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LOANS AND ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

5. LOANS AND ALLOWANCE FOR CREDIT LOSSES

The composition of the loan portfolio follows:


(in thousands)	June 30, 2024		December 31, 2023

Traditional Banking:
Residential real estate:
Owner-occupied	$	1,058,139	$	1,144,684
Nonowner-occupied		331,954		345,965
Commercial real estate (1)		1,821,798		1,785,289
Construction & land development		239,615		217,338
Commercial & industrial		452,815		464,078
Lease financing receivables		88,529		88,591
Aircraft		240,275		250,051
Home equity		325,086		295,133
Consumer:
Credit cards		16,547		16,654
Overdrafts		746		694
Automobile loans		1,599		2,664
Other consumer		12,064		7,428
Total Traditional Banking		4,589,167		4,618,569
Warehouse lines of credit*		549,011		339,723
Total Core Banking		5,138,178		4,958,292

*Republic Processing Group:**
Tax Refund Solutions:
Refund Advances		—		103,115
Other TRS commercial & industrial loans		92		46,092
Republic Credit Solutions		126,000		132,362
Total Republic Processing Group		126,092		281,569

Total loans**		5,264,270		5,239,861
Allowance for credit losses		(80,687)		(82,130)

Total loans, net	$	5,183,583	$	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 62% and 63%, respectively, for June 30, 2024 and December 31, 2023. The approximate percentage of Owner-occupied CRE loans to total CRE loans was 38% and 37%, respectively, for June 30, 2024 and December 31, 2023.

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


(in thousands)	June 30, 2024		December 31, 2023

Contractually receivable	$	5,272,040	$	5,246,621
Unearned income		(3,145)		(2,556)
Unamortized premiums		135		1,060
Unaccreted discounts		(2,020)		(2,533)
Other net unamortized deferred origination (fees) and costs		(2,740)		(2,731)
Carrying value of loans	$	5,264,270	$	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 June 30, 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. Loan extensions and renewals classified as loan modifications 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 June 30, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total

Residential real estate owner-occupied:
Risk Rating
Pass or not rated	$	46,422	$	249,965	$	193,393	$	167,928	$	161,338	$	213,032	$	—	$	3,303	$	1,035,381
Special Mention		—		—		—		—		—		5,636		—		—		5,636
Substandard		15		462		3,424		1,908		1,819		9,494		—		—		17,122
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	46,437	$	250,427	$	196,817	$	169,836	$	163,157	$	228,162	$	—	$	3,303	$	1,058,139
YTD Gross Charge-offs	$	—	$	—	$	39	$	13	$	—	$	—	$	—	$	—	$	52

Residential real estate nonowner-occupied:
Risk Rating
Pass or not rated	$	4,038	$	55,427	$	62,706	$	71,924	$	61,410	$	66,418	$	—	$	7,901	$	329,824
Special Mention		—		167		1,885		—		—		23		—		—		2,075
Substandard		—		—		—		—		—		55		—		—		55
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	4,038	$	55,594	$	64,591	$	71,924	$	61,410	$	66,496	$	—	$	7,901	$	331,954
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Risk Rating
Pass or not rated	$	63,923	$	225,395	$	360,804	$	292,460	$	316,707	$	339,858	$	38,535	$	146,579	$	1,784,261
Special Mention		—		—		—		4,852		5,701		25,894		317		—		36,764
Substandard		—		—		—		—		605		168		—		—		773
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	63,923	$	225,395	$	360,804	$	297,312	$	323,013	$	365,920	$	38,852	$	146,579	$	1,821,798
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction and land development:
Risk Rating
Pass or not rated	$	11,314	$	96,333	$	107,642	$	16,974	$	2,651	$	4,074	$	627	$	—	$	239,615
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	11,314	$	96,333	$	107,642	$	16,974	$	2,651	$	4,074	$	627	$	—	$	239,615
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		—

