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LOANS AND ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

5. LOANS AND ALLOWANCE FOR CREDIT LOSSES

The composition of the loan portfolio follows:


(in thousands)	March 31, 2024		December 31, 2023

Traditional Banking:
Residential real estate:
Owner-occupied	$	1,064,071	$	1,144,684
Nonowner-occupied		342,481		345,965
Commercial real estate (1)		1,800,801		1,785,289
Construction & land development		237,998		217,338
Commercial & industrial		453,971		464,078
Lease financing receivables		88,272		88,591
Aircraft		246,060		250,051
Home equity		309,083		295,133
Consumer:
Credit cards		16,858		16,654
Overdrafts		629		694
Automobile loans		2,054		2,664
Other consumer		11,372		7,428
Total Traditional Banking		4,573,650		4,618,569
Warehouse lines of credit*		463,249		339,723
Total Core Banking		5,036,899		4,958,292

*Republic Processing Group:**
Tax Refund Solutions:
Refund Advances		52,101		103,115
Other TRS commercial & industrial loans		5,396		46,092
Republic Credit Solutions		129,896		132,362
Total Republic Processing Group		187,393		281,569

Total loans**		5,224,292		5,239,861
Allowance for credit losses		(108,702)		(82,130)

Total loans, net	$	5,115,590	$	5,157,731

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

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

(1)

The approximate percentage of Nonowner-occupied CRE loans to total CRE loans was 64% and 63%, respectively, for March 31, 2024 and December 31, 2023. The approximate percentage of Owner-occupied CRE loans to total CRE loans was 36% and 37%, respectively, for March 31, 2024 and December 31, 2023.

The following table reconciles the contractually receivable and carrying amounts of loans:


(in thousands)	March 31, 2024		December 31, 2023

Contractually receivable	$	5,231,943	$	5,246,621
Unearned income		(2,830)		(2,556)
Unamortized premiums		257		1,060
Unaccreted discounts		(2,264)		(2,533)
Other net unamortized deferred origination (fees) and costs		(2,814)		(2,731)
Carrying value of loans	$	5,224,292	$	5,239,861

Credit Quality Indicators

The following tables include loans by segment, risk category, and, for non-revolving loans, origination year. Loan segments and risk categories as of March 31, 2024 remain unchanged from those defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Regarding origination year, loan extensions and renewals are generally considered originated in the year extended or renewed unless the loan is classified as a loan modification (formerly TDR). Loan extensions and renewals classified as loan modifications (formerly TDRs) generally receive no change in origination date upon extension or renewal.


													Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year												Amortized		Converted
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total

Residential real estate owner-occupied:
Risk Rating
Pass or not rated	$	20,990	$	257,598	$	199,426	$	171,956	$	164,679	$	223,861	$	—	$	2,434	$	1,040,944
Special Mention		—		—		—		—		—		5,757		—		—		5,757
Substandard		—		240		3,609		1,763		1,476		10,282		—		—		17,370
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	20,990	$	257,838	$	203,035	$	173,719	$	166,155	$	239,900	$	—	$	2,434	$	1,064,071
YTD Gross Charge-offs	$	—	$	—	$	—	$	13	$	—	$	—	$	—	$	—	$	13

Residential real estate nonowner-occupied:
Risk Rating
Pass or not rated	$	2,567	$	57,493	$	63,182	$	74,295	$	65,051	$	70,075	$	—	$	7,636	$	340,299
Special Mention		—		169		1,928		—		—		25		—		—		2,122
Substandard		—		—		—		—		—		60		—		—		60
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	2,567	$	57,662	$	65,110	$	74,295	$	65,051	$	70,160	$	—	$	7,636	$	342,481
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Risk Rating
Pass or not rated	$	38,884	$	217,232	$	350,566	$	295,191	$	330,055	$	347,829	$	35,856	$	148,684	$	1,764,297
Special Mention		—		—		—		4,860		5,809		23,247		1,770		—		35,686
Substandard		—		—		7		—		640		171		—		—		818
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	38,884	$	217,232	$	350,573	$	300,051	$	336,504	$	371,247	$	37,626	$	148,684	$	1,800,801
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction and land development:
Risk Rating
Pass or not rated	$	5,061	$	79,899	$	117,704	$	22,655	$	2,689	$	5,217	$	385	$	4,388	$	237,998
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	5,061	$	79,899	$	117,704	$	22,655	$	2,689	$	5,217	$	385	$	4,388	$	237,998
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		—

