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LOANS AND ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

4.	LOANS AND ALLOWANCE FOR CREDIT LOSSES

The composition of the loan portfolio follows:


December 31, (in thousands)	2024		2023

Traditional Banking:
Residential real estate:
Owner-occupied	$	1,032,459	$	1,144,684
Nonowner-occupied		318,096		345,965
Commercial real estate (1)		1,813,177		1,785,289
Construction & land development		244,121		217,338
Commercial & industrial		460,245		464,078
Lease financing receivables		93,304		88,591
Aircraft		226,179		250,051
Home equity		353,441		295,133
Consumer:
Credit cards		16,464		16,654
Overdrafts		982		694
Automobile loans		1,156		2,664
Other consumer		9,555		7,428
Total Traditional Banking		4,569,179		4,618,569
Warehouse lines of credit*		550,760		339,723
Total Core Banking		5,119,939		4,958,292

*Republic Processing Group:**
Tax Refund Solutions:
Refund Advances		138,614		103,115
Other TRS commercial & industrial loans		52,180		46,092
Republic Credit Solutions		128,733		132,362
Total Republic Processing Group		319,527		281,569

Total loans**		5,439,466		5,239,861
Allowance for credit losses		(91,978)		(82,130)

Total loans, net	$	5,347,488	$	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%, 63,%, and 61% for 2024, 2023, and 2022. The approximate percentage of Owner-occupied CRE loans to total CRE loans was 36%, 37%, and 39% for 2024, 2023, and 2022.

The following table reconciles the contractually receivable and carrying amounts of loans as of December 31, 2024 and 2023:


December 31, (in thousands)	2024		2023

Contractually receivable	$	5,445,531	$	5,246,621
Unearned income		(2,932)		(2,556)
Unamortized premiums		184		1,060
Unaccreted discounts		(1,619)		(2,533)
Other net unamortized deferred origination (fees) and costs		(1,698)		(2,731)
Carrying value of loans	$	5,439,466	$	5,239,861

Credit Quality Indicators

Bank procedures for assessing and maintaining credit gradings are the same whether a new or renewed loan is being underwritten, or whether an existing loan is being re-evaluated for potential credit quality concerns. The latter usually occurs upon receipt of updated financial information, or other pertinent data, which triggers a review in the loan grade. Specific Bank procedures follow:

●

For new and renewed C&I, CRE, and C&D loans, the Bank’s CCAD scores and assigns the credit quality grade to the loan.

●

Commercial loan officers are responsible for monitoring their respective loan portfolios and reporting any adverse material changes to senior management. When circumstances warrant a review and possible change in the credit quality grade, loan officers are required to notify the Bank’s CCAD or Special Asset division (under certain deteriorating circumstances).

●

The Special Asset area of the Bank monitors throughout each month the status of all past due loans and classified loans with the respective commercial officers. These meetings are designed to give loan officers an opportunity to identify other existing loans that should be downgraded as well.

●

Monthly, members of Executive Management along with managers of Commercial Lending, CCAD, Accounting, Special Assets, and Retail Collections attend a Special Asset Committee meeting. The SAC reviews all loans for the Bank graded Special Mention or worse or loans potentially subject to downgrade into these classifications and discusses the relative trends and current status of these assets. In addition, the SAC reviews all classified and potentially classified residential real estate and home equity loans. SAC also reviews the actions taken by management regarding credit-quality grades, foreclosure mitigation, loan extensions, deferrals, or forbearance, loan modifications, and collateral repossessions. Based on the information reviewed in this meeting, the SAC approves all specific loan loss allocations to be recognized by the Bank within the ACLL analysis.

●

All new and renewed warehouse lines of credit are approved by the Executive Loan Committee. The credit area of the Warehouse Lending division initially recommends the credit quality grade for warehouse facilities to ELC, of which ELC may approve or amend. The Bank’s internal loan review department is the final authority on a loan’s grade and reviews all approved loan grades, which they may approve or amend based on their independent review. Monthly, the CLO reviews warehouse lending activity including data associated with the underlying collateral to the warehouse facilities, i.e., the mortgage loans associated with the balances drawn. Key performance indicators monitored include average days outstanding for each draw, average FICO credit report score for the underlying collateral, average LTV for the underlying collateral and other factors deemed relevant.