Commercial and industrial:
Risk Rating
Pass or not rated	$	39,063	$	96,759	$	72,592	$	57,438	$	29,499	$	30,655	$	116,807	$	3,614	$	446,427
Special Mention		—		45		90		1,156		1,189		2,456		673		—		5,609
Substandard		—		—		85		2		—		340		9		343		779
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	39,063	$	96,804	$	72,767	$	58,596	$	30,688	$	33,451	$	117,489	$	3,957	$	452,815
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Lease financing receivables:
Risk Rating
Pass or not rated	$	15,049	$	40,002	$	19,981	$	7,986	$	3,390	$	1,407	$	—	$	—	$	87,815
Special Mention		—		159		28		76		128		72		—		—		463
Substandard		—		—		188		34		—		29		—		—		251
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	15,049	$	40,161	$	20,197	$	8,096	$	3,518	$	1,508	$	—	$	—	$	88,529
YTD Gross Charge-offs	$	—	$	45	$	13	$	—	$	—	$	—	$	—	$	—	$	58

Aircraft:
Risk Rating
Pass or not rated	$	18,393	$	87,633	$	50,108	$	38,708	$	25,957	$	19,156	$	—	$	—	$	239,955
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		320		—		—		—		—		320
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	18,393	$	87,633	$	50,108	$	39,028	$	25,957	$	19,156	$	—	$	—	$	240,275
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	—	$	323,024	$	—	$	323,024
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		2,062		—		2,062
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	325,086	$	—	$	325,086
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


													Revolving Loans		Revolving Loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year (Continued)												Amortized		Converted
As of June 30, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total

Consumer:
Risk Rating
Pass or not rated	$	5,396	$	4,347	$	318	$	127	$	43	$	2,112	$	18,605	$	—	$	30,948
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		8		—		—		8
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	5,396	$	4,347	$	318	$	127	$	43	$	2,120	$	18,605	$	—	$	30,956
YTD Gross Charge-offs	$	24	$	22	$	—	$	1	$	—	$	—	$	557	$	—	$	604

Warehouse:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	—	$	549,011	$	—	$	549,011
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	549,011	$	—	$	549,011
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

TRS:
Risk Rating
Pass or not rated	$	92	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	92
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	92	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	92
YTD Gross Charge-offs	$	32,693	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	32,693

RCS:
Risk Rating
Pass or not rated	$	16,799	$	13,306	$	2,811	$	385	$	284	$	37,596	$	54,149	$	—	$	125,330
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		670		—		670
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	16,799	$	13,306	$	2,811	$	385	$	284	$	37,596	$	54,819	$	—	$	126,000
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	8,860	$	—	$	8,860

Grand Total:
Risk Rating
Pass or not rated	$	220,489	$	869,167	$	870,355	$	653,930	$	601,279	$	714,308	$	1,100,758	$	161,397	$	5,191,683
Special Mention		—		371		2,003		6,084		7,018		34,081		990		—		50,547
Substandard		15		462		3,697		2,264		2,424		10,094		2,741		343		22,040
Doubtful		—		—		—		—		—		—		—		—		—
Grand Total	$	220,504	$	870,000	$	876,055	$	662,278	$	610,721	$	758,483	$	1,104,489	$	161,740	$	5,264,270
YTD Gross Charge-offs	$	32,717	$	67	$	52	$	14	$	—	$	—	$	9,417	$	—	$	42,267


													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 June 30,
	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	$	9,582	$	(20)	$	(39)	$	21	$	9,544	$	8,798	$	—	$	1,100	$	(9)	$	10	$	9,899
Nonowner-occupied		3,051		(94)		—		—		2,957		2,895		—		190		—		1		3,086
Commercial real estate		25,995		163		—		3		26,161		24,827		—		250		—		12		25,089
Construction & land development		6,700		222		—		—		6,922		4,452		—		359		—		—		4,811
Commercial & industrial		4,158		(26)		—		1		4,133		5,676		(1,008)		(365)		—		19		4,322
Lease financing receivables		1,072		69		(34)		9		1,116		1,350		(376)		(149)		—		—		825
Aircraft		615		(14)		—		—		601		461		—		60		—		—		521
Home equity		5,749		310		—		—		6,059		4,660		—		110		—		—		4,770
Consumer:
Credit cards		1,087		26		(50)		4		1,067		1,080		—		43		(33)		13		1,103
Overdrafts		563		234		(189)		50		658		595		—		257		(186)		40		706
Automobile loans		24		(6)		—		1		19		66		—		(16)		—		3		53
Other consumer		580		57		(20)		11		628		356		—		21		(11)		16		382
Total Traditional Banking		59,176		921		(332)		100		59,865		55,216		(1,384)		1,860		(239)		114		55,567
Warehouse lines of credit		1,156		214		—		—		1,370		1,144		—		202		—		—		1,346
Total Core Banking		60,332		1,135		(332)		100		61,235		56,360		(1,384)		2,062		(239)		114		56,913