Commercial and industrial:
Risk Rating
Pass or not rated	$	15,456	$	100,658	$	76,782	$	64,531	$	33,713	$	32,042	$	115,105	$	3,793	$	442,080
Special Mention		—		138		5,397		1,290		1,347		2,737		187		—		11,096
Substandard		—		—		85		2		—		340		25		343		795
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	15,456	$	100,796	$	82,264	$	65,823	$	35,060	$	35,119	$	115,317	$	4,136	$	453,971
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Lease financing receivables:
Risk Rating
Pass or not rated	$	7,362	$	42,950	$	21,864	$	9,023	$	3,979	$	2,117	$	—	$	—	$	87,295
Special Mention		—		412		28		108		156		17		—		—		721
Substandard		—		—		187		38		—		31		—		—		256
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	7,362	$	43,362	$	22,079	$	9,169	$	4,135	$	2,165	$	—	$	—	$	88,272
YTD Gross Charge-offs	$	—	$	24	$	—	$	—	$	—	$	—	$	—	$	—	$	24

Aircraft:
Risk Rating
Pass or not rated	$	8,049	$	93,208	$	55,071	$	42,213	$	27,419	$	20,100	$	—	$	—	$	246,060
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	8,049	$	93,208	$	55,071	$	42,213	$	27,419	$	20,100	$	—	$	—	$	246,060
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	—	$	306,523	$	—	$	306,523
Special Mention		—		—		—		—		—		—		250		—		250
Substandard		—		—		—		—		—		—		2,310		—		2,310
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	309,083	$	—	$	309,083
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


													Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year (Continued)												Amortized		Converted
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total

Consumer:
Risk Rating
Pass or not rated	$	3,331	$	4,554	$	1,124	$	144	$	54	$	2,888	$	18,807	$	—	$	30,902
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		11		—		—		11
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	3,331	$	4,554	$	1,124	$	144	$	54	$	2,899	$	18,807	$	—	$	30,913
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	345	$	—	$	345

Warehouse:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	—	$	463,249	$	—	$	463,249
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	463,249	$	—	$	463,249
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

TRS:
Risk Rating
Pass or not rated	$	41,099	$	16,398	$	—	$	—	$	—	$	—	$	—	$	—	$	57,497
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	41,099	$	16,398	$	—	$	—	$	—	$	—	$	—	$	—	$	57,497
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

RCS:
Risk Rating
Pass or not rated	$	8,836	$	23,834	$	5,546	$	452	$	1,209	$	35,351	$	52,483	$	—	$	127,711
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		2,185		—		2,185
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	8,836	$	23,834	$	5,546	$	452	$	1,209	$	35,351	$	54,668	$	—	$	129,896
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	4,545	$	—	$	4,545

Grand Total:
Risk Rating
Pass or not rated	$	151,635	$	893,824	$	891,265	$	680,460	$	628,848	$	739,480	$	992,408	$	166,935	$	5,144,855
Special Mention		—		719		7,353		6,258		7,312		31,783		2,207		—		55,632
Substandard		—		240		3,888		1,803		2,116		10,895		4,520		343		23,805
Doubtful		—		—		—		—		—		—		—		—		—
Grand Total	$	151,635	$	894,783	$	902,506	$	688,521	$	638,276	$	782,158	$	999,135	$	167,278	$	5,224,292
YTD Gross Charge-offs	$	—	$	24	$	—	$	13	$	—	$	—	$	4,890	$	—	$	4,927


													Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year												Amortized		Converted
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total

Residential real estate owner-occupied:
Risk Rating
Pass or not rated	$	346,195	$	200,715	$	175,030	$	167,493	$	59,982	$	170,402	$	—	$	2,474	$	1,122,291
Special Mention		41		—		—		—		—		6,309		—		—		6,350
Substandard		—		2,526		1,885		1,226		1,040		9,366		—		—		16,043
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	346,236	$	203,241	$	176,915	$	168,719	$	61,022	$	186,077	$	—	$	2,474	$	1,144,684
YTD Gross Charge-offs	$	—	$	10	$	16	$	—	$	—	$	—	$	—	$	—	$	26

Residential real estate nonowner-occupied:
Risk Rating
Pass or not rated	$	63,405	$	69,827	$	82,814	$	47,395	$	28,416	$	44,280	$	—	$	7,597	$	343,734
Special Mention		170		1,971		—		—		—		26		—		—		2,167
Substandard		—		—		16		—		—		48		—		—		64
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	63,575	$	71,798	$	82,830	$	47,395	$	28,416	$	44,354	$	—	$	7,597	$	345,965
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Risk Rating
Pass or not rated	$	342,658	$	439,643	$	351,600	$	174,093	$	84,457	$	179,849	$	32,491	$	143,670	$	1,748,461
Special Mention		23,852		1,020		374		—		3,668		5,330		1,716		—		35,960
Substandard		—		—		—		—		—		868		—		—		868
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	366,510	$	440,663	$	351,974	$	174,093	$	88,125	$	186,047	$	34,207	$	143,670	$	1,785,289
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction and land development:
Risk Rating
Pass or not rated	$	107,827	$	89,106	$	16,936	$	297	$	125	$	125	$	225	$	2,697	$	217,338
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	107,827	$	89,106	$	16,936	$	297	$	125	$	125	$	225	$	2,697	$	217,338
YTD Gross Charge-offs		—		—		—		—		—		—		—		—		—


													Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year (Continued)												Amortized		Converted
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total

Commercial and industrial:
Risk Rating
Pass or not rated	$	140,753	$	87,497	$	70,149	$	13,150	$	10,175	$	10,782	$	120,069	$	3,968	$	456,543
Special Mention		349		423		3,473		—		—		1,476		542		—		6,263
Substandard		49		36		3		—		339		—		25		820		1,272
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	141,151	$	87,956	$	73,625	$	13,150	$	10,514	$	12,258	$	120,636	$	4,788	$	464,078
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Lease financing receivables:
Risk Rating
Pass or not rated	$	45,824	$	23,956	$	10,265	$	4,571	$	2,344	$	545	$	—	$	—	$	87,505
Special Mention		429		30		162		183		27		88		—		—		919
Substandard		—		102		—		—		—		65		—		—		167
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	46,253	$	24,088	$	10,427	$	4,754	$	2,371	$	698	$	—	$	—	$	88,591
YTD Gross Charge-offs	$	20	$	113	$	—	$	—	$	—	$	8	$	—	$	—	$	141

Aircraft:
Risk Rating
Pass or not rated	$	97,761	$	55,896	$	44,721	$	30,628	$	14,195	$	6,850	$	—	$	—	$	250,051
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	97,761	$	55,896	$	44,721	$	30,628	$	14,195	$	6,850	$	—	$	—	$	250,051
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	—	$	292,890	$	—	$	292,890
Special Mention		—		—		—		—		—		—		235		—		235
Substandard		—		—		—		—		—		—		2,008		—		2,008
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	295,133	$	—	$	295,133
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	2

Consumer:
Risk Rating
Pass or not rated	$	3,947	$	1,194	$	181	$	74	$	1,186	$	2,234	$	18,611	$	—	$	27,427
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		1		12		—		—		13
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	3,947	$	1,194	$	181	$	74	$	1,187	$	2,246	$	18,611	$	—	$	27,440
YTD Gross Charge-offs	$	9	$	11	$	8	$	—	$	—	$	7	$	1,147	$	—	$	1,182

