operations for the quarter ended December 31, 2020. The public announcement was made by means of an earnings release, the text of which is set forth in Exhibit 99.1 hereto. A financial supplement to this earnings release is attached as Exhibit 99.2 hereto.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d)

Exhibits.

Exhibit No.

99.1

99.2

104

Republic Bancorp, Inc. Earnings Release dated January 29, 2021.

Earnings Release Financial Supplement – Fourth Quarter 2020

Cover Page Interactive Data File (embedded within the Inline XBRL document)

The information in this Form 8-K, including Exhibit 99.1 and Exhibit 99.2 attached hereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of Republic Bancorp, Inc. under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Republic Bancorp, Inc.
		(Registrant)


Date: January 29, 2021	By:	/s/ Kevin Sipes
		Kevin Sipes
		Executive Vice President, Chief Financial Officer &
		Chief Accounting Officer

EXHIBIT INDEX

Exhibit No.	Description of Exhibit

99.1	Earnings Release dated January 29, 2021.
99.2	Earnings Release Financial Supplement – Fourth Quarter 2020
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

Exhibit 99.1

Republic Bancorp, Inc. Reports Fourth Quarter Net Income of $20.3 Million

LOUISVILLE, Ky.--(BUSINESS WIRE)--January 29, 2021--Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company of Republic Bank & Trust Company (the “Bank”).

Republic Bancorp, Inc. (“Republic” or the “Company”) today announced its results for the fourth quarter of 2020. The following table highlights Republic’s financial performance for the fourth quarters and years ended December 31, 2020 and 2019. Additional financial details, including segment-level data and key metrics, are provided in the accompanying financial supplement to this release. See Exhibit 99.2 of the Company’s Form 8-K filed with the SEC on January 29, 2021 for the financial supplement.



	Total Company Financial Performance Highlights
		Three Months Ended Dec. 31,										Years Ended Dec. 31,
(dollars in thousands, except per share data)		2020			2019			$ Change		% Change		2020			2019			$ Change		% Change

GAAP
Income Before Income Tax Expense		$	23,632		$	32,301		$	(8,669)	(27)	%	$	102,633		$	113,193		$	(10,560)	(9)	%
Net Income			20,356			25,768			(5,412)	(21)			83,246			91,699			(8,453)	(9)
Diluted Earnings per Class A Common Share			0.98			1.23			(0.25)	(20)			3.99			4.39			(0.40)	(9)
Return on Average Assets			1.32	%		1.83	%		NA	(28)			1.38	%		1.64	%		NA	(16)
Return on Average Equity			9.89			13.58			NA	(27)			10.37			12.49			NA	(17)

Non-GAAP*
Adjusted Income Before Income Tax Expense		$	23,632		$	22,898		$	734	3	%	$	102,633		$	100,438		$	2,195	2	%
Adjusted Net Income			20,356			18,289			2,067	11			83,246			81,314			1,932	2
Adjusted Diluted Earnings per Class A Common Share			0.98			0.87			0.11	13			3.99			3.89			0.10	3
Adjusted Return on Average Assets			1.32	%		1.31	%		NA	1			1.38	%		1.49	%		NA	(7)
Adjusted Return on Average Equity			9.89			9.72			NA	2			10.37			11.23			NA	(8)

NA – Not applicable
* Non-GAAP measures above exclude the one-time gain and operating results of four branches divested by the Company in November 2019. A reconciliation of these non-GAAP measures to their comparable GAAP measures is provided in Footnote 1 to this earnings release.

For the quarter, the Company reported net income of $20.3 million resulting in Diluted Earnings Per Class A Common Share (“Diluted EPS”) of $0.98. The Company’s net income results for the fourth quarter of 2020 represents an 11% increase over the Company’s fourth quarter 2019 adjusted net income⁽¹⁾, a non-GAAP measure, of $18.3 million. Adjusted net income for the fourth quarter of 2019 excludes the one-time gain and corresponding operating results of four branches the Company divested during the fourth quarter of 2019. On a GAAP-reported basis, which includes the operating and one-time benefits attributable to the divested branches, the Company’s net income for the fourth quarter of 2019 was $25.8 million resulting in Diluted EPS of $1.23.

For the year, the Company reported net income of $83.2 million resulting in Diluted EPS of $3.99. The Company’s net income results for 2020 represents an increase of 2% over the Company’s adjusted net income⁽¹⁾, a non-GAAP measure, of $81.3 million for 2019. As with the disclosure for the fourth quarter of 2019, adjusted net income for the year-ended December 31, 2019 excludes the one-time gain and corresponding operating results of four branches the Company divested during the fourth quarter of 2019. On a GAAP-reported basis, which includes the operating and one-time benefits attributable to the divested branches, the Company’s net income for 2019 was $91.7 million resulting in Diluted EPS of $4.39.

Steve Trager, Chairman & CEO of Republic commented, “In a year when normal was redefined for everyone, I could not be more proud of our people and our Company’s performance. Our key profitability metrics for fiscal 2020 remained strong despite industry-wide net interest margin pressure and meaningful, judicious increases in our Allowance for Credit Losses (“Allowance”) related to the unpredictable, future potential impact of the pandemic.

“The story for our success in 2020 was diversity of revenue sources among our various operating segments. We grew our total mortgage loan production to over $1 billion for the year, with the vast majority of this production in secondary market eligible sold-loans. As a result, our Mortgage Banking income reached record levels. In addition, we supported the origination of home mortgages through our Warehouse Lending segment, which hit record outstanding average balances for the year, and correspondingly, its best year ever of net income. Within our Traditional Bank, we originated $528 million of PPP⁽²⁾ loans to over 3,700 clients, which helped those clients maintain their employees and businesses during this challenging time.

“On the liability side of the balance sheet, we experienced record deposit growth⁽³⁾. Within the Traditional Banking segment, we welcomed approximately 2,900 net new deposit clients and increased our noninterest-bearing core deposits⁽³⁾ $522 million, or 53%, while our interest-bearing core deposits grew $346 million, or 15%. Within our RPG segment, we also increased our noninterest-bearing deposits by $335 million thanks in large-part to our on-going NetSpend relationship. To facilitate this growth, Republic associates made exceptional commitments, including adopting new technologies, to address complexities brought about by the pandemic and provide our signature high standard of service. We are proud and honored by the confidence our clients have placed in us with their hard-earned deposit balances amid this pandemic-riddled year.”

Trager concluded, “As with the entire banking industry, we will be focused during 2021 on ensuring that our credit quality remains strong in this period of economic uncertainty. We know we have the right people, we believe we have the right plan, and we are confident we will attain the best outcome for our communities and our valued shareholders.”

Results of Operations for the Fourth Quarter of 2020 Compared to the Fourth Quarter of 2019

Core Bank⁽⁴⁾

The following table highlights Republic’s Core Bank financial performance for the fourth quarters and years ended December 31, 2020 and 2019. Additional financial details, including segment-level data and key metrics, are provided in the accompanying financial supplement to this release. See Exhibit 99.2 of the Company’s Form 8-K filed with the SEC on January 29, 2021 for the financial supplement.



	Core Bank Financial Performance Highlights
		Three Months Ended Dec. 31,								Years Ended Dec. 31,
(dollars in thousands, except per share data)		2020		2019		$ Change		% Change		2020		2019		$ Change		% Change

GAAP
Income Before Income Tax Expense		$	19,477	$	29,308	$	(9,831)	(34)	%	$	65,000	$	76,676	$	(11,676)	(15)	%
Net Income			17,061		23,213		(6,152)	(27)			54,148		63,453		(9,305)	(15)

Non-GAAP*
Adjusted Income Before Income Tax Expense		$	19,477	$	19,905	$	(428)	(2)	%	$	65,000	$	63,921	$	1,079	2	%
Adjusted Net Income			17,061		15,734		1,327	8			54,148		53,068		1,080	2

* Non-GAAP measures above exclude the one-time gain and operating results of four branches divested by the Company in November 2019. A reconciliation of these non-GAAP measures to their comparable GAAP measures is provided in Footnote 5 to this earnings release.