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		29,922		(1,158)		(32,556)		3,792		—		25,797		—		(161)		(25,824)		188		—
Other TRS commercial & industrial loans		147		(24)		(137)		14		—		184		—		(58)		(126)		—		—
Republic Credit Solutions		18,301		5,196		(4,315)		270		19,452		13,780		—		4,296		(3,018)		231		15,289
Total Republic Processing Group		48,370		4,014		(37,008)		4,076		19,452		39,761		—		4,077		(28,968)		419		15,289

Total	$	108,702	$	5,149	$	(37,340)	$	4,176	$	80,687	$	96,121	$	(1,384)	$	6,139	$	(29,207)	$	533	$	72,202

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


	ACLL Roll-forward
	Six Months Ended June 30,
	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	$	(820)	$	(52)	$	79	$	9,544	$	8,909		$	—	$	980	$	(15)	$	25	$	9,899
Nonowner-occupied		3,047		(91)		—		1		2,957		2,831			—		254		—		1		3,086
Commercial real estate		25,830		308		—		23		26,161		23,739			—		1,291		—		59		25,089
Construction & land development		6,060		862		—		—		6,922		4,123			—		688		—		—		4,811
Commercial & industrial		4,236		(105)		—		2		4,133		3,976			—		237		—		109		4,322
Lease financing receivables		1,061		91		(58)		22		1,116		110			216		499		—		—		825
Aircraft		625		(24)		—		—		601		449			—		72		—		—		521
Home equity		5,501		557		—		1		6,059		4,628			—		141		—		1		4,770
Consumer:
Credit cards		1,074		109		(131)		15		1,067		996			—		155		(73)		25		1,103
Overdrafts		694		260		(426)		130		658		726			—		309		(433)		104		706
Automobile loans		32		(16)		—		3		19		87			—		(32)		(7)		5		53
Other consumer		501		148		(47)		26		628		135			—		250		(42)		39		382
Total Traditional Banking		58,998		1,279		(714)		302		59,865		50,709			216		4,844		(570)		368		55,567
Warehouse lines of credit		847		523		—		—		1,370		1,009			—		337		—		—		1,346
Total Core Banking		59,845		1,802		(714)		302		61,235		51,718			216		5,181		(570)		368		56,913

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		3,929		24,560		(32,556)		4,067		—		3,797			—		21,554		(25,824)		473		—
Other TRS commercial & industrial loans		61		32		(137)		44		—		91			—		35		(126)		—		—
Republic Credit Solutions		18,295		9,377		(8,860)		640		19,452		14,807			—		6,135		(6,118)		465		15,289
Total Republic Processing Group		22,285		33,969		(41,553)		4,751		19,452		18,695			—		27,724		(32,068)		938		15,289

Total	$	82,130	$	35,771	$	(42,267)	$	5,053	$	80,687	$	70,413		$	216	$	32,905	$	(32,638)	$	1,306	$	72,202

* 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 June 30, 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)	June 30, 2024			December 31, 2023

Loans on nonaccrual status*	$	19,910		$	19,150
Loans past due 90-days-or-more and still on accrual**		631			1,468
Total nonperforming loans		20,541			20,618
Other real estate owned		1,265			1,370
Total nonperforming assets	$	21,806		$	21,988

Credit Quality Ratios - Total Company:

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

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.39	%		0.39	%
Nonperforming assets to total loans (including OREO)		0.41			0.41
Nonperforming assets to total assets		0.35			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)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023

Traditional Banking:
Residential real estate:
Owner-occupied	$	16,459	$	15,056	$	—	$	—
Nonowner-occupied		67		64		—		—
Commercial real estate		794		850		—		—
Construction & land development		—		—		—		—
Commercial & industrial		728		1,221		—		—
Lease financing receivables		—		—		—		—
Aircraft		—		—		—		—
Home equity		1,856		1,948		—		—
Consumer:
Credit cards		—		—		—		—
Overdrafts		—		—		—		—
Automobile loans		6		10		—		—
Other consumer		—		1		—		—
Total Traditional Banking		19,910		19,150		—		—
Warehouse lines of credit		—		—		—		—
Total Core Banking		19,910		19,150		—		—

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		—		—		—		—
Other TRS commercial & industrial loans		—		—		—		—
Republic Credit Solutions		—		—		631		1,468
Total Republic Processing Group		—		—		631		1,468

