Nasdaq Rbcaa 2022

2022 LETTER TO SHAREHOLDERS
Dear Fellow Shareholders,
The year 2022 was indeed a landmark year, as it marked the 40-year
anniversary of when my father, Bernard Trager, launched his vision of a high-
touch, community-oriented bank with the first Republic Bank & Trust Company
(“RB&T”) banking center on Bardstown Road in Louisville, KY. If my father
were here today, he would certainly be proud of the $5.8 billion in total assets
that we have as of December 31, 2022, and he would take great joy in reporting
to all our shareholders that we recorded net income of $91.1 million for 2022,
representing a 4% increase over 2021.
To this day, that first banking center remains in the same place on Bardstown
Road and continues to thrive. While we have grown exponentially since 1982, we
have not lost sight of my father’s vision. Regardless of the size of our Company,
STEVE TRAGER the markets we serve, or the business lines in which we operate, the ethos of that
Executive Chair, Republic Bancorp, Inc.
vision, a high-touch community-oriented bank, remains the same.
As part of our celebration for this significant milestone, Our primary mission at Republic is to help our clients, our
our associates overwhelmingly voted to celebrate by associates and our communities thrive, and we are certainly
increasing our acts of volunteerism throughout our various proud of the awards we received and the examples we set
in fulfilling this mission. During 2022, Republic Bank was
communities. In July, we began a Company-wide internal
one of only seven recipients in the nation to receive a “2022
campaign encouraging associates to enhance their volunteer
American Bankers Association Foundation Community
activities within their respective communities. Just three Commitment Award” for its leadership to help complete the
short months after that campaign began, our associates had funding for the Louisville Urban League’s Norton Healthcare
participated in over 90 acts of volunteerism throughout Sports and Learning Center facility opened in 2021.
our communities. This initiative captured the true essence In addition to this prestigious acknowledgement, Republic
of Republic Bank, which is our people are the cornerstone also received the following recognitions during the year:
of our business and our communities. It is our people that Louisville Business First’s 2022 Business Impact Award
allow us to achieve our mission of enabling our clients, our This award recognizes companies that further racial justice
Company, our associates, and the communities-we-serve and equality in their community. We were selected based on
to thrive. the impact of our Community Loan Fund.
Newsweek’s Best Banks in America 2022 While recognitions are very much appreciated, we are
We were named the Best Bank in Kentucky with assets up proud and committed to being an active participant in
to $10 billion. As part of this recognition Newsweek and the communities we serve because it’s the right thing to
Lending Tree collaborated to review more than 50 key factors
do and not because of the acknowledgements we receive.
of a financial institution to determine their ranking, including
overall health of the bank, customer service performance Ironically, some of economic headwinds that surfaced in our
and features, digital and branch presence, account and loan country during 2022 harken back to 40 years ago when
options, interest rate offerings, and fees. we were first getting started. At the forefront of these
headwinds during the year was inflation. During June 2022,
the Consumer Price Index (“CPI”) inflation measurement
One of America’s hit a high mark for the year of 9.1%, representing the largest
Best Banks 2022! year-over-year increase for any month since 1981, when
Newsweek RB&T was just getting started. As a result of the increased
inflation measurements during 2022, the Federal Reserve
increased the Federal Funds target rate from 0.25% as of
2022 Best Places to Work in Kentucky December 31, 2021, to 4.50% as of December 31, 2022.
We received this recognition for the sixth year in a row. This
These market factors had a significant influence on customer
program was developed to identify and recognize Kentucky
businesses that represent the ideal workplace environment demands throughout 2022 and played a meaningful role in
through dedication and creativity. the financial results of all banks across the country during
the year. We were well-positioned to effectively manage
2022 Best Places to Work these challenging times and we are very proud of our
performance in 2022. In addition, we remain excited about
in Kentucky Winner!
our overall balance sheet position and our outlook as we
Awarded by the Kentucky
Chamber of Commerce enter 2023. Below are some of our more notable highlights
for 2022.
NOTABLE COMPANY HIGHLIGHTS
• Net income for 2022 was $91.1 million, a $3.5 million, or 2022. This meaningful rise in the Core Bank’s quarterly
4%, increase over 2021. net interest margin was a key driver to the Core Bank’s
increased quarterly profitability throughout 2022 and
• Return on Average Assets and Return on Average Equity bodes well for a promising start to 2023.
were 1.48% and 10.68% for 2022 compared to 1.39%
and 10.37% for 2021. • Supplementing our enhanced net interest margin was
disciplined expense management as our Total Company
• Expansion of our Core Bank net interest margin was expenses decreased $129,000 from the fourth quarter
among our more notable achievements during 2022. of 2021 to the fourth quarter of 2022 and increased
Our Core Bank net interest margin for 2022 increased a modest 2% for the 2022 fiscal year compared to
12 basis points over 2021 to 3.32%, with much of that 2021. For 2023, we expect to broaden our focus on
increase occurring during the second half of the year. efficiently expanding and increasing our revenue streams
On a quarterly basis, the net interest margin within our with a maintained discipline in managing our expenses
Core Bank increased 74 basis points from the fourth as we seek to further grow the long-term value of the
quarter of 2021 to 3.82% for the fourth quarter of Company.
• Portfolio loan growth within our Traditional Banking With the rise in interest rates, much of the consumer
segment, excluding short-term Paycheck Protection demand related to mortgage loans shifted to shorter-term,
loans originated during 2020 and 2021, reached $404 adjustable-rate loans that are retained on balance sheet.
million for the year, an all-time high for this segment. As a result, the Company grew its 1-4 family mortgage
Commercial related loan growth, in particular, drove the portfolio loans by $106 million in 2022 compared to
majority of this increase for the year. declines of $18 million and $64 million during 2021 and
2020.
• Several markets and business units contributed to our
strong loan growth for the year, including our Louisville- • Within our Republic Processing Group (“RPG”), our
based CRE-Lending, Corporate Banking, Private Banking, prepaid card division, reported within our Tax Refund
and Aircraft business lines, as well as our Northern Solutions (“TRS”) Segment, had an excellent year in 2022
Kentucky/Cincinnati and Florida markets. contributing $3.5 million of net income, a $2.5 million
• Our credit quality remained pristine throughout 2022. For increase over 2021. This division annually services over
our Core Bank, our ratios of 0.14% for delinquent loans to $300 million in average noninterest-bearing deposits,
total loans and 0.37% for non-performing loans to total which provides our Company a valuable hedge for our
loans were near all-time favorable lows as of December overall balance sheet against rising interest rates. We
31, 2022. enter the new year with great optimism for our prepaid
Our capital ratios also remained strong at year-end. As of December 31, 2022, our consolidated capital
ratios placed us among the top 10% of capitalization levels for all bank holding companies from $3 billion
to $10 billion in assets across the country. These safety and soundness measurements for credit quality
and capital firmly position us in the event of an economic downturn in 2023 that some are predicting.
• As long-term interest rates rose rapidly and dramatically card division and look forward to reporting its overall
early in the year, 2022 quickly became a very difficult performance in 2023.
environment for residential mortgage lending and
• Also, within RPG, TRS had an active second half of 2022
revenues. In addition, 2020 and 2021 consumer
building the foundation for a solid 2023. During the fourth
refinance activity reached all-time highs, making these
quarter, we signed a new agreement to significantly expand
two years the first- and second-best years in our
our refund advance program, which alone is expected to
Company’s history for Mortgage Banking revenue, and
generate over $500 million of additional refund advance
correspondingly making the comparability for our 2022
activity related to the first quarter 2023 tax season.
performance even less favorable.
We are certainly excited about this opportunity as well
As we entered 2022, the market rates for 30-year, as the tremendous opportunities within all our Republic
fixed-rate mortgages hovered around 3.38%. These Processing Group products and services for 2023 and
rates dramatically increased to near 5.50% by April 2022 beyond.
and peaked at approximately 7.25% during November • We officially partnered with Nest Egg during 2022 to
2022. As a result, the Company originated $205 million bring much-needed financial planning and assistance
of mortgage loans to be sold into the secondary market to our customers. Nest Egg allows for an omnichannel
during 2022 generating total Mortgage Banking Revenue sales strategy with a personal approach to investing. As of
of $6.2 million compared to originations of $681 million December 31, 2022, we have done a limited pilot launch
during 2021 with corresponding Mortgage Banking with our associates and small number of clients, and we
Revenue of $20.0 million. look forward to a full launch in the first quarter of 2023.
AGREEMENT TO ACQUIRE CBANK
lending and private banking will be further strengthened by

its merger with Republic Bank as Republic’s larger capital
base and greater depth of products and services will provide
larger opportunities for CBank’s current and prospective
clients.
On October 26th, 2022, we entered into a definitive
agreement to purchase CBank for approximately In addition to its banking operations in the Cincinnati market,
CBank also operated an equipment leasing and financing
$51,000,000 in an all-cash transaction. As of January
business through its wholly owned subsidiary, Commercial
31, 2023, CBank had $257 million in total assets. The
Industrial Finance (“CIF”), located in St. Louis, Missouri. The
transaction is expected to be completed during the first
acquisition of CIF will expand our existing leasing operations
quarter of 2023. and provide a national footprint for these services
CBank was founded in Cincinnati, Ohio, during 2007 and The acquisition of CBank adheres to our general M&A
has served the banking needs of many of the region’s privately strategy of seeking partners who are high-quality, like-
held businesses and professionals. We believe CBank’s minded companies that add to our market share in our
notable and well-established track record in commercial existing footprint.
CONCLUSION
Many times, over the past year, I have spent time reflecting on our 40-year history. It amazes me to think about
our modest beginnings and where we are today. It is through your support, the support of our 1,000+ associates,
and the trust that our clients place in us to do the right thing, that we have been able to achieve the successes we
have seen.
All of us at Republic are going into 2023 with our eyes wide head-on as we continue to honor my father’s vision for the
open about the headwinds that will continue to face our Company. Let met conclude by thanking you for not only
Company, our clients and the economy. Like we have for investing in us, but also trusting in us. Many of you have done
the past 40 years, however, we will meet these challenges so for the entire 40 years.
Executive Chair
Republic Bancorp, Inc.
001CSN5311
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2022
Commission File Number: 0-24649
REPUBLIC BANCORP, INC.

(Exact name of registrant as specified in its charter)
Kentucky 61-0862051
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
601 West Market Street, Louisville, Kentucky 40202

(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (502) 584-3600
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Class A Common RBCAA The Nasdaq Stock Market
Securities registered pursuant to Section 12(g) of the Act:
None
(Title of Class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes  No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. ☐ Yes  No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.  Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging
growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of
the Exchange Act.
Large accelerated filer ☐ Accelerated filer  Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the
correction of an error to previously issued financial statements. 
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the
registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes  No
The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last
sold as of June 30, 2022 (the last business day of the registrant’s most recently completed second fiscal quarter) was approximately $421,252,833 (for purposes of this
calculation, the market value of the Class B Common Stock was based on the market value of the Class A Common Stock into which it is convertible).
The number of shares outstanding of the registrant’s Class A Common Stock and Class B Common Stock, as of January 31, 2023 was 17,596,420 and 2,159,495.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held April 20, 2023 are incorporated by reference into Part III of this
Form 10-K.
TABLE OF CONTENTS
PART I
Item 1. Business. 5
Item 1A. Risk Factors. 23
Item 1B. Unresolved Staff Comments. 36
Item 2. Properties. 37
Item 3. Legal Proceedings. 38
Item 4. Mine Safety Disclosures. 38
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities. 39
Item 6. [Reserved] 41
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 41
Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 86
Item 8. Financial Statements and Supplementary Data. 87
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 177
Item 9A. Controls and Procedures. 177
Item 9B. Other Information. 179
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 179
PART III
Item 10. Directors, Executive Officers and Corporate Governance. 179
Item 11. Executive Compensation. 181
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 181
Item 13. Certain Relationships and Related Transactions, and Director Independence. 181
Item 14. Principal Accountant Fees and Services. 181
PART IV
Item 15. Exhibits, Financial Statement Schedules. 182
Item 16. Form 10-K Summary. 182
Index to Exhibits 183
Signatures 190
2
GLOSSARY OF TERMS
The terms identified in alphabetical order below are used throughout this Form 10-K. You may find it helpful to refer to this page as
you read this report.
Term Definition Term Definition Term Definition
ACH Automated Clearing House EFTA Electronic Fund Transfers Act OFAC Office of Foreign Assets Control
ACL Allowance for Credit Losses EITC Earned Income Tax Credit OREO Other Real Estate Owned
ACLC Allowance for Credit Losses on Off-Balance Sheet ERA Early Season Refund Advance PATH Act Protecting Americans from Tax Hikes Act of 2015
Credit Exposures
ACLL Allowance for Credit Losses on Loans ESPP Employee Stock Purchase Plan Patriot Act U.S. Patriot Act
ACLS Allowance for Credit Losses on Securities EVP Executive Vice President PCD Purchased Credit Deteriorated
AFS Available for Sale FASB Financial Accounting Standards Board PCI Purchased Credit Impaired
Allowance Allowance for Credit Losses FCA Financial Conduct Authority PD Probability of Default
AML Anti-Money Laundering FCRA Fair Credit Reporting Act PPP Paycheck Protection Program
AOCI Accumulated Other Comprehensive Income FDIA Federal Deposit Insurance Act Prime The Wall Street Journal Prime Interest Rate
ARM Adjustable Rate Mortgage FDICIA Federal Deposit Insurance Corporation Improvement Act Provision Provision for Expected Credit Loss Expense
ASC Accounting Standards Codification FFTR Federal Funds Target Rate PSU Performance Stock Unit
ASU Accounting Standards Update FHA Federal Housing Administration Purchase May 13, 2021 Asset Purchase Agreement for the sale of
Agreement substantially all of the Bank's TRS assets and operations to
Green Dot
ATM Automated Teller Machine FHC Financial Holding Company RA Refund Advance
ATR Ability to Repay FHLB Federal Home Loan Bank R&D Research and Development
Basic EPS Basic earnings per Class A Common Share FHLMC Federal Home Loan Mortgage Corporation or Freddie RB&T / the Republic Bank & Trust Company
Mac Bank
BHC Bank Holding Company FICO Fair Isaac Corporation RBCT Republic Bancorp Capital Trust
BHCA Bank Holding Company Act FNMA Federal National Mortgage Association or Fannie Mae RCS Republic Credit Solutions
BOLI Bank Owned Life Insurance FOMC Federal Open Market Committee Republic / Republic Bancorp, Inc.
Company
BPO Brokered Price Opinion FRA Federal Reserve Act RESPA Real Estate Settlement Procedures Act
BSA Bank Secrecy Act FRB Federal Reserve Bank ROA Return on Average Assets
C&D Construction and Development FTE Full Time Equivalent ROE Return on Average Equity
C&I Commercial and Industrial FTP Funds Transfer Pricing RPG Republic Processing Group
CARD Credit Card Accountability Responsibility and GAAP Generally Accepted Accounting Principles in the United RPS Republic Payment Solutions
Act Disclosure Act of 2009 States
CARES Coronavirus Aid, Relief, and Economic Security Act GLBA Gramm-Leach-Bliley Act RT Refund Transfer
Act
CCAD Commercial Credit Administration Department Green Green Dot Corporation S&P Standard and Poor's
Dot
CDI Core Deposit Intangible HEAL Home Equity Amortizing Loan SAC Special Asset Committee
CECL Current Expected Credit Losses HELOC Home Equity Line of Credit Sale Sale contemplated in the May 13, 2021 Purchase Agreement
Transaction between the Bank and Green Dot
CEO Chief Executive Officer HMDA Home Mortgage Disclosure Act SBA Small Business Administration
CFO Chief Financial Officer HTM Held to Maturity SEC Securities and Exchange Commission
CFPB Consumer Financial Protection Bureau IRS Internal Revenue Service SERP Supplemental Executive Retirement Plan
CFTC Commodity Futures Trading Commission ITM Interactive Teller Machine SOFR Secured Overnight Financing Rate
CMO Collateralized Mortgage Obligation KDFI Kentucky Department of Financial Institutions SSUAR Securities Sold Under Agreements to Repurchase
CMT Constant Maturity Treasury Index LGD Loss Given Default SVP Senior Vice President
Core Bank The Traditional Banking, Warehouse Lending, and LIBOR London Interbank Offered Rate TBA To be Announced
Mortgage Banking reportable segments
COVID- Coronavirus Disease of 2019 LOC I RCS product introduced in 2014 for which the Bank TDR Troubled Debt Restructuring
19 participates out a 90% interest and holds a 10% interest
CRA Community Reinvestment Act LOC II RCS product introduced in 2021 for which the Bank Captive Republic Insurance Services, Inc.
participates out a 95% interest and holds a 5% interest
CRE Commercial Real Estate LPO Loan Production Office TILA Truth in Lending Act
DIF Deposit Insurance Fund LTV Loan to Value TPS Trust Preferred Securities
Diluted Diluted earnings per Class A Common Share MBS Mortgage-Backed Securities TRS Tax Refund Solutions
EPS
Dodd- The Dodd-Frank Wall Street Reform and Consumer MSRs Mortgage Servicing Rights TRUP TPS Investment
Frank Act Protection Act
DTA Deferred Tax Assets NA Not Applicable USDA U.S. Department of Agriculture
DTL Deferred Tax Liabilities NASDAQ NASDAQ Global Select Market® VA U.S. Department of Veterans Affairs
EBITDA Earnings Before Interest, Taxes, Depreciation and NM Not Meaningful Warehouse Warehouse Lending
Amortization
Economic Economic Aid to Hard-Hit Small Businesses, OCI Other Comprehensive Income
Aid Act Nonprofits, and Venues Act
3
Cautionary Statement Regarding Forward-Looking Statements
This Annual Report on Form 10-K contains statements relating to future results of Republic Bancorp, Inc. that are considered
“forward-looking” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The forward-looking statements are principally, but not exclusively, contained in Part I Item 1
“Business,” Part I Item 1A “Risk Factors” and Part II Item 7 “Management’s Discussion and Analysis of Financial Condition and
Results of Operations.”
As used in this filing, the terms “Republic,” the “Company,” “we,” “our,” and “us” refer to Republic Bancorp, Inc., and, where the
context requires, Republic Bancorp, Inc. and its subsidiaries. The term the “Bank” refers to the Company’s subsidiary bank: Republic
Bank & Trust Company. The term the “Captive” refers to the Company’s insurance subsidiary: Republic Insurance Services, Inc.
Forward-looking statements discuss matters that are not historical facts. As forward-looking statements discuss future events or
conditions, the statements often include words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,”
“target,” “can,” “could,” “may,” “should,” “will,” “would,” “potential,” or similar expressions. Do not rely on forward-looking
statements. Forward-looking statements detail management’s expectations regarding the future and are not guarantees. Forward-
looking statements are assumptions based on information known to management only as of the date the statements are made and
management undertakes no obligation to update forward-looking statements, except as required by applicable law.
Broadly speaking, forward-looking statements include:
• the potential impact of inflation on Company operations;

• projections of revenue, income, expenses, losses, earnings per share, capital expenditures, dividends, capital structure, loan
volume, loan growth, deposit growth, or other financial items;
• descriptions of plans or objectives for future operations, products, or services;
• descriptions and projections related to management strategies for loans, deposits, investments, and borrowings;
• forecasts of future economic performance; and
• descriptions of assumptions underlying or relating to any of the foregoing.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results,
performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by the
forward-looking statements. Actual results may differ materially from those expressed or implied as a result of certain risks and
uncertainties, including, but not limited to the following:
• the impact of inflation on the Company’s operations and credit losses;

• litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory
agencies, whether pending or commencing in the future;
• natural disasters impacting the Company’s operations;
• changes in political and economic conditions;
• the discontinuation of LIBOR;
• the magnitude and frequency of changes to the FFTR implemented by the FOMC of the FRB;
• long-term and short-term interest rate fluctuations and the overall steepness of the U.S. Treasury yield curve, as well as their
impact on the Company’s net interest income and Mortgage Banking operations;
• competitive product and pricing pressures in each of the Company’s five reportable segments;
• equity and fixed income market fluctuations;
• client bankruptcies and loan defaults;
• recession;
• future acquisitions;
• integrations of acquired businesses;
• changes in technology;
• changes in applicable laws and regulations or the interpretation and enforcement thereof;
• changes in fiscal, monetary, regulatory, and tax policies;
• changes in accounting standards;
4
• monetary fluctuations;
• changes to the Company’s overall internal control environment;
• the ability of the Company to remediate its material weaknesses in its internal control over financial reporting;
• success in gaining regulatory approvals when required;
• the Company’s ability to qualify for future R&D federal tax credits;
• the ability for Tax Providers to successfully market and realize the expected RA and RT volume anticipated by TRS;
• information security breaches or cyber security attacks involving either the Company or one of the Company’s third-party
service providers; and
• other risks and uncertainties reported from time to time in the Company’s filings with the SEC, including Part 1 Item 1A
“Risk Factors.”
On October 26, 2022, Republic, the Bank and CBank entered into the CBank Agreement. Upon completion of the transaction, CBank
will be merged with and into RB&T, with RB&T as the survivor of the merger. CBank is headquartered in Cincinnati, Ohio. This
document contains statements regarding the proposed acquisition transaction that are not statements of historical fact and are
considered forward-looking statements within the criteria described above. These statements are likewise subject to various risks and
uncertainties that may cause actual results and outcomes of the proposed transaction to differ, possibly materially, from the anticipated
results or outcomes expressed or implied in these forward-looking statements. In addition to factors disclosed in reports filed by
Republic with the SEC, risks and uncertainties for Republic, CBank and the combined company include, but are not limited to: for the
parties to receive all regulatory approvals as provided for in the CBank Agreement, the ability to grow CBank loan and deposit
balances post-acquisition, unanticipated post-acquisition loan losses for Republic on CBank-originated loans, the ability of Republic
to integrate acquired operations including obtaining synergies, integration objectives and anticipated timelines, the ability of Republic
to integrate, manage and keep secure our information systems, and other risks and uncertainties reported from time to time in the
Company’s filings with the SEC, including Part 1 Item 1A “Risk Factors.”
PART I
Item 1. Business.
Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-
member financial institution that provides both traditional and non-traditional banking products through five reportable segments
using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery
channels allow it to reach clients across the U.S. The Captive is a Nevada-based, wholly owned insurance subsidiary of the Company.
The Captive provides property and casualty insurance coverage to the Company and the Bank, as well as a group of third-party
insurance captives for which insurance may not be available or economically feasible.
As of December 31, 2022, Republic had 42 full-service banking centers with locations as follows:
• Kentucky — 28
• Metropolitan Louisville — 18
• Central Kentucky — 7
• Georgetown — 1
• Lexington — 5
• Shelbyville — 1
• Northern Kentucky — 3
• Covington — 1
• Crestview Hills — 1
• Florence — 1
• Southern Indiana — 3
• Floyds Knobs — 1
• Jeffersonville — 1
• New Albany — 1
 Metropolitan Tampa, Florida — 7
 Metropolitan Cincinnati, Ohio — 2
 Metropolitan Nashville, Tennessee — 2
Republic’s headquarters are in Louisville, which is the largest city in Kentucky based on population.
5
The principal business of Republic is directing, planning, and coordinating the business activities of the Bank. The financial condition
and results of operations of Republic are primarily dependent upon the results of operations of the Bank. As of December 31, 2022,
Republic had total assets of $5.8 billion, total deposits of $4.5 billion, and total stockholders’ equity of $857 million. Based on total
assets as of December 31, 2022, Republic ranked as the second largest Kentucky-based financial holding company. The executive
offices of Republic are located at 601 West Market Street, Louisville, Kentucky 40202, telephone number (502) 584-3600. The
Company’s website address is www.republicbank.com.
Website Access to Reports
The Company makes its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments
to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, available free of charge
through its website, www.republicbank.com, as soon as reasonably practicable after the Company electronically files such material
with, or furnishes it to, the SEC. The information provided on the Company’s website is not part of this report, and is therefore not
incorporated by reference, unless that information is otherwise specifically referenced elsewhere in this report. The SEC maintains an
internet site at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers
that file electronically with the SEC.
General Business Overview
As of December 31, 2022, the Company was divided into five reportable segments: Traditional Banking, Warehouse, Mortgage
Banking, TRS, and RCS. Management considers the first three segments (Traditional Banking, Warehouse, Mortgage Banking) to
collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments (TRS and RCS) collectively constitute
RPG operations.
(I) Traditional Banking segment
As of December 31, 2022 and through the date of this filing, generally all Traditional Banking products and services were offered
through the Company’s traditional RB&T brand.
Lending Activities
The Bank’s principal lending activities consist of the following:
Retail Mortgage Lending — Through the Bank’s mortgage division, which consists of a retail channel and consumer direct
channel, as well as the Bank’s private banking division and banking center network, the Bank originates single-family, residential
real estate loans and HELOCs. Such loans are generally collateralized by owner-occupied, residential real estate properties. The
collateral for these loans is predominately located in the Bank’s market footprint, except for a small percentage of loans
originated through its Consumer Direct Channel, which are secured by owner-occupied collateral located outside of the Bank’s
market footprint. The Bank expects to relaunch its Correspondent Lending channel during the first quarter of 2023, with these
loans secured by owner-occupied collateral generally located outside of the Bank’s market footprint, as well.
The Bank offers single-family, first-lien residential real estate ARMs with interest rate adjustments tied to various market indices
with specified minimum and maximum adjustments. The Bank generally charges a premium interest rate for its ARMs if the
property is not owner occupied. The interest rates on the majority of ARMs are adjusted after their fixed rate periods on an annual
or semi-annual basis, with most having annual and lifetime limitations on upward rate adjustments to the loan. These loans
typically feature amortization periods of up to 30 years and have fixed interest-rate periods generally ranging from five to ten
years, with demand dependent upon market conditions. While there is no requirement for clients to refinance their loans at the end
of the fixed-rate period, clients have historically done so the majority of the time, as most clients are interest-rate-risk averse on
their first mortgage loans.
Depending on the term and amount of the ARM, loans collateralized by single family, owner-occupied first lien residential real
estate may be originated with an LTV up to 90%. The Bank also offers a 100% LTV product for medical doctors within its
primary markets. The Bank does not require the borrower to obtain private mortgage insurance for ARM loans. Except for its
HEAL product under $250,000, the Bank requires mortgagee’s title insurance on single family, first lien residential real estate
6
loans to protect the Bank against defects in its liens on the properties that collateralize the loans. The Bank normally requires title,
fire, and extended casualty insurance to be obtained by the borrower and, when required by applicable regulations, flood
insurance. The Bank maintains an errors and omissions insurance policy to protect the Bank against loss in the event a borrower
fails to maintain proper fire and other hazard insurance policies.
Single-family, first-lien residential real estate loans with fixed-rate periods of 15, 20, and 30 years are primarily originated and
sold into the secondary market. MSRs attached to the sold portfolio are either sold along with the loan or retained. Loans sold into
the secondary market, along with their corresponding MSRs, are included as a component of the Company’s Mortgage Banking
segment, as discussed elsewhere in this filing. The Bank, as it has in the past, may retain such longer-term, fixed-rate loans from
time to time in the future to help combat net interest margin compression. Any such loans retained on the Company’s balance
sheet would be reported as a component of the Traditional Banking segment.
The Bank does, on occasion, purchase single-family, first-lien residential real estate loans made to low-to-moderate income
borrowers and/or secured by property located in low-to-moderate income areas, which assists the Bank in meeting its obligations
under the CRA. In connection with loan purchases, the Bank receives various representations and warranties from the sellers
regarding the quality and characteristics of the loans.
Commercial Lending — The Bank conducts commercial lending activities primarily through Corporate Banking, Commercial
Banking, CRE Banking, Business Banking, and Retail Banking channels.
Commercial lending credit approvals and processing are prepared and underwritten through the Bank’s centralized CCAD.
Commercial clients are typically located within the Bank’s market footprint or in an adjoining market.
Credit opportunities are generally driven by the following: companies expanding their businesses; companies acquiring new
businesses; and/or companies refinancing existing debt from other institutions. The Bank has a focus on C&I lending, and owner-
occupied and non-owner-occupied CRE lending. The targeted C&I credit size for client relationships is typically between $1
million and $10 million, with higher targets between $10 million and $25 million for large Corporate Banking and CRE Division
borrowers of higher credit quality.
C&I loans typically include those secured by general business assets, which consist of equipment, accounts receivable, inventory,
and other business assets owned by the borrower/guarantor. Credit facilities include annually renewable lines of credit and term
loans with maturities typically from three to five years and may also involve financial covenant requirements. These requirements
are monitored by the Bank’s CCAD. Underwriting for C&I loans is based on the borrower’s capacity to repay these loans from
operating cash flows, typically measured by EBITDA, with capital strength, collateral, and management experience also
important underwriting considerations.
Corporate Banking focuses on larger C&I opportunities. Borrowers are generally single-asset entities and loan sizes typically
range from $5 million to $30 million. Primary underwriting considerations are project cash flows (current and historical),
financial capacity of sponsors, and collateral value financed. The majority of interest rates offered are based on a floating rate
index like term-SOFR and U.S. Treasuries. Fixed-rate terms of up to 10 years are available to borrowers by utilizing standard
Bank products or interest rate swaps. In many cases, limited guarantees, or in certain instances, non-recourse (of owners) loans
will be issued, with such cases based upon the equity/capital position, project cash flows, and stabilization of the borrowing
entity.
The Bank’s CRE Division, which launched in 2022, focuses on large CRE projects, typically $5 million to $25 million.
Borrowers are generally single-asset entities. Primary underwriting considerations are project cash flow (current and historical),
financial capacity of sponsors, and collateral value financed. Fixed rate financing and reciprocal interest rate swap’s are typically
used as well. Given the size of these credits, the Bank generally seeks established, well-known borrowers and projects with low
credit risk.
Commercial Banking focuses on medium sized C&I and CRE opportunities. Borrowers are generally single-asset entities and
loan sizes typically range from $1 million to $5 million. As with Corporate Banking, the primary underwriting considerations are
project cash flow (current and historical), quality of leases, financial capacity of sponsors, and collateral value of property
financed. Interest rates offered are based on both fixed and variable interest-rate formulas.
7
The Bank’s CRE and multi-family loans are typically secured by improved property such as office buildings, medical facilities,
retail centers, warehouses, apartment buildings, condominiums, schools, religious institutions, and other types of commercial use
property.
The Business Banking and Business Development groups, reporting under Retail Banking, focus on locally based small-to-
medium sized businesses in the Bank’s market footprint with primary annual revenues up to $10 million, and borrowings between
$200,000 and $1 million. The needs of these clients range from expansion or acquisition financing, equipment financing, owner-
occupied real estate financing, and smaller operating lines of credit.
The Bank is an SBA Preferred Lending Partner, which allows the Bank to underwrite and approve its own SBA loans in an
expedited manner. An experienced veteran lender oversees the Bank’s SBA Department. The Bank makes loans to borrowers
generally up to $3 million under the SBA “7A Program,” as well as utilize the “504 Program” for owner-occupied CRE
opportunities. The Bank’s goal is to expand its SBA platform over time and support the opportunities that arise within its
markets. The Bank’s lenders utilize all appropriate programs of the SBA to reduce credit risk exposure.
Construction and Land Development Lending — The Bank originates business loans for the construction of both single-
family, residential properties and commercial properties (apartment complexes, shopping centers, office buildings). While not a
focus for the Bank, the Bank may originate loans for the acquisition and development of residential or commercial land into
buildable lots.
Single-family, residential-construction loans are made in the Bank’s market area to established homebuilders with solid financial
records. The majority of these loans are made for “contract” homes, which the builder has already pre-sold to a homebuyer. The
duration of these loans is generally less than 12 months and repaid at the end of the construction period from the sale of the
constructed property. Some loans are made on “speculative” homes, which the builder does not have pre-sold to a homebuyer but
expects to execute a contract to sell during the construction period. These speculative homes are considered necessary to have in
inventory for homebuilders, as not all homebuyers want to wait during the construction period to purchase and move into a newly
built home.
Commercial-construction loans are made in the Bank’s market to established commercial builders with solid financial records.
Typically, these loans are made for investment properties and have tenants pre-committed for some or all of the space. Some
projects may begin as speculative, with the builder contracting to lease or sell the property during the construction period.
Generally, commercial-construction loans are made for the duration of the construction period and slightly beyond and will either
convert to permanent financing with the Bank or with another lender at or before maturity.
Construction-to-permanent loans are another type of construction-related financing offered by the Bank. These loans are made to
borrowers who are going to build a property and retain it for ownership after construction completion. The construction phase is
handled just like all other construction loans, and the permanent phase offers similar terms to a permanent CRE loan while
allowing the borrower a one-time closing process at loan origination. These loans are offered on both owner-occupied and
nonowner-occupied CRE.
Consumer Lending — Traditional Banking consumer loans made by the Bank include secured and unsecured personal loans, as
well as credit cards. The Bank predominately originates consumer credit cards as the main product within this lending. Credit
cards are generally marketed to existing clients of the Bank and are not generally marketed to non-clients.
Aircraft Lending — Aircraft loans are typically made to purchase or refinance personal aircrafts, along with engine overhauls
and avionic upgrades. Loans range between $55,000 and $3,000,000 in size and have terms up to 20 years. The aircraft loan
program is open to all fifty states.
8
The credit characteristics of an aircraft borrower are higher than a typical consumer in that they must demonstrate and indicate a
higher degree of credit worthiness for approval.
See additional discussion regarding Lending Activities under the sections titled:
• Part I Item 1A “Risk Factors”