Net income from Core Banking was $17.1 million for the fourth quarter of 2020 compared to an adjusted net income⁽⁵⁾ of $15.7 million and a GAAP net income of $23.2 million for the fourth quarter of 2019. GAAP net income for the fourth quarter of 2019 included approximately $7.5 million of operating earnings and one-time benefits from the Company’s November 2019 branch divestiture. The Core Bank’s operating results primarily reflected solid increases in net interest income and Mortgage Banking income, which were offset by an increased Provision and higher noninterest expense, including $2.1 million of pre-tax, early termination penalties the Bank incurred for the early payoff of its term FHLB advances.

Net Interest Income – Core Bank net interest income was $49.6 million for the fourth quarter of 2020, a $3.6 million, or 8%, increase from adjusted net interest income⁽⁵⁾ during the fourth quarter of 2019 and a 6% increase from GAAP net interest income for the fourth quarter of 2019. This growth was driven primarily by the following:

During the fourth quarter of 2020, the Core Bank recognized $4.8 million of fee income on its PPP portfolio driven significantly by the forgiveness and payoff of $127 million of PPP loans.

Net interest income from the Core Bank’s Warehouse segment increased $3.6 million from the fourth quarter of 2019 to the fourth quarter of 2020. Average outstanding Warehouse balances grew from $816 million during the fourth quarter of 2019 to $939 million during the fourth quarter of 2020, as committed Warehouse lines-of-credit grew from $1.1 billion to $1.4 billion. Usage rates on those lines remained strong at 71% and 67%, respectively, during the same periods.

Offsetting the positive impacts above, net interest income from Traditional Banking, excluding PPP lender fees, decreased $5.1 million from the adjusted fourth quarter 2019 results, as the Traditional Bank’s net interest margin declined from an adjusted 3.79% for the fourth quarter of 2019 to 3.46% for the fourth quarter of 2020. The table below provides a reconciliation of the Core Bank’s net interest margin in accordance with GAAP to its net interest margin excluding branches divested during the fourth quarter of 2019, a non-GAAP measure.

The following tables present by reportable segment the overall changes in the Core Bank’s net interest income, net interest margin, as well as average and period-end loan balances:



	Net Interest Income						Net Interest Margin
(dollars in thousands)	Three Months Ended Dec. 31,						Three Months Ended Dec. 31,
Reportable Segment	2020		2019		Change		2020		2019		Change

Traditional Banking - GAAP (a)	$	40,972	$	41,973	$	(1,001)	3.46	%	3.80	%	(0.34)	%
Warehouse Lending		8,242		4,620		3,622	3.51		2.27		1.24
Mortgage Banking*		430		213		217	NM		NM		NM
Core Bank - GAAP		49,644		46,806		2,838	3.48		3.56		(0.08)
Less: Items attributable to Divested Branches (b)		—		720		(720)	—		0.01		(0.01)
Total Core Bank - non-GAAP	$	49,644	$	46,086	$	3,558	3.48	%	3.55	%	(0.07)	%

Adjusted Traditional Banking - Non-GAAP (a) - (b)	$	40,972	$	41,253	$	(281)	3.46	%	3.79	%	(0.33)	%



	Average Loan Balances								Period-End Loan Balances
(dollars in thousands)	Three Months Ended Dec. 31,								Dec. 31,
Reportable Segment		2020		2019	$ Change		% Change			2020		2019	$ Change		% Change

Traditional Banking - GAAP (a)	$	3,816,403	$	3,636,250	$	180,153	5	%	$	3,715,649	$	3,595,931	$	119,718	3	%
Warehouse Lending		939,164		815,776		123,388	15			962,796		717,458		245,338	34
Mortgage Banking*		32,075		19,583		12,492	64			46,867		19,224		27,643	144
Core Bank - GAAP		4,787,642		4,471,609		316,033	7			4,725,312		4,332,613		392,699	9
Less: Items attributable to Divested Branches (b)		—		63,332		(63,332)	NM			—		—		—	NM
Total Core Bank - non-GAAP	$	4,787,642	$	4,408,277	$	379,365	9	%	$	4,725,312	$	4,332,613	$	392,699	9	%

Adjusted Traditional Banking - Non-GAAP (a) - (b)	$	3,816,403	$	3,572,918	$	243,485	7	%	$	3,715,649	$	3,595,931	$	119,718	3	%

*Includes loans held for sale
NM – Not meaningful

Provision for Expected Credit Loss Expense – The Core Bank’s Provision swung to a charge of $1.6 million for the fourth quarter of 2020 from an adjusted net credit⁽⁵⁾ of $481,000 for the fourth quarter of 2019 and a $1.4 million GAAP net credit for the same period in 2019. The Provision for the fourth quarter of 2020 primarily reflected continued concerns over commercial real estate values in the Core Bank’s market footprint. Impacting the GAAP comparison, the credit to the Provision for the fourth quarter of 2019 included the release of $900,000 in reserves upon the sale of $128 million of loans as part the Core Bank’s November 2019 branch divestiture. Furthermore, the Provision for the fourth quarter of 2020 was derived under the Current Expected Credit Losses (“CECL”) method, which the Company adopted January 1, 2020. The Provision during the fourth quarter of 2019 was derived under the “probable-incurred” method.

As a percentage of total loans, the Core Bank’s Allowance has increased from 0.70% as of December 31, 2019 to 1.11% as of December 31, 2020. The table below provides a view of the Company’s Allowance by segment.




	As of Dec. 31, 2020						As of Dec. 31, 2019						Year-over-Year Change
(dollars in thousands)					Allowance						Allowance		Allowance
Reportable Segment	Gross Loans		Allowance		to Loans		Gross Loans		Allowance		to Loans		to Loans		% Increase

Traditional Bank, Less PPP	$	3,322,331	$	49,699	1.50	%	$	3,595,931	$	28,205	0.78	%	0.71	%	91	%
Plus: Paycheck Protection Program		392,319		—				—		—

Traditional Bank	$	3,714,650	$	49,699	1.34			3,595,931		28,205	0.78		0.55		71

Warehouse Lending		963,795		2,407	0.25			717,458		1,794	0.25		—		—

Total Core Bank		4,678,445		52,106	1.11			4,313,389		29,999	0.70		0.42		60

Total Republic Processing Group		134,658		8,961	6.65			119,762		13,352	11.15		(4.49)		(40)

Total Company	$	4,813,103	$	61,067	1.27	%	$	4,433,151	$	43,351	0.98	%	0.29	%	30	%

Along with the PPP, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provided several forms of economic relief designed to defray the impact of COVID-19. In April 2020, through its own independent relief efforts and CARES Act provisions, the Company began offering loan accommodations through deferrals and forbearances. These accommodations were generally three-month terms for commercial clients, with residential and consumer accommodations in line with prevailing regulatory and legal parameters. Loans modified as a result of pandemic-related requests are generally not considered troubled debt restructurings by the Company if, prior to the pandemic, the borrower was performing in accordance with loan terms.

During 2020 the Company accommodated $808 million, or approximately 20% of its Traditional Bank loan portfolio due to pandemic-driven hardship. At December 31, 2020, $14 million, or 2% of those previously accommodated balances, remained under an accommodation.