Total	$	19,910	$	19,150	$	631	$	1,468

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


							Three Months Ended		Six Months Ended
	As of June 30, 2024						June 30, 2024		June 30, 2024
	Nonaccrual		Nonaccrual			Total	Interest Income		Interest Income
	Loans with		Loans without			Nonaccrual	Recognized		Recognized
(in thousands)	ACLL		ACLL			Loans	on Nonaccrual Loans*		on Nonaccrual Loans*

Residential real estate:
Owner-occupied	$	382	$	16,077	$	16,459	$	294	$	540
Nonowner-occupied		29		38		67		—		15
Commercial real estate		794		—		794		27		69
Construction & land development		—		—		—		—		—
Commercial & industrial		728		—		728		—		—
Lease financing receivables		—		—		—		—		—
Aircraft		—		—		—		—		—
Home equity		—		1,856		1,856		108		157
Consumer		6		—		6		1		1
Total	$	1,939	$	17,971	$	19,910	$	430	$	782

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


							Three Months Ended		Six Months Ended
	As of December 31, 2023						June 30, 2023		June 30, 2023
	Nonaccrual		Nonaccrual			Total	Interest Income		Interest Income
	Loans with		Loans without			Nonaccrual	Recognized		Recognized
(in thousands)	ACLL		ACLL			Loans	on Nonaccrual Loans*		on Nonaccrual Loans*

Residential real estate:
Owner-occupied	$	376	$	14,680	$	15,056	$	232	$	438
Nonowner-occupied		20		44		64		1		1
Commercial real estate		850		—		850		87		110
Construction & land development		—		—		—		—		—
Commercial & industrial		1,221		—		1,221		—		—
Lease financing receivables		—		—		—		—		—
Aircraft		—		—		—		—		—
Home equity		—		1,948		1,948		28		64
Consumer		8		3		11		3		6
Total	$	2,475	$	16,675	$	19,150	$	351	$	619

* 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 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
June 30, 2024	Days			Days			Days			Total			Total
(dollars in thousands)	Delinquent			Delinquent			Delinquent*			Delinquent**			Current		Total

Traditional Banking:
Residential real estate:
Owner-occupied	$	2,624		$	1,816		$	2,426		$	6,866		$	1,051,273	$	1,058,139
Nonowner-occupied		20			—			—			20			331,934		331,954
Commercial real estate		190			—			—			190			1,821,608		1,821,798
Construction & land development		—			—			—			—			239,615		239,615
Commercial & industrial		2			—			728			730			452,085		452,815
Lease financing receivables		6			4			24			34			88,495		88,529
Aircraft		—			—			—			—			240,275		240,275
Home equity		576			393			278			1,247			323,839		325,086
Consumer:
Credit cards		34			31			—			65			16,482		16,547
Overdrafts		111			2			1			114			632		746
Automobile loans		—			—			1			1			1,598		1,599
Other consumer		41			5			—			46			12,018		12,064
Total Traditional Banking		3,604			2,251			3,458			9,313			4,579,854		4,589,167
Warehouse lines of credit		—			—			—			—			549,011		549,011
Total Core Banking		3,604			2,251			3,458			9,313			5,128,865		5,138,178

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		—			—			—			—			—		—
Other TRS commercial & industrial loans		92			—			—			92			—		92
Republic Credit Solutions		6,981			2,266			631			9,878			116,122		126,000
Total Republic Processing Group		7,073			2,266			631			9,970			116,122		126,092

Total	$	10,677		$	4,517		$	4,089		$	19,283		$	5,244,987	$	5,264,270
Delinquency ratio***		0.20	%		0.09	%		0.08	%		0.37	%

* 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:


	June 30, 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	$	17,027	$	—	$	18,602	$	—
Nonowner-occupied		55		—		64		—
Commercial real estate		1,079		—		870		—
Construction & land development		—		—		—		—
Commercial & industrial		779		—		1,273		—
Lease financing receivables		—		352		—		108
Aircraft		—		320		—		—
Home equity		2,062		—		2,008		—
Consumer		—		9		—		13
Total Traditional Banking	$	21,002	$	681	$	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 and Lease Modification Disclosures Pursuant to ASU 2022-02

The following tables show the amortized cost of loans and leases as of June 30, 2024 and June 30, 2023 that were both experiencing financial difficulty and modified during the three months and six months ended June 30, 2024 and June 30,2023, segregated by portfolio segment and type of modification. The following tables show the amortized cost of loans and leases modified by type. The average deferral period was three months, the average rate reduction was one percent, and the average extension was twelve years as of June 30, 2024.