• Part II Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
• Part II Item 8 “Financial Statements and Supplementary Data,” Footnote 4 “Loans and Allowance for Credit Losses”
The Bank’s other Traditional Banking activities generally consist of the following:
Private Banking — The Bank provides financial products and services to high-net-worth individuals through its Private Banking
department. The Bank’s Private Banking officers have extensive banking experience and are trained to meet the unique financial
needs of this clientele.
Treasury Management Department — The Bank provides various deposit products designed for commercial business clients
located throughout its market footprint. Lockbox processing, remote deposit capture, business on-line banking, account
reconciliation, and ACH processing are additional services offered to commercial businesses through the Bank’s Treasury
Management department. Treasury Management officers work closely with commercial and retail officers to support their client’s
cash management needs.
Correspondent Lending — The Bank expects to begin acquiring single family, first lien mortgage loans for investment through
its Correspondent Lending channel during the first quarter of 2023. Correspondent Lending generally involves the Bank
acquiring, primarily from its Warehouse Lending clients, closed loans that meet the Bank’s specifications. Substantially all loans
purchased through the Correspondent Lending channel will be purchased at a premium. Premiums on loans held for investment
acquired though the Correspondent Lending channel will be amortized into interest income on the level-yield method over the
expected life of the loan. Loans acquired through the Correspondent Lending channel will be generally made to borrowers
outside of the Bank’s historical market footprint.
Internet Banking — The Bank expands its market penetration and service delivery of its RB&T brand by offering clients
Internet Banking services and products through its website, www.republicbank.com.
Mobile Banking — The Bank allows clients to easily and securely access and manage their accounts through its mobile banking
application.
Other Banking Services — The Bank also provides title insurance and other financial institution related products and services.
Bank Acquisitions — The Bank maintains an acquisition strategy to selectively grow its franchise as a complement to its organic
growth strategies.
See additional discussion regarding the Traditional Banking segment under Footnote 25 “Segment Information” of Part II Item 8
“Financial Statements and Supplementary Data.”
9
(II) Warehouse Lending segment
The Core Bank provides short-term, revolving credit facilities to mortgage bankers across the United States through mortgage
warehouse lines of credit. These credit facilities are primarily secured by single-family, first-lien residential real estate loans. The
credit facility enables the mortgage banking clients to close single-family, first-lien residential real estate loans in their own name and
temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank. Individual advances
for loans are expected to remain on the warehouse line for an average of 15 to 30 days. Advances for Reverse mortgage loans and
construction loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for
each individual advance during the time the advance remains on the warehouse line and collected when the loan is sold. The Core
Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and
related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client.
See additional discussion regarding the Warehouse Lending segment under Footnote 25 “Segment Information” of Part II Item 8
(III) Mortgage Banking segment
Mortgage Banking activities primarily include 15-, 20- and 30-year fixed-term single-family, first-lien residential real estate loans that
are originated and sold into the secondary market, primarily to the FHLMC and the FNMA. The Bank typically retains servicing on
loans sold into the secondary market. Administration of loans with servicing retained by the Bank includes collecting principal and
interest payments, escrowing funds for property taxes and property insurance, and remitting payments to secondary market investors.
The Bank receives fees for performing these standard servicing functions.
As part of the sale of loans with servicing retained, the Bank records MSRs. MSRs represent an estimate of the present value of future
cash servicing income, net of estimated costs, which the Bank expects to receive on loans sold with servicing retained by the Bank.
MSRs are capitalized as separate assets. This transaction is posted to net gain on sale of loans, a component of “Mortgage Banking
income” in the income statement. Management considers all relevant factors, in addition to pricing considerations from other
servicers, to estimate the fair value of the MSRs to be recorded when the loans are initially sold with servicing retained by the Bank.
The carrying value of MSRs is initially amortized in proportion to and over the estimated period of net servicing income and
subsequently adjusted quarterly based on the weighted average remaining life of the underlying loans. The MSR amortization is
recorded as a reduction to net servicing income, a component of Mortgage Banking income.
With the assistance of an independent third party, the MSRs asset is reviewed at least quarterly for impairment based on the fair value
of the MSRs using groupings of the underlying loans based on predominant risk characteristics. Any impairment of a grouping is
reported as a valuation allowance. A primary factor influencing the fair value is the estimated life of the underlying loans serviced.
The estimated life of the loans serviced is significantly influenced by market interest rates. During a period of declining interest rates,
the fair value of the MSRs is expected to decline due to increased anticipated prepayment speeds within the portfolio. Alternatively,
during a period of rising interest rates, the fair value of MSRs would be expected to increase as prepayment speeds on the underlying
loans would be expected to decline.
See additional discussion regarding the Mortgage Banking segment under Footnote 25 “Segment Information” of Part II Item 8
10
(IV) Tax Refund Solutions segment
Through the TRS segment, the Bank is one of a limited number of financial institutions that facilitates the receipt and payment of
federal and state tax refund products and offers a credit product through third-party tax preparers located throughout the U.S., as well
as tax-preparation software providers (collectively, the “Tax Providers”). The majority of all the business generated by the TRS
business occurs during the first half of each year. During the second half of each year, TRS generates limited revenue and incurs costs
preparing for the next year’s tax season. TRS also originated $98 million of ERAs during December 2022 related to tax returns that
are anticipated to be filed during the first quarter 2023 tax filing season.
RTs are fee-based products whereby a tax refund is issued to the taxpayer after the Bank has received the refund from the federal or
state government. There is no credit risk or borrowing cost associated with these products because they are only delivered to the
taxpayer upon receipt of the tax refund directly from the governmental paying authority. Fees earned by the Company on RTs, net of
revenue share, are reported as noninterest income under the line item “Net refund transfer fees.”
The RA credit product is a loan made in conjunction with the filing of a taxpayer’s final federal tax return, which allows the taxpayer
to borrow funds as an advance of a portion of their tax refund. The RA product had the following features during the first quarters of
2022 and 2021:
• Offered only during the first two months of each year;

• The taxpayer was given the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum
advance amount of $6,250;
• No requirement that the taxpayer pays for another bank product, such as an RT;
• Multiple disbursement methods were available with most Tax Providers, including direct deposit, prepaid card, or check,
based on the taxpayer-customer’s election;
• Repayment of the RA to the Bank is deducted from the taxpayer’s tax refund proceeds; and
• If an insufficient refund to repay the RA occurs:
o there is no recourse to the taxpayer,
o no negative credit reporting on the taxpayer, and
o no collection efforts against the taxpayer.
The ERA credit product is similar to the RA with the distinction of the timing of when the ERA is originated and the documentation
available to underwrite the credit. The ERA is originated prior to the taxpayer receiving their fiscal year taxable income
documentation, e.g., W-2, and the filing of the taxpayer’s final federal tax return. As such, the Company generally uses paystub
information to underwrite the ERA. The repayment of the ERA is incumbent upon the taxpayer client returning to the Bank’s Tax
Provider for the filing of their final federal tax return in order for the tax refund to potentially be received by the Bank from the federal
government to pay off the advance. The ERA product related to the first quarter 2023 tax filing season had the following features:
• Offered only during December 2022 and January 2023;

• The taxpayer had the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance
amount of $1,000;
• Multiple disbursement methods were available with most Tax Providers, including direct deposit or prepaid card, based on
the taxpayer-customer’s election;
• Repayment of the ERA to the Bank is deducted from the taxpayer’s tax refund proceeds; and
• If an insufficient refund to repay the ERA occurs, including the failure to file a final federal tax return through a Republic
Tax Provider:
The Company reports fees paid for the RAs, including ERAs, as interest income on loans. RAs that were originated related to the first
quarter 2022 tax season were repaid, on average, within 32 days after the taxpayer’s tax return was submitted to the applicable taxing
authority. RAs do not have a contractual due date but the Company considered an RA, related to the first quarter 2022 tax season,
delinquent if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. The number
11
of days for delinquency eligibility is based on management’s annual analysis of tax return processing times. Provisions on RAs are
estimated when advances are made. Unpaid RAs, including ERAs, related to the first quarter tax season of a given year are charged-
off by June 30th of that year, with RAs collected during the second half of that year recorded as recoveries of previously charged-off
loans.
Related to the overall credit losses on RAs, including ERAs, the Bank’s ability to control losses is highly dependent upon its ability to
predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s RA approval
model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the RA volume occurs
each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes made, credit losses
during a current year could be higher than management’s predictions if tax refund payment patterns change materially between years.
In response to changes in the legal, regulatory, and competitive environment, management annually reviews and revises the RA,
including the ERA, product parameters. Further changes in the RA product parameters do not ensure positive results and could have
an overall material negative impact on the performance of all RA product offerings and therefore on the Company’s financial
condition and results of operations.
See additional discussion regarding the RA product under the sections titled:

See Footnote 1 “Summary of Significant Accounting Policies” of Part II Item 8 “Financial Statements and Supplementary Data” for
discussion regarding the cancelled sale of the TRS business and associated litigation.
Republic Payment Solutions division
RPS is currently managed and operated within the TRS segment. The RPS division offers general-purpose reloadable prepaid cards,
payroll debit cards, and limited-purpose demand deposit accounts with linked debit cards as an issuing bank through third-party
service providers. Until the operating results of the RPS division are material to the Company’s overall results of operations, they will
be reported as part of the TRS segment. The Company does not expect to report the RPS division as a separate reportable segment
until such time, if any, that it meets quantitative reporting thresholds.
The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue
generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.”
See additional discussion regarding the TRS segment under the sections titled:

• Part II Item 8 “Financial Statements and Supplementary Data,” Footnote 25 “Segment Information”
(V) Republic Credit Solutions segment
Through the RCS segment, the Bank offers consumer credit products. In general, the credit products are unsecured, small dollar
consumer loans that are dependent on various factors. RCS loans typically earn a higher yield but also have higher credit risk
compared to loans originated through the Traditional Banking segment, with a significant portion of RCS clients considered subprime
or near-prime borrowers. The Bank uses third-party service providers for certain services such as marketing and loan servicing of RCS
loans. Additional information regarding consumer loan products offered through RCS follows:
• RCS line-of-credit products – Using separate third-party service providers, the Bank originates two line-of-credit products to
generally subprime borrowers in multiple states. The first of these two products, the LOC I, has been originated by the Bank
since 2014. The second, the LOC II, was introduced in January 2021.
12
o RCS’s LOC I represented the substantial majority of RCS activity during 2021 and 2022. Elastic Marketing, LLC
and Elevate Decision Sciences, LLC, are third-party service providers for the product and are subject to the Bank’s
oversight and supervision. Together, these companies provide the Bank with certain marketing, servicing,
technology, and support services, while a separate third party provides customer support, servicing, and other
services on the Bank’s behalf. The Bank is the lender for this product and is marketed as such. Furthermore, the
Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of
the product.
The Bank sells participation interests in this product. These participation interests are a 90% interest in advances
made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold
three business days following the Bank’s funding of the associated advances. Although the Bank retains a 10%
participation interest in each advance, it maintains 100% ownership of the underlying LOC I account with each
borrower. Loan balances held for sale through this program are carried at the lower of cost or fair value.
o In January 2021, RCS began originating balances through its LOC II. One of RCS’s existing third-party service
providers, subject to the Bank’s oversight and supervision, provides the Bank with marketing services and loan
servicing for the LOC II product. The Bank is the lender for this product and is marketed as such. Furthermore, the
this product.
participation interest in each advance, it maintains 100% ownership of the underlying LOC II account with each
• RCS installment loan product – Through RCS, the Bank offers installment loans with terms ranging from 12 to 60 months to
borrowers in multiple states. The same third-party service provider for RCS’s LOC II is the third-party provider for the
installment loans. This third-party provider is subject to the Bank’s oversight and supervision and provides the Bank with
marketing services and loan servicing for these RCS installment loans. The Bank is the lender for these RCS installment
loans and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank
exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under
this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these
loans to a third-party, who is an affiliate of the Bank’s third-party service provider, generally within sixteen days following
the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under
a fair-value option, with the portfolio marked to market monthly.
• RCS healthcare receivables products – The Bank originates healthcare-receivables products across the U.S. through three
different third-party service providers.
o For two of the programs, the Bank retains 100% of the receivables, with recourse in the event of default.
o For the remaining program, in some instances the Bank retains 100% of the receivables originated, with recourse in
the event of default, and in other instances, the Bank sells 100% of the receivables generally within one month of
origination. Loan balances held for sale through this program are carried at the lower of cost or fair value.
The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains
or losses on sale and mark-to-market adjustments of RCS loans are reported as noninterest income under “Program fees.”
See additional discussion regarding the RCS segment under the sections titled:

• Part II Item 8 “Financial Statements and Supplementary Data,” Footnote 25 “Segment Information”
13
Employees and Human Capital Resources
As of December 31, 2022, Republic had 998 FTE employees. Altogether, Republic had 984 full-time and 28 part-time employees.
None of the Company’s employees are subject to a collective bargaining agreement, and Republic has never experienced a work
stoppage. The Company believes that it has had and continues to have good employee relations.
Employee retention helps the Company operate efficiently and effectively. Management promotes its core values through prioritizing
concern for employees’ well-being, supporting employees’ career goals, offering competitive wages, offering flexible schedules, and
providing valuable fringe benefits. In addition, Bank employees may become stockholders of the Company through participation in its
Employee Stock Purchase Plan and its 401(k) retirement plan, which offers a Company stock investment option.
The Company actively encourages and supports the growth and development of its employees. Management generally seeks to fill
positions by promotion and transfer from within the organization, whenever practical. Career development is advanced through
ongoing mentoring and development programs, as well as internally developed training programs, customized corporate training
engagements and educational reimbursement programs. Reimbursement is available to employees enrolled in pre-approved degree or
certification programs at accredited institutions that teach skills or knowledge relevant to the financial services industry and in
compliance with the Internal Revenue Code.
The safety, health, and wellness of Republic’s employees is considered a top priority. The Company promotes the health and wellness
of its employees by encouraging work-life balance, offering flexible work schedules, and striving to keep the employee portion of
health care premiums competitive with local competition. Additionally, Republic strives to clearly and frequently communicate
expectations that all employee conduct must adhere to the highest ethical standards encompassed by its corporate values, including
through town hall meetings and senior leadership messages.
Information about our Executive Officers
See Part III, Item 10. “Directors, Executive Officers and Corporate Governance.” for information about the Company’s executive
officers.
Competition
Traditional Banking
The Traditional Bank encounters intense competition in its market footprint in originating loans, attracting deposits, and selling other
banking related financial services. The deregulation of the banking industry, the ability to create financial services holding companies
to engage in a wide range of financial services other than banking and the widespread enactment of state laws that permit multi-bank
holding companies, as well as the availability of nationwide interstate banking, has created a highly competitive environment for
financial institutions. In one or more aspects of the Bank’s business, the Bank competes with local and regional retail and commercial
banks, other savings banks, credit unions, finance companies, mortgage companies, fintech companies, and other financial
intermediaries operating in Kentucky, Indiana, Florida, Tennessee, Ohio, and in other states where the Bank offers its products. The
Bank also competes with insurance companies, consumer finance companies, investment banking firms, and mutual fund managers.
Some of the Company’s competitors are not subject to the same degree of regulatory review and restrictions that apply to the
Company and the Bank. Many of the Bank’s primary competitors, some of which are affiliated with large bank holding companies or
other larger financial based institutions, have substantially greater resources, larger established client bases, higher lending limits,
more extensive banking center networks, numerous ATMs or ITMs, and greater advertising and marketing budgets. They may also
offer services that the Bank does not currently provide. These competitors attempt to gain market share through their financial product
mix, pricing strategies, and banking center locations. Legislative developments related to interstate branching and banking in general,
by providing large banking institutions easier access to a broader marketplace, can act to create more pressure on smaller financial
institutions to consolidate. It is anticipated that competition from both bank and non-bank entities will continue to remain strong in the
foreseeable future.
The primary factors in competing for bank products are convenient locations, ATMs, ITMs, flexible hours, deposit interest rates,
services, internet banking, mobile banking, range of lending services offered, and lending fees. The Bank believes that an emphasis on
highly personalized service tailored to individual client needs, together with the local character of the Bank’s business and its
14
“community bank” management philosophy will continue to enhance the Bank’s ability to compete successfully in its market
footprint.
Warehouse Lending
The Bank faces strong competition from financial institutions across the United States for mortgage banking clients in need of
warehouse lines of credit. Competitors may have substantially greater resources, larger established client bases, higher lending limits,
as well as underwriting standards and on-going oversight requirements that could be viewed more favorably by some clients. A few or
all of these factors can lead to a competitive disadvantage to the Company when attempting to retain or grow its Warehouse client
base.
Mortgage Banking
The Bank encounters intense competition from mortgage bankers, mortgage brokers, and financial institutions for the origination and
funding of mortgage loans. Many competitors have branch offices in the same areas where the Bank’s loan officers operate. The Bank
also competes with mortgage companies whose focus is often on telemarketing and consumer-direct lending.
Tax Refund Solutions
The TRS segment encounters direct competition for RT and RA market share from a limited number of banks in the industry. The
Bank promotes these products to Tax Providers using various revenue-share and pricing incentives, as well as product features and
overall service levels.
Republic Payment Solutions (a division of TRS)
The prepaid card industry is subject to intense and increasing competition. The Bank competes with a number of companies that
market different types of prepaid card products, such as general-purpose-reloadable, gift, incentive, and corporate disbursement cards.
There is also competition from large retailers who are seeking to integrate more financial services into their product offerings.
Increased competition is also expected from alternative financial services providers who are often well-positioned to service the
“underbanked” and who may wish to develop their own prepaid card programs.
Republic Credit Solutions
The small-dollar consumer loan industry is highly competitive. Competitors for the Company’s small-dollar loan programs include,
but are not limited to, billers who accept late payments for a fee, overdraft privilege programs of other banks and credit unions, as well
as payday lenders and fintech companies.
New entrants to the small-dollar consumer loan market must successfully implement underwriting and fraud prevention processes,
overcome consumer brand loyalty, and have sufficient capital to withstand early losses associated with unseasoned loan portfolios. In
addition, there are substantial regulatory and compliance costs, including the need for expertise to customize products associated with
licenses to lend in various states across the United States.
Supervision and Regulation
The Company and the Bank are separate and distinct entities and are subject to extensive federal and state banking laws and
regulations, which establish a comprehensive framework of activities in which the Company and the Bank may engage. These laws
and regulations are primarily intended to provide protection to clients and depositors, not stockholders. The Company, as a public
reporting company, is also subject to various securities laws and regulations.
As an umbrella supervisor, the FRB requires that FHCs operate in a safe and sound manner so that their financial condition does not
threaten the viability of affiliated depository institutions. The FRB conducts periodic examinations to review the Company’s
compliance with various legal and safety and soundness requirements, which directly impact the Bank.
15
The Bank is a Kentucky-chartered commercial banking and trust corporation and as such, it is subject to supervision and regulation by
the FDIC and the KDFI. The Bank also operates physical locations in Florida, Indiana, Ohio, and Tennessee, and originates and
purchases loans on a national basis. All deposits, subject to regulatory prescribed limitations, held by the Bank are insured by the
FDIC. The Bank is subject to restrictions, requirements, potential enforcement actions and examinations by the FDIC and KDFI.
The Bank is a member of the FHLB system. As a member of the FHLB system, the Bank must also comply with applicable
regulations of the Federal Housing Finance Agency. Regulation by each of these agencies is intended primarily for the protection of
the Bank’s clients and the DIF and not for the benefit of the Company’s stockholders. The Bank’s activities are also regulated under
federal and state consumer protection laws applicable to the Bank’s lending, deposit, and other activities. An adverse ruling or finding
against the Company or the Bank under these laws could have a material adverse effect on the results of operations.
The Company and the Bank are also subject to the regulations of the CFPB. The CFPB has consolidated rules and orders with respect
to consumer financial products and services and has substantial power to define the rights of consumers and responsibilities of lending
institutions, such as the Bank. The CFPB does not, however, examine or supervise the Bank for compliance with such regulations;
rather, based on the Bank’s size (less than $10 billion in assets), enforcement authority remains with the FDIC and the KDFI although
the Bank may be required to submit reports or other materials to the CFPB upon its request. Notwithstanding jurisdictional limitations
set forth in the Dodd-Frank Act, the CFPB and federal banking regulators may endeavor to work jointly on supervision matters.
Regulators have extensive discretion in connection with their supervisory and enforcement authority and examination policies,
including, but not limited to, policies that can materially impact the classification of assets and the establishment of adequate loan loss
reserves. Any change in regulatory requirements and policies, whether by the FRB, the FDIC, the KDFI, the CFPB or state or federal
legislation, could have a material adverse impact on Company operations.
Regulators also have broad enforcement powers over banks and their holding companies, including, but not limited to: the power to
mandate or restrict particular actions, activities, or divestitures; impose monetary fines and other penalties for violations of laws and
regulations; issue cease and desist or removal orders; seek injunctions; publicly disclose such actions; and prohibit unsafe or unsound
practices. This authority includes both informal and formal actions to effect corrective actions and/or sanctions. In addition, the Bank
is subject to regulation and potential enforcement actions by other state and federal agencies.
Certain regulatory requirements applicable to the Company and the Bank are referred to below or elsewhere in this filing. The
description of statutory provisions and regulations applicable to banks and their holding companies set forth in this filing does not
purport to be a complete description of such statutes and regulations. Their effect on the Company and the Bank is qualified in its
entirety by reference to the actual laws and regulations.
The Dodd-Frank Act
The Dodd-Frank Act, among other things, implemented changes that affected the oversight and supervision of financial institutions,
provided for a new resolution procedure for large financial companies, created the CFPB, introduced more stringent regulatory capital
requirements and significant changes in the regulation of over-the-counter derivatives, reformed the regulation of credit rating
agencies, increased controls and transparency in corporate governance and executive compensation practices, incorporated the
Volcker Rule, required registration of advisers to certain private funds, and influenced significant changes in the securitization market.
The Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 (the “EGRRCPA”) and its implementing regulations
pulled back some of the more stringent requirements of the Dodd-Frank Act for community banks with total consolidated assets of
less than $10 billion, such as the Bank. Due to exemptions in the Dodd-Frank Act, the EGRRCPA, and each Act’s implementing
regulations, the Company and Bank are not subject to several provisions of the Dodd-Frank Act including but not limited to 1) the
Durbin Amendment that would otherwise limit the interchange fees the Bank could charge on debit card transactions, 2) the Volcker
Rule that would affect the Company’s ability to invest in or engage in certain trading activities, and 3) stricter regulatory capital
requirements.
Incentive and Executive Compensation — In 2010, the FRB and other regulators published final interagency guidance for structuring
incentive compensation arrangements at financial organizations. The guidance does not set forth any formulas or pay caps but contains
certain principles that companies are required to follow with respect to employees and groups of employees that may expose the
company to material amounts of risk. The three primary principles are (i) balanced risk-taking incentives, (ii) compatibility with
16
effective controls and risk management, and (iii) strong corporate governance. The FRB and the FDIC monitor compliance with this
guidance as part of safety and soundness oversight.
I. The Company
Source of Strength Doctrine — The Dodd-Frank Act codifies the Federal Reserve Board’s existing “source of strength” policy that
holding companies act as a source of strength to their insured institution subsidiaries by providing capital, liquidity, and other support
in times of distress. FRB policies and regulations also prohibit bank holding companies from engaging in unsafe and unsound banking
practices. The FDIC and the KDFI have similar restrictions with respect to the Bank. Under the Dodd-Frank Act and in line with prior
FRB policy, a BHC is expected to act as a source of financial strength to its banking subsidiaries and to commit resources for their
support. This support may restrict the Company’s ability to pay dividends, and may be required at times when, absent this FRB policy,
a holding company may not be inclined to provide it. A BHC may also be required to guarantee the capital restoration plan of an
undercapitalized banking subsidiary and any applicable cross-guarantee provisions that may apply to the Company. In addition, any
capital loans by the Company to its bank subsidiary are subordinate in right of payment to deposits and to certain other indebtedness
of the bank subsidiary. In the event of a BHC’s bankruptcy, any commitment by the BHC to a federal bank regulatory agency to
maintain the capital of subsidiary bank will be assumed by the bankruptcy trustee and entitled to a priority of payment.
Acquisitions and Strategic Planning — The Company is required to obtain the prior approval of the FRB under the BHCA before it
may, among other things, acquire all or substantially all of the assets of any bank, or ownership or control of any voting shares of any
bank, if after such acquisition it would own or control, directly or indirectly, more than 5% of any class of the voting shares of such
bank. In addition, the Bank must obtain regulatory approval before entering into certain transactions, such as adding new banking
offices and mergers with, or acquisitions of, other financial institutions. This may affect the Company’s or the Bank’s acquisition or
timely acquisition of interests in other banks, other merger and acquisition activity and banking office expansion.
The BHCA and the Change in Bank Control Act also generally require the approval of the Federal Reserve before any person or
company can acquire control of a bank or BHC. Acquisition of control occurs if immediately after a transaction, the acquiring person
or company owns, controls, or holds voting securities of the institution with the power to vote 25% or more of any class. Control is
refutably presumed to exist if, immediately after a transaction, the acquiring person or company owns, controls, or holds voting
securities of the institution with the power to vote 10% or more of any class, and (i) the institution has registered securities under
Section 12 of the Securities Exchange Act of 1934; or (ii) no other person will own, control, or hold the power to vote a greater
percentage of that class of voting securities immediately after the transaction.
Financial Activities — The Company is an FHC. A BHC may elect to become an FHC if it and each of its banking subsidiaries is
well capitalized, is well managed and has at least a “Satisfactory” rating under the CRA. As an FHC, the Company is permitted to
engage directly or indirectly in a broader range of activities than those permitted for a BHC under the BHCA. Permitted activities for
an FHC include securities underwriting and dealing, insurance underwriting and brokerage, merchant banking and other activities that
are declared by the FRB, in cooperation with the Treasury Department, to be “financial in nature or incidental thereto” or are declared
by the FRB unilaterally to be “complementary” to financial activities. Permitted activities also include those determined to be “closely
related to banking” activities by the FRB under the BHCA and permissible for any BHC. An FHC is allowed to conduct permissible
new financial activities or acquire permissible non-bank financial companies with after-the-fact notice to the FRB.
To maintain FHC status, the Company and the Bank must continue to meet the well capitalized and well managed requirements and
maintain at least a “Satisfactory” rating under the CRA. The failure to meet such requirements could result in material restrictions on
the activities of the Company and may also adversely affect the Company’s ability to enter into certain transactions (including mergers
and acquisitions) or obtain necessary approvals in connection therewith, as well as loss of FHC status. If restrictions are imposed on
the activities of an FHC, such information may not necessarily be available to the public.
II. The Bank
The Kentucky and federal banking statutes prescribe the permissible activities in which a Kentucky chartered bank may engage and
where those activities may be conducted. Kentucky’s statutes contain a super parity provision that permits a well-rated Kentucky bank
to engage in any banking activity in which a national bank in Kentucky, a state bank, state thrift, or state savings association operating
in any other state, a federal savings bank, or a federal thrift meeting the qualified thrift lender test engages, provided it first obtains a
legal opinion from counsel specifying the statutory or regulatory provisions that permit the activity.
17
Safety and Soundness — The federal banking regulatory agencies have prescribed, by regulation, guidelines for all insured depository
institutions relating to: (i) internal controls, information systems, and internal audit systems; (ii) loan documentation; (iii) credit
underwriting; (iv) interest rate risk exposure; (v) asset growth; (vi) asset quality; (vii) earnings; and (viii) compensation, fees, and
benefits. The guidelines set forth safety and soundness standards that the federal banking regulatory agencies use to identify and
address problems at FDIC member institutions before capital becomes impaired. If the FDIC determines that the Bank fails to meet
any standard prescribed by the guidelines, the FDIC may require the Bank to submit to it an acceptable plan to achieve compliance
with the standard. FDIC regulations establish deadlines for the submission and review of such safety and soundness compliance plans
in response to any such determination.
Branching — Kentucky law generally permits a Kentucky chartered bank to establish a branch office in any county in Kentucky. A
Kentucky bank may also, subject to regulatory approval and certain restrictions, establish a branch office outside of Kentucky. Well-
capitalized Kentucky state chartered banks that have been in operation at least three years and that satisfy certain criteria relating to,
among other things, their composite and management regulatory exam ratings, may establish a branch in Kentucky without the
approval of the Commissioner of the KDFI, upon notice to the KDFI and any other state bank with its main office located in the
county where the new branch will be located. Branching by banks not meeting these criteria requires the approval of the
Commissioner of the KDFI, who must ascertain and determine that the public convenience and advantage will be served and promoted
and that there is a reasonable probability of the successful operation of the branch. In any case, the proposed branch must also be
approved by the FDIC, which considers a number of factors, including financial condition, capital adequacy, earnings prospects,
character of management, needs of the community, and consistency with corporate powers. As a result of several legislative acts
including the Dodd-Frank Act, the Bank, along with any other national or state-chartered bank, generally may branch across state
lines. Such unlimited branching authority has the potential to increase competition within the markets in which the Company and the
Bank operate.
Restrictions on Affiliate Transactions and Loans to Insiders — Transactions between the Bank and its affiliates, and in some cases the
Bank’s correspondent banks, are subject to FDIC regulations, the FRB’s Regulations O and W, and Sections 23A, 23B, 22(g), and
22(h) of the Federal Reserve Act (“FRA”). In general, these transactions must be on terms and conditions that are consistent with safe
and sound banking practices and substantially the same, or at least as favorable to the bank or its subsidiary, as those for comparable
transactions with non-affiliated parties. In addition, certain types of these transactions referred to as “covered transactions” are subject
to quantitative limits based on a percentage of the Bank’s capital, thereby restricting the total dollar amount of transactions the Bank
may engage in with each individual affiliate and with all affiliates in the aggregate. Limitations are also imposed on loans and
extensions of credit by a bank to its executive officers, directors, and principal stockholders and each of their related interests. The
Dodd-Frank Act expanded the scope of these regulations, including by applying them to the credit exposure arising under derivative
transactions, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions.
The FRB promulgated Regulation W to implement Sections 23A and 23B of the FRA. This regulation contains many of the foregoing
restrictions and addresses derivative transactions, overdraft facilities, and other transactions between a bank and its non-bank
affiliates.
Restrictions on Distribution of Subsidiary Bank Dividends and Assets — Bank regulators may declare a dividend payment to be
unsafe and unsound even if the Bank continues to meet its capital requirements after the dividend. Dividends paid by the Bank provide
substantially all of the Company’s operating funds. Regulatory requirements limit the amount of dividends that may be paid by the
Bank. Under federal regulations, the Bank cannot pay a dividend if, after paying the dividend, the Bank would be undercapitalized.
Under Kentucky and federal banking regulations, the dividends the Bank can pay during any calendar year are generally limited to its
profits for that year, plus its retained net profits for the two preceding years, less any required transfers to surplus or to fund the
retirement of preferred stock or debt, absent approval of the respective state or federal banking regulators. FDIC regulations also
require all insured depository institutions to remain in a safe and sound condition, as defined in regulations, as a condition of having
FDIC deposit insurance.
FDIC Deposit Insurance Assessments — All Bank deposits are insured to the maximum extent permitted by the DIF. These bank
deposits are backed by the full faith and credit of the U.S. Government. As insurer, the FDIC is authorized to conduct examinations of,
and to require reporting by, insured institutions. It also may prohibit any insured institution from engaging in any activity determined
by regulation or order to pose a serious threat to the DIF.
18
The FDIC assesses all banks quarterly. A bank’s assessment base and assessment rates are determined quarterly and are risk-based.
For small banks (such as the Bank) post-Dodd-Frank, individual assessment rates are individually assigned based on the FDIC’s
financial ratios method that estimates the probability of the bank’s failure over three years using financial data and a weighted average
of the bank’s CAMELS component ratings, subject to adjustment. CAMELS composite ratings are used to set minimum and
maximum assessment rates. The assessment base, post-Dodd-Frank, is the average consolidated total assets minus average tangible
equity. Management cannot predict what insurance assessment rates will be in the future.
The FDIC may terminate the deposit insurance of any insured depository institution, including the Bank, if it determines that the
institution has engaged or is engaging in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or
has violated any applicable law, regulation, order or any condition imposed by an agreement with the FDIC. It may also suspend
deposit insurance temporarily if the institution has no tangible capital. If insurance is terminated, the accounts at the institution at the
time of the termination, less subsequent withdrawals, shall continue to be insured for a period of six months to two years, as
determined by the FDIC. Management is aware of no existing circumstances that would result in termination of the Bank’s FDIC
deposit insurance.
Anti-Money Laundering, Patriot Act; OFAC Sanctions — The Company and the Bank are subject to federal laws that are designed to
counter money laundering and terrorist financing, and transactions with persons, companies, or foreign governments sanctioned by the
United States. These laws include the Bank Secrecy Act, the Money Laundering Control Act, the Anti-Money Laundering Act of
2020, the Corporate Transparency Act, and the USA Patriot Act, as administered by the United States Treasury Department’s
Financial Crimes Enforcement Network. These laws obligate depository institutions and broker-dealers to verify their customers’
identity, conduct customer due diligence, report on suspicious activity, file reports of certain transactions in currency, and conduct
enhanced due diligence on certain accounts. The United States Treasury Department’s Office of Foreign Assets Control prohibits
persons from engaging in transactions with certain designated restricted countries and persons. Depository institutions and broker-
dealers are required by their federal regulators to maintain robust policies and procedures in order to ensure compliance with these
anti-money laundering and anti-terrorist financing obligations.
Failure to comply with these laws or maintain an adequate compliance program can lead to significant monetary penalties and
reputational damage. Federal regulators evaluate the effectiveness of an applicant in combating money laundering when determining
whether to approve a proposed bank merger, acquisition, restructuring, or other expansionary activity.
Consumer Laws and Regulations — The Bank is subject to a number of federal and state consumer protection laws, including, but not
limited to, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the
Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Military Lending Act, the Real Estate Settlement
Procedures Act, the Servicemembers Civil Relief Act, the Telephone Consumer Protection Act, and these laws’ respective state-law
counterparts, among many others. As discussed in more detail below, the Bank also complies with fair lending and privacy laws.
Banks as well as nonbank consumer financial providers are subject to any rule, regulation or guideline created by the CFPB. The
CFPB is an independent “watchdog” within the Federal Reserve System that regulates any person or service provider who offers or
provides personal, family or household financial products or services by overseeing the application and implementation of “Federal
consumer financial laws”.
The CFPB is authorized to prescribe rules applicable to any covered person or service provider identifying and prohibiting acts or
practices that are unfair, deceptive, or abusive in connection with any consumer financial product or service transaction. The CFPB
has engaged in rulemaking and taken enforcement actions that directly impact the business operations of financial institutions offering
consumer financial products or services including the Bank and its divisions. The FDIC also regulates unfair and deceptive or abusive
acts or practices under Section 5 of the Federal Trade Commission Act.
Such laws and regulations and the other consumer protection laws and regulations to which the Bank has been subject have
historically mandated certain disclosure requirements and regulated the manner in which financial institutions must deal with clients
when taking deposits from, making loans to, or engaging in other types of transactions with, such clients. The continued effect of the
CFPB on the development and promulgation of consumer protection rules and guidelines and the enforcement of federal “consumer
financial laws” on the Bank, if any, cannot be determined with certainty at this time.
19
Community Reinvestment Act and Fair Lending Laws — Banks have a responsibility under the CRA and related regulations of the
FDIC to help meet the credit needs of their entire communities, including low- and moderate-income neighborhoods. In addition, the
Equal Credit Opportunity Act and the Fair Housing Act prohibit lenders from discriminating in their lending practices on the basis of
characteristics specified in those statutes. An institution’s failure to comply with the provisions of the CRA could, at a minimum,
result in regulatory restrictions on its activities and the denial of applications. In addition, an institution’s failure to comply with the
Equal Credit Opportunity Act and the Fair Housing Act could result in the FDIC, other federal regulatory agencies, or the Department
of Justice, taking enforcement actions against the institution. Failure by the Bank to fully comply with these laws could result in
material penalties being assessed against the Bank. The Bank received a “Satisfactory” CRA Performance Evaluation in January 2020,
the most recent evaluation for which it has received final ratings. A copy of the public section of this CRA Performance Evaluation is
available to the public upon request.
Privacy and Data Security — The FRB, FDIC, other bank regulatory agencies, and States have adopted guidelines for safeguarding
confidential, personal customer information. These guidelines require each financial institution, under the supervision and ongoing
oversight of its board of directors or an appropriate committee thereof, to create, implement and maintain a comprehensive written
information security program designed to ensure the security and confidentiality of customer information, protect against any
anticipated threats or hazards to the security or integrity of such information and protect against unauthorized access to or use of such
information that could result in substantial harm or inconvenience to any customer. If the Bank fails to properly safeguard customer
information or is the subject of a successful cyber-attack, it could result in material fines and/or liabilities that would materially affect
the Company’s results of operations. Moreover, in November 2021, the FRB, FDIC, and Office of the Comptroller of the Currency
issued a joint final rule establishing computer-security incident notification requirements for banking organizations and their bank
service providers. Effective April 2022, with full compliance no later than May 2022, banking organizations are required to satisfy
specified consumer notice requirements if an incident occurs, which may include a major computer-system failure; a cyber-related
interruption, such as a distributed denial of service or ransomware attack; or another type of significant operational interruption.
In addition, various U.S. regulators, including the Federal Reserve and the SEC, have increased their focus on cyber-security through
guidance, examinations, and regulations. The Company’s Board has approved and adopted a customer information security program.
The GLBA requires financial institutions to implement policies and procedures regarding the disclosure of nonpublic personal
information about consumers to non-affiliated third parties. In general, the statute requires explanations to consumers on policies and
procedures regarding the disclosure of such nonpublic personal information, and, except as otherwise required by law, prohibits
disclosing such information except as provided in the banking subsidiary’s policies and procedures. In addition to the GLBA, the
Company and the Bank are also subject to applicable state privacy laws.
Prohibitions Against Tying Arrangements — The Bank is subject to prohibitions on certain tying arrangements. A depository
institution is prohibited, subject to certain exceptions, from extending credit to or offering any other service, or fixing or varying the
consideration for such extension of credit or service, on the condition that the client obtain some additional product or service from the
institution or its affiliates or not obtain services of a competitor of the institution.
Depositor Preference — The FDIA provides that, in the event of the “liquidation or other resolution” of an insured depository
institution, the claims of depositors of the institution, including the claims of the FDIC as subrogee of insured depositors, and certain
claims for administrative expenses of the FDIC as a receiver, will have priority over other general unsecured claims against the
institution. If an insured depository institution fails, insured and uninsured depositors, along with the FDIC, will have priority in
payment ahead of unsecured, non-deposit creditors (including depositors whose deposits are payable only outside of the U.S.), and the
parent BHC, with respect to any extensions of credit they have made to such insured depository institution.
Federal Home Loan Bank System — The FHLB offers credit to its members, which include savings banks, commercial banks,
insurance companies, credit unions, and other entities. The FHLB system is currently divided into eleven federally chartered regional
FHLBs that are regulated by the Federal Housing Finance Agency. The Bank is a member and owns capital stock in the FHLB
Cincinnati. The amount of capital stock the Bank must own to maintain its membership depends on its balance of outstanding
advances. It is required to acquire and hold shares in an amount at least equal to 1% of the aggregate principal amount of its unpaid
single-family, residential real estate loans and similar obligations at the beginning of each year, or 1/20th of its outstanding advances
from the FHLB, whichever is greater. Advances are secured by pledges of loans, mortgage backed securities, and capital stock of the
FHLB. FHLBs also purchase mortgages in the secondary market through their Mortgage Purchase Program,. The Bank has never sold
loans to the Mortgage Purchase Program.
20
In the event of a default on an advance, the Federal Home Loan Bank Act establishes priority of the FHLB’s claim over various other
claims. If an FHLB falls below its minimum capital requirements, the FHLB may seek to require its members to purchase additional
capital stock of the FHLB. If problems within the FHLB system were to occur, it could adversely affect the pricing or availability of
advances, the amount and timing of dividends on capital stock issued by FHLB Cincinnati to its members, or the ability of members to
have their FHLB capital stock redeemed on a timely basis. Congress continues to consider various proposals that could establish a
new regulatory structure for the FHLB system, as well as for other government-sponsored entities. The Bank cannot predict at this
time, which, if any, of these proposals may be adopted or what effect they would have on the Bank’s business.
Federal Reserve System — Under regulations of the FRB, the Bank is required to maintain noninterest-earning reserves against its
transaction accounts (primarily NOW and regular checking accounts). The Bank is in compliance with the foregoing reserve
requirements. Required reserves must be maintained in the form of vault cash, a depository account at the FRB, or a pass-through
account as defined by the FRB. The balances maintained to meet the reserve requirements imposed by the FRB may be used to satisfy
liquidity requirements imposed by the FDIC. The Bank is also authorized to borrow from the FRB discount window.
Loans to One Borrower — Under current limits, loans and extensions of credit outstanding at one time to a single borrower and not
fully secured generally may not exceed 15% of the institution’s unimpaired capital and unimpaired surplus. Loans and extensions of
credit fully secured by certain readily marketable collateral may represent an additional 10% of unimpaired capital and unimpaired
surplus.
Capital Adequacy Requirements
Capital Guidelines — The Company and the Bank are subject to capital regulations in accordance with Basel III, as administered by
banking regulators. Regulatory agencies measure capital adequacy within a framework that makes capital requirements, in part,
dependent on the individual risk profiles of financial institutions. Failure to meet minimum capital requirements can initiate certain
mandatory and possibly additional discretionary actions by regulators, including prompt corrective action as described below, that, if
undertaken, could have a direct material effect on Republic’s financial statements. Under capital adequacy guidelines and the
regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve
quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items, as calculated under regulatory
accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators regarding
components, risk weightings, and other factors.
Banking regulators have categorized the Bank as well-capitalized. For purposes of determining if prompt corrective action is called
for, the regulations in accordance with Basel III define “well capitalized” as a 10.0% Total Risk-Based Capital ratio, a 6.5% Common
Equity Tier 1 Risk-Based Capital ratio, an 8.0% Tier 1 Risk-Based Capital ratio, and a 5.0% Tier 1 Leverage ratio. Additionally, in
order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive
officers, the Company and Bank must hold a capital conservation buffer of 2.5% composed of Common Equity Tier 1 Risk-Based
Capital above their minimum risk-based capital requirements.
21
As of December 31, 2022 and 2021, the Company’s capital ratios* were as follows:
2022 2021
December 31, (dollars in thousands) Amount Ratio Amount Ratio
Total capital to risk-weighted assets