On at least an annual basis, the Bank’s internal loan review department analyzes all individual loans with outstanding balances greater than $1 million that are internally classified as “Special Mention,” “Substandard,” “Doubtful,” or “Loss.” In addition, on an annual basis, the Bank analyzes a sample of “Pass” rated loans.

The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, public information, and current economic trends. The Bank also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). The Bank analyzes loans individually, and based on this analysis, establishes a credit risk rating. The Bank uses the following definitions for risk ratings:

Risk Grade 1 — Excellent (Pass): Loans fully secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents; loans fully secured by publicly traded marketable securities where there is no impediment to liquidation; or loans to any publicly held company with a current long-term debt rating of A or better.

Risk Grade 2 — Good (Pass): Loans to businesses that have strong financial statements containing an unqualified opinion from a Certified Public Accounting firm and at least three consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five-year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans that are guaranteed or otherwise backed by the full faith and credit of the U.S. government or an agency thereof, such as the Small Business Administration; or loans to publicly held companies with current long-term debt ratings of Baa or better.

Risk Grade 3 — Satisfactory (Pass): Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered.

Risk Grade 4 — Satisfactory/Monitored (Pass): Loans in this category are considered to be acceptable credit quality but contain greater credit risk than Satisfactory loans due to weak balance sheets, marginal earnings or cash flow, or other uncertainties. These loans warrant a higher-than-average level of monitoring to ensure that weaknesses do not advance. The level of risk in a Satisfactory/Monitored loan is within acceptable underwriting guidelines so long as the loan is given the proper level of management supervision. All revolving lines of credit will be placed in this category if a borrowing base is to be implemented as a condition of approval for the loan. Lastly, a start-up business venture will receive this rating due to the lack of any historical financial data.

Risk Grade 5 — Special Mention: Loans that possess some credit deficiency or potential weakness that deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) credit weaknesses are considered potential and are not defined impairments to the primary source of repayment.

Purchased with Credit Deterioration Loans — Group 1: To the extent that a PCD loan’s performance does not reflect an increased risk of loss of contractual principal beyond the ACLL established as part of its initial day-one evaluation, such loan would be classified in the PCD-1 category, whose credit risk is considered by management equivalent to a non-PCD “Special Mention” loan within the Bank’s credit rating matrix.

Purchased with Credit Deterioration Loans — Substandard: If during the Bank’s periodic evaluations of its PCD loan portfolio, management deems a PCD-1 loan to have an increased risk of loss of contractual principal beyond the ACLL established as part of its initial day-one evaluation, such loan would be classified PCD-Sub within the Bank’s credit risk matrix. Management deems the risk of default and overall credit risk of a PCD-Sub loan to be greater than a PCD-1 loan and more analogous to a non-PCD “Substandard” loan within the Bank’s credit rating matrix.

Risk Grade 6 — Substandard: One or more of the following characteristics may be exhibited in loans classified as Substandard:

●

Loans that possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss.

●

Loans are inadequately protected by the current net worth and paying capacity of the obligor.

●

The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees.

●

Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected.

●

Unusual courses of action are needed to maintain a high probability of repayment.

●

The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments.

●

The Bank is forced into a subordinated or unsecured position due to flaws in documentation.

●

The Bank is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.

●

There is significant deterioration in market conditions to which the borrower is highly vulnerable.

Risk Grade 7 — Doubtful: One or more of the following characteristics may be present in loans classified as Doubtful:

●

Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable.

●

The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.

●

The possibility of loss is high but because of certain important pending factors, which may strengthen the loan, loss classification is deferred until the exact status of repayment is known.

Risk Grade 8 — Loss: Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified “Loss” when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.