	Amortized Cost Basis of Modified Financing Receivables
	Three Months Ended June 30, 2024
											Combination-Term
											Extension and
(dollars in thousands)	Loans (#)	Rate Reduction ($)		Loans (#)	Term Extension ($)		Loans (#)	Principal Deferral ($)		Loans	Rate Reduction

Residential real estate:
Owner-occupied	—	$	—	—	$	—	1	$	15	1	$	153
Nonowner-occupied	—		—	—		—	—		—	—		—
Home equity	—		—	—		—	—		—	—		—
Republic Processing Group	—		—	—		—	212		40	—		—
Total Loan Modifications	—	$	—	—	$	—	213	$	55	1	$	153


	Amortized Cost Basis of Modified Financing Receivables
	Six Months Ended June 30, 2024
											Combination-Term
											Extension and
(dollars in thousands)	Loans (#)	Rate Reduction ($)		Loans (#)	Term Extension ($)		Loans (#)	Principal Deferral ($)		Loans	Rate Reduction

Residential real estate:
Owner-occupied	—	$	—	—	$	—	1	$	15	1	$	153
Nonowner-occupied	—		—	—		—	—		—	—		—
Home equity	—		—	—		—	—		—	—		—
Republic Processing Group	—		—	—		—	212		40	—		—
Total Loan Modifications	—	$	—	—	$	—	213	$	55	1	$	153


	Amortized Cost Basis of Modified Financing Receivables
	Three Months Ended June 30, 2023
											Combination-Term
											Extension and
(dollars in thousands)	Loans (#)	Rate Reduction ($)		Loans (#)	Term Extension ($)		Loans (#)	Principal Deferral ($)		Loans	Rate Reduction

Residential real estate:
Owner-occupied	—	$	—	—	$	—	6	$	547	—	$	—
Nonowner-occupied	—		—	—		—	—		—	—		—
Home equity	—		—	—		—	4		143	—		—
Consumer	—		—	—		—	—		—	—		—
Republic Processing Group	—		—	—		—	423		91	—		—
Total Loan Modifications	—	$	—	—	$	—	433	$	781	—	$	—


	Amortized Cost Basis of Modified Financing Receivables
	Six Months Ended June 30, 2023
											Combination-Term
											Extension and
(dollars in thousands)	Loans (#)	Rate Reduction ($)		Loans (#)	Term Extension ($)		Loans (#)	Principal Deferral ($)		Loans	Rate Reduction

Residential real estate:
Owner-occupied	—	$	—	2	$	261	10	$	852	—	$	—
Home equity	—		—	—		—	5		214	—		—
Republic Processing Group	—		—	—		—	424		93	—		—
Total Loan Modifications	—	$	—	2	$	261	439	$	1,159	—	$	—


	Total Loan Modification by Type						Total Loan Modification by Type
	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
	Accruing			Nonaccruing			Accruing			Nonaccruing
(dollars in thousands)	Loans (#)	Recorded investment ($)		Loans (#)	Recorded investment ($)		Loans (#)	Recorded investment ($)		Loans (#)	Recorded investment ($)

Term extension	—	$	—	—	$	—	—	$	—	—	$	—
Principal deferral	213		55	—		—	213		55	—		—
Combination- term extension and principal deferral	—		—	—		—	—		—	—		—
Combination- term extension and rate reduction	—		—	1		153	—		—	1		153
Total Loan Modifications	213	$	55	1	$	153	213	$	55	1	$	153


	Total Loan Modification by Type						Total Loan Modification by Type
	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	Accruing			Nonaccruing			Accruing			Nonaccruing
(dollars in thousands)	Loans (#)	Recorded investment ($)		Loans (#)	Recorded investment ($)		Loans (#)	Recorded investment ($)		Loans (#)	Recorded investment ($)

Term extension	—	$	—	—	$	—	—	$	—	2	$	261
Principal deferral	423		91	10		690	424		93	15		1,066
Total Loan Modifications	423	$	91	10	$	690	424	$	93	17	$	1,327