Republic Bancorp, Inc. $ 941,865 17.92 % $ 879,310 17.48 %
Republic Bank & Trust Company 904,592 17.23 862,637 17.16
Common equity tier 1 capital to risk-weighted assets

Tier 1 (core) capital to risk-weighted assets

Tier 1 leverage capital to average assets

* The Company and the Bank elected to defer the impact of CECL on regulatory capital. The deferral period is five years, with the
total estimated CECL impact 100% deferred for 2020 and 2021, then phased in over the next three years of 2022 through 2024. If not
for this election, the Company’s regulatory capital ratios would have been approximately 10 basis points and 12 basis points lower
than those presented in the table above as of December 31, 2022 and 2021.
Corrective Measures for Capital Deficiencies — The banking regulators are required to take “prompt corrective action” with respect
to capital deficient institutions. Agency regulations define, for each capital category, the levels at which institutions are well
capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. A bank is
undercapitalized if it fails to meet any one of the ratios required to be adequately capitalized.
Undercapitalized, significantly undercapitalized, and critically undercapitalized institutions are required to submit a capital restoration
plan, which must be guaranteed by the holding company of the institution. In addition, agency regulations contain broad restrictions
on certain activities of undercapitalized institutions including asset growth, acquisitions, branch establishment, and expansion into new
lines of business. With certain exceptions, an insured depository institution is prohibited from making capital distributions, including
dividends, and is prohibited from paying management fees to control persons if the institution would be undercapitalized after any
such distribution or payment. A bank’s capital classification will also affect its ability to accept brokered deposits. Under banking
regulations, a bank may not lawfully accept, roll over, or renew brokered deposits unless it is either well capitalized or it is adequately
capitalized and receives a waiver from its applicable regulator.
If a banking institution’s capital decreases below acceptable levels, bank regulatory enforcement powers become more enhanced. A
significantly undercapitalized institution is subject to mandated capital raising activities, restrictions on interest rates paid and
transactions with affiliates, removal of management, and other restrictions. Banking regulators have limited discretion in dealing with
a critically undercapitalized institution and are normally required to appoint a receiver or conservator. Banks with risk-based capital
and leverage ratios below the required minimums may also be subject to certain administrative actions, including the termination of
deposit insurance upon notice and hearing, or a temporary suspension of insurance without a hearing if the institution has no tangible
capital.
In addition, a BHC may face significant consequences if its bank subsidiary fails to maintain the required capital and management
ratings, including entering into an agreement with the FRB that imposes limitations on its operations and may even require
divestitures. Until such deficiencies are corrected, the FRB may impose any limitations or conditions on the conduct or activities of
the FHC and its affiliates that the FRB determines are appropriate, and the FHC may not commence any additional activity or acquire
control of any company under Section 4(k) of the BHCA without prior FRB approval. Unless the period for compliance is extended by
the FRB, if an FHC fails to correct deficiencies in maintaining its qualification for FHC status within 180 days of notice to the FRB,
22
the FRB may order divestiture of any depository institution controlled by the company. A company may comply with a divestiture
order by ceasing to engage in any financial or other activity that would not be permissible for a BHC that has not elected to be treated
as an FHC. The Company is currently classified as an FHC.
Under FDICIA, each federal banking agency has prescribed, by regulation, non-capital safety and soundness standards for institutions
under its authority. These standards cover internal controls, information systems and internal audit systems, loan documentation, credit
underwriting, interest rate exposure, asset growth, compensation, fees and benefits, such other operational and managerial standards as
the agency determines to be appropriate, and standards for asset quality, earnings, and stock valuation. An institution that fails to meet
these standards must develop a plan acceptable to the agency, specifying the steps that the institution will take to meet the standards.
Failure to submit or implement such a plan may subject the institution to regulatory sanctions.
Other Regulation and Legislative Initiatives
Any change in the laws and regulations affecting the Bank’s operations is not predictable and could affect the Bank’s operations and
profitability. The U.S. Congress and state legislative bodies also continually consider proposals for altering the structure, regulation,
and competitive relationships of financial institutions. It cannot be predicted whether, or in what form, any of these potential proposals
or regulatory initiatives will be adopted, the impact the proposals will have on the financial institutions industry or the extent to which
the business or financial condition and operations of the Company and its subsidiaries may be affected.
Statistical Disclosures
The statistical disclosures required by Part I Item 1 “Business” are located under Part II Item 7 “Management’s Discussion and
Analysis of Financial Condition and Results of Operations.”
Item 1A. Risk Factors.
FACTORS THAT MAY AFFECT FUTURE RESULTS
An investment in Republic’s common stock is subject to risks inherent in its business. The following are the material risk factors that
impact us of which we are currently aware. Before making an investment decision, you should carefully consider the risks and
uncertainties described below together with all the other information included in this filing. In addition to the risks and uncertainties
described below, other risks and uncertainties not currently known to the Company or that the Company currently deems to be
immaterial also may materially and adversely affect its business, financial condition, and results of operations in the future. The value
or market price of the Company’s common stock could decline due to any of these identified or other risks, and an investor could lose
all or part of their investment.
There are factors, many beyond the Company’s control, which may significantly change the results or expectations of the Company.
Some of these factors are described below, however, many are described in the other sections of this Annual Report on Form 10-K.
REGULATORY AND LEGAL RISKS
The Bank’s RPG products represent a significant legal, compliance and regulatory risk, and if RB&T fails to comply with all statutory
and regulatory requirements, it could have a material negative impact on earnings. Federal and state laws and regulations govern
numerous matters relating to the offering of consumer loan products and consumer deposit. Failure to comply with disclosure
requirements or with laws relating to the permissibility of interest rates and fees charged could have a material negative impact on
earnings. In addition, failure to comply with applicable laws and regulations could also expose RB&T to civil money penalties and
litigation risk, including shareholder actions. Various states and consumer groups have, from time to time, questioned the fairness of
the products offered by RPG. Initiatives at the federal and state level, including by governmental agencies and consumer groups, could
result in regulatory, governmental, or legislative action or litigation, which could have a material adverse effect on the Company’s
RPG operations. If the Company can no longer offer or must substantially alter its RPG products, it will have a material adverse effect
on its profits.
23
The Bank’s RPG products represent a significant third-party management risk, and if the Bank’s third-party service providers fail to
comply with all the statutory and regulatory requirements for these products or if the Bank fails to properly monitor its third-party
service providers offering these products, it could have a material negative impact on earnings. RPG and its third-party service
providers operate in a highly regulated environment and deliver products and services that are subject to strict legal and regulatory
requirements. Failure by the Bank’s third-party service providers or failure of the Bank to properly monitor the compliance of its
third-party service providers with laws and regulations could result in fines and penalties that materially and adversely affect the
Bank’s earnings. Such penalties could also include the discontinuance of any or all third-party program manager products and
services.
The Bank’s “Overdraft Honor” program represents a significant business risk, and if the Bank terminated the program, it would
materially impact the earnings of the Bank. There can be no assurance that Congress, the Bank’s regulators, or others, will not
impose additional limitations on this program or prohibit the Bank from offering the program. The Bank’s “Overdraft Honor”
program permits eligible customers to opt into the Bank’s overdraft program and overdraft their checking accounts up to a limit that is
calculated and assigned each day for the Bank’s customary overdraft fee(s). Generally, to be eligible for the Overdraft Honor
program, customers must qualify for one of the Bank’s traditional checking products when the account is opened and have recurring
deposit activity. During the first 30 days after an account is opened, a client may participate in the Overdraft Honor program with a
small, fixed limit amount depending upon the account type. After the initial 30 day period a daily overdraft limit is calculated based
upon deposits and other activity in the account. If an overdraft occurs, the Bank may pay the overdraft, at its discretion, up to the
client’s individual overdraft limit. Under regulatory guidelines, customers utilizing the Overdraft Honor program may remain in
overdraft status for no more than 60 days before it must be closed and charged off.
Loans originated through the Bank’s Consumer Direct and Correspondent Lending channels subject the Bank to regulatory and legal
risks that the Bank does not have through its historical origination and servicing channels. Loans serviced outside the Bank’s
traditional footprint also subject the Bank to various state-level servicing laws and regulations that are different than those within the
Bank’s traditional footprint and may impact the Bank’s ability to collect a deficiency and timely foreclose on a loan that becomes
delinquent. Failure by the Bank to properly comply with these various state level laws and regulations could subject the Bank to fines
and penalties that materially and adversely affect the Bank’s earnings. Such penalties could also include the discontinuance of the
Consumer Direct Channel or Corresponding Lending operations.
Failure to appropriately manage these additional risks could lead to additional regulatory and compliance risks, as well as create
burdens that reduce profitability or cause operating losses from these origination channels.
The Company is significantly impacted by the regulatory, fiscal, and monetary policies of federal and state governments that could
negatively impact the Company’s liquidity position and earnings. These policies can materially affect the value of the Company’s
financial instruments and can also adversely affect the Company’s clients and their ability to repay their outstanding loans. In
addition, failure to comply with laws, regulations or policies, or adverse examination findings, could result in significant penalties,
negatively impact operations, or result in other sanctions against the Company. The Board of Governors of the Federal Reserve
System regulates the supply of money and credit in the U.S. Its policies determine, in large part, the Company’s cost of funds for
lending and investing and the return the Company earns on these loans and investments, all of which impact net interest margin.
The Company and the Bank are heavily regulated at both the federal and state levels and are subject to various routine and non-routine
examinations by federal and state regulators. This regulatory oversight is primarily intended to protect depositors, the Deposit
Insurance Fund, and the banking system, not the stockholders of the Company. Changes in policies, regulations and statutes, or the
interpretation thereof, could significantly impact the product offerings of Republic causing the Company to terminate or modify its
product offerings in a manner that could materially adversely affect the earnings of the Company.
Federal and state laws and regulations govern numerous matters including changes in the ownership or control of banks and bank
holding companies, maintenance of adequate capital and the financial condition of a financial institution, permissible types, amounts
and terms of extensions of credit and investments, permissible non-banking activities, the level of reserves against deposits and
restrictions on dividend payments. Various federal and state regulatory agencies possess cease and desist powers, and other authority
to prevent or remedy unsafe or unsound practices or violations of law by banks subject to their regulations. The FRB possesses similar
powers with respect to bank holding companies. These, and other restrictions, can limit in varying degrees, the way Republic conducts
its business.
24
Federal and state laws and regulations govern numerous matters relating to the offering of banking products. Failure to comply with
disclosure requirements or with laws, including those relating to the permissibility of interest rates and fees charged, could have a
material negative impact on earnings. In addition, failure to comply with applicable laws and regulations could also expose RB&T to
civil money penalties and litigation risk, including shareholder actions. Initiatives of the current President and the current Congress,
along with actions of the states, governmental agencies, and consumer groups, could result in regulatory, governmental, or legislative
action or litigation, which could have a material adverse effect on the Company’s operations.
Use of third parties creates a third-party management risk. If RB&T’s third-party service providers fail to comply with all the
statutory and regulatory requirements for these products or if RB&T fails to properly monitor its third-party service providers
offering these products, it could have a material negative impact on earnings. RB&T and its third-party service providers operate in a
highly regulated environment and deliver products and services that are subject to strict legal and regulatory requirements. Failure by
RB&T’s third-party service providers or failure of RB&T to properly monitor the compliance of its third-party service providers with
laws and regulations could result in fines and penalties that materially and adversely affect RB&T’s earnings.
The Company may be subject to examinations by taxing authorities that could adversely affect results of operations. In the normal
course of business, the Company may be subject to examinations from federal and state taxing authorities regarding the amount of
taxes due in connection with investments it has made and the businesses in which the Company is engaged. Federal and state taxing
authorities have continued to be aggressive in challenging tax positions taken by financial institutions. The challenges made by taxing
authorities may result in adjustments to the timing or amount of taxable income or deductions or the allocation of income among tax
jurisdictions. If any such challenges are made and are not resolved in the Company’s favor, they could have an adverse effect on the
Company’s financial condition and results of operations.
Transactions between the Company and its insurance subsidiary, the Captive, may be subject to certain IRS responsibilities and
penalties. The Company’s Captive is a Nevada-based, wholly owned insurance subsidiary of the Company that provides property and
casualty insurance coverage to the Company and the Bank as well as a group of other third-party insurance captives for which
insurance may not be available or economically feasible. The Treasury Department of the United States and the IRS by way of Notice
2016-66 have stated that transactions believed similar in nature to transactions between the Company and the Captive may be deemed
“transactions of interest” because such transactions may have potential for tax avoidance or evasion. If the IRS ultimately concludes
such transactions do create tax avoidance or evasion issues, the Company could be subject to the payment of penalties and interest.
CREDIT RISKS
RAs represent a significant credit risk, and if the Bank is unable to collect a significant portion of its RAs, it would materially,
negatively impact earnings. There is credit risk associated with an RA because the funds are disbursed to the taxpayer customer prior
to the Bank receiving the taxpayer customer’s refund as claimed on the return. Management annually reviews and revises the RA’s
underwriting criteria. These changes in the RA’s underwriting criteria do not ensure positive results and could have an overall material
negative impact on the performance of the RA and therefore on the Company’s financial condition and results of operations.
Because there is no recourse to the taxpayer customer if the RA is not paid off by the taxpayer customer’s tax refund, the Bank must
collect all its payments related to RAs through the refund process. Losses will generally occur on RAs when the Bank does not receive
payment due to several reasons, such as IRS revenue protection strategies, including audits of returns, errors in the tax return, tax
return fraud and tax debts not previously disclosed to the Bank during its underwriting process. While the Bank’s underwriting during
the RA approval process takes these factors into consideration based on prior years’ payment patterns, if the IRS significantly alters its
revenue protection strategies, if refund payment patterns for a given tax season meaningfully change, if the federal government fails to
timely deliver refunds, or if the Bank is incorrect in its underwriting assumptions, the Bank could experience higher loan loss
provisions above those projected. The provision for loan losses is a significant determining factor of the RPG operations’ overall net
earnings.
In addition, the federal government, specifically as a result of the PATH Act, mandates that tax refunds for tax returns with certain
characteristics cannot receive their corresponding refunds before February 15th each year. Substantially all the tax returns driving
TRS’s product volume meet the criteria of those subject to this later funding under the PATH Act. These funding delays effectively
restrict the Bank’s ability to make in-season modifications to its RA underwriting model based on then-current year tax refund funding
patterns, because the substantial majority of all RAs are issued prior to February 15. As a result, the underwriting criteria that TRS
25
establishes for the RA product at the beginning of the tax season could have a material negative impact on the performance of the RA
before mitigating revisions can be made.
ERAs represent a significant credit risk, and if RB&T is unable to collect a significant portion of its ERAs, it would materially,
negatively impact earnings. In addition to all the risks associated with its other RA products, ERAs carry additional credit risks.
ERAs are substantially all originated during December prior to the upcoming first quarter tax season with the expectation the taxpayer
client will return to the Bank’s Tax Provider during the first quarter tax filing season to file the taxpayer’s tax return, allowing the
Bank to potentially receive the taxpayer’s tax refund from the federal government to repay the ERA with the Bank. In addition, TRS
originates ERAs without the taxpayer client's final fiscal year taxable income documentation, e.g., W-2, and the filing of the
taxpayer’s actual federal tax return. As with other RAs, the Bank has no recourse to the borrower if the ERA is not repaid by the
taxpayer client’s tax refund. If the taxpayer client fails to return to the Bank’s Tax Provider or if the taxpayer client’s final tax return
is substantially different than the early season estimate used to make the ERA, ERA losses could be substantially higher than
estimated, which could cause a material adverse impact to TRS’s earnings and the overall results of operations of the Company.
Consumer loans originated through the RCS segment represent a higher credit risk. Loss rates for some RCS products have
consistently been significantly higher than Traditional Bank loss rates for unsecured consumer loans. A material increase in RCS loan
charge-offs would have a material adverse effect on the Bank’s financial condition and results of operations and, if such increase in
RCS loan charge-offs persisted for an extended period of time, could lead to the discontinuation of the underlying products.
Consumer installment loans originated for sale through the RCS segment represent a higher risk of loss on sale. RCS originates its
installment loan product for sale and sells this product at a loss if the originated loan defaults on its first payment to RCS, which is
generally 16 days following the loan’s origination date. A material increase in first payment defaults for RCS installment loans would
result in a material increase in these loans being sold at a loss. Such an increase could have a material adverse impact on the program,
and if such losses persisted for an extended period of time, it could lead to the discontinuation of the underlying product.
Management’s changes to RPG product parameters could have a material negative impact on the performance of the RPG products.
In response to changes in the legal, regulatory, and competitive environment, management annually reviews and revises product
parameters. Further changes in product parameters do not ensure positive results and could have an overall material negative impact
on the performance of the product and therefore on the Company’s financial condition and results of operations.
The Warehouse Lending business is subject to numerous risks that may result in losses. Risks associated with warehouse loans
include, without limitation, (i) credit risks relating to the mortgage bankers that borrow from the Bank, including but not limited to
bankruptcy, (ii) the risk of intentional misrepresentation or fraud by any of such mortgage bankers and their third-party service
providers, (iii) changes in the market value of mortgage loans originated by the mortgage banker during the time in warehouse, the
sale of which is the expected source of repayment of the borrowings under a warehouse line of credit, or (iv) unsalable or impaired
mortgage loans so originated, which could lead to decreased collateral value and the failure of a purchaser of the mortgage loan to
purchase the loan from the mortgage banker. Failure to mitigate these risks could have a material adverse impact on the Bank’s
financial statements and results of operations.
The ACLL could be insufficient to cover the Bank’s actual loan losses. The Bank makes various assumptions and judgments about the
collectability of its loan portfolio, including the creditworthiness of its borrowers and the value of the real estate and other assets
serving as collateral for the repayment of many of its loans. In determining the amount of the ACLL, among other things, the Bank
reviews its loss and delinquency experience, economic conditions, etc. If its assumptions are incorrect, the ACLL may not be
sufficient to cover losses inherent in its loan portfolio, resulting in additions to its ACLL. In addition, regulatory agencies periodically
review the ACLL and may require the Bank to increase its Provision or recognize further loan charge-offs. A material increase in the
ACLL or loan charge-offs would have a material adverse effect on the Bank’s financial condition and results of operations.
Deterioration in the quality of the Traditional Banking loan portfolio may result in additional charge-offs, which would adversely
impact the Bank’s operating results. When borrowers default on their loan obligations, it may result in lost principal and interest
income and increased operating expenses associated with the increased allocation of management time and resources associated with
the collection efforts. In certain situations where collection efforts are unsuccessful or acceptable “work-out” arrangements cannot be
reached or performed, the Bank may charge-off loans, either in part or in whole. Additional charge-offs will adversely affect the
Bank’s operating results and financial condition.
26
Loans originated through the Bank’s Consumer Direct and Correspondent Lending channels subject the Bank to credit risks that the
Bank does not have through its historical origination and servicing channels. The dollar volume of loans originated through the
Bank’s Consumer Direct and Correspondent Lending channels and loans serviced as the result of the Correspondent Lending channel
are primarily out-of-market. Loans originated out of the Bank’s market footprint inherently carry additional credit risk, as the Bank
will experience an increase in the complexity of the customer authentication requirements for such loans. Failure to appropriately
identify the end-borrower for such loans could lead to additional fraud losses.
The Bank’s financial condition and earnings could be negatively impacted to the extent the Bank relies on borrower information that
is false, misleading, or inaccurate. The Bank relies on the accuracy and completeness of information provided by vendors, clients, and
other parties in deciding whether to extend credit and/or enter transactions with other parties. If the Bank relies on incomplete and/or
inaccurate information, the Bank may incur additional charge-offs that adversely affect its operating results and financial condition.
The Bank uses appraisals as part of the decision process to make a loan for, or secured by, real property. In addition, appraisals are
used to value a loan if it becomes “collateral dependent” as a problem credit. Appraisals do not ensure the value of the real property
collateral. As part of the new loan process or in valuing a collateral dependent problem credit, the Bank generally requires an
independent third-party appraisal of the real property. An appraisal, however, is only an estimate of the value of the property at the
time the appraisal is made. An error in fact or judgment could adversely affect the reliability of the appraisal. In addition, events
occurring after the appraisal may cause the value of the real estate to decrease. As a result of any of these factors, the value of
collateral securing a loan may be less than supposed, and if a default occurs, the Bank may not recover the outstanding balance of the
loan. Approximately 27% of the Bank’s portfolio is secured by residential real estate and 35% is secured by commercial real estate
properties. Both of these loan types are heavily dependent upon third-party appraisals in the decision process Additional charge-offs
in either of these portfolios as a result of inaccurate appraisals could adversely affect the Bank’s operating results and financial
condition.
The Bank is exposed to risk of environmental liabilities with respect to properties to which it takes title. In the course of its business,
the Bank may own or foreclose and take title to real estate and could be subject to environmental liabilities with respect to these
properties. The Bank may be held liable to a governmental entity or to third parties for property damage, personal injury, investigation
and clean-up costs incurred by these parties in connection with environmental contamination, or may be required to investigate or
clean up hazardous or toxic substances, or chemical releases at a property. The costs associated with investigation or remediation
activities could be substantial. In addition, if the Bank is the owner or former owner of a contaminated site, the Bank may be subject to
common law claims by third parties based on damages and costs resulting from environmental contamination emanating from the
property. These costs and claims could adversely affect the Bank.
The Bank holds a significant amount of BOLI, which creates credit risk relative to the insurers and liquidity risk relative to the
product. As of December 31, 2022, the Bank held BOLI on certain employees. The eventual repayment of the cash surrender value is
subject to the ability of the various insurance companies to pay death benefits or to return the cash surrender value to the Bank if
needed for liquidity purposes. The Bank continually monitors the financial strength of the various insurance companies that carry
these policies. However, any one of these companies could experience a decline in financial strength, which could impair its ability to
pay benefits or return the Bank’s cash surrender value. If the Bank needs to liquidate these policies for liquidity purposes, it would be
subject to taxation on the increase in cash surrender value and penalties for early termination, both of which would adversely impact
earnings.
OPERATIONAL AND STRATEGIC RISKS
RPG products represent a significant operational risk and rely heavily on the accuracy and timeliness of data received from the
Bank’s third party marketer and servicer providers. To conduct its RPG businesses, the Bank must implement and test new systems,
train associates for new products and changes to existing products, and process information and data received from third party
marketer and servicer providers. Due to the high volume of transaction activity across all the RPG product lines, the Bank relies
heavily on the communications and information systems of the Bank as well as the communications and information systems of its
third party providers to operate these products. Any failure, sustained interruption, or breach in security, including the cyber security,
of these systems could result in failures or disruptions in client relationship management and other systems. If the Bank were unable to
properly service this business as a result of inaccurate or untimely data from its third party marketer and servicer providers, it could
materially impact earnings.
27
RCS revenues and earnings are highly concentrated in its line-of-credit products. The discontinuation of these line-of-credit products,
or a substantial change in the terms under which these products are offered, would have a material adverse effect on the Company’s
financial condition and results of operations.
Many of the RCS programs are heavily reliant on the ability of the Bank to sell all or a significant portion of the loans originated to a
third party in order to fund the programs. If the Bank were unable to sell these loans to a third-party purchaser for any reason, RCS
would likely cease originating new loans under that product line, which would significantly and negatively impact the overall
earnings of RCS. RCS originates installment loans and lines of credits through its various product lines. For some of its installment
products, RCS sells 100% of the balances after its origination. For its line of credit products, the Bank sells a 90% or 95%
participation in the product after origination, depending upon the product. If the Bank were unable to sell these loan balances for any
reason, RCS would likely cease originating new loans for that particular product as soon as practical under the terms of its various
agreements. The inability of RCS to originate new loans under any of its higher-yield RCS products would cause a material adverse
impact to the results of operation of RCS.
In addition, the agreement between the Bank and the consumer for many of its line of credit products do not allow RCS to stop
originating new customer draws on that product if RCS chooses to exit the product line. For these products, if the Bank were unable
to sell these balances for any reason, RCS would retain 100% of the balances it originates on those products. In those circumstances,
the credit risk for the Bank would increase substantially as it would then be responsible for 100% of any charge-offs for these loans, as
opposed to 5% or 10% of the charge-offs when it is able to sell participating balances to a third party purchaser. While the Bank
would also be retaining 100% of the revenue from these balances as well, there is no guarantee the additional revenue would offset the
charge-offs in the event of an economic downturn. Such an increase in charge-offs could have a material adverse impact on the results
of operations of the RCS segment and the Company, as a whole.
The Bank is highly dependent upon programs administered by Freddie Mac and Fannie Mae. Changes in existing U.S. government-
sponsored mortgage programs or servicing eligibility standards could materially and adversely affect its business, financial position,
results of operations, and cash flows. The Bank’s ability to generate revenues through mortgage loan sales to institutional investors
depends significantly on programs administered by Freddie Mac and Fannie Mae. These entities play powerful roles in the residential
mortgage industry, and the Bank has significant business relationships with them. The Bank’s status as an approved seller/servicer for
both is subject to compliance with their selling and servicing guides.
Any discontinuation of, or significant reduction or material change in, the operation of Freddie Mac or Fannie Mae or any significant
adverse change in the level of activity in the secondary mortgage market or the underwriting criteria of Freddie Mac or Fannie Mae
would likely prevent the Bank from originating and selling most, if not all, of its mortgage loan originations.
Prepayment of loans may negatively impact the Bank’s business. The Bank’s clients may prepay the principal amount of their
outstanding loans at any time. The speeds at which such prepayments occur, as well as the size of such prepayments, are within the
Bank clients’ discretion. If clients prepay the principal amount of their loans, and the Bank is unable to lend those funds to other
clients or invest the funds at the same or higher interest rates, the Bank’s interest income will be reduced. A significant reduction in
interest income would have a negative impact on the Bank’s results of operations and financial condition.
The planned discontinuance of LIBOR presents risks to the Company because the Bank uses LIBOR as a reference rate for a material
portion of its financial instruments. In July 2017, the FCA, the authority regulating LIBOR, along with various other regulatory
bodies, announced that LIBOR would likely be discontinued at the end of 2021. Subsequent to that announcement, in November 2020,
the FCA announced that many tenors of LIBOR would continue to be published through June 2023. In compliance with regulatory
guidance, the Bank discontinued referencing LIBOR for new financial instruments during 2021 and chose SOFR to be its primary
alternative reference rate for most transaction types upon the discontinuance or unavailability of LIBOR.
Risks associated with the Bank’s transition from LIBOR to SOFR or other alternative reference rates include the following:
• SOFR is viewed as a near risk free rate because it is derived from rates on overnight U.S. Treasury repurchase transactions.
These transactions are essentially overnight loans secured by U.S. Treasury securities, thus essentially risk free. Changing to
SOFR or a similar rate could result in a value transfer between contracting parties to instruments originally based on LIBOR.
Historically, in periods of economic or financial industry stress, near risk free rates that are analogous to SOFR have been
relatively stable. In contrast, LIBOR, which is designed to reflect the credit risk of banks, has widened relative to near risk
28
free rates, reflecting increased uncertainty regarding the credit-worthiness of banks. Accordingly, assuming that SOFR will
behave like its historical equivalents, an instrument that transitions from LIBOR to SOFR may not yield identical economic
outcomes for each contracting party to an instrument had the instrument continued to reference LIBOR. Similarly, SOFR,
because it is near risk free, tends to be a lower rate than LIBOR. To address these differences between LIBOR and SOFR,
certain industry recommended LIBOR fallback provisions include a concept of an adjustment spread that is applied when a
LIBOR-based contract transitions to SOFR and that is calculated based on a five-year median look-back of the historical spot
difference between the applicable LIBOR tenor and the applicable SOFR tenor. However, because any such adjustment
spread will be based on a historical median, it is likely that the adjustment spread may not reflect the spot difference between
LIBOR and SOFR at certain points in time and there may be a value transfer between the contracting parties over the life of
the instrument because the all-in rate applied to a contract, even taking into account the spread adjustment, might have
behaved differently over the life of the instrument in the absence of LIBOR cessation.
Any value transfer could be financially adverse to the Bank or to its counterparties. Repercussions from a change in reference
rate would likely include changes to the yield on, and value of, loans or securities held by the Bank, and amounts received
and paid on derivative instruments the Bank has contracted. Any theoretical benefit to the Bank could result in counterparty
dissatisfaction, which, in turn could lead to litigation, potentially as class actions, or other adverse consequences, including
dissatisfied clients or counterparties, resulting in loss of business. As a result, over the life of a transaction that transitions
from LIBOR to a new reference rate, the Bank’s obligations to its counterparties or vice versa and the yield the Bank
contractually receives or pays may change from that which would have resulted from a continuation of LIBOR.
• Transitioning from LIBOR to alternative indexes may result in operational errors during the transition such that the
replacement index is not applied in a timely manner or is incorrectly applied. This is particularly true given the volume of
contracts that will require transition, the variety of potential approaches to transition, and the possible short duration of the
transition period.
It is also possible that LIBOR quotes will become unavailable prior to the currently anticipated cessation date. In that case,
the risks associated with the transition to an alternative reference rate will be accelerated and magnified. These risks may also
be increased due to the shorter time for preparing for the transition.
The Bank’s failure to successfully implement the transition from LIBOR to alternative indexes could result in reduced interest income
on its loans that reprice with LIBOR, and/or increased regulatory scrutiny and actions by regulators, including fines and other
supervisory sanctions.
The Company may be adversely affected by the soundness of other financial institutions. Financial services institutions are interrelated
because of trading, clearing, counterparty, or other relationships. The Company has exposure to many different industries and
counterparties, and routinely executes transactions with counterparties in the financial services industry, including commercial banks,
brokers and dealers, investment banks, and other institutional clients. Many of these transactions expose the Company to credit risk in
the event of a default by a counterparty or client. In addition, the Company’s credit risk may be exacerbated when the collateral held
by the Company cannot be realized upon or is liquidated at prices not sufficient to recover the full amount of the credit or derivative
exposure due to the Company. Any such losses could have a material adverse effect on the Company’s financial condition and results
of operations.
The Company is dependent upon the services of key qualified personnel. The Company is dependent upon the ability and experience
of a number of its key management personnel who have substantial experience with Company operations, the financial services
industry, and the markets in which the Company offers services. It is possible that the loss of the services of one or more of its key
personnel would have an adverse effect on operations.
The Company’s operations could be impacted if its third-party service providers experience difficulty. The Company depends on
several relationships with third-party service providers, including core systems processing and web hosting. These providers are well-
established vendors that provide these services to a significant number of financial institutions. If these third-party service providers
experience difficulty or terminate their services and the Company is unable to replace them with other providers, its operations could
be interrupted, which would adversely impact its business.
29
The Company’s operations, including third-party and client interactions, are increasingly done via electronic means, and this has
increased the risks related to cyber security. The Company is exposed to the risk of cyber-attacks in the normal course of business and
incurs substantial cyber security protection costs. In general, cyber incidents can result from deliberate attacks or unintentional events.
Management has observed an increased level of attention in the industry focused on cyber-attacks that include, but are not limited to,
gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information, corrupting data, or
causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require gaining unauthorized access,
such as by causing denial-of-service attacks on websites. Cyber-attacks may be carried out directly against the Company, or against
the Company’s clients or vendors by third parties or insiders using techniques that range from highly sophisticated efforts to
electronically circumvent network security or overwhelm websites to more traditional intelligence gathering and social engineering
aimed at obtaining information necessary to gain access. While the Company has not incurred any material losses related to cyber-
attacks, the Bank may incur substantial costs and suffer other negative consequences if the Bank, the Bank’s clients, or one of the
Bank’s third-party service providers fall victim to successful cyber-attacks. Such negative consequences could include: remediation
costs for stolen assets or information; system repairs; consumer protection costs; increased cyber security protection costs that may
include organizational changes; deploying additional personnel and protection technologies, training employees, and engaging third-
party experts and consultants; lost revenues resulting from unauthorized use of proprietary information or the failure to retain or attract
clients following an attack; litigation and payment of damages; and reputational damage adversely affecting client or investor
confidence.
The Company’s information systems may experience an interruption that could adversely impact the Company’s business, financial
condition, and results of operations. The Company relies heavily on communications and information systems to conduct its business.
Any failure or interruption of these systems could result in failures or disruptions in client relationship management, general ledger,
deposit, loan and other systems. While the Company has policies and procedures designed to prevent or limit the impact of the failure
or interruption of information systems, there can be no assurance that any such failures or interruptions will not occur or, if they do
occur, that they will be adequately addressed. The occurrences of any failures or interruptions of the Company’s information systems
could damage the Company’s reputation, result in a loss of client business, subject the Company to additional regulatory scrutiny, or
expose the Company to civil litigation and possible financial liability, any of which could have a material adverse effect on the
Company’s financial condition and results of operations.
New lines of business or new products and services may subject the Company to additional risks. From time to time, the Company
may develop and grow new lines of business or offer new products and services within existing lines of business. There are substantial
risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing
and marketing new lines of business and/or new products and services, the Company may invest significant time and resources. Initial
timetables for the introduction and development of new lines of business and/or new products or services may not be achieved, and
price and profitability targets may not prove feasible. External factors, such as compliance with regulations, competitive alternatives
and shifting market preferences, may also impact the successful implementation of a new line of business or a new product or service.
Furthermore, any new line of business and/or new product or service could have a significant impact on the effectiveness of the
Company’s system of internal control. Failure to successfully manage these risks in the development and implementation of new lines
of business or new products or services could have a material adverse effect on the Company’s business, results of operations, and
financial condition. All service offerings, including current offerings and those that may be provided in the future, may become riskier
due to changes in economic, competitive, and market conditions beyond the Company’s control.
30
The proposed acquisition and integration of CBank pursuant to the CBank Agreement includes certain acquisition-related risks to the
Company and the Bank. These risks include:
• the possibility that some or all of the anticipated benefits of the proposed acquisition will not be realized or will not be
realized within the anticipated timelines;
• the risk that integration of CBank’s operations with those of the Company will be materially delayed or will be more costly
or difficult than expected; the parties’ inability to meet expectations regarding the timing, completion and accounting and tax
treatments of the acquisition;
• the failure to satisfy other conditions to completion of the acquisition, including receipt of required regulatory and other
approvals; the failure of the proposed transaction to close for any other reason; diversion of management's attention from
ongoing business operations and opportunities due to the acquisition;
• the challenges of integrating and retaining key employees;
• the effect of the announcement of the merger on the Bank’s or CBank’s respective customer and employee relationships and
operating results;
• the possibility that the acquisition may be more expensive to complete than anticipated, including as a result of unexpected
factors or events; and
• the magnitude and duration of inflation; as well as the results of operations and financial condition of the Company following
the acquisition.
The Company’s ability to successfully complete acquisitions will affect its ability to grow and compete effectively in its market
footprint. The Company has announced plans to pursue a policy of strategic growth through acquisitions to supplement organic
growth. The Company’s efforts to acquire other financial institutions and financial service companies or branches may not be
successful. Numerous potential acquirers exist for many acquisition candidates, creating intense competition, which affects the
purchase price for which the institution can be acquired. In many cases, the Company’s competitors have significantly greater
resources than the Company has, and greater flexibility to structure the consideration for the transaction. The Company may also not
be the successful bidder in acquisition opportunities that it pursues due to the willingness or ability of other potential acquirers to
propose a higher purchase price or more attractive terms and conditions than the Company is willing or able to propose. The Company
intends to continue to pursue acquisition opportunities in its market footprint. The risks presented by the acquisition of other financial
institutions could adversely affect the Bank’s financial condition and results of operations.
Successful Company acquisitions present many risks that could adversely affect the Company’s financial condition and results of
operations. An institution that the Company acquires may have unknown asset quality issues or unknown or contingent liabilities that
the Company did not discover or fully recognize in the due diligence process, thereby resulting in unanticipated losses. The
acquisition of other institutions also typically requires the integration of different corporate cultures, loan and deposit products, pricing
strategies, data processing systems and other technologies, accounting, internal audit and financial reporting systems, operating
systems and internal controls, marketing programs and personnel of the acquired institution, to make the transaction economically
advantageous. The integration process is complicated and time consuming and could divert the Company’s attention from other
business concerns and may be disruptive to its clients and the clients of the acquired institution. The Company’s failure to successfully
integrate an acquired institution could result in the loss of key clients and employees and prevent the Company from achieving
expected synergies and cost savings. Acquisitions and failed acquisitions also result in professional fees and may result in creating
goodwill that could become impaired, thereby requiring the Company to recognize further charges. The Company may finance
acquisitions with borrowed funds, thereby increasing the Company’s leverage and reducing liquidity, or with potentially dilutive
issuances of equity securities.
ECONOMIC, FINANCIAL MARKETS, INTEREST RATES, AND LIQUIDITY RISKS
Mortgage Banking activities have been adversely impacted by increasing long-term interest rates. The Company is unable to predict
changes in market interest rates. Changes in interest rates can impact the gain on sale of loans, loan origination fees, and loan
servicing fees, which account for a significant portion of Mortgage Banking income. A decline in market interest rates generally
results in higher demand for mortgage products, while an increase in rates generally results in reduced demand. Generally, if demand
increases, Mortgage Banking income will be positively impacted by more gains on sale; however, the valuation of existing mortgage
servicing rights will decrease and may result in a significant impairment. A decline in demand for Mortgage Banking products
resulting from rising interest rates could also adversely impact other products which are typically cross-sold with mortgages.
31
Fluctuations in interest rates could reduce profitability. The Bank’s asset/liability management strategy may not be able to prevent
changes in interest rates from having a material adverse effect on results of operations and financial condition. The Bank’s primary
source of income is from the difference between interest earned on loans and investments and the interest paid on deposits and
borrowings. The Bank expects to periodically experience “gaps” in the interest rate sensitivities of its assets and liabilities, meaning
that either interest-bearing liabilities will be more sensitive to changes in market interest rates than interest-earning assets, or vice
versa. In either event, if market interest rates should move contrary to the Bank’s position, earnings may be negatively affected.
A flattening or inversion of the interest rate yield curve may reduce profitability. Changes in the slope of the “yield curve,” or the
spread between short-term and long-term interest rates, could reduce the Bank’s net interest margin. Normally, the yield curve is
upward sloping, meaning short-term rates are lower than long-term rates. Because the Bank’s interest-bearing liabilities tend to be
shorter in duration than its interest-earning assets, when the yield curve flattens or even inverts, the Bank’s net interest margin could
decrease as its cost of funds rises higher and at a faster pace than the yield on its interest-earning assets. A rise in the Bank’s cost of
interest-bearing liabilities without a corresponding increase in the yield on its interest-earning assets, would have an adverse effect on
the Bank’s net interest margin and overall results of operations.
The Bank may be compelled to offer market-leading interest rates to maintain sufficient funding and liquidity levels. The Bank has
traditionally relied on client deposits (with approximately 7% of deposits concentrated with the Bank’s top 20 depositors), brokered
deposits, and advances from the FHLB to fund operations. Such traditional sources may be unavailable, limited, or insufficient in the
future. If the Bank were to lose a significant funding source, such as a few major depositors, or if any of its lines of credit were
cancelled or curtailed, such as its borrowing line at the FHLB, or if the Bank cannot obtain brokered deposits, the Bank may be
compelled to offer market-leading interest rates to meet its funding and liquidity needs. Obtaining funds at market-leading interest
rates would have an adverse impact on the Company’s net interest income and overall results of operations.
Clients could pursue alternatives to bank deposits, causing the Bank to lose a relatively inexpensive source of funding. Checking and
savings account balances and other forms of client deposits could decrease if clients perceive alternative investments, such as the stock
market, as providing superior expected returns. If clients move money out of bank deposits in favor of alternative investments, the
Bank could lose a relatively inexpensive source of funds, increasing its funding costs and negatively impacting its overall results of
operations.
The loss of large deposit relationships could increase the Bank’s funding costs. The Bank has several large deposit relationships that
do not require collateral; therefore, cash from these accounts can generally be utilized to fund the loan portfolio. If any of these
balances are moved from the Bank, the Bank would likely utilize overnight borrowing lines on a short-term basis to replace the
balances. The overall cost of gathering brokered deposits and/or FHLB advances, however, could be substantially higher than the
Traditional Bank deposits they replace, increasing the Bank’s funding costs and reducing the Bank’s overall results of operations.
Government responses to economic conditions may adversely affect the Company’s operations, financial condition, and earnings.
Enacted financial reform legislation has changed and will continue to change the bank regulatory framework. Ongoing uncertainty and
adverse developments in the financial services industry and the domestic and international credit markets, and the effect of new
legislation and regulatory actions in response to these conditions, may adversely affect Company operations by restricting business
activities, including the Company’s ability to originate or sell loans, modify loan terms, or foreclose on property securing loans. These
measures are likely to increase the Company’s costs of doing business and may have a significant adverse effect on the Company’s
lending activities, financial performance, and operating flexibility. In addition, these risks could affect the performance and value of
the Company’s loan and investment securities portfolios, which also would negatively affect financial performance.
The Company’s common stock generally has a low average daily trading volume, which limits a stockholder’s ability to quickly
accumulate or quickly sell large numbers of shares of Republic’s stock without causing wide price fluctuations. Republic’s stock price
can fluctuate widely in response to a variety of factors, as detailed in the next risk factor. A low average daily stock trading volume
can lead to significant price swings even when a relatively small number of shares are being traded.
32
The market price for the Company’s common stock may be volatile. The market price of the Company’s common stock could fluctuate
substantially in the future in response to several factors, including those discussed below. Some of the factors that may cause the price
of the Company’s common stock to fluctuate include:
• Variations in the Company’s and its competitors’ operating results;