For all real estate and consumer loans, including small-dollar RPG loans, which do not meet the scope above, the Bank uses a grading system based on delinquency and nonaccrual status. Loans that are 80 days or more past due or on nonaccrual are graded Substandard. Occasionally, a real estate loan below scope may be graded as “Special Mention” or “Substandard” if the loan is cross collateralized with a classified C&I or CRE loan.

Purchased loans are accounted for as any other Bank-originated loan, potentially becoming nonaccrual, as well as being risk rated under the Bank’s standard practices and procedures. In addition, these loans are considered in the determination of the ACLL once day-one fair values are final.

Management separately monitors PCD loans and no less than quarterly reviews them against the factors and assumptions used in determining day-one fair values. In addition to its quarterly evaluation, a PCD loan is typically reviewed when it is modified or extended, or when information becomes available to the Bank that provides additional insight regarding the loan’s performance, the status of the borrower, or the quality or value of the underlying collateral.

If a loan modification is performed on a PCD loan, the loan is transferred out of the PCD population. The loan may require an additional Provision if its restructured cash flows are less than management’s initial day-one expectations. PCD loans for which the Bank simply chooses to extend the maturity date are generally not considered loan modifications and remain in the PCD population.

The following tables include loans by segment, risk category, and, for non-revolving loans, origination year. Loan segments and risk categories as of December 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. 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 December 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total

Residential real estate owner-occupied:
Risk Rating
Pass or not rated	$	79,874	$	236,681	$	181,703	$	157,834	$	150,449	$	191,013	$	—	$	8,840	$	1,006,394
Special Mention		—		—		—		—		83		4,343		—		—		4,426
Substandard		875		1,052		2,566		2,806		4,099		10,241		—		—		21,639
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	80,749	$	237,733	$	184,269	$	160,640	$	154,631	$	205,597	$	—	$	8,840	$	1,032,459
YTD Gross Charge-offs	$	—	$	10	$	39	$	13	$	—	$	—	$	—	$	—	$	62

Residential real estate nonowner-occupied:
Risk Rating
Pass or not rated	$	15,147	$	53,718	$	58,776	$	69,355	$	57,310	$	59,130	$	—	$	2,431	$	315,867
Special Mention		—		—		1,795		—		—		20		—		—		1,815
Substandard		—		—		—		—		—		414		—		—		414
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	15,147	$	53,718	$	60,571	$	69,355	$	57,310	$	59,564	$	—	$	2,431	$	318,096
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Risk Rating
Pass or not rated	$	108,927	$	216,397	$	331,544	$	270,291	$	297,479	$	310,482	$	37,894	$	199,101	$	1,772,115
Special Mention		1,177		—		5,324		4,832		4,716		23,489		317		—		39,855
Substandard		—		—		—		—		785		422		—		—		1,207
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	110,104	$	216,397	$	336,868	$	275,123	$	302,980	$	334,393	$	38,211	$	199,101	$	1,813,177
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction and land development:
Risk Rating
Pass or not rated	$	52,732	$	105,616	$	63,117	$	15,741	$	1,689	$	3,740	$	1,161	$	—	$	243,796
Special Mention		—		325		—		—		—		—		—		—		325
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	52,732	$	105,941	$	63,117	$	15,741	$	1,689	$	3,740	$	1,161	$	—	$	244,121
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		—

Commercial and industrial:
Risk Rating
Pass or not rated	$	82,096	$	77,333	$	63,187	$	48,621	$	25,608	$	25,286	$	125,002	$	4,722	$	451,855
Special Mention		1,225		34		359		2,126		922		2,022		843		—		7,531
Substandard		—		81		73		2		—		333		26		344		859
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	83,321	$	77,448	$	63,619	$	50,749	$	26,530	$	27,641	$	125,871	$	5,066	$	460,245
YTD Gross Charge-offs	$	—	$	—	$	27	$	—	$	—	$	—	$	—	$	—	$	27