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


	As of and for the:
	Quarters Ended:								Years Ended:
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
Core Banking Credit Quality Ratios	2020		2020		2020		2020		2020		2019		2018

Nonperforming loans to total loans	0.50	%	0.43	%	0.40	%	0.46	%	0.50	%	0.54	%	0.40	%

Nonperforming assets to total loans (including OREO)	0.56		0.47		0.44		0.47		0.56		0.54		0.40

Delinquent loans* to total loans	0.21		0.23		0.16		0.27		0.21		0.30		0.22

Net charge-offs (recoveries) to average loans	0.07		0.03		0.04		(0.03)		0.03		0.11		0.06
(Quarterly rates annualized)

OREO = Other Real Estate Owned

*Loans 30-days-or-more past due

Noninterest Income – Core Bank noninterest income was $14.9 million during the fourth quarter of 2020 compared to an adjusted noninterest income⁽⁵⁾ of $10.0 million for the fourth quarter of 2019 and a GAAP noninterest income of $18.2 million for the same period. Items significantly impacting noninterest income for the quarter included the following:

Mortgage Banking income increased $5.4 million over the fourth quarter of 2019 to $7.9 million for the fourth quarter of 2020, as both origination volume and pricing improved from the prior period. The Core Bank originated $235 million in secondary market loans during the fourth quarter of 2020, an increase of 116% over the same period in 2019.

Service Charges on Deposits Accounts decreased $415,000 from the fourth quarter of 2019 to the fourth quarter of 2020, driven largely by a change in consumer savings and spending patterns following pandemic-driven economic restrictions.

Impacting the GAAP comparison, the fourth quarter of 2019 included a $7.9 million gain from the divestiture of four of the Core Bank’s branches. The divested branches primarily included $128 million of loans and $132 million of deposits.

Noninterest Expense – Core Bank noninterest expense was $43.5 million for the fourth quarter of 2020 compared to an adjusted⁽⁵⁾ $36.7 million for the fourth quarter of 2019 and a GAAP figure of $37.1 million for the same period.

Salaries and Benefits increased from $20.7 million during the fourth quarter of 2019 to $23.2 million for the fourth quarter of 2020. Driving the increase was a $1.2 million increase in mortgage banking commissions and a $1.3 million increase in estimated bonus accruals for the quarter as final year-end adjustments were made during the fourth quarters of 2020 and 2019 to bring accrual balances in line with projected payouts.

The Core Bank incurred $2.1 million in early termination penalties upon payoff of $60 million of FHLB term advances during the fourth quarter of 2020. These repaid advances had a weighted average cost of 2.21%.

Data Processing expense increased $904,000, or 37%, over fourth quarter 2019 expense, driven by the Company’s increased investment in technology since December 31, 2019. The increase was partially driven by loan application system-related costs associated with the PPP loan program and the substantial rise in mortgage refinance volume during the year.

Occupancy and Equipment costs increased $740,000, or 12%, over adjusted fourth quarter 2019 costs driven primarily by two new banking centers and an increase in the Core Bank’s fleet of Interactive Teller Machines.

Republic Processing Group⁽⁶⁾

The Republic Processing Group (“RPG”) reported net income of $3.3 million for the fourth quarter of 2020 compared to $2.6 million for the same period in 2019, with a $1.6 million positive swing in net loss at RPG’s Tax Refund Solutions (“TRS”) segment partially offset by a $829,000 decrease in net income at its Republic Credit Solutions (“RCS”) segment.

Tax Refund Solutions

The TRS segment derives substantially all of its revenues during the first and second quarters of the year and historically operates at a net loss during the second half of the year. TRS recorded a net loss of $164,000 for the fourth quarter of 2020 compared to a net loss of $1.7 million for the same period in 2019. The following primarily drove the positive swing in TRS’s net loss:

TRS recorded a net credit to the Provision of $2.1 million during the fourth quarter of 2020 compared to a net credit of $569,000 for the same period in 2019. These credits primarily reflected recoveries on Easy Advance (“EA”) loans charged off during the first six months of the year. While TRS experienced a higher rate of EAs charged-off during the first six months of 2020 than the comparable six months in 2019, it also experienced a higher rate of EA recoveries during the fourth quarter of 2020 than the comparable quarter of 2019. Management believes the higher rate of EAs charged-off through the first six months of 2020 and recovered during the fourth quarter of 2020 was directly related to the impact of the COVID-19 pandemic. TRS ended 2020 with an overall EA loss rate of 3.36% of total originations compared to 2.74% for 2019.

TRS program fees increased $501,000 from the fourth quarter of 2019 as a result of the Company’s May 1, 2020 acquisition of $250 million in prepaid card balances.

Republic Credit Solutions

Net income at RCS decreased to $3.5 million for the fourth quarter of 2020 from $4.2 million for the fourth quarter of 2019. The decrease in RCS’s net income primarily reflected a $2.4 million decrease in RCS’s revenues partially offset by a $1.9 million reduction in Provision. Both decreases resulted primarily from a $10 million decrease in outstanding balances for RCS’s line-of-credit product from December 31, 2019 to December 31, 2020 following a reduction of marketing for this product during the first quarter of 2020. RCS began incrementally increasing its marketing for its line-of-credit product during the third quarter of 2020.

Total Company Income Taxes

The Company’s effective tax rate decreased to 13.9% for the fourth quarter of 2020 compared to 20.2% for the same period in 2019. The lower effective rate during the fourth quarter of 2020 primarily reflected the Company recording additional deferred tax assets due to the enactment of Kentucky HB354. As previously reported, Kentucky enacted HB354 in March 2019 and as a result, the Bank will transition from a capital-based bank franchise tax to a corporate income beginning January 1, 2021. The current Kentucky corporate income tax rate is 5%. The majority of this benefit was attributed to the Company’s Traditional Banking segment.

Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 42 full-service banking centers throughout five states: 28 banking centers in 8 Kentucky communities – Covington, Crestview Hills, Florence, Georgetown, Lexington, Louisville, Shelbyville, and Shepherdsville; three banking centers in southern Indiana – Floyds Knobs, Jeffersonville, and New Albany; seven banking centers in six Florida communities (Tampa MSA) – Largo, New Port Richey, St. Petersburg, Seminole, Tampa, and Temple Terrace; two banking centers in two Tennessee communities (Nashville MSA) – Cool Springs and Green Hills; and two banking centers in two Ohio communities (Cincinnati MSA) – Norwood and West Chester. The Bank offers internet banking at www.republicbank.com. The Bank also offers separately branded, nation-wide digital banking at www.mymemorybank.com. The Company has $6.2 billion in assets and is headquartered in Louisville, Kentucky. The Company’s Class A Common Stock is listed under the symbol “RBCAA” on the NASDAQ Global Select Market.

Republic Bank. It’s just easier here. ^®

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in the preceding paragraphs are based on our current expectations and assumptions regarding our business, the future impact to our balance sheet and income statement resulting from changes in interest rates, the yield curve, the ability to develop products and strategies in order to meet the Company’s long-term strategic goals, the economy, and other future conditions, including, but not limited to, the timing of PPP loan forgiveness and the impact of the COVID-19 pandemic. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Actual results could differ materially based upon factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including those factors set forth as “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2019 and quarterly report on Form 10-Q for the period ended September 30, 2020. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Footnotes:

(1)

The following table provides a reconciliation of the Company’s financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”) to the Company’s adjusted results, which are non-GAAP measures that exclude items related to four branches divested by the Company in November 2019. Management uses these non-GAAP measures to evaluate the on-going performance of the Company. Non-GAAP measures are not formally defined by GAAP or codified in the federal banking regulations, and other entities may use calculation methods that differ from those used by the Company.