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					Accruing Loan Modifications
	Three Months Ended June 30, 2024					Six Months Ended June 30, 2024
				% of Total					% of Total
		Amortized		of Financing			Amortized		of Financing
(dollars in thousands)	Loans (#)	Cost Basis ($)		Receivable		Loans	Cost Basis		Receivable

Residential real estate:
Owner occupied	1	$	15	0.00	%	1	$	15	0.00	%
Nonowner occupied	—		—	—		—		—	—
Republic Processing Group	212		40	0.03		212		40	0.03
Total Accruing Loan Modifications	213	$	55	0.00	%	213	$	55	NM	%


	Nonaccruing Loan Modifications					Nonaccruing Loan Modifications
	Three Months Ended June 30, 2024					Six Months Ended June 30, 2024
				% of Total					% of Total
		Amortized		of Financing			Amortized		of Financing
(dollars in thousands)	Loans (#)	Cost Basis ($)		Receivable		Loans	Cost Basis		Receivable

Residential real estate:
Owner-occupied	1	$	153	0.01	%	1	$	153	0.01	%
Home equity	—		—	—		—		—	—
Total Nonaccruing Loan Modifications	1	$	153	0.00	%	1	$	153	0.00	%


	Accruing Loan Modifications
	Three Months Ended June 30, 2023					Six Months Ended June 30, 2023
				% of Total					% of Total
		Amortized		of Financing			Amortized		of Financing
(dollars in thousands)	Loans (#)	Cost Basis ($)		Receivable		Loans	Cost Basis		Receivable

Residential real estate:
Owner occupied	—	$	—	—	%	—	$	—	—	%
Nonowner occupied	—		—	—		—		—	—
Republic Processing Group	423		91	0.08		424		93	0.08
Total Accruing Loan Modifications	423	$	91	NM	%	424	$	93	NM	%


	Nonaccruing Loan Modifications
	Three Months Ended June 30, 2023					Six Months Ended June 30, 2023
				% of Total					% of Total
		Amortized		of Financing			Amortized		of Financing
(dollars in thousands)	Loans (#)	Cost Basis ($)		Receivable		Loans	Cost Basis		Receivable

Residential real estate:
Owner-occupied	6	$	547	0.05	%	12	$	1,113	0.06	%
Home equity	4		143	0.06		5		214	0.03
Total Nonaccruing Loan Modifications	10	$	690	0.01	%	17	$	1,327	0.03	%

There were no commitments to lend additional amounts to the borrowers included in the previous loan modification tables.

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 tables show the performance of such loans and leases that have been modified during the past twelve months as of June 30, 2024 and as of June 30, 2023.


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

Residential real estate:
Owner occupied	$	666	$	—	$	—
Nonowner occupied		—		—		—
Home equity		490		—		—
Republic Processing Group		40		—		—
Total accruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended June 30, 2024	$	1,196	$	—	$	—


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

Residential real estate:
Owner-occupied	$	353	$	—	$	—
Nonowner occupied		—		—		—
Home equity		127		—		25
Total nonaccruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended June 30, 2024	$	480	$	—	$	25



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

Residential real estate:
Owner occupied	$	—	$	—	$	—
Nonowner occupied		—		—		—
Home equity		—		—		—
Republic Processing Group		93		—		—
Total accruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended June 30, 2023	$	93	$	—	$	—


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

Residential real estate:
Owner-occupied	$	945	$	—	$	168
Nonowner occupied		—		—		—
Home equity		214		—		—
Total nonaccruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended June 30, 2023	$	1,159	$	—	$	168

There were no modified loans and leases that had a payment default during the six months ended June 30, 2024 or June 30, 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)	June 30, 2024		December 31, 2023

Commercial real estate	$	1,265	$	1,370

Total other real estate owned	$	1,265	$	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 calendar year activities for RAs follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in thousands)	2024		2023		2024			2023

Refund Advances originated	$	—	$	—	$	771,091		$	737,047
Net charge to the Provision for RAs, including ERAs		(1,158)		(161)		24,560			21,554
Provision as a percentage of RAs, including ERAs, originated		NA		NA		3.19	%		2.92	%
Refund Advances net charge-offs (recoveries)	$	28,764	$	25,636	$	28,489		$	25,351
Refund Advances net charge-offs (recoveries) to total Refund Advances originated		NA		NA		3.69	%		3.44	%

(in thousands)

June 30, 2024

December 31, 2023

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