Lease financing receivables:
Risk Rating
Pass or not rated	$	34,335	$	34,370	$	15,427	$	5,759	$	2,226	$	451	$	—	$	—	$	92,568
Special Mention		—		23		46		41		73		48		—		—		231
Substandard		—		115		360		30		—		—		—		—		505
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	34,335	$	34,508	$	15,833	$	5,830	$	2,299	$	499	$	—	$	—	$	93,304
YTD Gross Charge-offs	$	—	$	45	$	124	$	—	$	4	$	32	$	—	$	—	$	205

Aircraft:
Risk Rating
Pass or not rated	$	36,972	$	71,706	$	40,778	$	35,652	$	23,933	$	16,380	$	—	$	—	$	225,421
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		312		—		446		—		—		758
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	36,972	$	71,706	$	40,778	$	35,964	$	23,933	$	16,826	$	—	$	—	$	226,179
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	—	$	350,828	$	—	$	350,828
Special Mention		—		—		—		—		—		—		100		—		100
Substandard		—		—		—		—		—		—		2,513		—		2,513
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	353,441	$	—	$	353,441
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	64	$	—	$	64


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

Consumer:
Risk Rating
Pass or not rated	$	5,156	$	2,403	$	240	$	94	$	19	$	1,256	$	18,426	$	—	$	27,594
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		556		—		—		—		—		7		—		—		563
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	5,712	$	2,403	$	240	$	94	$	19	$	1,263	$	18,426	$	—	$	28,157
YTD Gross Charge-offs	$	828	$	1,170	$	2	$	1	$	—	$	1	$	1,103	$	—	$	3,105

Warehouse:
Risk Rating
Pass or not rated	$	—	$	—	$	—	$	—	$	—	$	—	$	550,760	$	—	$	550,760
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	550,760	$	—	$	550,760
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

TRS:
Risk Rating
Pass or not rated	$	190,794	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	190,794
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	190,794	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	190,794
YTD Gross Charge-offs	$	23,534	$	9,158	$	—	$	—	$	—	$	—	$	—	$	—	$	32,692

RCS:
Risk Rating
Pass or not rated	$	8,625	$	9,954	$	3,000	$	295	$	247	$	47,383	$	58,959	$	—	$	128,463
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		270		—		270
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	8,625	$	9,954	$	3,000	$	295	$	247	$	47,383	$	59,229	$	—	$	128,733
YTD Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	19,239	$	—	$	19,239

Grand Total:
Risk Rating
Pass or not rated	$	614,658	$	808,178	$	757,772	$	603,642	$	558,960	$	655,121	$	1,143,030	$	215,094	$	5,356,455
Special Mention		2,402		382		7,524		6,999		5,794		29,922		1,260		—		54,283
Substandard		1,431		1,248		2,999		3,150		4,884		11,863		2,809		344		28,728
Doubtful		—		—		—		—		—		—		—		—		—
Grand Total	$	618,491	$	809,808	$	768,295	$	613,791	$	569,638	$	696,906	$	1,147,099	$	215,438	$	5,439,466
YTD Gross Charge-offs	$	24,362	$	10,383	$	192	$	14	$	4	$	33	$	20,406	$	—	$	55,394


													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.

Both the Traditional Banking segment and the RCS segment of the Company have certain classes of loans that are considered to be “subprime” strictly due to the credit score of the borrower at the time of origination.

Traditional Bank loans considered subprime totaled approximately $51 million and $58 million as of December 31, 2024 and 2023. Approximately $34 million and $37 million of the outstanding Traditional Bank subprime loan portfolio as of December 31, 2024 and 2023 were originated for CRA purposes. Management does not consider these loans to possess significantly higher credit risk due to other underwriting qualifications.

The RCS segment originates two short-term line-of-credit products, with the second product introduced in January 2021. The Bank sells 90% or 95% of the balances maintained through these products within three business days of loan origination and retains a 5% or 10% interest. These products are unsecured and made to borrowers with subprime or near prime credit scores. The aggregate outstanding balance held-for-investment for these products totaled $41 million and $36 million as of December 31, 2024 and 2023.