Warehouse:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	—	$	339,723	$	—	$	339,723
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	339,723	$	—	$	339,723
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

TRS:
Risk Rating
Pass or not rated (1)	$	149,207	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	149,207
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total (1)	$	149,207	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	149,207
YTD Gross Charge-offs (1)	$	20,418	$	5,533	$	—	$	—	$	—	$	—	$	—	$	—	$	25,951

RCS:
Risk Rating
Pass or not rated	$	30,607	$	7,203	$	579	$	454	$	996	$	36,372	$	54,634	$	—	$	130,845
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		1,517		—		1,517
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	30,607	$	7,203	$	579	$	454	$	996	$	36,372	$	56,151	$	—	$	132,362
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	13,912	$	—	$	13,912

Grand Total:
Risk Rating
Pass or not rated	$	1,328,184	$	975,037	$	752,275	$	438,155	$	201,876	$	451,439	$	858,643	$	160,406	$	5,166,015
Special Mention		24,841		3,444		4,009		183		3,695		13,229		2,493		—		51,894
Substandard		49		2,664		1,904		1,226		1,380		10,359		3,550		820		21,952
Doubtful		—		—		—		—		—		—		—		—		—
Grand Total	$	1,353,074	$	981,145	$	758,188	$	439,564	$	206,951	$	475,027	$	864,686	$	161,226	$	5,239,861
YTD Gross Charge-offs	$	20,447	$	5,667	$	24	$	—	$	—	$	15	$	15,061	$	—	$	41,214

(1) Loans and YTD Gross Charge-offs have been revised for an immaterial correction into Term Loan categories from a Revolving Loan category as previously reported in the 2023 Annual Report on Form 10-K.

Allowance for Credit Losses on Loans

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


	ACLL Roll-forward
	Three Months Ended March 31,
	2024												2023
	Beginning				Charge-				Ending			Beginning		CBank				Charge-				Ending
(in thousands)	Balance		Provision		offs		Recoveries		Balance			Balance		Adjustment*		Provision		offs		Recoveries		Balance

Traditional Banking:
Residential real estate:
Owner-occupied	$	10,337	$	(800)	$	(13)	$	58	$	9,582	$	8,909		$	—	$	(120)	$	(6)	$	15	$	8,798
Nonowner-occupied		3,047		3		—		1		3,051		2,831			—		64		—		—		2,895
Commercial real estate		25,830		145		—		20		25,995		23,739			—		1,041		—		47		24,827
Construction & land development		6,060		640		—		—		6,700		4,123			—		329		—		—		4,452
Commercial & industrial		4,236		(79)		—		1		4,158		3,976			1,008		602		—		90		5,676
Lease financing receivables		1,061		22		(24)		13		1,072		110			592		648		—		—		1,350
Aircraft		625		(10)		—		—		615		449			—		12		—		—		461
Home equity		5,501		247		—		1		5,749		4,628			—		31		—		1		4,660
Consumer:
Credit cards		1,074		83		(81)		11		1,087		996			—		112		(40)		12		1,080
Overdrafts		694		27		(238)		80		563		726			—		52		(247)		64		595
Automobile loans		32		(10)		—		2		24		87			—		(16)		(7)		2		66
Other consumer		501		90		(26)		15		580		135			—		229		(31)		23		356
Total Traditional Banking		58,998		358		(382)		202		59,176		50,709			1,600		2,984		(331)		254		55,216
Warehouse lines of credit		847		309		—		—		1,156		1,009			—		135		—		—		1,144
Total Core Banking		59,845		667		(382)		202		60,332		51,718			1,600		3,119		(331)		254		56,360

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		3,929		25,718		—		275		29,922		3,797			—		21,715		—		285		25,797
Other TRS commercial & industrial loans		61		56		—		30		147		91			—		93		—		—		184
Republic Credit Solutions		18,295		4,181		(4,545)		370		18,301		14,807			—		1,839		(3,099)		233		13,780
Total Republic Processing Group		22,285		29,955		(4,545)		675		48,370		18,695			—		23,647		(3,099)		518		39,761

Total	$	82,130	$	30,622	$	(4,927)	$	877	$	108,702	$	70,413		$	1,600	$	26,766	$	(3,430)	$	772	$	96,121

* The net fair value adjustment to ACLL includes an estimate of lifetime credit losses for Purchased Credit Deteriorated loans.