• Actual or anticipated quarterly or annual fluctuations in operating results, cash flows, and financial condition;
• Changes in earnings estimates or publication of research reports and recommendations by financial analysts or actions taken
by rating agencies with respect to the Bank or other financial institutions;
• Announcements by the Company or its competitors of mergers, acquisitions, and strategic partnerships;
• Additions or departure of key personnel;
• The announced exiting of or significant reductions in material lines of business within the Company;
• Changes or proposed changes in banking laws or regulations or enforcement of these laws and regulations;
• Events affecting other companies that the market deems comparable to the Company;
• Developments relating to regulatory examinations;
• Speculation in the press or investment community generally or relating to the Company’s reputation or the financial services
industry;
• Future issuances or re-sales of equity or equity-related securities, or the perception that they may occur;
• General conditions in the financial markets and real estate markets in particular, developments related to market conditions
for the financial services industry;
• Domestic and international economic factors unrelated to the Company’s performance;
• Developments related to litigation or threatened litigation;
• The presence or absence of short selling of the Company’s common stock; and,
• Future sales of the Company’s common stock or debt securities.
In addition, the stock market, in general, has historically experienced extreme price and volume fluctuations. This is due, in part, to
investors’ shifting perceptions of the effect of changes and potential changes in the economy on various industry sectors. This
volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to their
performance or prospects. These broad market fluctuations may adversely affect the market price of the Company’s common stock,
notwithstanding its actual or anticipated operating results, cash flows, and financial condition. The Company expects that the market
price of its common stock will continue to fluctuate due to many factors, including prevailing interest rates, other economic
conditions, operating performance, and investor perceptions of the outlook for the Company specifically and the banking industry in
general. There can be no assurance about the level of the market price of the Company’s common stock in the future or that investors
will be able to resell their shares at times or at prices they find attractive.
The Company’s insiders hold voting rights that give them significant control over matters requiring stockholder approval. The
Company’s Executive Chair/CEO and Vice Chair hold substantial voting authority over the Company’s Class A Common Stock and
Class B Common Stock. Each share of Class A Common Stock is entitled to one vote and each share of Class B Common Stock is
entitled to ten votes. This group generally votes together on matters presented to stockholders for approval. These actions may include,
for example, the election of directors, the adoption of amendments to corporate documents, the approval of mergers and acquisitions,
sales of assets, and the continuation of the Company as a registered company with obligations to file periodic reports and other filings
with the SEC. Consequently, other stockholders’ ability to influence Company actions through their vote may be limited and the non-
insider stockholders may not have sufficient voting power to approve a change in control even if a significant premium is being
offered for their shares. Majority stockholders may not vote their shares in accordance with minority stockholder interests.
An investment in the Company’s Common Stock is not an insured deposit. The Company’s common stock is not a bank deposit and,
therefore, is not insured against loss by the FDIC, any other deposit insurance fund or by any other public or private entity. Investment
in the Company’s common stock is inherently risky for the reasons described in this section and elsewhere in this report and is subject
to the same market forces that affect the price of common stock in any company. As a result, if you acquire the Company’s common
stock, you could lose some or all of your investment.
33
COMPETITIVE RISKS
Outstanding Warehouse lines of credit and their corresponding earnings could decline due to several factors, such as intense industry
competition, declining mortgage demand, and a rising interest rate environment. With the rise of inflation during 2022, the FOMC
implemented a more aggressive and hawkish approach to its monetary policies during 2022 and has signaled these policies could
continue into the future until inflation decreases to acceptable levels. Included in its actions are raising the FFTR, ending its
quantitative easing program of buying certain types of bonds in the open market, and implementing a quantitative tightening program
to reduce the size of its balance sheet by selling certain types of bonds in the market.
The FOMC’s signaling of these actions caused market interest rates for U.S. Treasury bonds and mortgages to rise rapidly during the
2022. With the rise in mortgage rates, mortgage refinance activity slowed dramatically during 2022, and Warehouse usage began to
decline significantly. Further monetary tightening by the FOMC in 2023 will likely further decrease mortgage demand and
Warehouse line usage. In addition, a decrease in usage across the Warehouse industry could also cause competitive pricing pressure
on the Bank to lower its pricing to its Warehouse clients in order to maintain higher volumes.
The Bank could likely experience decreased earnings on its Warehouse lines of credit during 2023 due to the expected interest rate
environment combined with strong industry competition and pricing pressures. Such decreased earnings could materially impact the
Company’s results of operations.
The Company may lose Warehouse clients due to mergers and acquisitions in the industry. The Bank’s Warehouse clients are
primarily mortgage companies across the United States. Mergers and acquisitions affecting such clients may lead to an end to the
client relationship with the Bank. The loss of a significant number of clients may materially impact the Company’s results of
operations.
Mortgage Banking revenue will likely decline due to declining mortgage demand resulting from a rising interest rate environment,
which will also lead to more intense industry competition for a shrinking mortgage market. Mortgage Banking is a significant
operating segment of the Company. With the rise of inflation during 2022, the FOMC has implemented a more aggressive and
hawkish approach to its monetary policies. Included in its actions are raising the FFTR multiple times, ending its quantitative easing
program of buying certain types of bonds in the open market, and implementing a quantitative tightening program by reducing the size
of its balance sheet and selling certain types of bonds in the market.
The FOMC’s implementation of these actions caused market interest rates for treasury bonds and mortgages to rise rapidly during
2022. With the rise in mortgage rates, mortgage refinance activity slowed dramatically during 2022, and as a result, mortgage
origination volume declined significantly. Further monetary tightening by the FOMC in 2023 will likely further decrease mortgage
demand. In addition, a decrease in mortgage demand across the mortgage industry could also cause competitive pricing pressure on
the Bank to lower its mortgage pricing to maintain its volumes for a shrinking market, further causing its cash gains-as-a-percentage-
of-loans-sold to decline.
The Bank will likely experience decreased Mortgage Banking revenue during 2023 due to expected rising market interest rates and
strong industry competition, housing supply shortages, and pricing pressures. Such decreased earnings could materially impact the
Company’s results of operations.
34
FINANCIAL REPORTING RISKS
Management has identified material weaknesses in the Company’s internal control over financial reporting and may identify
additional material weaknesses in the future or otherwise fail to maintain an effective system of internal control, which may result in
material misstatements of the Company’s consolidated financial statements or cause the Company to fail to meet its periodic reporting
obligations.
Management identified material weaknesses in the Company’s internal control over financial reporting as of December 31, 2022. A
material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a
reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or
detected on a timely basis.
The material weaknesses that Management identified were the following:
1) the Company did not maintain effective controls over the initial implementation of new products offered through third parties
within RPG. Specifically, Management identified that an RCS product’s contractual terms were not sufficiently
communicated internally, and the controls were not designed to identify and test all relevant transactional data posting to the
Company’s financial statements for the product;
2) the Company did not maintain effective controls over the information and communication as it relates to the reconciliation
function. Specifically, the controls were not precisely designed to identify, communicate, resolve, and timely escalate
reconciliation issues to the appropriate levels within the organization; and
3) the Company did not design and maintain effective controls over the financial analysis of RCS products’ yields. Specifically,
the Company reviewed the weighted average yield of all RCS products on a segment basis rather than an individual product
basis.
Management cannot guarantee that the Company’s efforts will remediate these material weaknesses or that additional material
weaknesses in the Company’s internal control over financial reporting will not be identified in the future. The Company’s failure to
implement and maintain effective internal control over financial reporting could result in errors in the Company’s consolidated
financial statements that could result in a restatement of its financial statements and could cause the Company to fail to meet its
reporting obligations, any of which could diminish investor confidence and cause a decline in the price of the Company’s Class A
common stock. See Item 9A. “Controls and Procedures” for further discussions of the identified material weaknesses and the
Company’s remediation efforts.
Republic’s Management is required to evaluate the effectiveness of the Company’s disclosure controls and internal control over
financial reporting. If the Company is unable to maintain effective disclosure controls and internal control over financial reporting,
investors may lose confidence in the accuracy of the Company’s financial reports.
As a public company, the Company is required to maintain internal control over financial reporting and to report any material
weaknesses in such internal control. Section 404 of the Sarbanes-Oxley Act requires that Management evaluate and determine the
effectiveness of the Company’s internal control over financial reporting. Additionally, the Company’s independent registered public
accounting firm is required to deliver an attestation report on the effectiveness of the Company’s internal control over financial
reporting.
In order to maintain and improve the effectiveness of the Company’s disclosure controls and procedures and internal control over
financial reporting, the Company has expended, and anticipates that it will continue to expend, significant resources, including
accounting-related costs and significant management oversight. If any of these new or improved controls and systems do not perform
as expected, the Company may experience further deficiencies in its controls.
The Company’s current controls and any new controls that it develops may become inadequate because of changes in conditions in its
business. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement
could harm the Company’s results of operations, cause the Company to fail to meet its reporting obligations, and adversely affect the
results of periodic management evaluations and the Company’s independent registered public accounting firm’s attestation reports
required by the SEC. Ineffective internal control over financial reporting could diminish investor confidence, negatively affect the
35
price of the Company’s Class A common stock, and could result in the Company’s delisting on the Nasdaq. See Item 9A. “Controls
and Procedures” for further discussions of the identified material weaknesses.
The Company’s accounting policies and estimates are critical components of the Company’s presentation of its financial statements.
Management must exercise judgment in selecting and adopting various accounting policies and in applying estimates. Actual
outcomes may be materially different from amounts previously estimated. Management has identified certain accounting policies and
estimates as being critical to the presentation of the Company’s financial statements. These policies are described in Part II Item 7
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the section titled “Critical
Accounting Policies and Estimates.” The Company’s management must exercise judgment in selecting and applying many accounting
policies and methods to comply with generally accepted accounting principles and reflect management’s judgment of the most
appropriate manner to report the Company’s financial condition and results. In some cases, management may select an accounting
policy that might be reasonable under the circumstances yet might result in the Company’s reporting different results than would have
been reported under a different alternative. Materially different amounts could be reported under different conditions or using different
assumptions or estimates.
The Bank may experience goodwill impairment, which could reduce its earnings. The Bank performed its annual goodwill impairment
test during the fourth quarter of 2022 as of September 30, 2022. The evaluation of the fair value of goodwill requires management
judgment. If management’s judgment was incorrect and goodwill impairment was later deemed to exist, the Bank would be required
to write down its goodwill resulting in a charge to earnings, which could materially, adversely affect its results of operations.
Item 1B. Unresolved Staff Comments.
None
36
Item 2. Properties.
The Company’s executive offices are located at 601 West Market Street in Louisville, Kentucky. The Company also has principal
support and operational functions located in three additional facilities in Louisville at 9600 Brownsboro Road, 661 South Hurstbourne
Parkway and 200 South Seventh Street. As of December 31, 2022, Republic had 28 banking centers located in Kentucky, seven
banking centers in Florida, three banking centers in Indiana, two banking centers in Tennessee, and two banking centers in Ohio.
The location of Republic’s facilities, their respective approximate square footage, and their form of occupancy are as follows:
Approximate
Square Owned (O)/
Bank Offices Footage Leased (L)
Kentucky Banking Centers:
Louisville Metropolitan Area

2801 Bardstown Road, Louisville 5,000 L (1)
601 West Market Street, Louisville 57,000 L (1)
661 South Hurstbourne Parkway, Louisville 42,000 L (1)
9600 Brownsboro Road, Louisville 42,000 L (1)
5250 Dixie Highway, Louisville 5,000 O/L (2)
10100 Brookridge Village Boulevard, Louisville 5,000 O/L (2)
9101 U.S. Highway 42, Prospect 3,000 O/L (2)
11330 Main Street, Middletown 6,000 O/L (2)
3902 Taylorsville Road, Louisville 4,000 O/L (2)
3811 Ruckriegel Parkway, Louisville 4,000 O/L (2)
5125 New Cut Road, Louisville 4,000 O/L (2)
4808 Outer Loop, Louisville 4,000 O/L (2)
438 Highway 44 East, Shepherdsville 4,000 O/L (2)
1420 Poplar Level Road, Louisville 3,000 O
4921 Brownsboro Road, Louisville 3,000 L
3950 Kresge Way, Suite 108, Louisville <1,000 L
3726 Lexington Road, Louisville 4,000 L
1720 West Broadway, Suite 103, Louisville 3,000 L
Lexington
3098 Helmsdale Place 5,000 O/L (2)
3608 Walden Drive 4,000 O/L (2)
2401 Harrodsburg Road 6,000 O
641 East Euclid Avenue 3,000 O
333 West Vine Street 4,000 L
Northern Kentucky
535 Madison Avenue, Covington 4,000 L
25 Town Center Blvd., Suite 104, Crestview Hills 3,000 L
8513 U.S. Highway 42, Florence 4,000 L
(continued)
37
Approximate
Square Owned (O)/
Bank Offices Footage Leased (L)
(continued)
Georgetown, 430 Connector Road 5,000 O/L (2)
Shelbyville, 1614 Midland Trail 4,000 L (2)
Florida Banking Centers:

12933 Walsingham Road, Largo 4,000 O
10577 State Road 54, New Port Richey 3,000 L
6300 4th Street N, St. Petersburg 10,000 O
6600 Central Avenue, St. Petersburg 9,000 O
7800 Seminole Blvd., Seminole 3,000 O
6906 E. Fowler Avenue, Temple Terrace 2,000 L
1300 North West Shore Blvd. Suite 150, Tampa 4,000 L
Southern Indiana Banking Centers:

4571 Duffy Road, Floyds Knobs 4,000 O/L(2)
3141 Highway 62, Jeffersonville 4,000 O
3001 Charlestown Crossing Way, New Albany 2,000 L
Tennessee Banking Centers:

113 Seaboard Lane, Franklin 2,000 L
2034 Richard Jones Road, Nashville 3,000 L
Ohio Banking Center:

4030 Smith Road, Norwood 5,000 L
9110 West Chester Towne Center Dr., West Chester 1,000 L
Support and Operations:

200 South Seventh Street, Louisville, KY 80,000 L(1)
(1) Locations are leased from partnerships in which the Company’s Executive Chair and Chief Executive Officer, Steven E. Trager; its Vice Chair and President, A.
Scott Trager; its Director, Andrew Trager-Kusman; or family members of Steven E. Trager, A. Scott Trager, and Andrew Trager-Kusman, have a financial
interest. See additional discussion included under Part III Item 13 “Certain Relationships and Related Transactions, and Director Independence.” For additional
discussion regarding Republic’s lease obligations, see Part II Item 8 “Financial Statements and Supplementary Data” Footnote 6 “Right-of-Use Assets and
Operating Leases Liabilities.”
(2) The banking centers at these locations are owned by Republic; however, the banking center is located on land that is leased through long-term agreements with
third parties.
Item 3. Legal Proceedings.
In the ordinary course of operations, Republic and the Bank are defendants in various legal proceedings. There is no proceeding,
pending, or threatened litigation in which Republic and the Bank are a defendant, to the knowledge of management, in which an
adverse decision could result in a material adverse change in the business or consolidated financial position of Republic or the Bank.
Item 4. Mine Safety Disclosures.
Not applicable.
38
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market and Dividend Information
Republic’s Class A Common Stock is traded on the NASDAQ under the symbol “RBCAA.” There is no established public trading
market for the Company’s Class B Common Stock, however, the Company’s Class B Common Stock is fully convertible into the
Company’s publicly-traded Class A Common Stock on a one-for-one basis.
On February 10, 2023, the Company’s Class A Common Stock was held by 1,021 shareholders of record and the Class B Common
Stock was held by 92 shareholders of record. The Company intends to continue its historical practice of paying quarterly cash
dividends; however, there is no assurance by the Board of Directors that such dividends will continue to be paid in the future. The
payment of dividends in the future is dependent upon future income, financial position, capital requirements, the discretion and
judgment of the Board of Directors, and numerous other considerations.
For additional discussion regarding regulatory restrictions on dividends, see Part II Item 8 “Financial Statements and Supplementary
Data” Footnote 14 “Stockholders’ Equity and Regulatory Capital Matters.”
Republic has made available to its employees participating in its 401(k) Plan the opportunity, at the employee’s sole discretion, to
invest funds held in their accounts under the plan in shares of Class A Common Stock of Republic. Shares are purchased by the
independent trustee administering the plan from time to time in the open market in the form of broker’s transactions. As of December
31, 2022, the trustee held 253,228 shares of Class A Common Stock and 1,214 shares of Class B Common Stock on behalf of the plan.
Details of Republic’s Class A Common Stock purchases during the fourth quarter of 2022 are included in the following table:
Total Number of Additional Maximum Number
Shares Purchased Shares of Shares that May
as Part of Publicly Authorized Yet Be Purchased
Total Number of Average Price Announced Plans Under Plans Under the Plans
Period Shares Purchased Paid Per Share or Programs or Programs or Programs
October 1 - October 31 — $ — — 292,806 500,000