Allowance for Credit Losses

The following tables present the activity in the ACLL by portfolio class for the years ended December 31, 2024, 2023, and 2022:


	ACLL Roll-forward
	Years Ended December 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	$	450	$	(62)	$	124	$	10,849	$	8,909		$	—	$	1,303	$	(26)	$	151	$	10,337
Nonowner-occupied		3,047		1,089		—		4		4,140		2,831			—		213		—		3		3,047
Commercial real estate		25,830		(3,611)		—		337		22,556		23,739			—		1,997		—		94		25,830
Construction & land development		6,060		2,167		—		—		8,227		4,123			—		1,937		—		—		6,060
Commercial & industrial		4,236		(1,686)		(27)		4		2,527		3,976			—		137		—		123		4,236
Lease financing receivables		1,061		179		(205)		82		1,117		110			216		866		(141)		10		1,061
Aircraft		625		(60)		—		—		565		449			—		176		—		—		625
Home equity		5,501		1,901		(64)		40		7,378		4,628			—		872		(2)		3		5,501
Consumer:
Credit cards		1,074		489		(256)		72		1,379		996			—		176		(162)		64		1,074
Overdrafts		694		647		(847)		230		724		726			—		667		(896)		197		694
Automobile loans		32		(46)		—		25		11		87			—		(32)		(37)		14		32
Other consumer		501		1,732		(2,002)		52		283		135			—		386		(87)		67		501
Total Traditional Banking		58,998		3,251		(3,463)		970		59,756		50,709			216		8,698		(1,351)		726		58,998
Warehouse lines of credit		847		527		—		—		1,374		1,009			—		(162)		—		—		847
Total Core Banking		59,845		3,778		(3,463)		970		61,130		51,718			216		8,536		(1,351)		726		59,845

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		3,929		29,886		(32,555)		8,533		9,793		3,797			—		22,492		(25,823)		3,463		3,929
Other TRS commercial & industrial loans		61		97		(137)		47		68		91			—		67		(128)		31		61
Republic Credit Solutions		18,295		20,625		(19,239)		1,306		20,987		14,807			—		16,529		(13,912)		871		18,295
Total Republic Processing Group		22,285		50,608		(51,931)		9,886		30,848		18,695			—		39,088		(39,863)		4,365		22,285

Total	$	82,130	$	54,386	$	(55,394)	$	10,856	$	91,978	$	70,413		$	216	$	47,624	$	(41,214)	$	5,091	$	82,130

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


	ACLL Roll-forward
	Year Ended December 31, 2022
	Beginning		Provision		Charge-				Ending
(in thousands)	Balance		for Credit Loss		offs		Recoveries		Balance

Traditional Banking:
Residential real estate:
Owner-occupied	$	8,647	$	181	$	(21)	$	102	$	8,909
Nonowner-occupied		2,700		129		—		2		2,831
Commercial real estate		23,769		(308)		(9)		287		23,739
Construction & land development		4,128		(5)		—		—		4,123
Commercial & industrial		3,487		218		—		271		3,976
Lease financing receivables		91		19		—		—		110
Aircraft		357		92		—		—		449
Home equity		4,111		396		—		121		4,628
Consumer:
Credit cards		934		140		(155)		77		996
Overdrafts		683		866		(1,038)		215		726
Automobile loans		186		(111)		(3)		15		87
Other consumer		314		(151)		(94)		66		135
Total Traditional Banking		49,407		1,466		(1,320)		1,156		50,709
Warehouse lines of credit		2,126		(1,117)		—		—		1,009
Total Core Banking		51,533		349		(1,320)		1,156		51,718

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		—		10,471		(11,505)		4,831		3,797
Other TRS commercial & industrial loans		96		(516)		(154)		665		91
Republic Credit Solutions		12,948		12,081		(11,390)		1,168		14,807
Total Republic Processing Group		13,044		22,036		(23,049)		6,664		18,695

Total	$	64,577	$	22,385	$	(24,369)	$	7,820	$	70,413

The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of December 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 Company’s ACLL 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 and nonperforming assets and select credit quality ratios follows:


December 31, (in thousands)	2024			2023

Loans on nonaccrual status*	$	22,619		$	19,150
Loans past due 90-days-or-more and still on accrual**		141			1,468
Total nonperforming loans		22,760			20,618
Other real estate owned		1,160			1,370
Total nonperforming assets	$	23,920		$	21,988

Credit Quality Ratios - Total Company:

Nonperforming loans to total loans		0.42	%		0.39	%
Nonperforming assets to total loans (including OREO)		0.44			0.42
Nonperforming assets to total assets		0.35			0.33

Credit Quality Ratios - Core Bank:

Nonperforming loans to total loans		0.44	%		0.39	%
Nonperforming assets to total loans (including OREO)		0.46			0.41
Nonperforming assets to total assets		0.39			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 table presents 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*
December 31, (in thousands)	2024		2023		2024		2023

Traditional Banking:
Residential real estate:
Owner-occupied	$	17,331	$	15,056	$	—	$	—
Nonowner-occupied		81		64		—		—
Commercial real estate		1,223		850		—		—
Construction & land development		—		—		—		—
Commercial & industrial		860		1,221		—		—
Lease financing receivables		147		—		—		—
Aircraft		56		—		—
Home equity		2,359		1,948		—		—
Consumer:
Credit cards		—		—		—		—
Overdrafts		—		—		—		—
Automobile loans		5		10		—		—
Other consumer		557		1		—		—
Total Traditional Banking		22,619		19,150		—		—
Warehouse lines of credit		—		—		—		—
Total Core Banking		22,619		19,150		—		—

Republic Processing Group:
Tax Refund Solutions:
Refund Advances		—		—		—		—
Other TRS commercial & industrial loans		—		—		—		—
Republic Credit Solutions		—		—		141		1,468
Total Republic Processing Group		—		—		141		1,468

Total	$	22,619	$	19,150	$	141	$	1,468

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

Year Ended

As of December 31, 2024

December 31, 2024

Nonaccrual

Total

Interest Income

Loans with

Loans without

Nonaccrual

Recognized

(in thousands)

ACLL

Loans

on Nonaccrual Loans*

Residential real estate:

Owner-occupied

688

16,643

17,331

1,207

Nonowner-occupied

Commercial real estate

704

519

1,223

152

Construction & land development

—

Commercial & industrial

726

134

860

Lease financing receivables

—

147

—

Aircraft

—

Home equity

—

2,359

327

Consumer

562

—

562

132

Total

2,705

19,914

22,619

1,863

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


							Year Ended
	As of December 31, 2023						December 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	$	954
Nonowner-occupied		20		44		64		15
Commercial real estate		850		—		850		191
Construction & land development		—		—		—		—
Commercial & industrial		1,221		—		1,221		26
Lease financing receivables		—		—		—		—
Aircraft		—		—		—		—
Home equity		—		1,948		1,948		184
Consumer		8		3		11		6
Total	$	2,475	$	16,675	$	19,150	$	1,376

* 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

December 31, 2024

Days

Total

(dollars in thousands)

Delinquent

Delinquent*

Delinquent**

Current

Total

Traditional Banking:

Residential real estate:

Owner-occupied

2,320

2,292

2,403

7,015

1,025,444

1,032,459

Nonowner-occupied

—

318,075

318,096

Commercial real estate

—

275

244

519

1,812,658

1,813,177

Construction & land development

—

244,121

Commercial & industrial

104

785

904

459,341

460,245

Lease financing receivables

93,229

93,304

Aircraft

—

226,179

Home equity

714

204

478

1,396

352,045

353,441

Consumer:

Credit cards

—

16,436

16,464

Overdrafts

163

—

173

809

982

Automobile loans

—

1,145

1,156

Other consumer

9,512

9,555

Total Traditional Banking

3,386

2,814

3,985

10,185

4,558,994

4,569,179

Warehouse lines of credit

—

550,760

Total Core Banking

3,386

2,814

3,985

10,185

5,109,754

5,119,939

Republic Processing Group:

Tax Refund Solutions:

Refund Advances

—

138,614

Other TRS commercial & industrial loans

—

52,180

Republic Credit Solutions

7,915

2,248

141

10,304

118,429

128,733

Total Republic Processing Group

7,915

2,248

141

10,304

309,223

319,527

Total

11,301

5,062

4,126

20,489

5,418,977

5,439,466

Delinquency ratio***

0.21

0.09

0.08

0.38

*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 small-dollar 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 divided by total loans.