(dollars in thousands, except per share data)	RECONCILIATION OF NON-GAAP PERFORMANCE METRICS - TOTAL COMPANY


		Three Months Ended Dec. 31,						$		%			Years Ended Dec. 31,						$		%
		2020			2019			Change		Change			2020			2019			Change		Change
TOTAL COMPANY:

Income before income tax expense - GAAP		$	23,632		$	32,301		$	(8,669)		(27)	%	$	102,633		$	113,193		$	(10,560)		(9)	%
Less impact of branch divestiture:
Gain on branch divestiture			—			7,948			(7,948)		NM			—			7,829			(7,829)		NM
Operating results of divested branches			—			1,455			(1,455)		NM			—			4,926			(4,926)		NM
Adjusted net income before income tax expense - Non-GAAP		$	23,632		$	22,898		$	734		3	%	$	102,633		$	100,438		$	2,195		2	%

Net income - GAAP		$	20,356		$	25,768		$	(5,412)		(21)	%	$	83,246		$	91,699		$	(8,453)		(9)	%
Less impact of branch divestiture:
Gain on branch divestiture			—			6,279			(6,279)		NM			—			6,185			(6,185)		NM
Operating results of divested branches			—			1,200			(1,200)		NM			—			4,200			(4,200)		NM
Adjusted net income - Non-GAAP		$	20,356		$	18,289		$	2,067		11	%	$	83,246		$	81,314		$	1,932		2	%

Diluted EPS of Class A Common Stock - GAAP		$	0.98		$	1.23		$	(0.25)		(20)	%	$	3.99		$	4.39		$	(0.40)		(9)	%
Less impact of branch divestiture:
Gain on branch divestiture			—			0.31			(0.31)		NM			—			0.30			(0.30)		NM
Operating results of divested branches			—			0.05			(0.05)		NM			—			0.20			(0.20)		NM
Adjusted diluted EPS of Class A Common Stock - Non-GAAP		$	0.98		$	0.87		$	0.11		13	%	$	3.99		$	3.89		$	0.10		3	%

ROA - GAAP			1.32	%		1.83	%		NA		(28)	%		1.38	%		1.64	%		NA		(16)	%
Less impact of branch divestiture:
Gain on branch divestiture			—			0.44			NA		NM			—			0.09			NA		NM
Operating results of divested branches			—			0.08			NA		NM			—			0.06			NA		NM
Adjusted ROA - Non-GAAP			1.32			1.31	%		NA		1	%		1.38	%		1.49	%		NA		(7)	%

ROE - GAAP			9.89	%		13.58	%		NA		(27)	%		10.37	%		12.49	%		NA		(17)	%
Less impact of branch divestiture:
Gain on branch divestiture			—			3.31			NA		NM			—			0.84			NA		NM
Operating results of divested branches			—			0.55			NA		NM			—			0.42			NA		NM
Adjusted ROE - Non-GAAP			9.89			9.72	%		NA		2	%		10.37	%		11.23	%		NA		(8)	%

(2)		PPP – The U.S. Small Business Administration’s Paycheck Protection Program.

(3)		Core deposits, a non-GAAP measure, are total deposits excluding time deposits greater than or equal to $250,000, all brokered deposits, and all deposits attributable to the Company’s RPG operations. Core deposits are intended to include those deposits that are more stable and lower cost and that reprice more slowly than other deposits when interest rates rise. The following table reconciles noninterest-bearing and interest-bearing deposits in accordance with GAAP to core deposits:



(dollars in thousands)	Dec. 31, 2020		Dec. 31, 2019		$ Change		% Change

Noninterest-bearing deposits - GAAP	$	1,890,416	$	1,033,379	$	857,037		83	%
Less: Noninterest-bearing deposits - RPG		386,754		52,215		334,539		641
Noninterest-bearing core deposits - Non-GAAP (a)	$	1,503,662	$	981,164	$	522,498		53	%

Interest-bearing deposits - GAAP	$	2,842,765	$	2,752,629	$	90,136		3	%
Less: Time deposits, $250,000 and over		83,448		104,412		(20,964)		(20)
Less: Brokered deposits		25,010		200,072		(175,062)		(87)
Less: Interest-bearing deposits - RPG		6,673		66,152		(59,479)		NM
Interest-bearing core deposits - Non-GAAP (b)	$	2,727,634	$	2,381,993	$	345,641		15	%

Total core deposits - Non-GAAP (a+b)	$	4,231,296	$	3,363,157	$	868,139		26	%

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

(5)		The following table provides a reconciliation of Core Bank financial measures in accordance with GAAP to the Core Bank’s adjusted results, which are non-GAAP measures that exclude items related to four branches divested by the Company in November 2019. Management uses these non-GAAP measures to evaluate the on-going performance of the Core Bank. Non-GAAP measures are not formally defined by GAAP or codified in the federal banking regulations, and other entities may use calculation methods that differ from those used by the Company.

(dollars in thousands)

RECONCILIATION OF NON-GAAP PERFORMANCE METRICS - CORE BANK

Three Months Ended Dec. 31,

Years Ended Dec. 31,

2020

2019

Change

2020

2019

Change

CORE BANK:

Net interest income - GAAP

49,644

46,806

2,838

186,700

184,574

2,126

Less: net interest income from divested branches

—

720

(720)

—

5,518

(5,518)

Net interest income - Non-GAAP

49,644

46,086

3,558

186,700

179,056

7,644

Provision - GAAP

1,566

(1,367)

2,933

16,870

3,066

13,804

Less: provision from divested branches

—

(886)

886

—

(552)

552

Provision - Non-GAAP

1,566

(481)

2,047

16,870

3,618

13,252

Noninterest income - GAAP

14,851

18,243

(3,392)

(19)

59,378

48,219

11,159

Less: noninterest income from divested branches:

Gain on branch divestiture

—

7,948

(7,948)

—

7,829

(7,829)

All other noninterest income from divested branches

—

268

(268)

—

1,833

(1,833)

Noninterest income - Non-GAAP

14,851

10,027

4,824

59,378

38,557

20,821

Noninterest expense - GAAP

43,452

37,108

6,344

164,208

153,051

11,157

Less: noninterest expense from divested branches

—

419

(419)

—

2,977

(2,977)

Noninterest expense - Non-GAAP

43,452

36,689

6,763

164,208

150,074

14,134

Income before income tax expense - GAAP

19,477

29,308

(9,831)

(34)

65,000

76,676

(11,676)

(15)

Less: income before income tax expense from divested branches

—

9,403

(9,403)

—

12,755

(12,755)

Income before income tax expense - Non-GAAP

19,477

19,905

(428)

(2)

65,000

63,921

1,079

Income tax expense - GAAP

2,416

6,095

(3,679)

(60)

10,852

13,223

(2,371)

(18)

Less: income tax expense from divested branches

—

1,924

(1,924)

—

2,370

(2,370)

Income tax expense - Non-GAAP

2,416

4,171

(1,755)

(42)

10,852

10,853

(1)

(0)

Net income - GAAP

17,061

23,213

(6,152)

(27)

54,148

63,453

(9,305)

(15)

Less: net income from divested branches

—

7,479

(7,479)

—

10,385

(10,385)

Net income - Non-GAAP

17,061

15,734

1,327

54,148

53,068

1,080

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

NM – Not meaningful

NA – Not applicable

Contacts

Kevin Sipes
Executive Vice President & Chief Financial Officer
(502) 560-8628

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2020

TABLE OF CONTENTS


	YEAR TO YEAR COMPARISON	S-2

	Balance Sheet Data	S-2
	Average Balance Sheet Data	S-2
	Income Statement Data	S-3
	Selected Data and Ratios	S-4
	Credit Quality Data and Ratios	S-5

	QUARTERLY COMPARISON	S-6

	Balance Sheet Data	S-6
	Average Balance Sheet Data	S-6
	Income Statement Data	S-7
	Selected Data and Ratios	S-8
	Credit Quality Data and Ratios	S-9

	SEGMENT DATA	S-10

	Quarter to Date Income Statement by Segment	S-11
	Year to Date Income Statement by Segment	S-12

	FOOTNOTES	S-13

S-1

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020

(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
	Dec. 31, 2020			Dec. 31, 2019
Assets:
Cash and cash equivalents	$	485,587		$	385,303
Investment securities, net of allowance for credit losses (1)		580,270			537,074
Loans held for sale		51,643			31,468
Loans		4,813,103			4,433,151
Allowance for credit losses (1)		(61,067	)		(43,351	)
Loans, net		4,752,036			4,389,800
Federal Home Loan Bank stock, at cost		17,397			30,831
Premises and equipment, net		39,512			46,196
Right-of-use assets		43,345			35,206
Goodwill		16,300			16,300
Other real estate owned ("OREO")		2,499			113
Bank owned life insurance ("BOLI")		68,018			66,433
Other assets and accrued interest receivable		111,718			81,595
Total assets	$	6,168,325		$	5,620,319

Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	1,890,416		$	1,033,379
Interest-bearing		2,842,765			2,752,629
Total deposits		4,733,181			3,786,008

Securities sold under agreements to repurchase and other short-term borrowings		211,026			167,617
Operating lease liabilities		44,340			36,530
Federal Home Loan Bank advances		235,000			750,000
Subordinated note		41,240			41,240
Other liabilities and accrued interest payable		80,215			74,680
Total liabilities		5,345,002			4,856,075

Stockholders' equity		823,323			764,244
Total liabilities and stockholders' equity	$	6,168,325		$	5,620,319

Average Balance Sheet Data
	Three Months Ended Dec. 31,				Years Ended Dec. 31,
	2020		2019		2020		2019
Assets:
Federal funds sold and other interest-earning deposits	$	311,584	$	152,286	$	283,151	$	260,131
Investment securities, including FHLB stock		610,287		632,559		584,300		564,631
Loans, including loans held for sale		4,916,968		4,588,538		4,796,841		4,470,347
Total interest-earning assets		5,838,839		5,373,383		5,664,292		5,295,109
Total assets		6,170,766		5,638,498		6,011,865		5,577,643

Liabilities and Stockholders' Equity:
Noninterest-bearing deposits, including those held for assumption	$	1,892,259	$	1,062,010	$	1,672,442	$	1,120,608
Interest-bearing deposits, including those held for assumption		2,977,579		2,966,993		2,913,486		2,755,946
Securities sold under agreements to
repurchase and other short-term borrowings		220,406		248,558		204,797		236,883
Federal Reserve Paycheck Protection Program Liquidity Facility		—		—		43,932		—
Federal Home Loan Bank advances		88,533		469,130		211,776		595,613
Subordinated note		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		3,327,758		3,725,921		3,415,231		3,629,682
Stockholders' equity		823,109		758,740		802,726		734,281

S-2

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (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 Dec. 31,					Years Ended Dec. 31,
	2020			2019		2020			2019

Total interest income (2)	$	57,970		$	64,527	$	252,258		$	280,883
Total interest expense		2,850			10,132		19,943			44,757
Net interest income		55,120			54,395		232,315			236,126

Provision for expected credit loss expense (1)		484			914		31,278			25,758

Noninterest income:
Service charges on deposit accounts		3,011			3,547		11,615			14,197
Net refund transfer fees		409			112		20,297			21,158
Mortgage banking income		7,879			2,480		31,847			9,499
Interchange fee income		2,917			2,814		11,188			11,859
Program fees		1,846			1,284		7,095			4,712
Increase in cash surrender value of BOLI		401			397		1,585			1,550
Net gains (losses) on OREO		(30	)		53		(40	)		540
Net gain on branch divestiture		—			7,948		—			7,829
Other		703			1,020		3,466			3,664
Total noninterest income		17,136			19,655		87,053			75,008

Noninterest expense:
Salaries and employee benefits		26,553			23,997		106,166			99,181
Occupancy and equipment, net		7,157			6,497		27,498			26,124
Communication and transportation		1,153			1,198		4,942			4,447
Marketing and development		1,261			1,223		4,031			5,023
FDIC insurance expense		366			—		1,010			743
Bank franchise tax expense		975			927		5,369			5,293
Data processing		3,434			2,532		12,066			9,189
Interchange related expense		998			1,115		4,303			4,870
Supplies		400			335		1,717			1,693
Other real estate owned and other repossession expense		1			2		46			326
Legal and professional fees		734			601		4,244			3,357
FHLB advance prepayment penalties		2,108			—		2,108			—
Other		3,000			2,408		11,957			11,937
Total noninterest expense		48,140			40,835		185,457			172,183

Income before income tax expense		23,632			32,301		102,633			113,193
Income tax expense		3,276			6,533		19,387			21,494
Net income	$	20,356		$	25,768	$	83,246		$	91,699

S-3

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (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 Dec. 31,						Years Ended Dec. 31,
	2020			2019			2020			2019
Per Share Data:

Basic weighted average shares outstanding		21,037			21,036			21,039			21,023
Diluted weighted average shares outstanding		21,072			21,133			21,069			21,135

Period-end shares outstanding:
Class A Common Stock		18,697			18,737			18,697			18,737
Class B Common Stock		2,199			2,206			2,199			2,206

Book value per share (3)	$	39.40		$	36.49		$	39.40		$	36.49
Tangible book value per share (3)		38.27			35.41			38.27			35.41

Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	0.98		$	1.23		$	4.00		$	4.41
Basic EPS - Class B Common Stock		0.89			1.13			3.64			4.01
Diluted EPS - Class A Common Stock		0.98			1.23			3.99			4.39
Diluted EPS - Class B Common Stock		0.89			1.12			3.63			3.99

Cash dividends declared per Common share:
Class A Common Stock	$	0.286		$	0.264		$	1.144		$	1.056
Class B Common Stock		0.260			0.240			1.040			0.960

Performance Ratios:

Return on average assets		1.32	%		1.83	%		1.38	%		1.64	%
Return on average equity		9.89			13.58			10.37			12.49
Efficiency ratio (4)		67			62			58			57
Yield on average interest-earning assets (2)		3.97			4.80			4.45			5.30
Cost of average interest-bearing liabilities		0.34			1.09			0.58			1.23
Cost of average deposits (5)		0.19			0.74			0.33			0.75
Net interest spread (2)		3.63			3.71			3.87			4.07
Net interest margin - Total Company (2)		3.78			4.05			4.10			4.46
Net interest margin - Core Bank (6)		3.48			3.56			3.39			3.61

Other Information:

End of period FTEs (7) - Total Company		1,094			1,080			1,094			1,080
End of period FTEs - Core Bank		997			997			997			997
Number of full-service banking centers		42			41			42			41

S-4

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (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 Dec. 31,						Years Ended Dec. 31,
	2020			2019			2020			2019
Credit Quality Asset Balances:

Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	23,548		$	23,332		$	23,548		$	23,332
Loans past due 90-days-or-more and still on accrual		47			157			47			157
Total nonperforming loans		23,595			23,489			23,595			23,489
OREO		2,499			113			2,499			113
Total nonperforming assets	$	26,094		$	23,602		$	26,094		$	23,602

Nonperforming Assets - Core Bank (6):
Loans on nonaccrual status	$	23,548		$	23,332		$	23,548		$	23,332
Loans past due 90-days-or-more and still on accrual		5			—			5			—
Total nonperforming loans		23,553			23,332			23,553			23,332
OREO		2,499			113			2,499			113
Total nonperforming assets	$	26,052		$	23,445		$	26,052		$	23,445

Delinquent loans:
Delinquent loans - Core Bank	$	9,713		$	13,042		$	9,713		$	13,042
Delinquent loans - RPG (8)		10,234			7,762			10,234			7,762
Total delinquent loans - Total Company	$	19,947		$	20,804		$	19,947		$	20,804


Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.49	%		0.53	%		0.49	%		0.53	%
Nonperforming assets to total loans (including OREO)		0.54			0.53			0.54			0.53
Nonperforming assets to total assets		0.42			0.42			0.42			0.42
Allowance for credit losses to total loans		1.27			0.98			1.27			0.98
Allowance for credit losses to nonperforming loans		259			185			259			185
Delinquent loans to total loans (9)		0.41			0.47			0.41			0.47
Net charge-offs (recoveries) to average loans (annualized)		(0.04	)		0.39			0.42			0.61