November 1 - November 30 — — — — 500,000
December 1 - December 31 10,000 41.34 10,000 — 490,000
Total 10,000 $ 41.34 10,000 292,806 490,000
During 2022, the Company repurchased 273,134 shares. In addition, in connection with employee stock awards, there were 3,288
shares withheld upon exercise of stock options and vesting of restricted stock awards to satisfy the withholding taxes and, for stock
options, the exercise price. The Board took the following actions as it relates to the Company’s existing stock repurchase program:
• On January 27, 2021, the Board increased the Company’s existing authorization to purchase shares of its Class A Common
Stock to 1,000,000 shares,
• On November 17, 2021, the Board increased the Company’s existing authorization to purchase shares of its Class A Common
Stock by an additional 250,000 shares,
• On July 20, 2022, the Board increased the Company’s existing authorization to purchase shares of its Class A Common Stock
by an additional 200,000 shares, and
• On October 25, 2022, the Board increased the Company’s existing authorization to purchase shares of its Class A Common
Stock to 500,000 shares.
The repurchase program will remain effective until the total number of shares authorized is repurchased or until Republic’s Board of
Directors terminates the program. As of December 31, 2022, the Company had 490,000 shares which could be repurchased under its
current share repurchase programs.
During 2022, there were approximately 5,408 shares of Class A Common Stock issued upon conversion of shares of Class B Common
Stock by stockholders of Republic in accordance with the share-for-share conversion provision option of the Class B Common Stock.
The exemption from registration of the newly issued Class A Common Stock relied upon was Section (3)(a)(9) of the Securities Act of
1933. There were no equity securities of the registrant sold without registration during the quarter covered by this report.
39
STOCK PERFORMANCE GRAPH
The following stock performance graph does not constitute soliciting material and should not be deemed filed or incorporated by
reference into any other Company filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent
the Company specifically incorporates the performance graph by reference therein.
The following stock performance graph sets forth the cumulative total shareholder return (assuming reinvestment of dividends) on
Republic’s Class A Common Stock as compared to the KBW NASDAQ Bank Index and the S&P 500 Index. The graph covers the
period beginning December 31, 2017 and ending December 31, 2022. The calculation of cumulative total return assumes an initial
investment of $100 in Republic’s Class A Common Stock, the KBW NASDAQ Bank Index and the S&P 500 Index on December 31,
2017. The stock price performance shown on the graph below is not necessarily indicative of future stock price performance.
December 31, December 31, December 31, December 31, December 31, December 31,
2017 2018 2019 2020 2021 2022
Republic Class A
Common Stock (RBCAA) $ 100.00 $ 104.17 $ 128.87 $ 102.87 $ 148.68 $ 123.50
S&P 500 Index 100.00 95.62 125.72 148.85 191.58 156.88
KBW NASDAQ Bank Index 100.00 82.29 112.01 100.46 138.97 109.23
Total Return Performance

200
Republic Bancorp, Inc.
S&P 500 Index
KBW NASDAQ Bank Index
150
Index Value
100
50
12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22
40
Item 6. [Reserved]
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The consolidated financial statements include the accounts of Republic Bancorp, Inc. (the “Parent Company”) and its wholly owned
subsidiaries, Republic Bank & Trust Company and Republic Insurance Services, Inc. As used in this filing, the terms “Republic,” the
“Company,” “we,” “our,” and “us” refer to Republic Bancorp, Inc., and, where the context requires, Republic Bancorp, Inc. and its
subsidiaries. The term the “Bank” refers to the Company’s subsidiary bank: Republic Bank & Trust Company. The term the “Captive”
refers to the Company’s insurance subsidiary: Republic Insurance Services, Inc. All significant intercompany balances and
transactions are eliminated in consolidation.
In 2005, Republic Bancorp Capital Trust, an unconsolidated trust subsidiary of Republic, was formed and issued $40 million in TPS.
On September 30, 2021, as permitted under the terms of RBCT’s governing documents, Republic redeemed these securities at the par
amount of approximately $40 million, without penalty. Although the TPS were treated as part of Republic’s Tier I Capital while
outstanding, Republic’s capital ratios remained well above “well capitalized” levels following this redemption.
Management’s Discussion and Analysis of Financial Condition and Results of Operations of Republic should be read in conjunction
with Part II Item 8 “Financial Statements and Supplementary Data.”
Forward-looking statements discuss matters that are not historical facts. As forward-looking statements discuss future events or
conditions, the statements often include words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,”
“target,” “can,” “could,” “may,” “should,” “will,” “would,” “potential,” or similar expressions. Do not rely on forward-looking
statements. Forward-looking statements detail management’s expectations regarding the future and are not guarantees. Forward-
looking statements are assumptions based on information known to management only as of the date the statements are made and
management undertakes no obligation to update forward-looking statements, except as required by applicable law.
Broadly speaking, forward-looking statements include:
• the potential impact of inflation on Company operations;

• projections of revenue, income, expenses, losses, earnings per share, capital expenditures, dividends, capital structure, loan
volume, loan growth, deposit growth, or other financial items;
• descriptions of plans or objectives for future operations, products, or services;
• descriptions and projections related to management strategies for loans, deposits, investments, and borrowings;
• forecasts of future economic performance; and
• descriptions of assumptions underlying or relating to any of the foregoing.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results,
performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by the
forward-looking statements. Actual results may differ materially from those expressed or implied as a result of certain risks and
uncertainties, including, but not limited to the following:
• the impact of inflation on the Company’s operations and credit losses;

• litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory
agencies, whether pending or commencing in the future;
• natural disasters impacting the Company’s operations;
• changes in political and economic conditions;
• the discontinuation of LIBOR;
41
• the magnitude and frequency of changes to the FFTR implemented by the FOMC of the FRB;
• long-term and short-term interest rate fluctuations and the overall steepness of the U.S. Treasury yield curve, as well as their
impact on the Company’s net interest income and Mortgage Banking operations;
• competitive product and pricing pressures in each of the Company’s five reportable segments;
• equity and fixed income market fluctuations;
• client bankruptcies and loan defaults;
• recession;
• future acquisitions;
• integrations of acquired businesses;
• changes in technology;
• changes in applicable laws and regulations or the interpretation and enforcement thereof;
• changes in fiscal, monetary, regulatory, and tax policies;
• changes in accounting standards;
• monetary fluctuations;
• changes to the Company’s overall internal control environment;
• the ability of the Company to remediate its material weaknesses in its internal control over financial reporting;
• success in gaining regulatory approvals when required;
• the Company’s ability to qualify for future R&D federal tax credits;
• the ability for Tax Providers to successfully market and realize the expected RA and RT volume anticipated by TRS;
• information security breaches or cyber security attacks involving either the Company or one of the Company’s third-party
service providers; and
• other risks and uncertainties reported from time to time in the Company’s filings with the SEC, including Part 1 Item 1A
“Risk Factors.”
On October 26, 2022, Republic, the Bank and CBank entered into the CBank Agreement. Upon completion of the transaction, CBank
will be merged with and into RB&T, with RB&T as the survivor of the merger. CBank is headquartered in Cincinnati, Ohio. This
document contains statements regarding the proposed acquisition transaction that are not statements of historical fact and are
considered forward-looking statements within the criteria described above. These statements are likewise subject to various risks and
uncertainties that may cause actual results and outcomes of the proposed transaction to differ, possibly materially, from the anticipated
results or outcomes expressed or implied in these forward-looking statements. In addition to factors disclosed in reports filed by
Republic with the SEC, risks and uncertainties for Republic, CBank and the combined company include, but are not limited to: for the
parties to receive all regulatory approvals as provided for in the CBank Agreement, the ability to grow CBank loan and deposit
balances post-acquisition, unanticipated post-acquisition loan losses for Republic on CBank-originated loans, the ability of Republic
to integrate acquired operations including obtaining synergies, integration objectives and anticipated timelines, the ability of Republic
to integrate, manage and keep secure our information systems, and other risks and uncertainties reported from time to time in the
Company’s filings with the SEC, including Part 1 Item 1A “Risk Factors.”
Accounting Standards Updates
For disclosure regarding the impact to the Company’s financial statements of ASUs, see Footnote 1 “Summary of Significant
Accounting Policies” of Part II Item 8 “Financial Statements and Supplementary Data.”
42
Critical Accounting Estimates
Republic’s consolidated financial statements and accompanying footnotes have been prepared in accordance with GAAP. The
preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts
of revenue and expenses during the reported periods.
Management continually evaluates the Company’s accounting policies and estimates that it uses to prepare the consolidated financial
statements. In general, management’s estimates and assumptions are based on historical experience, accounting and regulatory
guidance, and information obtained from independent third-party professionals. Actual results may differ from those estimates made
by management.
Critical accounting policies are those that management believes are the most important to the portrayal of the Company’s financial
condition and operating results and require management to make estimates that are difficult, subjective, and complex. Most accounting
policies are not considered by management to be critical accounting policies. Several factors are considered in determining whether or
not a policy is critical in the preparation of the financial statements. These factors include, among other things, whether the estimates
have a significant impact on the financial statements, the nature of the estimates, the ability to readily validate the estimates with other
information including independent third parties or available pricing, sensitivity of the estimates to changes in economic conditions and
whether alternative methods of accounting may be utilized under GAAP. Management has discussed each critical accounting policy
and the methodology for the identification and determination of critical accounting policies with the Company’s Audit Committee.
Republic believes its critical accounting policies and estimates relate to the following:
ACLL and Provision — As of December 31, 2022, the Bank maintained an ACLL for expected credit losses inherent in the Bank’s
loan portfolio, which includes overdrawn deposit accounts. Management evaluates the adequacy of the ACLL monthly and presents
and discusses the ACLL with the Audit Committee and the Board of Directors quarterly.
The Company’s CECL method is a “static-pool” method that analyzes historical closed pools of loans over their expected lives to
attain a loss rate, which is then adjusted for current conditions and reasonable, supportable forecasts prior to being applied to the
current balance of the analyzed pools. Due to its reasonably strong correlation to the Company's historical net loan losses, the
Company has chosen to use the U.S. national unemployment rate as its primary forecasting tool. For its CRE loan pool, the Company
initially employed a one-year forecast of CRE vacancy rates through March 31, 2021 but discontinued use of this forecast during the
second quarter of 2021 in favor of a one-year forecast of general CRE values. This change in forecast method had no material impact
on the Company’s ACLL.
Management’s evaluation of the appropriateness of the ACLL is often the most critical accounting estimate for a financial institution,
as the ACLL requires significant reliance on the use of estimates and significant judgment as to the reliance on historical loss rates,
consideration of quantitative and qualitative economic factors, and the reliance on a reasonable and supportable forecast.
Adjustments to the historical loss rate for current conditions include differences in underwriting standards, portfolio mix or term,
delinquency level, as well as for changes in environmental conditions, such as changes in property values or other relevant factors.
One-year forecast adjustments to the historical loss rate are based on the U.S. national unemployment rate and CRE values.
Subsequent to the one-year forecasts, loss rates are assumed to immediately revert back to long-term historical averages.
The impact of utilizing the CECL approach to calculate the ACLL is significantly influenced by the composition, characteristics and
quality of the Company’s loan portfolio, as well as the prevailing economic conditions and forecasts utilized. Material changes to
these and other relevant factors may result in greater volatility to the ACLL, and therefore, greater volatility to the Company’s
reported earnings.
See additional detail regarding the Company’s adoption of ASC 326 and the CECL method under Footnote 4 “Loans and Allowance
for Credit Losses” of Part II Item 8 “Financial Statements and Supplementary Data.”
43
Management’s Evaluation of the ACLL
Management evaluates the ACLL for its Core Banking operations separately from its non-traditional RPG operations. Core Banking
operations consist of the Company’s Traditional Banking, Warehouse, and Mortgage Banking segments. RPG operations consist of
the Company’s TRS and RCS segments.
Management evaluated the reasonableness of its Core Bank ACLL as of December 31, 2022 and 2021 by evaluating absorption and
exhaustion rates that account for CECL life-of-loan considerations and the economic hardship and uncertainty brought about by the
COVID-19 pandemic. The absorption rate considered total Core Bank net loan losses from 2008 to 2013 as a percent of the end-of-
year Core Bank ACLL. The exhaustion rate considered how many years of gross Core Bank loan charge-offs the end-of-year Core
Bank ACLL could withstand based on average annual net Core Bank loan losses from 2008 to 2013. The years 2008 to 2013
represent a six-year period during which the U.S. unemployment rate rose above 8% and the Core Bank incurred a historically high
period of loan losses relative to an average year of loan losses for the Core Bank. Management believes Core Bank losses from 2008
to 2013 are more representative of current economic conditions than more recent years just prior to the onset of the COVID-19
pandemic.
As of December 31, 2022, the weighted average term of the Core Bank loan portfolio was approximately six years. The Core Bank’s
absorption rate was 85% and its exhaustion rate was approximately 6.0 years as of December 31, 2022. Management considers these
rates reasonable under current economic conditions. The table below reflects the Core Bank’s exhaustion and absorption rates for each
of the last three years:
Years Ended December 31, 2022 2021 2020
Core Bank:
Exhaustion Rate (end-of-year ACLL / median annual charge-offs from 2008 to 2013) 5.99 Yrs. 6.01 Yrs. 6.07 Yrs.
Absorption Rate (total net charge-offs from 2008 to 2013 / end-of-year ACLL) 85 % 85 % 84 %
Based on management’s evaluation, a Core Bank ACLL of $52 million, or 1.21% of total Core Bank loans, was an adequate estimate
of expected losses within the loan portfolio as of December 31, 2022 and resulted in Core Banking Provision for its loans of a net
charge of $312,000 during 2022. This compares to an ACLL of $52 million and $50 million as of December 31, 2021 and December
31, 2020 with Provisions of a net credit of $319,000 for 2021 and net charge of $16.9 million for 2020.
If the mix and amount of future charge-off percentages differ significantly from those assumptions used by management in making its
determination, an adjustment to the Core Bank ACLL and the resulting effect on the income statement could be material.
The RPG ACLL as of December 31, 2022 primarily related to loans originated and held for investment through the RCS segment.
RCS generally originates small-dollar, consumer credit products. In some instances, the Bank originates these products, sells 90% or
95% of the balances within three business days of loan origination, and retains a 5% or 10% interest. RCS loans typically earn a
higher yield but also have higher credit risk compared to loans originated through Core Banking operations, with a significant portion
of RCS clients considered subprime or near-prime borrowers.
As of December 31, 2022, management evaluated the ACLL only on its active RCS products that had incurred meaningful losses
since their inception, which were its line-of-credit products. Due to the general short-term nature of these products, management
utilized its traditional absorption and exhaustion calculations using 2022 net charge-offs with the beginning-of-the-year ACLL. The
absorption and exhaustion rates were 69% and 0.88 years, respectively, both of which were considered reasonable.
RPG maintained an ACLL for all the loan products held at amortized cost and offered through its RCS segment as of December 31,
2022, including its line-of-credit products and its healthcare-receivables products. As of December 31, 2022, the ACLL to total loans
estimated for each RCS product ranged from as low as 0.25% for its healthcare-receivables portfolios to as high as 54.85% for its line-
of-credit portfolios. A lower reserve percentage was provided for RCS’s healthcare receivables as of December 31, 2022, as such
receivables have recourse back to the Company’s third-party service providers in the transactions. Based on management’s
44
calculation, an ACLL of $18.7 million, or 7.3 %, of total RPG loans was an adequate estimate of expected losses within the RPG
portfolio as of December 31, 2022.
RPG’s TRS segment offered its RA credit product during the first two months of 2022, 2021, and 2020, and its ERA credit product
during December 2022 related to the first quarter 2023 tax season. An ACLL for losses on RAs and ERAs is estimated during the
limited, short-term period the product is offered. RAs originated during the first two months of 2022, were repaid, on average, within
32 days of origination. Provisions for RA and ERA losses are estimated when advances are made and adjusted to actual net charge-
offs as of June 30th of each year. The ACLL for ERAs as of December 31, 2022 was $3.8 million for $98 million of ERAs originated
during December 2022. There were no ERAs originated during 2021, and as a result there was no ACLL as of December 31, 2021 for
ERAs. There was no ACLL as of December 31, 2022 or December 31, 2021 for RAs originated during the first two months of 2022 or
2021, as all RAs originated during the first two months of those years had either been repaid or charged-off by June 30th of each year.
Related to the overall credit losses on RAs and ERAs, the Bank’s ability to control losses is highly dependent upon its ability to
predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s RA and ERA
approval model is based primarily on the prior-year’s tax refund funding patterns. Because much of the loan volume occurs each year
before that year’s tax refund funding patterns can be analyzed and subsequent underwriting changes made, credit losses during a
current year could be higher than management’s predictions if tax refund funding patterns change materially between years.
In response to changes in the legal, regulatory, and competitive environment, management annually reviews and revises the RA and
ERA product parameters. Further changes in RA and ERA product parameters do not ensure positive results and could have an overall
material negative impact on the performance of the RA an ERA and therefore on the Company’s financial condition and results of
operations.
See additional discussion regarding the RA product under the sections titled:

RPG recorded a net charge of $22.0 million, $15.1 million, and $14.4 million to the Provision during 2022, 2021, and 2020, with the
Provision for each year primarily due to net losses on RAs and growth in short-term, consumer loans originated through the RCS
segment. If the number of future charge-offs on RAs and RCS loans differ significantly from assumptions used by management in
making its determination, an adjustment to the RPG ACLL and the resulting effect on the income statement could be material.
Cancelled TRS Sale Transaction
On June 3, 2022, the Bank and Green Dot entered into the Settlement Agreement to fully resolve the Lawsuit that the Bank filed
against Green Dot in the Delaware Court of Chancery on October 5, 2021.
As previously disclosed in the Company’s prior SEC filings, the Lawsuit arose from Green Dot’s inability to consummate the Sale
Transaction contemplated in the TRS Purchase Agreement through which Green Dot would purchase all of the assets and operations
of the Bank’s Tax Refund Solutions business.
In accordance with the Settlement Agreement, on June 6, 2022, Green Dot paid $13 million to the Bank, which was in addition to a $5
million termination fee that Green Dot paid to the Bank during the first quarter of 2022 under the terms of the TRS Purchase
Agreement. On June 6, 2022, the Bank and Green Dot filed a stipulation of dismissal of the Lawsuit with the Delaware Court of
Chancery, which was effective to dismiss the Lawsuit when filed.
45
RECENT DEVELOPMENTS
Correction of Prior Period Error
As disclosed in Note 27, “Correction of Prior Period Error,” to our consolidated financial statements, the Company identified a prior
period accounting error substantially in the form of an immaterial understatement of revenue, solely related to one RCS line of credit
product. The financial reporting periods affected by this error include the Company’s previously reported audited consolidated
financial statements for the fiscal year ended December 31, 2021, and the Company’s previously reported interim unaudited
consolidated financial statements for each of the quarterly and fiscal year-to-date periods ended June 30, 2021; September 30, 2021;
March 31, 2022; June 30, 2022; and September 30, 2022; and the unaudited consolidated quarterly financial data for the quarter
ending December 31, 2021 (collectively the “previously reported financial statements”). The three month period ended December 31,
2021 and year ended December 31, 2021 also reflected certain immaterial revisions to reclassify certain gains and losses on the sale of
the same RCS line of credit product. These reclassifications impact noninterest income, noninterest expense and interest income with
no impact to net income.
The Company concluded this error was not material, on an individual or aggregate basis, to the Company’s previously reported
financial statements and correction of the error would not be material to the current year financial statements, including any interim
periods. However, the Company corrected this error as a voluntary immaterial revision to the accompanying consolidated financial
statements of this Annual Report on Form 10-K, as of and for the fiscal years ended December 31, 2022, and 2021, in the periods in
which the error occurred. In addition, the Company expects to present the corrected interim 2022 amounts as a voluntary immaterial
revision in its 2023 consolidated interim financial statements on a quarterly basis and a year-to-date basis upon the filing of its
Quarterly Reports on Form 10-Q.
As a result, the financial results in the periods presented within the Management’s Discussion and Analysis of Financial Condition and
Results of Operations, set forth below, have been revised to give effect to the correction of this error.
Bank Acquisition
On October 26, 2022, the Company, RB&T, and CBank entered into the CBank Agreement. Upon completion of the transaction,
CBank will be merged with and into RB&T, with RB&T as the survivor of the merger. CBank is headquartered in Cincinnati, Ohio.
Under the terms of the CBank Agreement, the Company will acquire all of CBank’s outstanding common stock in an all-cash direct
merger of CBank with RB&T, resulting in a total cash payment of approximately $51 million to CBank’s existing shareholders.
Republic expects to fund the cash payment through existing resources on-hand at RB&T. The completion of the transaction is subject
to customary closing conditions, including regulatory approval and approval by CBank’s shareholders. The CBank Agreement also
contains reciprocal termination provisions in the event the transaction does not receive the required regulatory approvals within six
months of the effective date of the CBank Agreement or if certain minimum capital levels are not maintained by CBank as of the
closing date.
The CBank Agreement was unanimously approved by the Republic, RB&T and CBank boards of directors on October 25, 2022. In
connection with entering into the CBank Agreement, Republic entered into customary support agreements with the members of
CBank’s board of directors and other shareholders in their capacities as shareholders of CBank (the “CBank Support Agreements”).
Subject to the terms and conditions, and non-termination, of the CBank Support Agreements, each such shareholder agreed, among
other things, to vote his or her respective shares of CBank Common Stock in favor of the approval of the CBank Agreement and the
transaction contemplated thereby, and against alternative acquisition proposals. The CBank Support Agreements do not prevent the
shareholders, in their capacity as directors, from exercising their fiduciary obligations in connection with alternative acquisition
proposals. The CBank Agreement provides certain termination rights for both Republic and CBank and further provides that a
termination fee of $2,040,000 will be payable by CBank to Republic upon termination of the CBank Agreement under certain
circumstances, including CBank’s termination of the CBank Agreement to accept a Superior Proposal (as defined in the CBank
Agreement). The CBank Agreement was approved by its shareholders on December 13, 2022.
As of January 31, 2023, CBank had approximately $257 million in assets, consisting of approximately $221 million in gross loans, no
other real estate owned, approximately $16 million of marketable securities, approximately $14 million in cash and cash equivalents
and approximately $6 million in other assets. Also as of January 31, 2023, CBank had approximately $228 million of liabilities,
including approximately $209 million in customer deposits and $13 million in Federal Home Loan Bank advances.
46
OVERVIEW
Total Company net income was $91.1 million and Diluted EPS was $4.59 for 2022, compared to net income of $87.6 million and
Diluted EPS of $4.28 for 2021. Table 1 below presents Republic’s financial performance for the years ended December 31, 2022,
2021, and 2020:
Table 1 — Summary
Percent Increase/(Decrease)
Years Ended December 31, (dollars in thousands, except per share data) 2022 2021 2020 2022/2021 2021/2020
Income before income tax expense $ 116,845 $ 111,442 $ 102,633 5% 9%

Net income 91,106 87,611 83,246 4 5
Diluted EPS of Class A Common Stock 4.59 4.28 3.99 7 7
ROA 1.48 % 1.39 % 1.38 % 6 1
ROE 10.68 10.37 10.37 3 —
The increase in net income for the Total Company primarily reflected the following:
• The benefit of an $13 million pre-tax legal settlement;
• The benefit of a $5 million pre-tax contract termination fee;
• A $32.9 million increase in non-PPP related interest income;
• A $18.6 million decrease in PPP income within interest income; and
• An $13.8 million decrease in Mortgage Banking income.
Additional discussion follows in this section of the filing under “Results of Operations.”
General highlights by reportable segment for the year ended December 31, 2022 consisted of the following:
Traditional Banking segment
• Net income increased $5.3 million, or 15%, from 2021.
• Net interest income increased $14.3 million, or 9%, compared to 2021.
• Provision was a net charge of $1.4 million for 2022 compared to a net credit of $38,000 for 2021.
• Noninterest income increased $156,000, or less than 1%, over 2021.
• Noninterest expense increased $4.3 million, or 3%, over 2021.
• Total Traditional Bank non-PPP related loans increased $404 million, or 12%, during 2022, driven primarily by strong CRE
loan growth.
• Total nonperforming loans to total loans for the Traditional Banking segment was 0.40% as of December 31, 2022 compared
to 0.59% as of December 31, 2021.
• Delinquent loans to total loans for the Traditional Banking segment was 0.16% as of December 31, 2022 compared to 0.21%
as of December 31, 2021.
47
Warehouse Lending segment
• Net income decreased $7.6 million, or 47%, from 2021.
• Net interest income decreased $11.5 million, or 46%, from 2021.
• The Warehouse Provision was a net credit of $1.1 million for 2022 compared to a net credit of $281,000 for 2021.
• Average committed Warehouse lines decreased to $1.3 billion during 2022 from $1.4 billion during 2021.
• Average Warehouse line usage was 44% during 2022 compared to 53% during 2021.
Mortgage Banking segment
• Within the Mortgage Banking segment, mortgage banking income decreased $13.8 million, or 69%, from 2021 to 2022.
• Overall, Republic’s proceeds from sale of secondary market loans totaled $238 million during 2022 compared to $718
million during 2021, with the Company’s cash-gain-as-a-percent-of-loans-sold decreasing to 3.01% from 3.22% from period
to period.
Tax Refund Solutions segment
• Net income increased $14.1 million, or 111%, from 2021 to 2022.
• Net interest income increased $5.9 million, or 37%, from 2021 to 2022.
• Total RA originations were $311 million during the first quarter of 2022 compared to $250 million for the first quarter of
2021.
• TRS originated $98 million of ERAs during the fourth quarter of 2022 related to the anticipated filing of tax returns for the
upcoming first quarter 2023 tax season.
• The TRS Provision was $10.0 million for 2022, compared to $6.7 million for 2021.
• Noninterest income was $38.5 million for 2022 compared to $23.8 million for 2021. Noninterest income for 2022 included a
$5.0 million non-recurring contract termination fee and a $13.0 million non-recurring legal settlement payment.
• Net RT revenue decreased $3.2 million, or 16%, from 2021 to 2022.
• Noninterest expense was $15.7 million for 2022 compared to $16.3 million for 2021.
• On October 19, 2022, TRS entered into a new agreement with a large Tax Provider, for which TRS had previously only
provided RTs. As part of the new agreement, TRS will be the exclusive provider of RAs and ERAs originated through this
provider until October 2025. As a result of the new agreement, management expects to add an additional $550 million of new
RA origination volume, including ERAs originated during December 2022, to its first quarter 2023 tax filing season.
48
TRS had multiple factors during 2021 and 2022 that impacted its 2022 performance and the comparability of that performance to the
same periods in 2021. By year, these factors discussed below include, but may not be limited to, the following:
2021 Calendar Year
1) The start of the IRS processing season was delayed approximately two weeks later than a typical tax season; and
2) The Company believes stimulus programs from the Federal Government and pandemic-related restrictions during early 2021
negatively impacted demand for TRS’s RT and RA products.
2022 Calendar Year
1) TRS amended one of its existing third-party contracts to provide for a small revenue share from Republic to the third party,
along with a ceiling on loan losses from the third party to Republic for all RA products originated through this provider;
2) TRS experienced a loss of RT and RA product volume to Green Dot directly following the execution of the TRS Purchase
Agreement;
3) Although to a lesser degree than in the 2021 tax season, management believes stimulus programs from the Federal
Government during the latter half of 2021 negatively impacted the 2022 tax season;
4) The Bank received a $5.0 million non-recurring termination fee in January 2022 following the cancellation of the Sales
Transaction; and
5) The Bank received a $13.0 million non-recurring legal settlement in June 2022 upon settling its lawsuit against Green Dot.
As it relates to factors impacting 2021, the processing season with the IRS started approximately two weeks later than normal. As a
result, RT funding volume and loan repayments from the IRS lagged normal funding patterns in non-COVID-impacted years and
effectively pushed RT revenue and loan recovery activity later into the 2021 calendar year. In addition, management believes
government stimulus programs during 2021 negatively impacted demand for TRS RA and RT products.
In addition to the more normal timing of the tax season in 2022 as compared to 2021, the fiscal year 2022 tax season, in totality, was
favorably impacted by a contractual amendment with one of the Company’s large Tax Providers. As a result of the amended contract,
TRS shares certain revenues with this provider, while this provider absorbs certain overhead costs of the program and furnishes to
TRS a loan loss guaranty ceiling as a percentage of RAs originated by this provider. Through this provider, TRS originated $172
million of RAs during the first quarter of 2022 as compared to $135 million originated during the first quarter of 2021. The net cost of
the revenue share to the provider from TRS was approximately $266,000 for the $172 million of RA volume, while the benefit to TRS
of the overhead costs eliminated as a result of the new contract was approximately $543,000 and the net benefit to TRS of the loan
loss guaranty ceiling for 2022 was approximately $516,000.
Negatively impacting 2022 as compared to 2021 was a loss of RT volume by RB&T to Green Dot from certain third-party Tax
Providers following the execution of the TRS Purchase Agreement. While TRS was able to partially offset this lost volume through
higher volume from other existing relationships, the lost volume to Green Dot from this one provider had a negative impact to the
overall results of TRS for 2022 and may continue to have a negative impact to the overall results of TRS beyond 2022, if TRS is
unable to win this business back through its normal solicitation process.
As a net result of all the factors in the preceding paragraphs as well as the positive impact to non-interest income of the Green Dot
settlement, TRS experienced a net positive improvement to its 2022 operating results as compared to 2021.
49
Republic Credit Solutions segment
• Net income increased $1.2 million, or 7%, over 2021.
• Net interest income increased $5.8 million, or 25%, over 2021.
• Overall, RCS recorded a net charge to the Provision of $12.1 million during 2022 compared to a net charge of $8.4 million
for 2021.
• Noninterest income increased $2.2 million, or 20%, over 2021.
• Noninterest expense was $8.4 million for 2022 and $4.8 million for 2021.
• Total nonperforming loans to total loans for the RCS segment was 0.70% as of December 31, 2022 compared to 0.05% as of
December 31, 2021.
• Delinquent loans to total loans for the RCS segment was 8.53% as of December 31, 2022 compared to 6.48% as of December
31, 2021.
RESULTS OF OPERATIONS
This section provides a comparative discussion of Republic’s Results of Operations for the two-year period ended December 31, 2022,
unless otherwise specified. Refer to Results of Operations on pages 53-63 of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2021 (the “2021 Form 10-K”) for a discussion of the 2021 versus 2020 results.
Net Interest Income
Banking operations are significantly dependent upon net interest income. Net interest income is the difference between interest income
on interest-earning assets, such as loans and investment securities, and the interest expense on interest-bearing liabilities used to fund
those assets, such as interest-bearing deposits, securities sold under agreements to repurchase, and FHLB advances. Net interest
income is impacted by both changes in the amount and composition of interest-earning assets and interest-bearing liabilities, as well as
market interest rates.
See the section titled “Asset/Liability Management and Market Risk” in this section of the filing regarding the Bank’s interest rate
sensitivity.
A large amount of the Company’s financial instruments tracks closely with, or are primarily indexed to, either the FFTR, Prime, or
LIBOR. These rates trended lower beginning in the first quarter of 2020 with the onset of the COVID pandemic, as the FOMC
reduced the FFTR to approximately 25 basis points. During 2022 inflation rose to levels not seen in approximately 40 years. In
response, the FOMC began executing a quantitative tightening program by reducing its balance sheet, selling certain types of bonds in
the market, and repeatedly increasing the FFTR. The FOMC’s increases to the FFTR during 2022 included the following:
50
Table 2 — Increases to the Federal Funds Target Rate during 2022
Increase to FFTR
Date the FFTR after Increase
March 17, 2022 0.25 % 0.50 %