Collateral-Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2024, 2023, and 2022:


	December 31, 2024				December 31, 2023				December 31, 2022
	Secured		Secured		Secured		Secured		Secured		Secured
	by Real		by Personal		by Real		by Personal		by Real		by Personal
(in thousands)	Estate		Property		Estate		Property		Estate		Property

Traditional Banking:
Residential real estate:
Owner-occupied	$	23,116	$	—	$	18,602	$	—	$	18,057	$	—
Nonowner-occupied		414		—		64		—		150		—
Commercial real estate		1,210		—		870		—		1,041		—
Construction & land development		—		—		—		—		—		—
Commercial & industrial		859		—		1,273		—		—		—
Lease financing receivables		—		504		—		108		—		—
Aircraft		—		758		—		—		—		210
Home equity		2,513		—		2,008		—		967		—
Consumer		—		563		—		13		—		26
Total Traditional Banking	$	28,112	$	1,825	$	22,817	$	121	$	20,215	$	236

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 table shows the amortized cost of loans and leases as of December 31, 2024 that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2024, segregated by portfolio segment and type of modification. The following tables shows the amortized cost of loans and leases modified by type. The following tables show the amortized cost of loans and leases modified by type. The average deferral period was three months, the average extension was eight months, the rate reduction and extension combination were an one percent rate reduction with a twelve year extension, as of December 31 , 2024.


	Amortized Cost Basis of Modified Financing Receivables
	Years Ended December 31, 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	$	10	1	$	150
Nonowner-occupied	—		—	1		263	—		—	—		—
Commercial & industrial	—		—	1		48	2		24	—		—
Aircraft	—		—	—		—	1		390	—		—
Republic Processing Group	—		—	—		—	487		129	—		—
Total Loan Modifications	—	$	—	2	$	311	491	$	553	1	$	150


	Amortized Cost Basis of Modified Financing Receivables
	Years Ended December 31, 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	—	$	—	1	$	158	14	$	975	—	$	—
Home equity	—		—	—		—	9		709	—		—
Republic Processing Group	—		—	—		—	199		48	—		—
Total Loan Modifications	—	$	—	1	$	158	222	$	1,732	—	$	—

The following tables show the amortized cost of loans and leases as of December 31, 2024 and December 31, 2023 that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2024 and December 31, 2023, segregated by type of modification. The following tables shows the amortized cost of loans and leases modified by type.


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

Term extension	1	$	48	1	$	263
Principal deferral	491	$	553	—	$	—
Combination- term extension and rate reduction	—	$	—	1	$	150
Total Loan Modifications	492	$	601	2	$	413


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

Term extension	—	$	—	1	$	158
Principal deferral	199	$	48	23	$	1,684
Total Loan Modifications	199	$	48	24	$	1,842

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
	Years Ended December 31, 2024
				% of Total
		Amortized		of Financing
(dollars in thousands)	Loans	Cost Basis		Receivable

Residential real estate:
Owner occupied	1	$	10	0.00	%
Nonowner occupied	—		—	—
Commercial & industrial	3		72	0.02
Aircraft	1		390	—
Republic Processing Group	487		129	0.04
Total Accruing Loan Modifications	492	$	601	NM	%


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

Residential real estate:
Owner-occupied	1	$	150	0.01	%
Nonowner occupied	1		263	0.08
Commercial & industrial	—		—	—
Aircraft	—		—	—
Home equity	—		—	—
Republic Processing Group	—		—	—
Total Nonaccruing Loan Modifications	2	$	413	0.01	%



	Years Ended December 31, 2023
				% of Total
		Amortized		of Financing
(dollars in thousands)	Loans	Cost Basis		Receivable