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.50	%		0.54	%		0.50	%		0.54	%
Nonperforming assets to total loans (including OREO)		0.56			0.54			0.56			0.54
Nonperforming assets to total assets		0.45			0.43			0.45			0.43
Allowance for credit losses to total loans		1.11			0.70			1.11			0.70
Allowance for credit losses to nonperforming loans		221			129			221			129
Delinquent loans to total loans		0.21			0.30			0.21			0.30
Net charge-offs to average loans (annualized)		0.07			0.19			0.03			0.11

S-5

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (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
	Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019
Assets:
Cash and cash equivalents	$	485,587		$	342,028		$	560,195		$	316,263		$	385,303
Investment securities, net of allowance for credit losses (1)		580,270			607,556			545,607			608,330			537,074
Loans held for sale		51,643			56,752			52,992			54,904			31,468
Loans		4,813,103			4,994,374			5,065,092			4,515,599			4,433,151
Allowance for credit losses (1)		(61,067	)		(59,891	)		(55,097	)		(70,431	)		(43,351	)
Loans, net		4,752,036			4,934,483			5,009,995			4,445,168			4,389,800
Federal Home Loan Bank stock, at cost		17,397			19,634			25,629			38,900			30,831
Premises and equipment, net		39,512			40,946			42,753			44,215			46,196
Right-of-use assets		43,345			43,643			34,450			34,349			35,206
Goodwill		16,300			16,300			16,300			16,300			16,300
Other real estate owned		2,499			2,056			2,194			85			113
Bank owned life insurance		68,018			67,617			67,217			66,822			66,433
Other assets and accrued interest receivable		111,718			109,431			103,243			96,697			81,595
Total assets	$	6,168,325		$	6,240,446		$	6,460,575		$	5,722,033		$	5,620,319

Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	1,890,416		$	1,876,418		$	1,821,400		$	1,300,891		$	1,033,379
Interest-bearing		2,842,765			3,115,911			3,196,685			2,770,566			2,752,629
Total deposits		4,733,181			4,992,329			5,018,085			4,071,457			3,786,008

Securities sold under agreements to
repurchase and other short-term borrowings		211,026			126,172			177,397			126,080			167,617
Operating lease liabilities		44,340			44,710			35,571			35,537			36,530
Federal Reserve Paycheck Protection Program Liquidity Facility		—			—			169,209			—			—
Federal Home Loan Bank advances		235,000			132,500			137,500			572,500			750,000
Subordinated note		41,240			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable		80,215			93,133			85,954			91,173			74,680
Total liabilities		5,345,002			5,430,084			5,664,956			4,937,987			4,856,075

Stockholders' equity		823,323			810,362			795,619			784,046			764,244
Total liabilities and stockholders' equity	$	6,168,325		$	6,240,446		$	6,460,575		$	5,722,033		$	5,620,319

Average Balance Sheet Data
	Quarterly Comparison
	Dec. 31, 2020		Sep. 30, 2020		Jun. 30, 2020		Mar. 31, 2020		Dec. 31, 2019
Assets:
Federal funds sold and other interest-earning deposits	$	311,584	$	313,281	$	299,760	$	207,335	$	152,286
Investment securities, including FHLB stock		610,287		600,943		605,776		519,726		632,559
Loans, including loans held for sale		4,916,968		4,907,106		4,867,622		4,493,137		4,588,538
Total interest-earning assets		5,838,839		5,821,330		5,773,158		5,220,198		5,373,383
Total assets		6,170,766		6,152,043		6,094,421		5,626,946		5,638,498

Liabilities and Stockholders' Equity:
Noninterest-bearing deposits, including those held for assumption	$	1,892,259	$	1,846,552	$	1,697,603	$	1,249,025	$	1,062,010
Interest-bearing deposits, including those held for assumption		2,977,579		2,939,063		2,880,988		2,855,332		2,966,993
Securities sold under agreements to
repurchase and other short-term borrowings		220,406		213,010		176,541		208,969		248,558
Federal Reserve Paycheck Protection Program Liquidity Facility		—		53,338		122,769		—		—
Federal Home Loan Bank advances		88,533		126,250		263,296		371,319		469,130
Subordinated note		41,240		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		3,327,758		3,372,901		3,484,834		3,476,860		3,725,921
Stockholders' equity		823,109		811,351		797,227		778,900		758,740

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (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
	Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020		Mar. 31, 2020		Dec. 31, 2019

Total interest income (2)	$	57,970		$	56,038		$	57,091	$	81,159	$	64,527
Total interest expense		2,850			3,786			4,886		8,421		10,132
Net interest income		55,120			52,252			52,205		72,738		54,395

Provision for expected credit loss expense (1)		484			1,500			6,534		22,760		914

Noninterest income:
Service charges on deposit accounts		3,011			3,017			2,451		3,136		3,547
Net refund transfer fees		409			1,152			2,913		15,823		112
Mortgage banking income		7,879			10,775			8,398		4,795		2,480
Interchange fee income		2,917			2,911			2,808		2,552		2,814
Program fees		1,846			1,487			1,138		2,624		1,284
Increase in cash surrender value of BOLI		401			400			395		389		397
Net gains (losses) on OREO		(30	)		(14	)		1		3		53
Net gain on branch divestiture		—			—			—		—		7,948
Other		703			869			647		1,247		1,020
Total noninterest income		17,136			20,597			18,751		30,569		19,655

Noninterest expense:
Salaries and employee benefits		26,553			26,667			26,324		26,622		23,997
Occupancy and equipment, net		7,157			6,780			6,715		6,846		6,497
Communication and transportation		1,153			1,147			1,353		1,289		1,198
Marketing and development		1,261			919			1,018		833		1,223
FDIC insurance expense		366			345			299		—		—
Bank franchise tax expense		975			974			914		2,506		927
Data processing		3,434			3,340			2,753		2,539		2,532
Interchange related expense		998			1,056			1,173		1,076		1,115
Supplies		400			326			539		452		335
OREO expense		1			6			21		18		2
Legal and professional fees		734			1,248			1,025		1,237		601
FHLB advance prepayment penalties		2,108			—			—		—		—
Other		3,000			2,715			2,691		3,551		2,408
Total noninterest expense		48,140			45,523			44,825		46,969		40,835

Income before income tax expense		23,632			25,826			19,597		33,578		32,301
Income tax expense		3,276			5,437			3,793		6,881		6,533
Net income	$	20,356		$	20,389		$	15,804	$	26,697	$	25,768

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (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
	Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019
Per Share Data:

Basic weighted average shares outstanding		21,037			21,026			21,004			21,035			21,036
Diluted weighted average shares outstanding		21,072			21,046			21,029			21,094			21,133

Period-end shares outstanding:
Class A Common Stock		18,697			18,715			18,708			18,687			18,737
Class B Common Stock		2,199			2,200			2,200			2,200			2,206

Book value per share (3)	$	39.40		$	38.75		$	38.05		$	37.54		$	36.49
Tangible book value per share (3)		38.27			37.63			36.93			36.45			35.41

Earnings per share ("EPS"):
Basic EPS - Class A Common Stock	$	0.98		$	0.98		$	0.77		$	1.29		$	1.23
Basic EPS - Class B Common Stock		0.89			0.89			0.69			1.17			1.13
Diluted EPS - Class A Common Stock		0.98			0.98			0.76			1.28			1.23
Diluted EPS - Class B Common Stock		0.89			0.89			0.69			1.16			1.12

Cash dividends declared per Common share:
Class A Common Stock	$	0.286		$	0.286		$	0.286		$	0.286		$	0.264
Class B Common Stock		0.260			0.260			0.260			0.260			0.240

Performance Ratios:

Return on average assets		1.32	%		1.33	%		1.04	%		1.90	%		1.83	%
Return on average equity		9.89			10.05			7.93			13.71			13.58
Efficiency ratio (4)		67			62			63			45			62
Yield on average interest-earning assets (2)		3.97			3.85			3.96			6.22			4.80
Cost of average interest-bearing liabilities		0.34			0.45			0.56			0.97			1.09
Cost of average deposits (5)		0.19			0.24			0.32			0.61			0.74
Net interest spread (2)		3.63			3.40			3.40			5.25			3.71
Net interest margin - Total Company (2)		3.78			3.59			3.62			5.57			4.05
Net interest margin - Core Bank (6)		3.48			3.25			3.23			3.65			3.56