The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of March 31, 2024 was primarily based on a static pool analysis of each of the Company’s loan pools using the Company’s loss experience from 2013 through 2023, supplemented by qualitative factor adjustments for current and forecasted conditions. The Company employs one-year forecasts of unemployment and CRE values within its ACLL model, with reversion to long-term averages following the forecasted period. The cumulative loss rate within the Company’s ACLL also includes estimated losses based on an individual evaluation of loans which are either collateral dependent or which do not share risk characteristics with pooled loans, e.g., Loan Modifications.

Nonperforming Loans and Nonperforming Assets

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


(dollars in thousands)	March 31, 2024			December 31, 2023

Loans on nonaccrual status*	$	19,258		$	19,150
Loans past due 90-days-or-more and still on accrual**		2,116			1,468
Total nonperforming loans		21,374			20,618
Other real estate owned		1,486			1,370
Total nonperforming assets	$	22,860		$	21,988

Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.41	%		0.39	%
Nonperforming assets to total loans (including OREO)		0.44			0.42
Nonperforming assets to total assets		0.33			0.33

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.38	%		0.39	%
Nonperforming assets to total loans (including OREO)		0.41			0.41
Nonperforming assets to total assets		0.33			0.35

*	Loans on nonaccrual status include collateral-dependent loans.

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

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


					Past Due 90-Days-or-More
	Nonaccrual				and Still Accruing Interest*
(in thousands)	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023

Traditional Banking:
Residential real estate:
Owner-occupied	$	15,533	$	15,056	$	—	$	—
Nonowner-occupied		60		64		—		—
Commercial real estate		795		850		—		—
Construction & land development		—		—		—		—
Commercial & industrial		744		1,221		—		—
Lease financing receivables		15		—		—		—
Aircraft		—		—		—		—
Home equity		2,103		1,948		—		—
Consumer:
Credit cards		—		—		—		—
Overdrafts		—		—		—		—
Automobile loans		8		10		—		—
Other consumer		—		1		—		—
Total Traditional Banking		19,258		19,150		—		—
Warehouse lines of credit		—		—		—		—
Total Core Banking		19,258		19,150		—		—

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		—		—		—		—
Other TRS commercial & industrial loans		—		—		—		—
Republic Credit Solutions		—		—		2,116		1,468
Total Republic Processing Group		—		—		2,116		1,468

Total	$	19,258	$	19,150	$	2,116	$	1,468

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


							Three Months Ended
	As of March 31, 2024						March 31, 2024
	Nonaccrual		Nonaccrual			Total	Interest Income
	Loans with		Loans without			Nonaccrual	Recognized
(in thousands)	ACLL		ACLL			Loans	on Nonaccrual Loans*

Residential real estate:
Owner-occupied	$	303	$	15,230	$	15,533	$	246
Nonowner-occupied		19		41		60		15
Commercial real estate		795		—		795		42
Construction & land development		—		—		—		—
Commercial & industrial		744		—		744		—
Lease financing receivables		15		—		15		—
Aircraft		—		—		—		—
Home equity		—		2,103		2,103		49
Consumer		6		2		8		—
Total	$	1,882	$	17,376	$	19,258	$	352

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


							Three Months Ended
	As of December 31, 2023						March 31, 2023
	Nonaccrual		Nonaccrual			Total	Interest Income
	Loans with		Loans without			Nonaccrual	Recognized
(in thousands)	ACLL		ACLL			Loans	on Nonaccrual Loans*

