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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2024
SEGMENT INFORMATION  
SEGMENT INFORMATION

16. SEGMENT INFORMATION

​

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

​

As of March 31, 2024, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending, TRS, RPS, and RCS. Management considers the first two segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last three segments collectively constitute RPG operations.

​

The nature of segment operations and the primary drivers of net revenue 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

​

​

​

​

​

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. TRS products are primarily provided to clients outside of the Bank’s market footprint.

​

Loans and refund transfers

​

​

​

​

​

Republic Payment Solutions

​

RPS offers general-purpose reloadable cards. RPS products are primarily provided to clients outside of the Bank’s market footprint.

​

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 generally the same as those described in the summary of significant accounting policies in the Company’s 2023 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.

​

Segment information follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2024

 

​

​

Core Banking

​

​

Republic Processing Group

​

​

​

​

 

​

    

​

​

    

​

​

    

    

Total

    

    

Tax

​

Republic

​

Republic

    

​

​

​

    

​

​

​

 

​

​

Traditional

​

Warehouse

​

​

Core

​

​

Refund

​

Payment

​

Credit

​

​

Total

​

​

​

Total

 

(dollars in thousands)

​

Banking

​

Lending

​

​

Banking

​

​

Solutions

​

Solutions

​

Solutions

​

​

RPG

​

​

​

Company

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income

​

$

48,259

​

$

2,257

​

​

$

50,516

​

​

$

30,910

​

$

3,508

​

$

11,985

​

​

$

46,403

​

​

​

$

96,919

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Provision for expected credit loss expense

​

 

358

​

 

309

​

​

 

667

​

​

 

25,774

​

 

—

​

 

4,181

​

​

 

29,955

​

​

​

 

30,622

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net refund transfer fees

​

 

—

​

 

—

​

​

 

—

​

​

 

10,820

​

 

—

​

 

—

​

​

 

10,820

​

​

​

 

10,820

​

Mortgage banking income

​

 

310

​

 

—

​

​

 

310

​

​

 

—

​

 

—

​

 

—

​

​

 

—

​

​

​

 

310

​

Program fees

​

​

—

​

​

—

​

​

​

—

​

​

​

—

​

​

773

​

​

3,406

​

​

​

4,179

​

​

​

​

4,179

​

Other noninterest income

​

 

7,986

​

 

13

​

​

 

7,999

​

​

 

63

​

 

1

​

 

1

​

​

 

65

​

​

​

 

8,064

​

Total noninterest income

​

 

8,296

​

 

13

​

​

 

8,309

​

​

 

10,883

​

 

774

​

 

3,407

​

​

 

15,064

​

​

​

 

23,373

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total noninterest expense

​

 

41,394

​

 

878

​

​

 

42,272

​

​

 

4,512

​

 

954

​

 

3,233

​

​

 

8,699

​

​

​

 

50,971

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) before income tax expense

​

 

14,803

​

 

1,083

​

​

 

15,886

​

​

 

11,507

​

 

3,328

​

 

7,978

​

​

 

22,813

​

​

​

 

38,699

​

Income tax expense (benefit)

​

​

2,520

​

​

244

​

​

​

2,764

​

​

​

2,714

​

​

761

​

​

1,854

​

​

​

5,329

​

​

​

​

8,093

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income (loss)

​

$

12,283

​

$

839

​

​

$

13,122

​

​

$

8,793

​

$

2,567

​

$

6,124

​

​

$

17,484

​

​

​

$

30,606

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Period-end assets

​

$

5,766,166

​

$

463,664

​

​

$

6,229,830

​

​

$

106,401

​

$

406,847

​

$

132,514

​

​

$

645,762

​

​

​

$

6,875,592

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest margin

​

 

3.33

%  

 

2.67

%  

​

 

3.30

%  

​

 

NM

​

 

5.07

%  

 

NM

​

​

 

NM

​

​

​

 

5.87

%  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net-revenue concentration*

​

​

46

%  

​

2

%  

​

​

48

%  

​

​

35

%

​

4

%  

​

13

%  

​

​

52

%  

​

​

​

100

%  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2023

 

​

​

Core Banking

​

​

Republic Processing Group

​

​

​

​

 

​

    

​

​

    

​

​

    

    

Total

    

    

Tax

​

Republic

​

Republic

    

​

​

​

    

​

​

​

 

​

​

Traditional

​

Warehouse

​

​

Core

​

​

Refund

​

Payment

​

Credit

​

​

Total

​

​

​

Total

 

(dollars in thousands)

​

Banking

​

Lending

​

​

Banking

​

​

Solutions

​

Solutions

​

Solutions

​

​

RPG

​

​

​

Company

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income

​

$

50,168

​

$

2,087

​

​

$

52,255

​

​

$

28,307

​

$

3,458

​

$

8,622

​

​

$

40,387

​

​

​

$

92,642

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Provision for expected credit loss expense

​

 

2,984

​

 

135

​

​

 

3,119

​

​

 

21,808

​

 

—

​

 

1,839

​

​

 

23,647

​

​

​

 

26,766

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net refund transfer fees

​

 

—

​

 

—

​

​

 

—

​

​

 

10,807

​

 

—

​

 

—

​

​

 

10,807

​

​

​

 

10,807

​

Mortgage banking income

​

 

800

​

 

—

​

​

 

800

​

​

 

—

​

 

—

​

 

—

​

​

 

—

​

​

​

 

800

​

Program fees

​

​

—

​

​

—

​

​

​

—

​

​

​

—

​

​

707

​

​

2,534

​

​

​

3,241

​

​

​

​

3,241

​

Other noninterest income

​

 

7,671

​

 

11

​

​

 

7,682

​

​

 

115

​

 

11

​

 

25

​

​

 

151

​

​

​

 

7,833

​

Total noninterest income

​

 

8,471

​

 

11

​

​

 

8,482

​

​

 

10,922

​

 

718

​

 

2,559

​

​

 

14,199

​

​

​

 

22,681

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total noninterest expense

​

 

43,406

​

 

968

​

​

 

44,374

​

​

 

4,782

​

 

866

​

 

2,421

​

​

 

8,069

​

​

​

 

52,443

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income before income tax expense

​

 

12,249

​

 

995

​

​

 

13,244

​

​

 

12,639

​

 

3,310

​

 

6,921

​

​

 

22,870

​

​

​

 

36,114

​

Income tax expense

​

 

2,713

​

 

223

​

​

 

2,936

​

​

 

2,806

​

 

735

​

 

1,545

​

​

 

5,086

​

​

​

 

8,022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

$

9,536

​

$

772

​

​

$

10,308

​

​

$

9,833

​

$

2,575

​

$

5,376

​

​

$

17,784

​

​

​

$

28,092

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Period-end assets

​

$

4,987,423

​

$

458,675

​

​

$

5,446,098

​

​

$

95,462

​

$

415,688

​

$

116,843

​

​

$

627,993

​

​

​

$

6,074,091

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest margin

​

 

4.07

%  

 

2.53

%  

​

 

3.98

%  

​

 

NM

​

 

3.84

%  

 

NM

​

​

 

NM

​

​

​

 

6.52

%  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net-revenue concentration*

​

​

50

%  

​

2

%  

​

​

52

%  

​

​

34

%

​

4

%  

​

10

%  

​

​

48

%  

​

​

​

100

%  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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