Other Information:

End of period FTEs (7) - Total Company		1,094			1,085			1,094			1,077			1,080
End of period FTEs - Core Bank		997			993			1,001			994			997
Number of full-service banking centers		42			42			42			42			41

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (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
	Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019
Credit Quality Asset Balances:

Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	23,548		$	20,910		$	19,884		$	20,358		$	23,332
Loans past due 90-days-or-more and still on accrual		47			175			535			495			157
Total nonperforming loans		23,595			21,085			20,419			20,853			23,489
OREO		2,499			2,056			2,194			85			113
Total nonperforming assets	$	26,094		$	23,141		$	22,613		$	20,938		$	23,602

Nonperforming Assets - Core Bank (6):
Loans on nonaccrual status	$	23,548		$	20,910		$	19,884		$	20,358		$	23,332
Loans past due 90-days-or-more and still on accrual		5			—			—			—			—
Total nonperforming loans		23,553			20,910			19,884			20,358			23,332
OREO		2,499			2,056			2,194			85			113
Total nonperforming assets	$	26,052		$	22,966		$	22,078		$	20,443		$	23,445

Delinquent Loans:
Delinquent loans - Core Bank	$	9,713		$	11,069		$	7,861		$	11,863		$	13,042
Delinquent loans - RPG (8) (10)		10,234			5,984			6,185			30,764			7,762
Total delinquent loans - Total Company	$	19,947		$	17,053		$	14,046		$	42,627		$	20,804


Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.49	%		0.42	%		0.40	%		0.46	%		0.53	%
Nonperforming assets to total loans (including OREO)		0.54			0.46			0.45			0.46			0.53
Nonperforming assets to total assets		0.42			0.37			0.35			0.37			0.42
Allowance for credit losses to total loans		1.27			1.20			1.09			1.56			0.98
Allowance for credit losses to nonperforming loans		259			284			270			338			185
Delinquent loans to total loans (9) (10)		0.41			0.34			0.28			0.94			0.47
Net charge-offs (recoveries) to average loans (annualized)		(0.04	)		(0.27	)		1.80			0.19			0.39

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.50	%		0.43	%		0.40	%		0.46	%		0.54	%
Nonperforming assets to total loans (including OREO)		0.56			0.47			0.44			0.47			0.54
Nonperforming assets to total assets		0.45			0.39			0.36			0.38			0.43
Allowance for credit losses to total loans		1.11			1.05			0.92			0.97			0.70
Allowance for credit losses to nonperforming loans		221			245			230			210			129
Delinquent loans to total loans		0.21			0.23			0.16			0.27			0.30
Net charge-offs (recoveries) to average loans (annualized)		0.07			0.03			0.04			(0.03	)		0.19

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Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (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 December 31, 2020, 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. MemoryBank^®, the Company’s national branchless banking platform is part of the Traditional Banking segment.

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 2019 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

Fourth Quarter 2020 (continued)

Segment information for the quarters and years ended December 31, 2020 and 2019 follows:

	Three Months Ended December 31, 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	$	40,972		$	8,242		$	430		$	49,644		$	488		$	4,988		$	5,476		$	55,120

Provision for expected credit loss expense		1,731			(165	)		—			1,566			(2,050	)		968			(1,082	)		484

Net refund transfer fees		—			—			—			—			409			—			409			409
Mortgage banking income		—			—			7,879			7,879			—			—			—			7,879
Program fees		—			—			—			—			620			1,226			1,846			1,846
Other noninterest income		6,905			17			50			6,972			30			—			30			7,002
Total noninterest income		6,905			17			7,929			14,851			1,059			1,226			2,285			17,136

Total noninterest expense		39,311			898			3,243			43,452			3,925			763			4,688			48,140

Income (loss) before income tax expense		6,835			7,526			5,116			19,477			(328	)		4,483			4,155			23,632
Income tax expense (benefit)		(352	)		1,694			1,074			2,416			(164	)		1,024			860			3,276
Net income (loss)	$	7,187		$	5,832		$	4,042		$	17,061		$	(164	)	$	3,459		$	3,295		$	20,356

Period-end assets	$	4,750,460		$	962,692		$	62,400		$	5,775,552		$	285,612		$	107,161		$	392,773		$	6,168,325

Net interest margin		3.46	%		3.51	%	NM				3.48	%	NM			NM			NM				3.78	%

Net-revenue concentration*		66	%		11	%		12	%		89	%		2	%		9	%		11	%		100	%

	Three Months Ended December 31, 2019
	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	$	41,973		$	4,620		$	213		$	46,806		$	183		$	7,406		$	7,589		$	54,395

Provision for expected credit loss expense		(727	)		(640	)		—			(1,367	)		(569	)		2,850			2,281			914

Net refund transfer fees		—			—			—			—			112			—			112			112
Mortgage banking income		—			—			2,480			2,480			—			—			—			2,480
Program fees		—			—			—			—			119			1,165			1,284			1,284
Net gain on branch divestiture		7,948			—			—			7,948			—			—			—			7,948
Other noninterest income		7,754			10			51			7,815			16			—			16			7,831
Total noninterest income		15,702			10			2,531			18,243			247			1,165			1,412			19,655

Total noninterest expense		34,475			832			1,801			37,108			3,529			198			3,727			40,835

Income (loss) before income tax expense		23,927			4,438			943			29,308			(2,530	)		5,523			2,993			32,301
Income tax expense (benefit)		4,898			999			198			6,095			(797	)		1,235			438			6,533
Net income (loss)	$	19,029		$	3,439		$	745		$	23,213		$	(1,733	)	$	4,288		$	2,555		$	25,768

Period-end assets	$	4,684,116		$	717,994		$	26,469		$	5,428,579		$	86,849		$	104,891		$	191,740		$	5,620,319

Net interest margin		3.80	%		2.27	%	NM				3.56	%	NM			NM			NM				4.05	%

Net-revenue concentration*		77	%		6	%		4	%		87	%		1	%		12	%		13	%		100	%

_____________________________

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

S-11

Table of Contents

Republic Bancorp, Inc.

Earnings Release Financial Supplement

Fourth Quarter 2020 (continued)

	Year Ended December 31, 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	$	159,381		$	25,957		$	1,362		$	186,700		$	22,972		$	22,643		$	45,615		$	232,315

Provision for expected credit loss expense		16,257			613			—			16,870			13,189			1,219			14,408			31,278

Net refund transfer fees		—			—			—			—			20,297			—			20,297			20,297
Mortgage banking income		—			—			31,847			31,847			—			—			—			31,847
Program fees		—			—			—			—			2,193			4,902			7,095			7,095
Other noninterest income		27,404			24			103			27,531			283			—			283			27,814
Total noninterest income		27,404			24			31,950			59,378			22,773			4,902			27,675			87,053

Total noninterest expense		149,061			4,387			10,760			164,208			17,514			3,735			21,249			185,457

Income before income tax expense		21,467			20,981			22,552			65,000			15,042			22,591			37,633			102,633
Income tax expense		1,395			4,721			4,736			10,852			3,323			5,212			8,535			19,387
Net income	$	20,072		$	16,260		$	17,816		$	54,148		$	11,719		$	17,379		$	29,098		$	83,246

Period-end assets	$	4,750,460		$	962,692		$	62,400		$	5,775,552		$	285,612		$	107,161		$	392,773		$	6,168,325

Net interest margin		3.42	%		3.19	%	NM				3.39	%	NM			NM			NM				4.10	%

Net-revenue concentration*		59	%		8	%		10	%		77	%		14	%		9	%		23	%		100	%

	Year Ended December 31, 2019
	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	$	168,076		$	15,801		$	697		$	184,574		$	21,626		$	29,926		$	51,552		$	236,126