May 5, 2022 0.50 1.00
June 16, 2022 0.75 1.75
July 27, 2022 0.75 2.50
September 21, 2022 0.75 3.25
November 2, 2022 0.75 4.00
December 15, 2022 0.50 4.50
The FOMC’s actions and signals continued to place upward pressure on short-term market interest rates for bonds and loans
throughout the second half of 2022. While long-term interest rates initially rose in tandem with the increases to the FFTR during the
middle part of 2022, they began to decline during the second half of 2022 as the market generally began to anticipate a recession to
take place in 2023. As a result of the increase in short-term interest rates and the moderation of long-term interest rates, the yield
curve became inverted during 2022 with some short-term rates higher than some long-term rates on the yield curve. Further monetary
tightening by the FOMC in the future will likely cause short-term interest rates to continue to increase. At this time, the future of
long-term market interest rates remains uncertain. Increases in short-term market interest rates are expected to impact the various
business segments of the Company differently and will be discussed in further detail in the sections below.
Total Company net interest income was $236.7 million during 2022 and represented an increase of $14.0 million over 2021. Total
Company net interest margin expanded to 4.12% during 2022 compared to 3.79% for 2021.
The following were the most significant components affecting the Company’s net interest income by reportable segment:
The Traditional Banking’s net interest income increased $14.3 million, or 9%, over 2021. Traditional Banking’s net interest margin
was 3.38% for 2022, an increase of 20 basis points from 2021.
The increase in the Traditional Bank’s net interest income during 2022 was primarily attributable to the following factors:
• Traditional Bank net interest income, excluding PPP fees and interest, increased $32.9 million, or 24%, over 2021.
Contributing significantly to this growth in net interest income was a 44-basis point increase in the Traditional Bank’s net
interest margin, excluding PPP loans and related fees and interest. Driving this increase in net interest margin, excluding
PPP-related elements, was the following:
o Increases in the FFTR during 2022 continued to benefit the Traditional Bank’s high level of interest-earning cash on
its balance sheet, as well as its loan and investment portfolio yields. As a result, the Traditional Bank’s yield on
interest earning assets, excluding PPP, increased 42 basis points from 2021 to 2022.
o Average non-PPP loans at the Traditional Bank grew from $3.3 billion for 2021 to $3.6 billion for 2022.
o The Traditional Bank was able to maintain a relatively low cost of interest-bearing deposits as compared to the
benefit it received on its interest earning cash as a result of the increases to the FFTR. For further discussion of the
Bank’s interest-bearing deposits, see section titled Deposits below in this section of the filing.
• The Traditional Bank recognized $1.4 million of fees and interest on its PPP portfolio during 2022 compared to $20.0 million
during 2021. The $18.6 million decrease in PPP fees and interest primarily highlighted the short-term nature of this program,
which was closer to its peak during 2021.
51
Table 3 — Traditional Bank Net Interest Income and Net Interest Margin Excluding PPP (Non-GAAP)
The Company earns fees and a coupon interest rate of 1.0% on its PPP portfolio. Due to the short-term nature of the PPP, management
believes Traditional Bank net interest income excluding PPP fees and coupon interest is a more appropriate measure to analyze the
performance of the Traditional Bank’s net interest income and net interest margin. The following table reconciles Traditional Bank net
interest income and net interest margin to Traditional Bank net interest income and net interest margin excluding PPP fees and
interest, a non-GAAP measure.
Net Interest Income Average Interest-Earning Assets Net Interest Margin

Years Ended Dec. 31, Years Ended Dec. 31, Years Ended Dec. 31,
(dollars in thousands) 2022 2021 $ Change % Change 2022 2021 $ Change % Change 2022 2021 % Change
Traditional Banking - GAAP $ 171,543 $ 157,249 $ 14,294 9 % $ 5,071,728 $ 4,945,316 $ 126,412 3% 3.38 % 3.18 % 0.20 %
Less: Impact of PPP fees and interest 1,384 20,029 (18,645) (93) 16,557 246,451 (229,894) (93) 0.02 0.26 (0.24)
Traditional Banking ex PPP fees and interest - non-GAAP $ 170,159 $ 137,220 $ 32,939 24 $ 5,055,171 $ 4,698,865 $ 356,306 8 3.36 2.92 0.44
As previously disclosed, short-term interest rates driven by the FOMC are expected to continue to increase into 2023 as a result of
expected monetary tightening by the FOMC. Additional increases in short-term interest rates are generally believed by management
to be favorable to the Traditional Bank’s net interest income and net interest margin in the near term. While many factors will
determine the Traditional Bank’s net interest income and net interest margin in 2023 and beyond, the Bank’s ability to maintain its
deposit balances near their current, relatively-low pricing levels is a significant assumption driving Management’s current belief that
rising short-term rates will be beneficial to the Traditional Bank’s net interest income and net interest margin in the future. In
addition, a continued or increased inversion of the yield curve could negatively impact the Traditional Bank’s net interest income and
net interest margin in the future as many of the Bank’s loan products are priced relative to the long end of the yield curve while many
of its deposit products are priced relative to the short-end of the yield curve. Additional variables which may also impact the
Traditional Bank’s net interest income and net interest margin in the future include, but are not limited to, the actual steepness and
shape of the yield curve, future demand for the Traditional Bank’s financial products, and the Traditional Bank’s overall future
liquidity needs.
Net interest income within the Warehouse segment decreased $11.5 million, or 46%, from 2021, driven by decreases in both average
outstanding balances and net interest margin. Overall average outstanding Warehouse balances declined from $748 million during the
2021 to $510 million for 2022, driven largely by the sharp rise in long-term interest rates during 2022, which depressed mortgage-
refinancing demand and resulted in a significant drop in Warehouse line usage.
In addition, the Warehouse net interest margin decreased 68 basis points from 3.37% during 2021 to 2.69% during 2022. The decline
in the Warehouse net interest margin occurred as its funding costs, as charged through the Company’s internal FTP methodology,
generally rose in tandem with the increase in short-term interest rates during the year, while its yield increases were delayed until the
adjustable rates on its clients’ lines of credit surpassed their contractual interest rate floors. These interest rate floors benefited
Warehouse’s net interest margin substantially during 2020 and 2021 when market rates declined to historical lows but have produced
margin compression since the onset of the FFTR increases during 2022. Committed Warehouse lines-of-credit decreased from $1.4
billion as of December 31, 2021 to $1.1 billion as of December 31, 2022, while average usage rates for Warehouse lines were 44%
and 53%, respectively, during 2022 and 2021.
Additional increases in short-term interest rates are generally believed by management to be favorable to Warehouse’s net interest
income and net interest margin in the near term, however, the benefit of an increase in rates could be partially or entirely offset by a
reduction in average outstanding balances driven by a decline in demand from Warehouse clients, as higher long-term interest rates
generally drive lower demand for Warehouse borrowings. In addition, a lower demand for Warehouse borrowings could cause
additional competitive pricing pressures for the industry, driving down the yield Warehouse earns on its lines of credit.
52
TRS’s net interest income increased $5.9 million over 2021, driven by an increase in RA fees, which are recorded as interest income
on loans; an increase in outstanding commercial loan balances; and an increase in interest income on TRS’s prepaid card balances as a
function of the Company’s internal FTP methodology and a rise in interest rates. TRS’s RA product, including ERAs originated
during December 2022, earned $14.5 million in fees during 2022, a $1.3 million increase from 2021, resulting primarily from a $159
million increase in RA originations from year to year.
RCS’s net interest income increased $5.8 million, or 25%, from 2021. The increase was driven primarily by an increase in fee income
from RCS’s LOC products.
RCS’s LOC loan fees, which are recorded as interest income on loans, increased to $27.3 million during 2022 compared to $19.3
million during 2021. Interest income on RCS’s LOC I product increased $2.5 million during 2022, driven by a $3.4 million increase
in average outstanding balances for this product from 2021 to 2022.
Interest income on RCS’s LOC II product increased $5.4 million, as the Company first piloted this product during early 2021 with
limited originations during the pilot phase.
Interest income from RCS’s hospital receivables decreased $381,000 from 2021 resulting from a $21 million decrease in average
receivables from period to period.
Overall product demand for the RCS segment is not assumed to be interest rate sensitive and therefore management does not believe a
rising interest rate environment will impact demand for its various consumer loan products. A rising interest rate environment,
however, likely will impact the Company’s internal FTP cost allocated to this segment. As a result, the impact of rising interest rates
to RCS during 2023 will likely be negative to the segment’s financial results, although the exact amount of the negative impact will
depend on the internal FTP cost assigned, as well as the overall volume and mix of loans it generates.
53
Table 4 — Total Company Average Balance Sheets and Interest Rates
Years Ended December 31,

2022 2021 2020
Average Average Average Average Average Average
(dollars in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
ASSETS
Interest-earning assets:
Federal funds sold and other interest-earning deposits $ 738,399 $ 11,370 1.54 % $ 806,811 $ 1,108 0.14 % $ 283,151 $ 911 0.32 %
Investment securities, including FHLB stock (1) 671,858 11,739 1.75 555,599 7,706 1.39 584,300 10,303 1.76
TRS Refund Advance loans (2) 28,085 14,481 51.56 26,283 13,202 50.23 38,843 19,671 50.64
RCS LOC products (2) 28,986 27,318 94.25 20,662 19,345 93.63 20,217 18,522 91.62
Other RPG loans (3) (7) 96,538 5,744 5.95 107,129 5,991 5.59 105,569 6,101 5.78
Outstanding Warehouse lines of credit (4) (7) 510,417 21,351 4.18 747,840 27,169 3.63 812,862 31,199 3.84
Paycheck Protection Program loans (5) (7) 16,557 1,384 8.36 246,451 20,029 8.13 341,704 12,178 3.56
All other Core Bank loans (6) (7) 3,657,850 150,797 4.12 3,370,912 133,856 3.97 3,477,646 153,373 4.41
Total interest-earning assets 5,748,690 244,184 4.25 5,881,687 228,406 3.88 5,664,292 252,258 4.45
Allowance for credit losses (67,951) (66,481) (60,008)
Noninterest-earning assets:
Noninterest-earning cash and cash equivalents 186,636 167,556 125,904
Premises and equipment, net 33,892 38,428 42,991
Bank owned life insurance 100,452 91,329 67,264
Other assets (1) 167,251 189,339 171,422
Total assets $ 6,168,970 $ 6,301,858 $ 6,011,865
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Transaction accounts $ 1,696,809 $ 1,974 0.12 % $ 1,580,570 $ 361 0.02 % $ 1,291,980 $ 1,201 0.09 %
Money market accounts 779,457 2,000 0.26 784,777 385 0.05 739,524 1,930 0.26
Time deposits 240,701 2,636 1.10 300,784 3,625 1.21 400,704 7,868 1.96
Reciprocal money market and time deposits 55,042 147 0.27 226,503 644 0.28 274,725 1,776 0.65
Brokered deposits — — — 30,863 24 0.08 206,553 2,314 1.12
Total interest-bearing deposits 2,772,009 6,757 0.24 2,923,497 5,039 0.17 2,913,486 15,089 0.52
SSUARs and other short-term borrowings 265,188 397 0.15 231,430 63 0.03 204,797 177 0.09
Federal Reserve PPP Liquidity Facility — — — — — — 43,932 153 0.35
Federal Home Loan Bank advances 21,233 339 1.60 29,479 57 0.19 211,776 3,524 1.66
Subordinated note — — — 30,732 507 1.65 41,240 1,000 2.42
Total interest-bearing liabilities 3,058,430 7,493 0.24 3,215,138 5,666 0.18 3,415,231 19,943 0.58
Noninterest-bearing liabilities and Stockholders’ equity:

Noninterest-bearing deposits 2,148,848 2,129,222 1,672,442
Other liabilities 108,965 112,466 121,466
Stockholders’ equity 852,727 845,032 802,726
Total liabilities and stockholders’ equity $ 6,168,970 $ 6,301,858 $ 6,011,865
Net interest income $ 236,691 $ 222,740 $ 232,315
Net interest spread 4.01 % 3.70 % 3.87 %
Net interest margin 4.12 % 3.79 % 4.10 %
(1) For the purpose of this calculation, the fair market value adjustment on debt securities is included as a component of other assets.
(2) Interest income for RAs and RCS line-of-credit products is composed entirely of loan fees.
(3) Interest income includes loan fees of $882,000, $1.7 million, and $1.4 million for 2022, 2021, and 2020.
(4) Interest income includes loan fees of $1.7 million, $3.1 million, and $3.4 million for 2022, 2021, and 2020.
(7) Average balances for loans include the principal balance of nonaccrual loans and loans held for sale, and are inclusive of all
loan premiums, discounts, fees, and costs.
54
Table 5 illustrates the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-
bearing liabilities impacted Republic’s interest income and interest expense during the periods indicated. Information is provided in
each category with respect to (i) changes attributable to changes in volume (changes in volume multiplied by prior rate), (ii) changes
attributable to changes in rate (changes in rate multiplied by prior volume) and (iii) net change. The changes attributable to the
combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate.
Table 5 — Total Company Volume/Rate Variance Analysis
Year Ended December 31, 2022 Year Ended December 31, 2021
Compared to Compared to
Total Net Increase / (Decrease) Due to Total Net Increase / (Decrease) Due to
(in thousands) Change Volume Rate Change Volume Rate
Interest income:
Federal funds sold and other interest-earning deposits $ 10,262 $ (102) $ 10,364 $ 197 $ 947 $ (750)
Investment securities, including FHLB stock 4,033 1,799 2,234 (2,597) (486) (2,111)
TRS Refund Advance loans 1,279 922 357 (6,469) (6,310) (159)
RCS LOC products 7,973 7,844 129 823 401 422
Other RPG loans (247) (615) 368 (110) 89 (199)
Outstanding Warehouse lines of credit (5,818) (9,510) 3,692 (4,030) (2,416) (1,614)
Paycheck Protection Program loans (18,645) (19,200) 555 7,851 (4,172) 12,023
All other Core Bank loans 16,941 11,694 5,247 (19,517) (4,597) (14,920)
Net change in interest income 15,778 (7,168) 22,946 (23,852) (16,544) (7,308)
Interest expense:
Transaction accounts 1,613 29 1,584 (840) 222 (1,062)

Money market accounts 1,615 (3) 1,618 (1,545) 111 (1,656)
Time deposits (989) (679) (310) (4,243) (1,665) (2,578)
Reciprocal money market and time deposits (497) (460) (37) (1,132) (270) (862)
Brokered deposits (24) (24) — (2,290) (1,093) (1,197)
SSUARs and other short-term borrowings 334 10 324 (114) 20 (134)
Federal Reserve PPP Liquidity Facility — — — (153) (153) —
Federal Home Loan Bank advances 282 (20) 302 (3,467) (1,710) (1,757)
Subordinated note (507) (507) — (493) (219) (274)
Net change in interest expense 1,827 (1,654) 3,481 (14,277) (4,757) (9,520)
Net change in net interest income $ 13,951 $ (5,514) $ 19,465 $ (9,575) $ (11,787) $ 2,212
55
Provision
Total Company Provision was a net charge of $22.3 million for 2022 compared to a net charge of $14.8 million for 2021.
The following were the most significant components comprising the Company’s Provision by reportable segment:
The Traditional Banking Provision during 2022 was a net charge of $1.4 million compared to a net credit of $38,000 for 2021. An
analysis of the Provision for 2022 compared 2021 follows:
• For 2022, the Traditional Bank Provision primarily reflected the following:
o The Traditional Bank released $2.8 million of reserves following the payoff or upgrade of Substandard and Special
Mention loans.
o Non-PPP Traditional Bank loans grew $404 million from December 31, 2021 to December 31, 2022, driving
approximately $4.5 million of additional Provision tied to general formula reserves for loan growth.
• For 2021, there was a minimal net credit to the Traditional Bank Provision, generally based on an improving economic
outlook in conjunction with limited net charge-offs incurred by the Traditional Bank since making significant life-of-loan
reserves during 2020 following the onset of the pandemic. The net credit recorded during 2021 primarily included nominal
ACLL releases for the residential real estate, CRE, and HELOC portfolios offset by additional reserves for certain Special
Mention loans with continued signs of pandemic-related hardship through December 31, 2021.
As a percentage of total Traditional Bank loans, the Traditional Banking ACLL was 1.32% as of December 31, 2022 compared to
1.41% as of December 31, 2021. The Company believes, based on information presently available, that it has adequately provided for
Traditional Banking loan losses as of December 31, 2022.
Table 6 — Traditional Bank ACLL to Non-PPP Traditional Bank Loans (Non-GAAP)
December 31,
2022 2021
Allowance Allowance
(dollars in thousands) Gross Loans Allowance to Loans Gross Loans Allowance to Loans
Traditional Bank - GAAP $ 3,855,142 $ 50,709 1.32 % $ 3,501,959 $ 49,407 1.41 %

Less: Paycheck Protection Program 4,980 — 56,014 —
Traditional Bank, Less PPP - non-GAAP $ 3,850,162 $ 50,709 1.32 $ 3,445,945 $ 49,407 1.43
See the sections titled “Allowance for Credit Losses” and “Asset Quality” in this section of the filing under “Financial Condition” for
additional discussion regarding the Provision and the Bank’s delinquent, nonperforming, impaired, and TDR loans.
Warehouse recorded a net credit of $1.1 million for 2022 compared to a net credit of $281,000 for 2021. Provision for both periods
reflected changes in general reserves consistent with changes in outstanding period-end balances. Outstanding Warehouse period-end
balances decreased $447 million during 2022 compared to a decrease of $112 million during 2021.
As a percentage of total Warehouse outstanding balances, the Warehouse ACLL was 0.25% as of December 31, 2022, and
December 31, 2021. The Company believes, based on information presently available, that it has adequately provided for Warehouse
loan losses as of December 31, 2022.
56
TRS recorded a net charge to the Provision of $10.0 million during 2022 compared to a net charge of $6.7 million for in 2021.
Substantially all TRS Provision in both periods was related to its RA product, including the ERA product.
TRS recorded a charge to the Provision for RA loans of $10.5 million, or 2.56 % of its $409 million in total RAs and ERAs originated
during 2022 compared to a charge to the Provision of $6.7 million, or 2.69% of its $250 million of RAs originated during 2021. The
decrease in Provision as a percentage of originations for 2022 was primarily due to a contractual loss guaranty that TRS received from
one of its large Tax Providers during 2022 that set a percentage ceiling on losses for RAs originated through this provider. Through
this provider, TRS originated $172 million of RAs during 2022. The net benefit to the TRS Provision for this loan loss guaranty
arrangement during 2022 was approximately $516,000.
See additional detail regarding the RA and ERA products under Footnote 4 “Loans and Allowance for Credit Losses” of Part II Item
8 “Financial Statements and Supplemental Data.”
RCS recorded a net charge to the Provision of $12.1 million during 2022 compared to a net charge to the Provision of $8.4 million for
2021. The increase in the Provision was driven primarily by a $5.9 million increase in net charge-offs on RCS’s line-of-credit
products.
Net charge-offs for RCS’s LOC I product increased to $7.0 million for 2022 from $3.5 million during 2021, with government stimulus
programs generally driving down usage of this product during 2021.
Net charge-offs for RCS’s LOC II product were $3.2 million for 2022 compared to $840,000 of net charge-offs during 2021. The
lower level of charge-offs for the LOC II product during 2021 were attributable to the relatively low level of originations during the
year, as the product was launched during 2021 and remained in a pilot phase for much of the year.
While RCS loans generally return higher yields, they also present a greater credit risk than Traditional Banking loan products. As a
percentage of total RCS loans, the RCS ACLL was 13.73% as of December 31, 2022 and 13.91% as of December 31, 2021. The
Company believes, based on information presently available, that it has adequately provided for RCS loan losses as of December 31,
2022.
The following table presents RCS Provision by product:
Table 7 — RCS Provision by Product
Years Ended December 31, (in thousands) 2022 2021 2020 2022/2021 2021/2020
Product:
Lines of credit $ 12,050 $ 8,509 $ 1,178 42 % 622 %
Hospital receivables 31 (65) 41 (148) (259)
Total $ 12,081 $ 8,444 $ 1,219 43 593
57
Noninterest Income
Table 8 — Analysis of Noninterest Income
Years Ended December 31, (dollars in thousands) 2022 2021 2020 2022/2021 2021/2020
Service charges on deposit accounts $ 13,426 $ 12,553 $ 11,615 7% 8%

Net refund transfer fees 17,080 20,248 20,297 (16) —
Mortgage banking income 6,196 19,994 31,847 (69) (37)
Interchange fee income 13,125 13,062 11,188 — 17
Program fees 16,172 14,237 7,095 14 101
Increase in cash surrender value of bank owned life insurance 2,526 2,242 1,585 13 41
Death benefits in excess of cash surrender value of life insurance — 979 — (100) NM
Net losses on other real estate owned (211) (160) (40) (32) (300)
Contract termination fee 5,000 — — NM NM
Legal settlement 13,000
Other 3,496 3,420 3,466 2 (1)
Total noninterest income $ 89,810 $ 86,575 $ 87,053 4 (1)
NM - Not meaningful
Total Company noninterest income increased $3.2 million over 2021.
The following were the most significant components comprising the total Company’s noninterest income by reportable segment:
Traditional Banking’s noninterest income increased $156,000, or less than 1%, over 2021, driven primarily by a $882,000 increase in
Service Charges on Deposit Accounts offset by a $399,000 nonrecurring gain on sale of a former banking center recorded during
2021.
The Bank earns a substantial majority of its fee income related to its overdraft service. The total per item fees, net of refunds, included
in service charges on deposits for 2022 and 2021 were $6.8 million and $5.6 million. The total daily overdraft charges, net of refunds,
included in interest income for 2022 and 2021 were $1.3 million and $1.1 million. The year-over-year growth in these overdraft
related fees were generally due to a full year of more normal economic activity during 2022 as opposed to 2021, which had less
activity due to some continuing COVID restrictions.
A significant rise in long-term interest rates during 2022 led to a significant slowdown in the origination and subsequent sale of
mortgage loans into the secondary market. As a result, Mortgage Banking income decreased from $20.0 million during 2021 to $6.2
million for 2022. For 2022, the Bank recorded proceeds of $238 million for its loans sold into the secondary market and achieved an
average cash-gain-as-a-percent-of-loans-sold during the year of 3.01%. During 2021, however, long-term interest rates were closer to
historical lows, driving secondary market loan sales higher with overall proceeds from sale of $718 million and comparable cash-gain-
as-a-percent-of-loans-sold of 3.22%.
With the FOMC potentially moving forward with its quantitative tightening program during 2023, management believes it is likely
that the Core Bank’s mortgage origination volume will continue to be negatively impacted by higher interest rates combined with a
potential economic slow-down within the US economy.
58
TRS’s noninterest income increased $14.7 million, or 62%, over 2021. Green Dot paid RB&T a total of $18 million in nonrecurring
payments during 2022 related to the now-cancelled TRS Purchase Agreement. These nonrecurring payments included the following:
• A contract termination fee of $5.0 million in January 2022 after RB&T provided Green Dot a notice of termination of the
May 2021 TRS Purchase Agreement for the sale of substantially all of RB&T’s TRS assets and operations to Green Dot.
• A legal settlement of $13.0 million in June 2022 regarding RB&T’s lawsuit against Green Dot.
Regarding TRS’s RT product, net RT revenue decreased 16% from $20.2 million during 2021 to $17.1 million during 2022. The
decrease was primarily driven by an 3% overall decrease in RT volume from the 2021 to the 2022 tax season, with a substantial
portion of that decrease driven by the loss of one of TRS’s tax providers following the announcement of the now-cancelled May 2021
Asset Purchase Agreement.
For factors affecting the comparison of the TRS results of operations for 2022 and 2021, see section titled “OVERVIEW - Tax Refund
Solutions.”
RCS’s noninterest income increased $2.2 million, or 20%, with program fees representing the entirety of RCS’s noninterest income.
The increase in RCS program fees primarily reflected higher sales volume from RCS’s line of credit and installment loan products as
sales volume was negatively impacted during 2021 by federal government stimulus programs implemented to combat the economic
impact of the COVID pandemic. RPG program fees resulting from the sale of RCS loan products totaled $13.3 million during 2022,
a 20% increase over 2021.
The following table presents RCS program fees by product:
Table 9 — RCS Program Fees by Product
Years Ended December 31, (in thousands) 2022 2021 2020 2022/2021 2021/2020
Product:
Lines of credit $ 6,406 $ 5,049 $ 3,119 27 % 62 %
Hospital receivables 178 268 102 (34) 163
Installment loans* 6,716 5,749 1,681 17 242
Total $ 13,300 $ 11,066 $ 4,902 20 126
*The Company has elected the fair value option for this product, with mark-to-market adjustments recorded as a component of program fees.
59
Noninterest Expense
Table 10 — Analysis of Noninterest Expense
Years Ended December 31, (dollars in thousands) 2022 2021 2020 2022/2021 2021/2020
Salaries and employee benefits $ 111,240 $ 110,088 $ 106,166 1% 4%

Technology, equipment, and communication 28,954 29,351 29,128 (1) 1
Occupancy 13,014 13,193 13,438 (1) (2)
Marketing and development 6,875 4,390 4,031 57 9
FDIC insurance expense 1,668 1,591 1,010 5 58
State bank franchise tax expense — — 5,369 — (100)
Interchange related expense 4,773 4,960 4,303 (4) 15
Legal and professional fees 4,024 4,924 4,244 (18) 16
FHLB advances early termination penalties — — 2,108 NM NM
Other 16,760 14,568 15,660 15 (7)
Total noninterest expense $ 187,308 $ 183,065 $ 185,457 2 (1)
Total Company noninterest expense increased $4.2 million, or 2%, over 2021.
The following were the most significant components comprising the increase in noninterest expense by reportable segment:
Traditional Banking noninterest expense increased $4.3 million over 2021. The following primarily drove the change in noninterest
expense:
• Other noninterest expense increased by $3.0 million, or 53%. Notable fluctuations within the Other noninterest expense
category were as follows:
o Net losses related to client disputes for unauthorized checks as well as unauthorized debit and credit card
transactions increased $780,000 over 2021.
o Meals, Entertainment, and Travel expenses increased $860,000 with in-person community outreach and business-
related travel increasing to nearer pre-pandemic levels in combination with inflationary pressures on these costs.
o Freight, postage and supplies expense increased $261,000 with these expenses negatively impacted by additional
usage and inflation-related cost increases.
o Provision for losses on off-balance sheet commitments increased $135,000 driven primarily by an increase in the
Bank’s committed but unused lines of credit during the previous 12 months.
o The remaining increase was spread over several miscellaneous accounts, with these expenses rising back closer to
pre-pandemic levels.
• Salaries and Benefits expense increased a net $1.2 million, or 1%, to $88.5 million for 2022. The most notable change within
Salaries and Benefits was estimated bonus expense, which increased $1.1 million from 2021 to 2022, as expected bonus
payouts for 2022 are expected to increase from those paid out for 2021.
Noninterest expense at the Mortgage Banking segment decreased $2.4 million, or 20%, from 2021, primarily due to a $3.3 million
reduction in mortgage commissions partially offset by a $2.2 million reduction in credits to deferred salary expense. The decrease in
mortgage commissions was directly attributable to the previously discussed significant decline in secondary market loan volume from
2021 to 2022.
60
The Company records a credit offset to salary expense for each loan it originates and recognizes the cost of that credit as an
adjustment to the loan’s yield over its estimated life. The amount of credit benefit to salary expense during a given year is determined
by the overall loan origination volume during that year. With the dramatic decrease in mortgage origination volume during 2022, the
overall credit benefit recognized by the Mortgage Banking segment during 2022 decreased substantially as compared to 2021 when
mortgage origination volume was much higher.
In addition to the change in salary expenses noted in the previous paragraph, the Mortgage Banking segment also experienced a year-
to-year decrease of $350,000 in marketing expenses as the rapid rise in interest rates made the fixed-rate secondary market product a
less attractive alternative for clients seeking mortgage loans. The remaining decline in noninterest expense was related to a reduction
in general overhead expenses allocated to the business segment as a result of the decrease in new loan origination volume.
Noninterest expense at the RCS segment increased $3.6 million, or 76%, over 2021, primarily due to increased marketing of RCS’s
LOC II product. The LOC II product was first piloted during the first quarter of 2021.
FINANCIAL CONDITION
Cash and Cash Equivalents
Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days, and federal
funds sold. For cash held at the FRB, the Bank earns a yield on amounts exceeding required reserves. This cash earned a weighted-
average yield of 1.54% during 2022 with a spot balance yield of 4.40% on December 31, 2022. For cash held within the Bank’s
banking center and ATM networks, the Bank does not earn interest.
Republic had $314 million in cash and cash equivalents as of December 31, 2022 compared to $757 million as of December 31, 2021.
Period-end cash balances did decrease from December 31, 2021 to December 31, 2022 due in part to cash utilized to fund $98 million
of ERAs originated during December of 2022 and also due to a $301 million decline in customer deposit balances during the year.
While the Company deployed a portion of its excess cash into the purchase of long-term investment securities during the fourth
quarter of 2021 and periodically throughout 2022, it maintained a general strategy of keeping a large amount of interest earning cash
on balance sheet for interest rate risk protection. As a result, Republic’s average interest-earning cash and cash equivalent balances
were $738 million during 2022 compared to $807 million for 2021. This strategy significantly benefitted the Traditional Bank’s net
interest income during the year as the FOMC began raising the FFTR during 2022.
The Company’s Captive maintains cash reserves to cover insurable claims. Captive cash reserves totaled approximately $4 million as
of December 31, 2022 and 2021.
61
Investment Securities
Table 11 — Investment Securities Portfolio
December 31, (in thousands) 2022 2021 2020
Available-for-sale debt securities (fair value):

U.S. Treasury securities and U.S. Government agencies $ 411,141 $ 237,459 $ 246,909
Private label mortgage-backed security 2,127 2,731 2,957
Mortgage-backed securities - residential 171,873 210,749 211,202
Collateralized mortgage obligations 21,368 30,294 48,952
Corporate bonds 10,001 10,046 10,043
Trust preferred security 3,855 3,847 3,800
Total available-for-sale debt securities 620,365 495,126 523,863
Held-to-maturity debt securities (carrying value):

U.S. Treasury securities and U.S. Government agencies 75,000 — —
Mortgage backed securities - residential 27 46 99
Collateralized mortgage obligations 7,270 9,080 13,061
Corporate bonds 4,964 34,928 39,808
Obligations of state and political subdivisions 125 245 356
Total held-to-maturity debt securities 87,386 44,299 53,324
Equity securities with a readily determinable fair value (fair value):

Freddie Mac preferred stock 111 170 560
Community Reinvestment Act mutual fund — 2,450 2,523
Total equity securities with a readily determinable fair value 111 2,620 3,083
Total investment securities $ 707,862 $ 542,045 $ 580,270
AFS debt securities primarily consists of U.S. Treasury securities and U.S. Government agency obligations, including agency MBS
and agency CMOs. The agency MBSs primarily consist of hybrid mortgage investment securities, as well as other adjustable rate
mortgage investment securities, underwritten and guaranteed by the GNMA, the FHLMC and the FNMA. Agency CMOs held in the
investment portfolio are substantially all floating rate securities that adjust monthly. The Bank uses a portion of the investment
securities portfolio as collateral to Bank clients for SSUARs. The remaining eligible securities that are not pledged to secure client
SSUARs may be pledged to the FHLB as collateral for the Bank’s borrowing line.
During 2022, the Bank purchased $330 million in investment debt securities, allocated among $30 million in MBSs, $160 million in
U.S. Treasuries, and $140 million in U.S. government agencies. Of the U.S. Treasuries that were purchased during the year, $75
million of these securities were designated as HTM at their time of purchase. The mortgage-backed securities that were purchased had
an expected weighted-average yield of approximately 1.30% and a weighted-average maturity at purchase of 9.0 years. The U.S.
Treasuries had an expected weighted-average yield of approximately 2.03% and a weighted-average life at purchase of 1.6 years. The
U.S. Government agencies purchased had an expected weighted-average yield of approximately 4.70% and a weighted-average life of
2.0 years.
Strategies for the investment securities portfolio are influenced by economic and market conditions, loan demand, deposit mix, and
liquidity needs. Since early 2020, the Bank has utilized a general investing strategy of purchasing securities with shorter-term
durations or maintaining a large amount cash at the Federal Reserve. The Bank utilized this general strategy due to liquidity reasons
and as an interest rate risk management tool, as management did not believe that extending the duration of a significant amount of the
Company’s cash into longer investment terms was worth the interest rate risk given the historically low level of long-term interest
rates at that time. This strategy could change in 2023 depending upon several factors including, but not limited to, the Company’s
overall current and projected liquidity positions, its customers’ demand for its loans and deposit products, the Company’s overall
interest rate risk position, the interest rate environment at the time, as well as the projected interest rate environment for the near term
and the long term.
During 2019, one of the Company’s floating rate corporate bonds with a current carrying amount of $10 million was downgraded to
BBB+ (S&P/Fitch), driving a significant decrease in the bond’s market value at that time. As of December 31, 2022, this bond had
recovered its lost value and reflected an unrealized gain of $1,000.
62
Table 12 — Available-for-Sale Debt Securities
Weighted
Weighted Average
Amortized Fair Average Maturity in
December 31, 2022 (dollars in thousands) Cost Value Yield Years
U.S. Treasury securities and U.S. Government agencies:

Due in one year or less $ 31,789 $ 31,432 1.10 % 0.25
Due from one year to five years 404,544 379,709 1.81 2.29
Due from five years to 10 years — — — —
Total U.S. Treasury securities and U.S. Government agencies 436,333 411,141 1.75 2.14
Corporate bonds:
Due in one year or less 10,000 10,001 5.08 0.29
Total Corporate bonds 10,000 10,001 5.08 0.29
Trust preferred security, due beyond ten years 3,741 3,855 5.48 14.43
Private label mortgage backed security 843 2,127 7.96 10.63
Total mortgage backed securities - residential 189,312 171,873 1.89 10.94
Total collateralized mortgage obligations 22,774 21,368 1.60 17.48
Total available-for-sale debt securities $ 663,003 $ 620,365 1.89 5.24
Table 13 — Held-to-Maturity Debt Securities
Weighted
Weighted Average
Carrying Fair Average Maturity in
December 31, 2022 (dollars in thousands) Value Value Yield Years
U.S. Treasury securities and U.S. Government agencies:

Due from one year or less $ 75,000 $ 75,106 5.17 1.91
Total U.S. Treasury securities and U.S. Government agencies 75,000 75,106 5.17 1.91
Corporate bonds:
Due from one year to five years $ 4,974 $ 4,925 5.56 % 3.10
Total corporate bonds 4,974 4,925 5.56 3.10
Obligations of state and political subdivisions:
Due from one year or less 125 124 1.90 0.58
Due from one year to five years — — — —
Total obligations of state and political subdivisions 125 124 1.90 0.58
Total mortgage backed securities - residential 27 26 4.37 11.59
Total collateralized mortgage obligations 7,270 7,176 1.29 17.09
Total held-to-maturity debt securities $ 87,396 $ 87,357 4.86 3.24
See Footnote 2 “Investment Securities” of Part II Item 8 “Financial Statements and Supplementary Data” for further information
regarding the Bank’s investment securities.
63
Loan Portfolio
Table 14 — Loan Portfolio Composition
Traditional Banking:
Residential real estate:
Owner occupied $ 911,427 $ 820,731 $ 879,800
Nonowner occupied 321,358 306,323 264,780
Commercial real estate 1,599,510 1,456,009 1,349,085
Construction & land development 153,875 129,337 98,674
Commercial & industrial 408,407 340,363 325,596
Paycheck Protection Program 4,980 56,014 392,319
Lease financing receivables 10,505 8,637 10,130
Aircraft 179,785 142,894 101,375
Home equity 241,739 210,578 240,640
Consumer:
Credit cards 15,473 14,510 14,196
Overdrafts 726 683 587
Automobile loans 6,731 14,448 30,300
Other consumer 626 1,432 8,167
Total Traditional Banking 3,855,142 3,501,959 3,715,649
Warehouse lines of credit* 403,560 850,550 962,796
Total Core Banking 4,258,702 4,352,509 4,678,445
Republic Processing Group*:

Tax Refund Solutions:
Refund Advances 97,505 — —
Other TRS commercial & industrial loans 51,767 50,987 23,765
Republic Credit Solutions 107,828 93,066 110,893
Total Republic Processing Group 257,100 144,053 134,658
Total loans** 4,515,802 4,496,562 4,813,103

Allowance for credit losses (70,413) (64,577) (61,067)
Total loans, net $ 4,445,389 $ 4,431,985 $ 4,752,036
* 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.
Gross loans increased by $19 million during 2022 to $4.5 billion as of December 31, 2022. The most significant components
comprising the change in loans by reportable segment follow:
Period-end balances for Traditional Banking loans increased $353 million, or 10%, from December 31, 2021 to December 31, 2022.
The following primarily drove the change in loan balances during 2022:
• CRE loans grew $144 million, or 10%, and C&I loans grew $68 million, or 20%, during 2022, as the Traditional Bank
experienced strong loan demand within its Louisville-based CRE Lending, Private Banking and Commercial Banking
business lines, as well as its Northern Kentucky/Cincinnati and Florida markets.
64
• With mortgage refinance volume at all-time record levels during 2020 and 2021, balances of 1-4 family loans, including
HELOCs, generally declined as the vast majority of the volume of refinancings was sold into the secondary market. This
trend began to change in 2022, however, as a significant rise in long-term, fixed-rate mortgages caused portfolio level ARM
loans to become generally more attractive than secondary market loans. As a result, residential real estate loans increased
$106 million during 2022, while HELOCs increased $31 million during the same period.
• Offsetting the growth above, during 2022, the Core Bank’s PPP portfolio decreased $51 million, as this temporary
government program continued to wind down.
Outstanding Warehouse period-end balances decreased $447 million from December 31, 2021 to December 31, 2022. Due to the
volatility and seasonality of the mortgage market, it is difficult to project future outstanding balances of Warehouse lines of credit. The
growth of the Bank’s Warehouse Lending business greatly depends on the overall mortgage market and typically follows industry
trends. Since its entrance into this business during 2011, the Bank has experienced volatility in the Warehouse portfolio consistent
with overall demand for mortgage products. Weighted-average quarterly usage rates on the Bank’s Warehouse lines have ranged from
a low of 31% during the fourth quarter of 2013 to a high of 71% during the fourth quarter of 2019. On an annual basis, weighted
average usage rates on the Bank’s Warehouse lines have ranged from a low of 39% during 2022 to a high of 66% during 2020.
As previously discussed, additional increases overall market rates are generally believed by management to be unfavorable to
Warehouse’s client demand, likely leading to a reduction in average outstanding balances as higher long-term interest rates generally
drive lower demand for Warehouse borrowings.
Outstanding TRS loans increased $99 million from December 31, 2021 to December 31, 2022 primarily reflecting the impact of $98
million of ERAs originated during the fourth quarter of 2022 through a new third party Tax Provider contract. Conversely, no ERAs
were originated during the fourth quarter of 2021. In addition, other TRS loans increased $1 million from December 31, 2021 to
December 31, 2022. Other TRS loans primarily represent commercial-related loans to Tax Providers. These loans are typically made
in the fourth quarter of each year and fully repaid by June 30th of the following year.
Outstanding RCS loans increased $15 million during 2022 reflecting a $12 million increase in hospital receivables and a $3 million
increase in outstanding balances for RCS’s line-of-credit products. The increase in balances for RCS’s line-of-credit product was the
direct result of additional marketing of the products during 2022.
65
The table below illustrates the Bank’s fixed and variable rate loan maturities:
Table 15 — Selected Loan Distribution
Over One Over Five

One Year Through Through Over
December 31, 2022 (in thousands) Total Or Less Five Years 15 Years 15 Years
Fixed rate loan maturities:
Residential real estate $ 618,577 $ 19,402 $ 32,740 $ 252,817 $ 313,618

Commercial real estate 717,325 13,739 169,697 533,067 822
Construction & land development 57,797 17,886 22,148 14,636 3,127
Commercial & industrial 245,217 62,804 113,290 69,123 —
Paycheck Protection Program 4,980 202 4,778 — —
Lease financing receivables 10,505 316 10,189 — —
Aircraft 179,785 — 1,528 36,949 141,308
Warehouse lines of credit — — — — —
Home equity 1,070 — 1,025 45 —
Consumer 161,635 154,788 6,633 147 67
Total fixed rate loans $ 1,996,891 $ 269,137 $ 362,028 $ 906,784 $ 458,942
Variable rate loan maturities:
Residential real estate $ 614,208 $ 2,000 $ 26,194 $ 174,741 $ 411,273

Commercial real estate 882,185 31,878 141,711 689,862 18,734
Construction & land development 96,078 13,983 4,805 77,184 106
Commercial & industrial 214,957 77,484 96,738 20,735 20,000
Paycheck Protection Program — — — — —
Lease financing receivables — — — — —
Aircraft — — — — —
Warehouse lines of credit 403,560 403,560 — — —
Home equity 240,669 14,894 61,444 164,331 —
Consumer 67,254 15,473 8 — 51,773
Total variable rate loans $ 2,518,911 $ 559,272 $ 330,900 $ 1,126,853 $ 501,886
Total:
Residential real estate $ 1,232,785 $ 21,402 $ 58,934 $ 427,558 $ 724,891

Commercial real estate 1,599,510 45,617 311,408 1,222,929 19,556
Construction & land development 153,875 31,869 26,953 91,820 3,233
Commercial & industrial 460,174 140,288 210,028 89,858 20,000
Paycheck Protection Program 4,980 202 4,778 — —
Lease financing receivables 10,505 316 10,189 — —
Aircraft 179,785 — 1,528 36,949 141,308
Warehouse lines of credit 403,560 403,560 — — —
Home equity 241,739 14,894 62,469 164,376 —
Consumer 228,889 170,261 6,641 147 51,840
Total loans $ 4,515,802 $ 828,409 $ 692,928 $ 2,033,637 $ 960,828
Loans at maturity interval to overall total loans 100 % 19 % 15 % 45 % 21 %
Allowance for Credit Losses
As of December 31, 2022, the Bank maintained an ACLL for expected credit losses inherent in the Bank’s loan portfolio, which
includes overdrawn deposit accounts. The Bank also maintained an ACLS and an ACLC for expected losses in its securities portfolio
and its off-balance sheet credit exposures, respectively. Management evaluates the adequacy of the ACLL monthly, and the adequacy
of the ACLS and ACLC quarterly. All ACLs are presented and discussed with the Audit Committee and the Board of Directors
quarterly.
The Company’s ACLL increased $5.8 million from $64.6 million as of December 31, 2021 to $70.4 million as of December 31, 2022.
As a percent of total loans, the total Company’s ACLL increased to 1.56% as of December 31, 2022 compared to 1.44% as of
December 31, 2021. An analysis of the ACL by reportable segment follows:
66
The Traditional Banking ACLL increased approximately $1.3 million to $50.7 million as of December 31, 2022 driven primarily by
formula reserves tied to loan growth during 2022, partially offset by reserves released following the payoff or upgrade of loans graded
Substandard or Special Mention.
The Warehouse ACLL decreased to approximately $1.0 million, and the Warehouse ACLL to total Warehouse loans remained at
0.25% when comparing December 31, 2022 to December 31, 2021. As of December 31, 2022, the Warehouse ACLL was entirely
qualitative in nature with no adjustments to the qualitative reserve percentage required for 2021.
The TRS ACLL increased to approximately $3.9 million as of December 31, 2022 compared to $944,000 as of December 31, 2021.
The increased ACLL was primarily driven by estimated loss reserves for $98 million of ERAs outstanding as of December 31, 2022.
These ERAs were originated during the fourth quarter of 2022 through a new third party Tax Provider contract and are expected to be
repaid from tax refunds generated by tax returns filed during the first quarter 2023 filing season. In contrast there were no ERAs
outstanding as of December 31, 2021
The RCS ACLL increased $1.9 million from $12.9 million as of December 31, 2021 to $14.8 million as of December 31, 2022.
RCS maintained an ACLL for two distinct credit products offered as of December 31, 2022, including its line-of-credit products and
its healthcare-receivables products. As of December 31, 2022, the ACLL to total loans estimated for each RCS product ranged from as
low as 0.25% for its healthcare-receivables products to as high as 48.91% for its LOC I product and 54.85% for its LOC II product.
The lower reserve percentage of 0.25% was provided for RCS’s healthcare receivables, as such receivables have recourse back to the
third-party providers.
For additional discussion regarding Republic’s methodology for determining the adequacy of the ACLL, see the section titled
“Critical Accounting Policies and Estimates” in this section of the filing.
See additional detail regarding Republic Credit Solution’s loan products under Item 1 “Business.”
67
Table 16 — Summary of Loan and Lease Loss Experience
Years Ended December 31, (dollars in thousands) 2022 2021 2020
ACLL at beginning of period $ 64,577 $ 61,067 $ 43,351
Adoption of ASC 326 — — 6,734
Charge-offs:
Residential real estate (21) — (169)
Commercial real estate (9) (428) (795)
Commercial & industrial — (86) (310)
Home equity — (51) (14)
Consumer (1,290) (895) (1,481)
Total Traditional Banking (1,320) (1,460) (2,769)
Warehouse lines of credit — — —
Total Core Banking (1,320) (1,460) (2,769)
Republic Processing Group:

Refund Advances (11,505) (10,256) (19,575)
Other TRS loans (154) (51) (234)
Republic Credit Solutions (11,390) (4,707) (6,163)
Total Republic Processing Group (23,049) (15,014) (25,972)
Total charge-offs (24,369) (16,474) (28,741)
Recoveries:
Residential real estate 104 396 182
Commercial real estate 287 82 472
Commercial & industrial 271 76 122
Home equity 121 46 115
Consumer 373 475 508
Total Traditional Banking 1,156 1,075 1,399
Total Core Banking 1,156 1,075 1,399

Refund Advances 4,831 3,533 6,542
Other TRS commercial & industrial loans 665 29 2
Republic Credit Solutions 1,168 408 629
Total Republic Processing Group 6,664 3,970 7,173
Total recoveries 7,820 5,045 8,572
Net loan recoveries (charge-offs) (16,549) (11,429) (20,169)
Provision - Core Banking 349 (188) 16,743

Provision - RPG 22,036 15,127 14,408
Total Provision 22,385 14,939 31,151
ACLL at end of period $ 70,413 $ 64,577 $ 61,067
Credit Quality Ratios - Total Company:
ACLL to total loans 1.56 % 1.44 % 1.27 %

ACLL to nonperforming loans 432 314 259
Net loan charge-offs (recoveries) to average loans 0.38 0.25 0.42
Credit Quality Ratios - Core Banking:

ACLL to nonperforming loans 332 251 221
Net loan charge-offs (recoveries) to average loans 0.00 0.01 0.03
68
Table 17 — Net Loan Charge-offs (Recoveries) to Average Loans by Loan Category
Net Loan Charge-Offs (Recoveries) to Average Loans

Owner occupied (0.01)% (0.04)% —%
Nonowner occupied — — —
Commercial real estate (0.02) 0.03 0.02
Construction & land development — — —
Commercial & industrial (0.07) — 0.05
Paycheck Protection Program — — —
Lease financing receivables — — —
Aircraft — — —
Home equity (0.06) — (0.04)
Consumer:
Credit cards 0.48 0.65 1.46
Overdrafts 104.04 51.69 93.94
Automobile loans (0.14) (0.10) 0.08
Other consumer 1.02 0.27 0.58
Total Traditional Banking — 0.01 0.04
Total Core Banking — 0.01 0.03

Refund Advances* 26.78 26.58 33.55
Other TRS commercial & industrial loans (3.18) 0.19 2.32
Republic Credit Solutions 10.73 3.93 5.35
Total Republic Processing Group 12.02 7.42 12.20
Total 0.38 0.25 0.42
* Refund advances are originated during the first two months of each year, and beginning in December 2022, ERAs for the upcoming first quarter tax season are
originated during the fourth quarter of the year. All RAs, including ERAs, are charged-off by June 30th of each year.
The Company’s net charge-offs to average total Company loans increased from 0.25% during 2021 to 0.38% during 2022, with net
charge-offs increasing $5.1 million and average total Company loans decreasing $180 million, or 4%. The increase in net charge-offs
was primarily driven by a $5.3 million increase in net charge-offs within the Company’s RPG operations, which has historically
conducted higher-risk lending activities than the Company’s Core Banking operations.
From 2021 to 2022, RPG experienced a $5.9 million increase in net charge-offs within its RCS segment. Net charge-offs for RCS’s
LOC I product increased to $7.0 million for 2022 from $3.5 million for 2021, with government stimulus programs generally driving
down usage of this product during 2021. Net charge-offs for RCS’s LOC II product were $3.2 million for 2022 compared to $840,000
of net charge-offs during 2021. The LOC II product was launched in January 2021 and remained in a pilot phase for much of 2021
leading to a lower level of originations during 2021, and as a result, a lower level of charge-offs for the year.
From 2021 to 2022, RPG experienced a $582,000 decrease in net charge-offs within its TRS segment, as TRS amended one of its
existing Tax Provider contracts to place a ceiling on loan losses for RAs originated through this Tax Provider. For factors affecting the
comparison of the TRS results of operations for 2022 and 2021, see section titled “OVERVIEW - Tax Refund Solutions.”
During 2022 and 2021, the Company’s Core Bank net charge-offs to average Core Bank loans remained near zero.
69
The following table sets forth management’s allocation of the ACLL by loan class. The ACLL allocation is based on management’s
assessment of economic conditions, historical loss experience, forecasting for unemployment and vacancy rates, and various other
life-of-loan and forecast considerations, as well as, qualitative factors. Additionally, management began including life-of-loan and
forecast considerations into its ACLL allocation upon adoption of the CECL method on January 1, 2020. Since these factors and
management’s assumptions are subject to change, the allocation is not necessarily indicative of future loan portfolio performance or
future ACLL allocation.
Table 18 — Management’s Allocation of the Allowance for Credit Losses on Loans
2022 2021 2020

Percent of Percent of Percent of Percent of Percent of Percent of
Loans to ACLL to Loans to ACLL to Loans to ACLL to
Total Total Total Total Total Total
December 31, (in thousands) ACLL Loans* Loan Class ACLL Loans* Loan Class* ACLL Loans* Loan Class*
Owner occupied $ 8,909 21 % 0.98 % $ 8,647 19 % 1.05 % $ 9,715 19 % 1.10 %
Nonowner occupied 2,831 7 0.88 2,700 7 0.88 2,466 6 0.93
Commercial real estate 23,739 36 1.48 23,769 32 1.63 23,606 28 1.75
Construction & land development 4,123 3 2.68 4,128 3 3.19 3,274 2 3.32
Commercial & industrial 3,976 9 0.97 3,487 8 1.02 2,797 7 0.86
Paycheck Protection Program — — — — 1 — — 8 —
Lease financing receivables 110 — 1.05 91 — 1.05 106 — 1.05
Aircraft 449 4 0.25 357 3 0.25 253 2 0.25
Home equity 4,628 5 1.91 4,111 5 1.95 4,990 5 2.07
Consumer:
Credit cards 996 — 6.44 934 — 6.44 929 — 6.54
Overdrafts 726 — 100.00 683 — 100.00 587 — 100.00
Automobile loans 87 — 1.29 186 — 1.29 399 1 1.32
Other consumer 135 — 21.57 314 — 21.93 577 — 7.07
Total Traditional Banking 50,709 85 1.32 49,407 78 1.41 49,699 78 1.34
Warehouse lines of credit 1,009 9 0.25 2,126 19 0.25 2,407 20 0.25
Total Core Banking 51,718 94 1.21 51,533 97 1.18 52,106 98 1.11

Refund Advances 3,797 2 4 — — — — — —
Other TRS commercial & industrial loans 91 1 0.18 96 1 0.19 158 — 0.66
Republic Credit Solutions 14,807 3 13.73 12,948 2 13.91 8,803 2 7.94
Total Republic Processing Group 18,695 6 7.27 13,044 3 9.06 8,961 2 6.65
Total $ 70,413 100 1.56 $ 64,577 100 1.44 $ 61,067 100 1.27
*See Table 14 in this section of the filing for loan portfolio balances. Values of less than 50 basis points are rounded down to zero.
Management believes, based on information presently available, that it has adequately provided for loan and lease credit losses as of
December 31, 2022.
For additional discussion regarding Republic’s methodology for determining the adequacy of the ACLL, see the section titled
“Critical Accounting Policies and Estimates” in this section of the filing.
70
Asset Quality
Classified and Special Mention Loans
The Bank applies credit quality indicators, or ratings, to individual loans based on internal Bank policies. Such internal policies are
informed by regulatory standards. Loans rated “Loss,” “Doubtful,” “Substandard,” and PCD-Substandard are considered “Classified.”
Loans rated “Special Mention” or PCD-Special Mention are considered Special Mention. The Bank’s Classified and Special Mention
loans decreased approximately $50 million during 2022, driven primarily by commercial-purpose loans within the hospitality and
leisure industry upgraded during 2022.
See Footnote 4 “Loans and Allowance for Credit Losses” of Part II Item 8 “Financial Statements and Supplementary Data” for
additional discussion regarding Classified and Special Mention loans.
Table 19 — Classified and Special Mention Loans
Loss $ — $ — $ —
Doubtful — — —
Substandard 17,010 21,714 30,193
PCD - Substandard 1,498 1,692 1,887
Total Classified Loans 18,508 23,406 32,080
Special Mention 69,246 114,496 89,206

PCD - Special Mention 718 795 895
Total Special Mention Loans 69,964 115,291 90,101
Total Classified and Special Mention Loans $ 88,472 $ 138,697 $ 122,181
Nonperforming Loans
Nonperforming loans include loans on nonaccrual status and loans past due 90-days-or-more and still accruing. The nonperforming
loan category included TDRs totaling approximately $2 million and $6 million as of December 31, 2022 and 2021.
Nonperforming loans to total loans decreased to 0.36% as of December 31, 2022 from 0.46% as of December 31, 2021, as the total
balance of nonperforming loans decreased by $4 million, or 21%, while total loans increased $19 million during 2022. As presented in
Tables 23 and 24 below, the decrease in nonperforming loans during 2022, including the nonaccrual loan component, was primarily
driven by the pay off and pay down of $8 million of these loans during the year.
The ACLL to total nonperforming loans increased to 432% as of December 31, 2022 from 315% as of December 31, 2021, as the total
ACLL increased $6 million, or 9%, and the balance of nonperforming loans decreased by $4 million, or 21%. The driver of the
increase in ACLL was primarily growth in higher risk loans originated through the RCS segment, while the driver of the decrease in
nonperforming loans was primarily the refinancing out of the Bank of a meaningful portion of these loans during 2022.
71
Table 20 — Nonperforming Loans and Nonperforming Assets Summary
Loans on nonaccrual status* $ 15,562 $ 20,504 $ 23,548

Loans past due 90-days-or-more and still on accrual** 756 48 47
Total nonperforming loans 16,318 20,552 23,595
Other real estate owned 1,581 1,792 2,499
Total nonperforming assets $ 17,899 $ 22,344 $ 26,094

Nonaccrual loans to total loans 0.34 0.46 0.49
ACLL to nonaccrual loans 452 315 259
Nonperforming loans to total loans 0.36 0.46 0.49
Nonperforming assets to total loans (including OREO) 0.40 0.50 0.54
Nonperforming assets to total assets 0.31 0.37 0.42
Credit Quality Ratios - Core Bank:

Nonaccrual loans to total loans 0.37 0.47 0.50
ACLL to nonaccrual loans 332 251 221
Nonperforming loans to total loans 0.37 0.47 0.50
Nonperforming assets to total loans (including OREO) 0.40 0.51 0.56
Nonperforming assets to total assets 0.32 0.40 0.45
* Loans on nonaccrual status include collateral-dependent loans. See Footnote 4 “Loans and Allowance for Credit Losses” of Part II Item 8 “Financial Statements
and Supplementary Data” for the components within the nonaccrual loans to total loans and ACLL to nonaccrual loans ratios, as well as additional discussion
regarding nonaccrual loans and collateral-dependent loans.
** Loans past due 90-days-or-more and still accruing consist of smaller-balance consumer loans.
72
Table 21 — Nonperforming Loan Composition
2022 2021 2020

Percent of Percent of Percent of
Total Total Total
December 31, (in thousands) Balance Loan Class Balance Loan Class Balance Loan Class
Owner occupied $ 13,388 1.47 % $ 12,039 1.47 % $ 14,328 1.63 %
Nonowner occupied 117 0.04 95 0.03 81 0.03
Commercial real estate 1,001 0.06 6,557 0.45 6,762 0.50
Construction & land development — — — — — —
Commercial & industrial — — 13 0.00 55 0.02
Paycheck Protection Program — — — — — —
Lease financing receivables — — — — — —
Aircraft — — — — — —
Home equity 815 0.34 1,700 0.81 2,141 0.89
Consumer:
Credit cards — — — — 5 0.04
Overdrafts — — 1 0.15 — —
Automobile loans 31 0.46 97 0.67 170 0.56
Other consumer 210 33.55 3 0.21 11 0.13
Total Traditional Banking 15,562 0.40 20,505 0.59 23,553 0.63
Warehouse lines of credit — — — — — —
Total Core Banking 15,562 0.37 20,505 0.47 23,553 0.50

Refund Advances — — — — — —
Other TRS commercial & industrial loans — — — — — —
Republic Credit Solutions 756 0.70 47 0.05 42 0.04
Total Republic Processing Group 756 0.29 47 0.03 42 0.03
Total nonperforming loans $ 16,318 0.36 $ 20,552 0.46 $ 23,595 0.49
73
Table 22 — Stratification of Nonperforming Loans
Number of Nonperforming Loans and Recorded Investment

Balance
December 31, 2022 Balance > $100 & Balance Total
(dollars in thousands) No. <= $100 No. <= $500 No. > $500 No. Balance
Owner occupied 134 $ 4,650 45 $ 7,353 1 $ 1,385 180 $ 13,388
Nonowner occupied 4 117 — — — — 4 117
Commercial real estate — — 1 232 1 769 2 1,001
Construction & land development — — — — — — — —
Commercial & industrial — — — — — — — —
Paycheck Protection Program — — — — — — — —
Lease financing receivables — — — — — — — —
Aircraft — — — — — — — —
Home equity 28 711 1 104 — — 29 815
Consumer:
Credit cards — — — — — — — —
Overdrafts NM — — — — — NM —
Automobile loans 6 31 — — — — 6 31
Other consumer — — 1 210 — — 1 210
Total Traditional Banking 172 5,509 48 7,899 2 2,154 222 15,562
Warehouse lines of credit — — — — — — — —
Total Core Banking 172 5,509 48 7,899 2 2,154 222 15,562

Refund Advances — — — — — — — —
Other TRS commercial & industrial loans — — — — — — — —
Republic Credit Solutions NM — — — — 756 NM 756
Total Republic Processing Group NM — — — — 756 NM 756
Total 172 $ 5,509 48 $ 7,899 2 $ 2,910 222 $ 16,318
NM – Not meaningful. Loans from Republic Processing Group are generally small dollar homogenous consumer loans.
Number of Nonperforming Loans and Recorded Investment

Balance
December 31, 2021 Balance > $100 & Balance Total
(dollars in thousands) No. <= $100 No. <= $500 No. > $500 No. Balance
Owner occupied 146 $ 5,042 27 $ 4,857 2 $ 2,140 175 $ 12,039
Nonowner occupied 3 95 — — — — 3 95
Commercial real estate — — 4 872 3 5,685 7 6,557
Construction & land development — — — — — — — —
Commercial & industrial 1 13 — — — — 1 13
Paycheck Protection Program — — — — — — — —
Lease financing receivables — — — — — — — —
Aircraft — — — — — — — —
Home equity 25 695 5 1,005 — — 30 1,700
Consumer:
Credit cards — — — — — — — —
Overdrafts NM 1 — — — — NM 1
Automobile loans 13 97 — — — — 13 97
Other consumer 4 3 — — — — 4 3
Total Traditional Banking 192 5,946 36 6,734 5 7,825 233 20,505
Warehouse lines of credit — — — — — — — —
Total Core Banking 192 5,946 36 6,734 5 7,825 233 20,505

Refund Advances — — — — — — — —
Other TRS commercial & industrial loans — — — — — — — —
Republic Credit Solutions NM 47 — — — — NM 47
Total Republic Processing Group NM 47 — — — — NM 47
Total 192 $ 5,993 36 $ 6,734 5 $ 7,825 233 $ 20,552
NM – Not meaningful. Loans from Republic Processing Group are generally small dollar homogenous consumer loans.
74
Interest income that would have been recorded if nonaccrual loans were on a current basis in accordance with their original terms was
$1.0 million, $1.3 million and 1.3 million in 2022, 2021, and 2020.
Based on the Bank’s review as of December 31, 2022, management believes that its reserves are adequate to absorb expected losses
on all nonperforming credits
Table 23 — Rollforward of Nonperforming Loans

Years Ended December 31, (in thousands) 2022 2021 2020
Nonperforming loans at the beginning of the period $ 20,552 $ 23,595 $ 23,489

Loans added to nonperforming status during the period that remained nonperforming at the end of the period 7,076 3,627 8,993
Loans removed from nonperforming status during the period that were nonperforming at the beginning of the
period (see table below) (10,934) (5,221) (7,959)
Principal balance paydowns of loans nonperforming at both period ends (1,084) (1,450) (817)
Net change in principal balance of other loans nonperforming at both period ends* 708 1 (111)
Nonperforming loans at the end of the period $ 16,318 $ 20,552 $ 23,595
Table 24 — Detail of Loans Removed from Nonperforming Status

Loans charged off $ — $ (57) $ (1,142)

Loans transferred to OREO — — (2,254)
Loan payoffs and paydowns (8,385) (4,884) (4,420)
Loans returned to accrual status (2,549) (280) (143)
Total loans removed from nonperforming status during the period that were nonperforming at the
beginning of the period $ (10,934) $ (5,221) $ (7,959)
Delinquent Loans
Delinquent loans to total loans increased to 0.34% as of December 31, 2022, from 0.30% as of December 31, 2021, primarily due to a
$3 million increase in delinquent RPG loans, partially offset by a $1 million decrease in Core Bank loans.
Core Bank delinquent loans to total Core Bank loans decreased to 0.14% as of December 31, 2022 from 0.17% as of December 31,
2021. With the exception of small-dollar consumer loans, all Traditional Bank loans past due 90-days-or-more as of December 31,
2022 and December 31, 2021 were on nonaccrual status.
75
Table 25 — Delinquent Loan Composition*
2022 2021 2020

Percent of Percent of Percent of
Total Total Total
December 31, (dollars in thousands) Balance Loan Class Balance Loan Class Balance Loan Class
Owner occupied $ 4,834 0.53 % $ 1,599 0.19 % $ 3,260 0.37 %
Nonowner occupied — — — — — —
Commercial real estate 604 0.04 5,292 0.36 5,457 0.40
Commercial & industrial 177 0.04 21 0.01 12 0.00
Aircraft — — — — — —
Home equity 175 0.07 314 0.15 702 0.29
Consumer:
Credit cards 55 0.36 30 0.21 73 0.51
Overdrafts 160 22.04 164 24.01 147 25.04
Automobile loans 11 0.16 9 0.06 56 0.18
Other consumer 44 7.03 1 0.07 6 0.07
Total Traditional Banking 6,060 0.16 7,430 0.21 9,713 0.26
Warehouse lines of credit — — — — — —
Total Core Banking 6,060 0.14 7,430 0.17 9,713 0.21

Other TRS commercial & industrial loans — — — — — —
Republic Credit Solutions 9,200 8.53 6,035 6.48 10,234 9.23
Total Republic Processing Group 9,200 3.58 6,035 4.19 10,234 7.60
Total delinquent loans $ 15,260 0.34 $ 13,465 0.30 $ 19,947 0.41
*Represents total loans 30-days-or-more past due. Delinquent status may be determined by either the number of days past due or number of payments past due.
76
Table 26 — Rollforward of Delinquent Loans
Delinquent loans at the beginning of the period $ 13,465 $ 19,947 $ 20,804

Loans added to delinquency status during the period and remained in delinquency status at the end of the period 5,507 1,459 6,681
Loans removed from delinquency status during the period that were in delinquency status at the beginning of
the period (see table below) (6,847) (3,559) (8,617)
Principal balance paydowns of loans delinquent at both period ends (50) (158) (146)
Net change in principal balance of other loans delinquent at both period ends* 3,185 (4,224) 1,225
Delinquent loans at the end of period $ 15,260 $ 13,465 $ 19,947
*Includes small consumer portfolios, e.g., RCS loans.
Table 27 — Detail of Loans Removed from Delinquent Status

Loans charged off $ (1) $ (58) $ (115)

Refund Advances paid off or charged off
Loans transferred to OREO — — (2,254)
Loan payoffs and paydowns (6,243) (2,016) (4,052)
Loans paid current (603) (1,485) (2,196)
Total loans removed from delinquency status during the period that were in delinquency status at the
beginning of the period $ (6,847) $ (3,559) $ (8,617)
Collateral-Dependent Loans and Troubled Debt Restructurings
When management determines that a loan is collateral dependent and foreclosure is probable, expected credit losses are based on the
fair value of the collateral at the reporting date and adjusted for selling costs if appropriate. The Bank’s policy is to charge-off all or
that portion of its recorded investment in collateral-dependent loans upon a determination that it expects the full amount of contractual
principal and interest will not be collected.
A TDR is a situation where, due to a borrower’s financial difficulties, the Bank grants a concession to the borrower that the Bank
would not otherwise have considered. The majority of the Bank’s TDRs involve a restructuring of loan terms such as a temporary
reduction in the payment amount to require only interest and escrow (if required), reducing the loan’s interest rate and/or extending
the maturity date of the debt. Nonaccrual loans modified as TDRs remain on nonaccrual status and continue to be reported as
nonperforming loans. Accruing loans modified as TDRs are evaluated for nonaccrual status based on a current evaluation of the
borrower’s financial condition and ability and willingness to service the modified debt.
Table 28 — Collateral Dependent Loan Composition
Cashflow-dependent TDRs $ 5,761 $ 5,960 $ 10,938

Collateral-dependent TDRs 6,265 9,426 9,840
Total TDRs 12,026 15,386 20,778
Collateral-dependent loans (which are not TDRs) 14,186 14,645 20,806
Total recorded investment in TDRs and collateral-dependent loans $ 26,212 $ 30,031 $ 41,584
See Footnote 4 “Loans and Allowance for Credit Losses” of Part II Item 8 “Financial Statements and Supplementary Data” for additional discussion regarding
collateral-dependent loans and TDRs.
77
Other Real Estate Owned
Table 29 — Rollforward of Other Real Estate Owned Activity
OREO at beginning of period $ 1,792 $ 2,499 $ 113

Transfer from loans to OREO — 64 2,750
Proceeds from sale* — (611) (324)
Net gain on sale — 51 65
Writedowns (211) (211) (105)
OREO at end of period $ 1,581 $ 1,792 $ 2,499
*Inclusive of non-cash proceeds where the Bank financed the sale of the property.
The fair value of OREO represents the estimated value that management expects to receive when the property is sold, net of related
costs to sell. These estimates are based on the most recently available real estate appraisals, with certain adjustments made based on
the type of property, age of appraisal, current status of the property and other relevant factors to estimate the current value of the
property.
Bank Owned Life Insurance
BOLI offers tax advantaged noninterest income to help the Bank offset employee benefits expenses. The Company carried $102
million and $99 million of BOLI on its consolidated balance sheet as of December 31, 2022 and 2021.
Table 30 — Rollforward of Bank Owned Life Insurance
Years ended December 31, (in thousands) 2022 2021 2020
BOLI at beginning of period $ 99,161 $ 68,018 $ 66,433