Residential real estate:
Owner-occupied	$	376	$	14,680	$	15,056	$	181
Nonowner-occupied		20		44		64		1
Commercial real estate		850		—		850		23
Construction & land development		—		—		—		—
Commercial & industrial		1,221		—		1,221		—
Lease financing receivables		—		—		—		—
Aircraft		—		—		—		—
Home equity		—		1,948		1,948		23
Consumer		8		3		11		3
Total	$	2,475	$	16,675	$	19,150	$	231

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

Nonaccrual loans and loans past due 90-days-or-more and still on accrual both include smaller balance, primarily retail, homogeneous loans. Nonaccrual loans are typically returned to accrual status when all the principal and interest amounts contractually due are brought current and held current for six consecutive months and future contractual payments are reasonably assured. Loan Modifications (formerly TDRs prior to the adoption of ASU 2022-02) on nonaccrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance under the modified terms.

Delinquent Loans

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


	30 - 59			60 - 89			90 or More
March 31, 2024	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Traditional Banking:
Residential real estate:
Owner-occupied	$	2,861		$	1,453		$	1,507		$	5,821		$	1,058,250	$	1,064,071
Nonowner-occupied		—			—			—			—			342,481		342,481
Commercial real estate		—			—			—			—			1,800,801		1,800,801
Construction & land development		—			—			—			—			237,998		237,998
Commercial & industrial		2			—			744			746			453,225		453,971
Lease financing receivables		7			—			15			22			88,250		88,272
Aircraft		—			—			—			—			246,060		246,060
Home equity		464			309			217			990			308,093		309,083
Consumer:
Credit cards		22			13			—			35			16,823		16,858
Overdrafts		114			4			—			118			511		629
Automobile loans		—			—			2			2			2,052		2,054
Other consumer		52			10			—			62			11,310		11,372
Total Traditional Banking		3,522			1,789			2,485			7,796			4,565,854		4,573,650
Warehouse lines of credit		—			—			—			—			463,249		463,249
Total Core Banking		3,522			1,789			2,485			7,796			5,029,103		5,036,899

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		—			—			—			—			52,101		52,101
Other TRS commercial & industrial loans		283			—			—			283			5,113		5,396
Republic Credit Solutions		8,211			3,006			2,116			13,333			116,563		129,896
Total Republic Processing Group		8,494			3,006			2,116			13,616			173,777		187,393

Total	$	12,016		$	4,795		$	4,601		$	21,412		$	5,202,880	$	5,224,292
Delinquency ratio***		0.23	%		0.09	%		0.09	%		0.41	%

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

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

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


	30 - 59			60 - 89			90 or More
December 31, 2023	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Traditional Banking:
Residential real estate:
Owner-occupied	$	3,396		$	769		$	1,638		$	5,803		$	1,138,881	$	1,144,684
Nonowner-occupied		—			—			—			—			345,965		345,965
Commercial real estate		—			—			—			—			1,785,289		1,785,289
Construction & land development		—			—			—			—			217,338		217,338
Commercial & industrial		140			36			1,184			1,360			462,718		464,078
Lease financing receivables		18			—			—			18			88,573		88,591
Aircraft		—			—			—			—			250,051		250,051
Home equity		417			96			254			767			294,366		295,133
Consumer:
Credit cards		31			4			—			35			16,619		16,654
Overdrafts		129			1			1			131			563		694
Automobile loans		—			—			2			2			2,662		2,664
Other consumer		53			7			—			60			7,368		7,428
Total Traditional Banking		4,184			913			3,079			8,176			4,610,393		4,618,569
Warehouse lines of credit		—			—			—			—			339,723		339,723
Total Core Banking		4,184			913			3,079			8,176			4,950,116		4,958,292