Provision for expected credit loss expense		2,444			622			—			3,066			11,249			11,443			22,692			25,758

Net refund transfer fees		—			—			—			—			21,158			—			21,158			21,158
Mortgage banking income		—			—			9,499			9,499			—			—			—			9,499
Program fees		—			—			—			—			437			4,275			4,712			4,712
Net gain on branch divestiture		7,829			—			—			7,829			—			—			—			7,829
Other noninterest income		30,724			(46	)		213			30,891			260			659			919			31,810
Total noninterest income		38,553			(46	)		9,712			48,219			21,855			4,934			26,789			75,008

Total noninterest expense		143,671			3,268			6,112			153,051			16,539			2,593			19,132			172,183

Income before income tax expense		60,514			11,865			4,297			76,676			15,693			20,824			36,517			113,193
Income tax expense		9,651			2,670			902			13,223			3,454			4,817			8,271			21,494
Net income	$	50,863		$	9,195		$	3,395		$	63,453		$	12,239		$	16,007		$	28,246		$	91,699

Period-end assets	$	4,684,116		$	717,994		$	26,469		$	5,428,579		$	86,849		$	104,891		$	191,740		$	5,620,319

Net interest margin		3.76	%		2.42	%	NM				3.61	%	NM			NM			NM				4.46	%

Net-revenue concentration*		67	%		5	%		3	%		75	%		14	%		11	%		25	%		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

Fourth Quarter 2020 (continued)

Footnotes:

(1)

Effective January 1, 2020, the Company adopted Accounting Standards Codification (“ASC”) 326 Financial Instruments – Credit Losses, which replaces the pre-January 1, 2020 “probable-incurred” method for calculating the Company’s Allowance for Credit Losses (“ACL”) with the current expected credit losses (“CECL”) method. CECL is applicable to financial assets measured at amortized cost, including loan and lease receivables and held-to-maturity debt securities. CECL also applies to certain off-balance sheet credit exposures. In addition to CECL, ASC 326 made changes to the accounting for Available-for-Sale (“AFS”) debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on AFS debt securities that the Company does not intend or will likely not be compelled to sell.

When measuring an ACL, CECL primarily differs from the probable-incurred method by: a) incorporating a lower “expected” threshold for loss recognition versus a higher “probable” threshold; b) requiring life-of-loan considerations; and c) requiring reasonable and supportable forecasts. The Company’s CECL method is a “static-pool” method that analyzes historical closed pools of loans over their expected lives to attain a loss rate, which is then adjusted for current conditions and reasonable and supportable forecasts prior to being applied to the current balance of the analyzed pools. Due to its reasonably strong correlation to the Company's historical net loan losses, the Company has chosen to use the national unemployment rate as its primary forecasting tool. During the third quarter of 2020, the Company began incorporating forecasted vacancy rates on commercial real estate into its CECL model.

In accord with the adoption of ASC 326 and CECL, the Company recorded on January 1, 2020 a $6.7 million, or 16%, increase in the ACL for its loans and leases, a $51,000 ACL for its investment debt securities, and an approximate $456,000 ACL for its off-balance sheet exposures. This adoption also reduced the Company’s retained earnings on a tax-effected basis, with no impact on 2020 earnings. The adoption date increase in ACL for the Company’s loans and leases primarily reflects additional ACL for longer duration loan portfolios, such as the Company's residential real estate and consumer loan portfolios. No additional segmentation of the Bank's loan portfolios was deemed necessary upon adoption.

(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 was $10.8 million and $8.5 million for the quarters ended December 31, 2020 and 2019. The amount of loan fee income included in total interest income was $55.0 million and $54.5 million for the years ended December 31, 2020 and 2019.

The amount of loan fee income included in total interest income per quarter was as follows: $10.8 million (quarter ended December 31, 2020); $7.9 million (quarter ended September 30, 2020); $7.8 million (quarter ended June 30, 2020); $28.5 million (quarter ended March 31, 2020); and $8.5 million (quarter ended December 31, 2019).

Included in the above totals, fee income recognized on PPP loans totaled $4.8 million for the quarter and $8.6 million for the year ended December 31, 2020.

Interest income for Easy Advances (“EAs”) is composed entirely of loan fees. The loan fees disclosed above included EA fees of $19.7 million and $19.1 million for the years ended December 31, 2020 and 2019. EA’s are only offered during the first two months of each year.

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(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)	Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019

Total stockholders' equity - GAAP (a)	$	823,323		$	810,362		$	795,619		$	784,046		$	764,244
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		7,095			6,674			6,711			5,994			5,888
Less: Core deposit intangible		189			283			377			423			469
Tangible stockholders' equity - Non-GAAP (c)	$	799,739		$	787,105		$	772,231		$	761,329		$	741,587

Total assets - GAAP (b)	$	6,168,325		$	6,240,446		$	6,460,575		$	5,722,033		$	5,620,319
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		7,095			6,674			6,711			5,994			5,888
Less: Core deposit intangible		189			283			377			423			469
Tangible assets - Non-GAAP (d)	$	6,144,741		$	6,217,189		$	6,437,187		$	5,699,316		$	5,597,662

Total stockholders' equity to total assets - GAAP (a/b)		13.35	%		12.99	%		12.31	%		13.70	%		13.60	%
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d)		13.02	%		12.66	%		12.00	%		13.36	%		13.25	%

Number of shares outstanding (e)		20,896			20,915			20,908			20,887			20,943

Book value per share - GAAP (a/e)	$	39.40		$	38.75		$	38.05		$	37.54		$	36.49
Tangible book value per share - Non-GAAP (c/e)		38.27			37.63			36.93			36.45			35.41

(4)

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 net gains (losses) on sales, calls, and impairment of investment securities and the Company’s net gain from its November 2019 branch divestiture.

	Three Months Ended Dec. 31,						Years Ended Dec. 31,
(dollars in thousands)	2020			2019			2020			2019

Net interest income - GAAP	$	55,120		$	54,395		$	232,315		$	236,126
Noninterest income - GAAP		17,136			19,655			87,053			75,008
Less: Net gain on branch divestiture		—			7,948			—			7,829
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities		(12	)		(12	)		49			78
Total adjusted income - Non-GAAP (a)	$	72,268		$	66,114		$	319,319		$	303,227

Noninterest expense - GAAP (b)	$	48,140		$	40,835		$	185,457		$	172,183

Efficiency Ratio - Non-GAAP (b/a)		67	%		62	%		58	%		57	%

	Three Months Ended
(dollars in thousands)	Dec. 31, 2020			Sep. 30, 2020			Jun. 30, 2020			Mar. 31, 2020*			Dec. 31, 2019

Net interest income - GAAP	$	55,120		$	52,252		$	52,205		$	72,738		$	54,395
Noninterest income - GAAP		17,136			20,597			18,751			30,569			19,655
Less: Net gain on branch divestiture		—			—			—			—			7,948
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities		(12	)		5			16			40			(12	)
Total adjusted income - Non-GAAP (a)	$	72,268		$	72,844		$	70,940		$	103,267		$	66,114

Noninterest expense - GAAP (b)	$	48,140		$	45,523		$	44,825		$	46,969		$	40,835

Efficiency Ratio - Non-GAAP (b/a)		67	%		62	%		63	%		45	%		62	%

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*The Company’s efficiency ratio for the first quarter of each year traditionally benefits from seasonal revenues from its TRS segment.

(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.

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

(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.

(10)

Delinquent loans for the RPG segment included $23 million of EA’s at March 31, 2020. EA’s are only offered during the first two months of each year. EA’s do not have a contractual due date but are eligible for delinquency consideration three weeks after the taxpayer-customer’s tax return is submitted to the applicable tax authority. All unpaid EA’s are charged-off by the end of the second quarter of each year.

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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