Residential real estate:
Owner occupied	—	$	—	—	%
Nonowner occupied	—		—	—
Commercial & industrial	—		—	—
Aircraft	—		—	—
Republic Processing Group	199	$	48	0.02
Total Accruing Loan Modifications	199	$	48	NM	%



	Years Ended December 31, 2023
				% of Total
		Amortized		of Financing
(dollars in thousands)	Loans	Cost Basis		Receivable

Residential real estate:
Owner-occupied	15	$	1,133	0.10	%
Nonowner occupied	—		—	—
Commercial & industrial	—		—	—
Aircraft	—		—	—
Home equity	9		709	0.24
Republic Processing Group	—	$	—	—
Total Nonaccruing Loan Modifications	24	$	1,842	0.04	%

There were no commitments to lend additional amounts to the borrowers included in the previous table.

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 twelve months ended December 31, 2024.


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

Residential real estate:
Owner occupied	$	10	$	—	$	—
Nonowner occupied		—		—		—
Commercial & industrial		72		—		—
Aircraft		390		—		—
Republic Processing Group		129		—		—
Total accruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended December 31, 2024	$	601	$	—	$	—


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

Residential real estate:
Owner-occupied	$	150	$	—	$	—
Nonowner occupied		—		—		263
Home equity		—		—		—
Total nonaccruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended December 31, 2024	$	150	$	—	$	263



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

Residential real estate:
Owner occupied	$	—	$	—	$	—
Nonowner occupied		—		—		—
Commercial & industrial		—		—		—
Aircraft		—		—		—
Republic Processing Group		48		—		—
Total accruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended December 31, 2023	$	48	$	—	$	—


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

Residential real estate:
Owner-occupied	$	856	$	—	$	277
Nonowner occupied		—		—		—
Home equity		650		34		25
Total nonaccruing loan modifications to borrowers experiencing financial difficulty in which modifications were made in the twelve months ended December 31, 2023	$	1,506	$	34	$	302

There were no modified loans and leases that had a payment default during the twelve months ended December 31, 2024 and 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 of December 31, 2024 and 2023 as a result of the Bank obtaining physical possession of such properties:


December 31, (in thousands)	2024		2023

Commercial real estate	$	1,160	$	1,370

Total other real estate owned	$	1,160	$	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 local requirements of the applicable jurisdiction as of December 31, 2024 and 2023:

Refund Advances

The Company’s TRS segment offered (i) for the 2025 Tax Season, its ERA product during December 2024, (ii) for the 2024 Tax Season, its RA product during the first two months of 2024, and its ERA product during December 2023 and the first two weeks of 2024 and (iii) for the 2023 Tax Season, its RA product during the first two months of 2023, and its ERA product during December 2022 and the first two weeks of 2023. Each year, all unpaid RAs, including ERAs, are charged off by June 30th, and each quarter thereafter, any credits to the Provision for RAs, including ERAs, match the recovery of previously charged-off accounts.

Information regarding RA follows:


	Years Ended
	December 31,
(dollars in thousands)	2024			2023			2022

Refund Advances, including ERAs outstanding at December 31, originated	$	909,705		$	840,162		$	408,712
Net charge to the Provision for RAs, including ERAs outstanding at December 31		29,886			22,492			10,471
Provision as a percentage of Ras originated , including ERAs outstanding at December 31		3.29	%		2.68	%		2.56	%
Refund Advances net charge-offs (recoveries)	$	24,022		$	22,360		$	6,674
Refund Advances net charge-offs (recoveries) to total Refund Advances originated		2.64	%		2.66	%		1.63	%

Information regarding ERAs follows:


	Years Ended
	December 31,
(dollars in thousands)	2024			2023			2022

Early Season Refund Advances outstanding	$	138,614		$	103,115		$	97,505
Net charge to the Provision for outstanding Early Season Refund Advances		9,793			3,931			3,797
Provision to total Early Season Refund Advances outstanding		7.06	%		3.81	%		3.89	%

December 31, (in thousands)

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