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		—			—			—			—			103,115		103,115
Other TRS commercial & industrial loans		—			—			—			—			46,092		46,092
Republic Credit Solutions		9,387			3,061			1,468			13,916			118,446		132,362
Total Republic Processing Group		9,387			3,061			1,468			13,916			267,653		281,569

Total	$	13,571		$	3,974		$	4,547		$	22,092		$	5,217,769	$	5,239,861
Delinquency ratio***		0.25	%		0.08	%		0.09	%		0.42	%

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

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

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

Collateral-Dependent Loans

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


	March 31, 2024				December 31, 2023
	Secured		Secured		Secured		Secured
	by Real		by Personal		by Real		by Personal
(in thousands)	Estate		Property		Estate		Property

Traditional Banking:
Residential real estate:
Owner-occupied	$	17,287	$	—	$	18,602	$	—
Nonowner-occupied		60		—		64		—
Commercial real estate		820		—		870		—
Construction & land development		—		—		—		—
Commercial & industrial		795		—		1,273		—
Lease financing receivables		—		256		—		108
Aircraft		—		—		—		—
Home equity		2,310		—		2,008		—
Consumer		—		11		—		13
Total Traditional Banking	$	21,272	$	267	$	22,817	$	121

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

Loan Modification Disclosures Pursuant to ASU 2022-02

The following tables show the amortized cost of loans and leases as of the identified period that were both experiencing financial difficulty and modified during the three months prior, segregated by portfolio segment and type of modification. The following tables shows the amortized cost of loans and leases modified by type.


	Amortized Cost Basis of Modified Financing Receivables
	Three Months Ended March 31, 2024
(dollars in thousands)	Loans (#)	Rate Reduction ($)		Loans (#)	Term Extension ($)		Loans (#)	Principal Deferral ($)

Residential real estate:
Owner-occupied	—	$	—	—	$	—	—	$	—
Nonowner-occupied	—		—	—		—	—		—
Home equity	—		—	—		—	—		—
Republic Processing Group	—		—	—		—	349		75
Total Loan Modifications	—	$	—	—	$	—	349	$	75


	Amortized Cost Basis of Modified Financing Receivables
	Three Months Ended March 31, 2023

(dollars in thousands)	Loans (#)	Rate Reduction ($)		Loans (#)	Term Extension ($)		Loans (#)	Principal Deferral ($)

Residential real estate:
Owner-occupied	—	$	—	2	$	265	4	$	344
Home equity	—		—	—		—	1		72
Republic Processing Group	—		—	—		—	537		105
Total Loan Modifications	—	$	—	2	$	265	542	$	521


	Total Loan Modification by Type
	Three Months Ended March 31, 2024
	Accruing			Nonaccruing
(dollars in thousands)	Loans (#)	Recorded investment ($)		Loans (#)	Recorded investment ($)

Term extension	—	$	—	—	$	—
Principal deferral	349		75	—		—
Total Loan Modifications	349	$	75	—	$	—


	Total Loan Modification by Type
	Three Months Ended March 31, 2023
	Accruing			Nonaccruing
(dollars in thousands)	Loans (#)	Recorded investment ($)		Loans (#)	Recorded investment ($)

Term extension	—	$	—	2	$	265
Principal deferral	537		105	5		416
Total Loan Modifications	537	$	105	7	$	681

The following tables show the percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financing receivable.


	Accruing Loan Modifications
	Three Months Ended March 31, 2024
				% of Total
		Amortized		of Financing
(dollars in thousands)	Loans	Cost Basis		Receivable

Republic Processing Group	349	$	75	0.04	%
Total Accruing Loan Modifications	349	$	75	NM


	Nonaccruing Loan Modifications
	Three Months Ended March 31, 2024
				% of Total
		Amortized		of Financing
(dollars in thousands)	Loans	Cost Basis		Receivable

Residential real estate:
Owner-occupied	—	$	—	—	%
Home equity	—		—	—
Total Nonaccruing Loan Modifications	—	$	—	—



	Three Months Ended March 31, 2023
				% of Total
		Amortized		of Financing
(dollars in thousands)	Loans	Cost Basis		Receivable

Republic Processing Group	537	$	105	0.07	%
Total Accruing Loan Modifications	537	$	105	NM



	Three Months Ended March 31, 2023
				% of Total
		Amortized		of Financing
(dollars in thousands)	Loans	Cost Basis		Receivable

Residential real estate:
Owner-occupied	6	$	609	0.06	%
Home equity	1		72	0.03
Total Nonaccruing Loan Modifications	7	$	681	0.01

There were no commitments to lend additional amounts to the borrowers included in the previous table. The financial impact of loan modifications was not material for the three months ended March 31, 2024 or March 31, 2023.

The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans and leases that have been modified during the identified period.


	Accruing Loan Modifications
	At March 31, 2024
			30-89 Days		90+ Days
(in thousands)	Current		Past Due		Past Due

Residential real estate:
Owner occupied	$	475	$	—	$	—
Republic Processing Group		75	$	—	$	—
Total accruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended March 31, 2024	$	550	$	—	$	—


	Nonaccruing Loan Modifications
	At March 31, 2024
			30-89 Days		90+ Days
(in thousands)	Current		Past Due		Past Due

Residential real estate:
Owner-occupied	$	267	$	—	$	109
Home equity		617		—		25
Total nonaccruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended March 31, 2024	$	884	$	—	$	134



	Accruing Loan Modifications
	At March 31, 2023
			30-89 Days		90+ Days
(in thousands)	Current		Past Due		Past Due

Residential real estate:
Owner occupied	$	—	$	—	$	—
Republic Processing Group		105	$	—	$	—
Total accruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended March 31, 2023	$	105	$	—	$	—


	Nonaccruing Loan Modifications
	At March 31, 2023
			30-89 Days		90+ Days
(in thousands)	Current		Past Due		Past Due

Residential real estate:
Owner-occupied	$	609	$	—	$	—
Home equity		72		—		—
Total nonaccruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended March 31, 2023	$	681	$	—	$	—

There were no modified loans and leases that had a payment default during the three months ended March 31, 2024 or March 31, 2023 that were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

Upon the Company’s determination that a modified loan or lease has subsequently been deemed uncollectible, the loan or lease is written off. Therefore, the amortized cost of the loan is reduced by the uncollectible amount and the allowance for loan and lease losses is adjusted by the same amount.

Foreclosures

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


(in thousands)	March 31, 2024		December 31, 2023

Commercial real estate	$	1,486	$	1,370

Total other real estate owned	$	1,486	$	1,370

The following table presents the recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to requirements of the applicable jurisdiction:

Refund Advances

The Company’s TRS segment offered (i) its RA product during the first two months of 2024, along with its ERA product during December 2023 and the first two weeks of 2024 and (ii) its RA product during the first two months of 2023, along with its ERA product during December 2022 and the first two weeks of 2023. The ERA originations during December 2023 and the first two weeks of 2024 were made in relation to estimated tax returns that were anticipated to be filed during the first quarter 2024 tax season, while the ERA originations during December 2022 and the first two weeks of 2023 were made in relation to estimated tax returns that were anticipated to be filed during the first quarter 2023 tax season. Each year, all unpaid RAs, including ERAs, are charged off by June 30^th, and each quarter thereafter, any credits to the Provision for RAs, including ERAs, match the recovery of previously charged-off accounts.

Information regarding RAs follows:


	Three Months Ended
	March 31,
(dollars in thousands)	2024			2023

Refund Advances originated	$	771,091		$	737,047
Net charge to the Provision for RAs, including ERAs		25,718			21,715
Provision as a percentage of RAs, including ERAs, originated		3.34	%		2.95	%
Refund Advances net charge-offs (recoveries)	$	(275)		$	(285)
Refund Advances net charge-offs (recoveries) to total Refund Advances originated		(0.04)	%		(0.04)	%

(in thousands)

March 31, 2024

December 31, 2023

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