BOLI acquired — 30,000 —
Death benefits paid — (1,099) —
Increase in cash surrender value 2,526 2,242 1,585
BOLI at end of period $ 101,687 $ 99,161 $ 68,018
78
Deposits
Table 31 — Deposit Composition
Core Bank:
Demand $ 1,336,082 $ 1,381,522 $ 1,217,263
Money market accounts 707,272 789,876 712,824
Savings 323,015 311,624 236,335
Reciprocal money market 28,635 60,685 246,257
Individual retirement accounts (1) 38,640 43,724 47,889
Time deposits, $250 and over (1) 54,855 81,050 83,448
Other certificates of deposit (1) 129,324 154,174 199,214
Reciprocal time deposits (1) 7,405 17,265 67,852
Brokered deposits (1) — — 25,010
Total Core Bank interest-bearing deposits 2,625,228 2,839,920 2,836,092
Total Core Bank noninterest-bearing deposits 1,464,493 1,579,171 1,503,662
Total Core Bank deposits 4,089,721 4,419,091 4,339,754

Money market accounts 3,849 9,717 6,673
Total RPG interest-bearing deposits 3,849 9,717 6,673
Brokered prepaid card deposits 328,655 320,907 257,856

Other noninterest-bearing deposits 115,620 89,601 128,898
Total RPG noninterest-bearing deposits 444,275 410,508 386,754
Total RPG deposits 448,124 420,225 393,427
Total deposits $ 4,537,845 $ 4,839,316 $ 4,733,181
(1) Represents time deposits.
Total Bank deposits decreased $301 million from December 31, 2021 to $4.5 billion as of December 31, 2022. Total Core Bank
deposits decreased by $329 million with a $215 million decrease in interest-bearing deposits and a $115 million decrease in
noninterest-bearing deposits.
Management believes the net decrease in Core Bank interest-bearing deposits was generally due to clients’ responses to the low
deposit beta the Bank maintained throughout 2022. A deposit beta measures the change in the interest rates the Bank pays for its
interest-bearing deposit accounts versus the change in the federal funds target rate, which is a public index the Bank generally uses to
price its non-maturity, interest-bearing deposits. A low deposit beta would indicate that the Bank has not changed the interest rates it
pays on deposit accounts to the same magnitude as the FOMC has changed the FFTR.
The Bank implemented a general strategy to maintain a low deposit beta during the year as part of its strategy to increase its overall
net interest margin and net interest income. In general, the Bank maintained a low deposit beta during 2022 by not applying across-
the-board increases in rates to all its interest-bearing accounts as a result of increases to the FFTR. Instead, the Bank applied a nominal
amount of the FFTR’s increases to products on an across-the-board basis and selectively applied larger rate increases for more price-
sensitive commercial accounts. This strategy played a significant part in expanding the Core Bank’s net interest margin throughout
2022 as the Bank’s yield on its interest earning assets generally outpaced the cost of its interest-bearing liabilities as the FFTR
increased during the year. As a result of this strategy, however, the Bank did experience a decline in both personal and business
account balances as some clients moved their funds to more attractive offerings outside of the Bank. The Bank currently expects to
continue its low beta strategy for deposits in 2023, but this strategy is subject to change depending upon several factors including, but
not limited to, the Bank’s overall current and projected liquidity positions, its clients’ demand for its loans and deposit products, the
Bank’s overall interest rate risk position, the interest rate environment at the time, as well as the projected interest rate environment for
the near term and the long term.
79
In addition to the above, the Core Bank also experienced a $115 million decrease in Core Bank noninterest-bearing deposits.
Management believes two factors generally drove this overall decrease in noninterest-bearing deposits. The first is a general decline
in liquidity among both businesses and consumers as the excess liquidity created during the COVID pandemic continued to wane
throughout the year. Second, Management believes that the substantial increase in market interest rates caused the difference between
what a client can earn for an interest-bearing deposit versus the client’s lack of a financial return for a noninterest-bearing deposit to
become large enough to cause some clients to pursue other opportunities for their cash outside the Bank.
As a result of all the factors noted above, Management believes the Company is more likely to experience slower overall growth and
possibly a continued decline in its deposits over the foreseeable future.
Table 32 — Average Deposits
2022 2021 2020

Average Average Average Average Average Average
Years ended December 31, (dollars in thousands) Balance Rate Balance Rate Balance Rate
Transaction accounts $ 1,696,809 0.12 % $ 1,580,570 0.02 % $ 1,291,980 0.09 %

Money market accounts 779,457 0.26 784,777 0.05 739,524 0.26
Time deposits 240,701 1.10 300,784 1.21 400,704 1.96
Reciprocal money market accounts 44,152 0.22 185,922 0.18 202,112 0.28
Reciprocal time deposits 10,890 0.48 40,581 0.75 72,613 1.66
Brokered money market accounts — — 30,863 0.08 104,460 0.50
Brokered time deposits — — — — 102,093 1.75
Total average interest-bearing deposits 2,772,009 0.24 2,923,497 0.17 2,913,486 0.52
Total average noninterest-bearing deposits 2,148,848 — 2,129,222 — 1,672,442 —
Total average deposits $ 4,920,857 0.14 $ 5,052,719 0.10 $ 4,585,928 0.33
Table 33 — Maturity Schedule of Time Deposits in Excess of the FDIC Limit and Estimated Time Deposits that are Otherwise
Uninsured as of December 31, 2022
Individual Instruments Estimated

that Meet or Exceed the Otherwise Uninsured
Maturity (dollars in thousands) FDIC Insurance Limit Time Deposits Total
Three months or less $ 2,996 $ 972 $ 3,968

Over three months through six months 5,176 658 5,834
Over six months through 12 months 40,030 1,886 41,916
Over 12 months 6,653 1,438 8,091
Total $ 54,855 $ 4,954 $ 59,809
The Bank held total estimated uninsured deposits of $1.77 billion as of December 31, 2022.
Securities Sold Under Agreements to Repurchase and Other Short-term Borrowings
SSUARs are collateralized by securities and are treated as financings; accordingly, the securities involved with the agreements are
recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. All
securities underlying the agreements are under the Bank’s control.
SSUARs decreased $74 million, or 25%, during 2022 to $217 million as of December 31, 2022. SSUARs generally represent large
customer relationships deposited into the Bank that require security collateral above the $250,000 FDIC insurance limit of the Bank.
Due to the size of the underlying relationships, large fluctuations in the underlying account balances from period to period are
common.
80
As it did with interest-bearing deposits, the Bank generally maintained a low beta strategy with its SSUARs. As a result of this
strategy, the Bank experienced a decline in SSUAR balances as some clients moved their funds to more attractive offerings outside of
the Bank. One client, in particular, reduced its SSUAR balances by $45 million from December 31, 2021 to December 31, 2022 as it
moved these funds into an outside brokerage account. As was noted with deposits, the Bank currently expects to continue its low beta
strategy for SSUARS in 2023, but this strategy is subject to change depending upon several factors including, but not limited to, the
Bank’s overall current and projected liquidity positions, its clients’ demand for its loans and deposit products, the Bank’s overall
interest rate risk position, the interest rate environment at the time, as well as the projected interest rate environment for the near term
and the long term.
Table 34 — Securities Sold Under Agreements to Repurchase
As of and for the Years Ended December 31, (dollars in thousands) 2022 2021 2020
Outstanding balance at end of period $ 216,956 $ 290,967 $ 211,026

Weighted average interest rate at period end 0.41 % 0.04 % 0.04 %
Average outstanding balance during the period $ 265,188 $ 231,430 $ 204,797
Average interest rate during the period 0.15 % 0.03 % 0.09 %
Maximum outstanding at any month end $ 303,315 $ 432,047 $ 295,698
Federal Home Loan Bank Advances
The Bank’s total FHLB advances were $95 million as of December 31, 2022 compared to $25 million as of December 31, 2021.
Approximately $75 million of these borrowings were overnight in nature as of December 31, 2022 compared to $25 million as of
December 31, 2021. During 2022, the Bank extended the term on $25 million of its FHLB advances in anticipation of increasing
long-term interest rates. As of December 31, 2022, the Company’s $95 million of FHLB advances had a weighted-average maturity
of 1.06 years and a weighted-average cost of 3.84%.
Overall use of FHLB advances during a given year is dependent upon many factors including asset growth, deposit growth, current
earnings, and expectations of future interest rates, among others.
Table 35 — Federal Home Loan Bank Advances
As of and for the Years Ended December 31, (dollars in thousands) 2022 2021 2020
Outstanding balance at end of period $ 95,000 $ 25,000 $ 235,000

Weighted average interest rate at period end 3.84 % 0.14 % 0.23 %
Maximum outstanding at any month end $ 95,000 $ 25,000 $ 590,000
81
Interest Rate Swaps
Non-hedge Interest Rate Swaps
The Bank enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these
instruments, the Bank enters into offsetting positions in order to minimize the Bank’s interest rate risk. These swaps are derivatives,
but are not designated as hedging instruments, and therefore changes in fair value are reported in current year earnings.
A summary of the Bank’s interest rate swaps related to clients as of December 31, 2022 and 2021 is included in the following table:
2022 2021
Notional Notional
December 31, (in thousands) Bank Position Amount Fair Value Amount Fair Value
Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 40,032 $ 1,386 $ 107,502 $ 5,786
Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 91,636 (6,742) 16,423 (298)
Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 131,668 $ (5,356) $ 123,925 $ 5,488
Offsetting interest rate swaps with institutional swap dealer - Assets Pay fixed/receive variable 91,636 6,742 16,423 298
Offsetting interest rate swaps with institutional swap dealer - Liabilities Pay fixed/receive variable 40,032 (1,386) 107,502 (5,786)
Offsetting interest rate swaps with institutional swap dealer - Total Pay fixed/receive variable $ 131,668 $ 5,356 $ 123,925 $ (5,488)
Total $ 263,336 $ — $ 247,850 $ —
See Footnote 8 “Interest Rate Swaps” of Part II Item 8 “Financial Statements and Supplementary Data” for further information
regarding the Bank’s interest rate swaps.
Liquidity
The Bank maintains sufficient liquidity to fund routine loan demand and routine deposit withdrawal activity. Liquidity is managed by
maintaining sufficient liquid assets, primarily in the form of cash, cash equivalents, and unincumbered investment securities. Funding
and cash flows can also be realized through deposit product promotions, the sale of AFS debt securities, principal paydowns on loans
and mortgage-backed securities, and proceeds realized from loans held for sale.
Table 37 — Liquid Assets and Borrowing Capacity
The Company’s liquid assets and borrowing capacity included the following:
Cash and cash equivalents $ 313,689 $ 756,971 $ 485,587

Unincumbered debt securities 438,052 219,775 273,652
Total liquid assets 751,741 976,746 759,239
Available borrowing capacity with the FHLB 899,362 900,424 682,992

Available borrowing capacity through unsecured credit lines 125,000 125,000 125,000
Total available borrowing capacity 1,024,362 1,025,424 807,992
Total liquid assets and available borrowing capacity $ 1,776,103 $ 2,002,170 $ 1,567,231
The Bank had a loan to deposit ratio (excluding brokered deposits) of 107% as of December 31, 2022 and 99% as of December 31,
2021. Republic’s banking centers and its website, www.republicbank.com, provide access to retail deposit markets. These retail
deposit products, if offered at attractive rates, have historically been a source of additional funding when needed. If the Bank were to
lose a significant funding source, such as a few major depositors, or if any of its lines of credit were cancelled, or if the Bank cannot
obtain brokered deposits, the Bank would be compelled to offer market leading deposit interest rates to meet its funding and liquidity
needs.
82
As noted in the sections above titled “Deposits” and “Securities Sold Under Agreements to Repurchase and Other Short-term
Borrowings”, the Bank implemented a general strategy during 2022 to maintain a low beta for its client-related interest-bearing
liabilities as part of its overall strategy to increase its net interest margin and net interest income. As a result of this strategy, however,
the Bank did experience a decline in both personal and business deposit balances and SSUAR balances as some clients moved their
funds to more attractive offerings outside of the Bank. The Bank currently expects to continue its low beta strategy for deposits and
SSUARS in 2023, but this strategy is subject to change depending upon several factors including, but not limited to, the Bank’s
overall current and projected liquidity positions, its clients’ demand for its loans and deposit products, the Bank’s overall interest rate
risk position, the interest rate environment at the time, as well as the projected interest rate environment for the near term and the long
term.
As of December 31, 2022, the Bank had approximately $879 million in deposits from 185 large non-sweep deposit relationships,
including reciprocal deposits, where the individual relationship exceeded $2 million. The 20 largest non-sweep deposit relationships
represented approximately $304 million, or 7%, of the Company’s total deposit balances as of December 31, 2022. These accounts do
not require collateral; therefore, cash from these accounts can generally be utilized to fund the loan portfolio. If any of these balances
were moved from the Bank, the Bank would likely utilize overnight borrowing lines in the short-term to replace the balances. On a
longer-term basis, the Bank would likely utilize wholesale-brokered deposits to replace withdrawn balances, or alternatively, higher-
cost internet-sourced deposits. Based on past experience utilizing brokered deposits and internet-sourced deposits, the Bank believes it
can quickly obtain these types of deposits if needed. The overall cost of gathering these types of deposits, however, could be
substantially higher than the Traditional Bank deposits they replace, potentially decreasing the Bank’s earnings.
The Bank’s liquidity is also impacted by its ability to sell certain investment securities, which could be limited due to the level of
investment securities that are needed to secure public deposits, SSUARs, FHLB borrowings, and for other purposes, as required by
law. As of December 31, 2022 and December 31, 2021, these pledged investment securities had a fair value of $218 million and $320
million.
Capital
Table 38 — Capital
Information pertaining to the Company’s capital balances and ratios follows:
As of and for the Years Ended December 31, (dollars in thousands, except per share data) 2022 2021 2020
Stockholders’ equity $ 856,613 $ 835,054 $ 823,323

Book value per share at December 31, 43.38 41.79 39.40
Tangible book value per share at December 31,* 42.11 40.52 38.27
Dividends declared per share - Class A Common Stock 1.364 1.232 1.144
Dividends declared per share - Class B Common Stock 1.240 1.120 1.040
Average stockholders’ equity to average total assets 13.82 % 13.41 % 13.35 %
Total risk-based capital 17.92 17.48 18.52
Common equity tier 1 capital 16.70 16.39 16.61
Tier 1 risk-based capital 16.70 16.39 17.43
Tier 1 leverage capital 14.81 13.36 13.70
Dividend payout ratio 30 29 29
Dividend yield 3.33 2.42 3.17
*For additional detail, see Footnote 2 of “Selected Financial Data” in this section of the filing.
Total stockholders’ equity increased from $835 million as of December 31, 2021 to $857 million as of December 31, 2022. The
increase in stockholders’ equity was primarily attributable to net income earned during 2022 reduced by cash dividends declared and
common stock repurchases.
See Part II, Item 5. “Unregistered Sales of Equity Securities and Use of Proceeds” for additional detail regarding stock repurchases
and stock buyback programs.
Common Stock — The Class A Common shares are entitled to cash dividends equal to 110% of the cash dividend paid per share on
Class B Common Stock. Class A Common shares have one vote per share and Class B Common shares have ten votes per share.
83
Class B Common shares may be converted, at the option of the holder, to Class A Common shares on a share for share basis. The
Class A Common shares are not convertible into any other class of Republic’s capital stock.
Dividend Restrictions — The Parent Company’s principal source of funds for dividend payments are dividends received from the
Bank. Banking regulations limit the amount of dividends that may be paid to the Parent Company by the Bank without prior approval
of the respective states’ banking regulators. Under these regulations, the amount of dividends that may be paid in any calendar year is
limited to the current year’s net profits, combined with the retained net profits of the preceding two years. As of January 1, 2023, the
Bank could, without prior approval, declare dividends of approximately $92 million. Any payment of dividends in the future will
depend, in large part, on the Company’s earnings, capital requirements, financial condition, and other factors considered relevant by
the Company’s Board of Directors.
Regulatory Capital Requirements — The Company and the Bank are subject to capital regulations in accordance with Basel III, as
administered by banking regulators. Regulatory agencies measure capital adequacy within a framework that makes capital
requirements, in part, dependent on the individual risk profiles of financial institutions. Failure to meet minimum capital requirements
can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct
material effect on Republic’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt
corrective action, the Parent Company and the Bank must meet specific capital guidelines that involve quantitative measures of the
Company’s assets, liabilities and certain off-balance sheet items, as calculated under regulatory accounting practices. The capital
amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings and other
factors.
Banking regulators have categorized the Bank as well-capitalized. For prompt corrective action, the regulations in accordance with
Basel III define “well capitalized” as a 10.0% Total Risk-Based Capital ratio, a 6.5% Common Equity Tier 1 Risk-Based Capital ratio,
an 8.0% Tier 1 Risk-Based Capital ratio, and a 5.0% Tier 1 Leverage ratio. Additionally, in order to avoid limitations on capital
distributions, including dividend payments and certain discretionary bonus payments to executive officers, the Company and Bank
must hold a capital conservation buffer of 2.5% composed of Common Equity Tier 1 Risk-Based Capital above their minimum risk-
based capital requirements.
Republic continues to exceed the regulatory requirements for Total Risk Based Capital, Common Equity Tier I Risk Based Capital,
Tier I Risk Based Capital and Tier I Leverage Capital. Republic and the Bank intend to maintain a capital position that meets or
exceeds the “well-capitalized” requirements as defined by the FRB and the FDIC, in addition to the Capital Conservation Buffer.
Formal measurements of the capital ratios for Republic and the Bank are performed by the Company at each quarter end.
Contractual Obligations and Commitments
The Company or the Bank has required future payments under various contractual obligations and other commitments.
See the following footnotes within Part II Item 8 “Financial Statements and Supplementary Data” for additional detail regarding
contractual obligations and other commitments of the Company or Bank:
• Footnote 6 “Right-of-Use Assets and Operating Lease Liabilities”
• Footnote 9 “Deposits”
• Footnote 10 “Securities Sold Under Agreements to Repurchase”
• Footnote 13 “Off Balance Sheet Risks, Commitments, and Contingent Liabilities”
• Footnote 18 “Benefit Plans”
In addition, the Bank maintains contractual obligations for its technological needs, including its enterprise risk management
application, customer relationship management application, internet banking platform, and its core accounting application. The total
contractual commitment for these applications is approximately $13 million through May 2025.
84
Asset/Liability Management and Market Risk
Asset/liability management is designed to ensure safety and soundness, maintain liquidity, meet regulatory capital standards, and
achieve acceptable net interest income based on the Bank’s risk tolerance. Interest rate risk is the exposure to adverse changes in net
interest income as a result of market fluctuations in interest rates. The Bank, on an ongoing basis, monitors interest rate and liquidity
risk in order to implement appropriate funding and balance sheet strategies. Management considers interest rate risk to be a significant
risk to the Bank’s overall earnings and balance sheet.
The interest sensitivity profile of the Bank at any point in time will be impacted by a number of factors. These factors include the mix
of interest sensitive assets and liabilities, as well as their relative pricing schedules. It is also influenced by changes in market interest
rates, deposit and loan balances, and other factors.
The Bank utilizes earnings simulation models as tools to measure interest rate sensitivity, including both a static and dynamic earnings
simulation model. A static simulation model is based on current exposures and assumes a constant balance sheet. In contrast, a
dynamic simulation model relies on detailed assumptions regarding changes in existing business lines, new business, and changes in
management and customer behavior. While the Bank runs the static simulation model as one measure of interest rate risk, historically,
the Bank has utilized its dynamic earnings simulation model as its primary interest rate risk tool to measure the potential changes in
market interest rates and their subsequent effects on net interest income for a one-year time period. This dynamic model projects a
“Base” case net interest income over the next 12 months and the effect on net interest income of instantaneous movements in interest
rates between various basis point increments equally across all points on the yield curve. Many assumptions based on growth
expectations and on the historical behavior of the Bank’s deposit and loan rates and their related balances in relation to changes in
interest rates are incorporated into this dynamic model. These assumptions are inherently uncertain and, as a result, the dynamic model
cannot precisely measure future net interest income or precisely predict the impact of fluctuations in market interest rates on net
interest income. Actual results will differ from the model’s simulated results due to the actual timing, magnitude and frequency of
interest rate changes, the actual timing and magnitude of changes in loan and deposit balances, as well as the actual changes in market
conditions and the application and timing of various management strategies as compared to those projected in the various simulated
models. Additionally, actual results could differ materially from the model if interest rates do not move equally across all points on the
yield curve.
The following table illustrates the Bank’s projected percent change from its Base net interest income over the period beginning
January 1, 2023 and ending December 31, 2023 based on instantaneous movements in interest rates from Down 200 to Up 300 basis
points equally across all points on the yield curve. The Bank’s dynamic earnings simulation model includes secondary market loan
fees and excludes Traditional Bank loan fees.
Table 39 — Bank Interest Rate Sensitivity as of December 31, 2022 and 2021
Change in Rates
-200 -100 +100 +200 +300
Basis Points Basis Points Basis Points Basis Points Basis Points
% Change from base net interest income as of December 31, 2022 (2.8)% (0.6)% 1.8 % 3.7 % 5.7 %
% Change from base net interest income as of December 31, 2021 (2.9)% 1.3 % (0.6)% 0.7 % 4.7 %
For the Down-100 scenario, the December 2022 simulation reflected a more negative outcome than the December 2021
simulation. For the Up-100, Up-200, and Up-300 scenarios, the December 31, 2022 simulation reflected a more positive outcome for
the Bank’s net interest income than the comparable December 31, 2021 simulation.
The period-to-period decline in the Down-100 scenario was generally tied to interest rate floors for the Bank’s floating rate loans. As
of December 31, 2021, market interest rates were significantly lower than market interest rates as of December 31, 2022. As a result,
many of the Bank’s floating rate loans were priced at their contractual interest rate floors as of December 31, 2021. The Bank’s
interest rate simulation model for December 31, 2021, assumed that interest rates for most of these loans would remain at their
contractual interest rate floors, even as market rates declined in the simulation. With market interest rates significantly higher as of
December 31, 2022, the current rates for a substantial amount of the Bank’s floating rate loans are above their contractual interest rate
floors, and therefore, can reprice lower, down to their contractual interest rate floors, in a declining market rate environment.
85
As compared to the December 2021 simulation, the improvement for the December 2022 simulation outcomes for the Up-rate
scenarios was generally tied to contractual interest rate floors, as well. As previously noted, market interest rates were significantly
lower as of December 31, 2021 than market interest rates as of December 31, 2022, and many of the Bank’s loans were already priced
at their contractual interest rate floors as of December 31, 2021. By formula, the interest rates for many of the Bank’s floating rate
loans would have been much lower at December 31, 2021 had their contractual interest rate floors not existed. As a result, the formula
interest rate for each floating rate loan had to increase substantially, in many cases, before the formula interest rate surpassed the
contractual interest rate floor and the loan starting repricing higher. With most of the Bank’s floating rate loans now above their
contractual interest rate floors as of December 31, 2022, the Bank would generally experience an earlier benefit from an increase in
interest rates, based on each loan’s floating rate formula, in a rising interest rate environment.
LIBOR Exposure
In July 2017, the Financial Conduct Authority (“FCA”), the authority regulating LIBOR, along with various other regulatory bodies,
announced that LIBOR would likely be discontinued at the end of 2021. Subsequent to that announcement, in November 2020, the
FCA announced that many tenors of LIBOR would continue to be published through June 2023. In compliance with regulatory
guidance, the Bank discontinued referencing LIBOR for new financial instruments during 2021 and chose SOFR to be its primary
alternative reference rate for most transaction types upon the discontinuance or unavailability of LIBOR.
Regarding its legacy assets that reference LIBOR, the Bank has previously disclosed that the underlying contracts for these assets may
not include adequate “fallback” language to use alternative indexes and margins when LIBOR ceases. However, on March 15, 2022,
President Biden signed into law the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Law”), which is designed to accomplish the
following:
• Establish a clear and uniform process, on a nationwide basis, for replacing LIBOR in existing contracts, the terms of which
do not provide for the use of a clearly defined or practicable replacement benchmark rate, without affecting the ability of
parties to use any appropriate benchmark rate in new contracts;
• Preclude litigation related to existing contracts, the terms of which do not provide for the use of a clearly defined or
practicable replacement benchmark rate;
• Allow existing contracts that reference LIBOR but provide for the use of a clearly defined and practicable replacement rate to
operate according to their terms; and
• Address LIBOR references in federal law.
With limited exception, the LIBOR Law generally covers legacy LIBOR contracts with no or inadequate fallback provisions.
Additionally, under the LIBOR Law, the Board of Governors of the Federal Reserve System (the “FRB Board”) issued final
regulations in December 2022 that included the selection of a FRB Board-Selected Benchmark Replacement based on SOFR and
incorporates an applicable tenor spread adjustment and identification of any related conforming changes.
As of December 31, 2022, the Company had approximately $410 million of legacy assets that reference LIBOR, with short-term
Warehouse loans representing $10 million of these assets, investment securities representing $60 million, and commercial and
mortgage loans primarily making up the remainder. As of December 31, 2022, of the Bank’s legacy assets that reference LIBOR,
approximately $351 million of those assets were scheduled to mature after June 30, 2023. These amounts exclude derivative assets
and liabilities on the Company’s consolidated balance sheet. As of December31, 2022, the notional amount of the Company’s LIBOR-
referenced interest rate derivative contracts was approximately $183 million, with $183 million of such notional amount scheduled to
mature after June 30, 2023.
For additional discussion regarding the Bank’s net interest income, see the sections titled “Net Interest Income” in this section of the
filing under “RESULTS OF OPERATIONS (Discussion of 2021 vs. 2020).”
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
See the section titled “Asset/Liability Management and Market Risk” included under Part II Item 7 “Management’s Discussion and
Analysis of Financial Condition and Results of Operations.”
86
Item 8. Financial Statements and Supplementary Data.
The following are included in this section:
Report of Independent Registered Public Accounting Firm (PCAOB ID 173) 88

Consolidated balance sheets — December 31, 2022 and 2021 92
Consolidated statements of income and comprehensive income — years ended December 31, 2022, 2021, and 2020 93
Consolidated statements of stockholders’ equity — years ended December 31, 2022, 2021, and 2020 95
Consolidated statements of cash flows — years ended December 31, 2022, 2021, and 2020 96
Footnotes to consolidated financial statements 97
87
Crowe LLP
Independent Member Crowe Global
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Stockholders and the Board of Directors of Republic Bancorp, Inc.

Louisville, Kentucky
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Republic Bancorp, Inc. (the "Company") as of December 31, 2022
and 2021, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the
three years in the period ended December 31, 2022, and the related notes (collectively referred to as the "financial statements"). In our
opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022
and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in
conformity with accounting principles generally accepted in the United States of America.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”),
the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control –
Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)” and our
report dated March 3, 2023, expressed an adverse opinion.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that
our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material
to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the
critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating
the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it
relates.
88
Allowance for Credit Losses on Loans – Adjustments to the Historical Loss Rate
As described in Note 1 and Note 4, the allowance for credit losses on loans (“ACLL”) under ASC 326 requires the measurement of
expected lifetime credit losses for financial assets measured at amortized cost at the reporting date. The measurement is based on
historical loss rates, qualitative factors, and reasonable and supportable forecasts. The allowance for credit losses was $70.4 million as
of December 31, 2022.
Management employs a process and methodology to estimate the ACLL that evaluates both quantitative and qualitative metrics. The
methodology for evaluating quantitative loss rates consists of two basic components. The first component involves pooling loans into
portfolio segments for loans that share similar risk characteristics. These loans are referred to as pooled loans and the methodology to
estimate the ACLL is discussed below. The second component involves individually analyzed loans that do not share similar risk
characteristics with loans that are pooled into portfolio segments.
For pooled loans, the Company utilizes a “static-pool” method to estimate credit losses over the expected life of the loan. The “static-
pool” methodology analyzes historical closed pools of similar loans over their expected lives to attain a historical loss rate. Adjustments
are made to the historical loss rate for current conditions including underwriting standards, portfolio mix or term, delinquency level as
well as for changes in environmental conditions, such as changes in property value or other relevant factors. One-year forecast
adjustments to the historical loss rate are based on the U.S. national unemployment rate and commercial real estate values. Subsequent
to the one-year forecast, loss rates are assumed to immediately revert back to long-term historical averages.
We identified management’s application of the allowance for credit losses on loans, specifically the adjustments to the historical loss
rate, as a critical audit matter due to the degree of judgment applied to these adjustments. This critical audit matter requires the
performance of audit procedures to evaluate the application of ASC 326 for loans and involved especially subjective auditor judgment
and required significant audit effort, including the need to involve more experienced audit personnel. Management’s analysis of the
adjustments to the historical loss rates during the reasonable and supportable forecast period within the allowance for credit losses on
loans requires a high degree of subjectivity and judgment and requires the Company to make significant estimates of the risks present
for each portfolio segment. Changes in these assumptions could have a material effect on the Company’s financial results.
The primary procedures we performed to address this critical audit matter included:
Testing the design and operating effectiveness of controls over the evaluation of the ACLL, including controls addressing:
• Relevance and reliability of the underlying data inputs, judgments, and calculations used to determine the forecasts
and adjustments to historical loss rates.
• Management’s review of the reasonableness of forecasts and the adjustments to historical loss rates.
Substantively testing management’s process, including evaluating their judgments and assumptions, to assess the estimate of
the ACLL including:
• Evaluating the reasonableness of management’s significant assumptions, judgments, and conclusions related to the
reasonable and supportable forecasts and adjustments to historical loss rates. Our evaluation considered the weight
of evidence from internal and external sources and loan portfolio performance.
• Testing the relevance and reliability of data inputs and mathematical accuracy of the forecasts and adjustments to
historical loss rates within the ACLL calculation.
/S/ Crowe LLP
We have served as the Company’s auditor since 1996.
March 3, 2023
89
Crowe LLP
Independent Member Crowe Global
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Stockholders and the Board of Directors of Republic Bancorp, Inc.

Opinion on Internal Control over Financial Reporting
We have audited Republic Bancorp, Inc.’s (the “Company”) internal control over financial reporting as of December 31, 2022, based
on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). In our opinion, because of the effects of the material weaknesses discussed in the following paragraph,
the Company has not maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022,
based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or
detected on a timely basis. The following material weaknesses have been identified and included in management's report.
within RPG. Specifically, Management identified that an RCS product’s contractual terms were not sufficiently communicated
internally, and the controls were not designed to identify and test all relevant transactional data posting to the Company’s
financial statements for the product;
basis.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”),
the consolidated balance sheets of the Company as of December 31, 2022 and 2021, the related consolidated statements of income,
comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2022,
and the related notes (collectively referred to as the "financial statements") and our report dated March 3, 2023 expressed an unqualified
opinion. We considered the material weaknesses identified above in determining the nature, timing, and extent of audit procedures
applied in our audit of the 2022 consolidated financial statements, and this report on Internal Control over Financial Reporting does not
affect such report on the financial statements.
90
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control
over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based
on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Crowe LLP
We have served as the Company's auditor since 1996.
March 3, 2023
91
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, (in thousands, except share data)
2022 2021
ASSETS
Cash and cash equivalents $ 313,689 $ 756,971

Available-for-sale debt securities, at fair value (amortized cost of $663,003 in 2022 and $492,626 in 2021,
allowance for credit losses of $0 in 2022 and 2021) 620,365 495,126
Held-to-maturity debt securities (fair value of $87,357 in 2022 and $44,764 in 2021, allowance for credit
losses of $10 in 2022 and $47 in 2021) 87,386 44,299
Equity securities with readily determinable fair value 111 2,620
Mortgage loans held for sale, at fair value 1,302 29,393
Consumer loans held for sale, at fair value 4,706 19,747
Consumer loans held for sale, at the lower of cost or fair value 13,169 2,937
Loans (loans carried at fair value of $2 in 2022 and $170 in 2021) 4,515,802 4,496,562
Allowance for credit losses (70,413) (64,577)
Loans, net 4,445,389 4,431,985
Federal Home Loan Bank stock, at cost 9,146 10,311
Premises and equipment, net 31,978 36,073
Right-of-use assets 37,017 38,825
Goodwill 16,300 16,300
Other real estate owned 1,581 1,792
Bank owned life insurance 101,687 99,161
Low-income housing tax credit investments 75,324 50,619
Other assets and accrued interest receivable 76,393 57,473
TOTAL ASSETS $ 5,835,543 $ 6,093,632
LIABILITIES
Deposits:
Noninterest-bearing $ 1,908,768 $ 1,989,679
Interest-bearing 2,629,077 2,849,637
Total deposits 4,537,845 4,839,316
Securities sold under agreements to repurchase and other short-term borrowings 216,956 290,967
Operating lease liabilities 37,809 39,672
Federal Home Loan Bank advances 95,000 25,000
Low-income housing tax credit obligations 43,609 23,383
Other liabilities and accrued interest payable 47,711 40,240
Total liabilities 4,978,930 5,258,578
Commitments and contingent liabilities (Footnote 13) — —
STOCKHOLDERS’ EQUITY
Preferred stock, no par value — —

Class A Common Stock, no par value, 30,000,000 shares authorized, 17,584,928 shares (2022) and 17,816,083
shares (2021) issued and outstanding; Class B Common Stock, no par value, 5,000,000 shares authorized,
2,159,495 shares (2022) and 2,164,903 shares (2021) issued and outstanding 4,648 4,702
Additional paid in capital 141,694 139,956
Retained earnings 742,250 688,522
Accumulated other comprehensive (loss) income (31,979) 1,874
Total stockholders’ equity 856,613 835,054
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 5,835,543 $ 6,093,632
See accompanying footnotes to consolidated financial statements.
92
CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, (in thousands, except per share data)
2022 2021 2020
INTEREST INCOME:
Loans, including fees $ 221,075 $ 219,592 $ 241,044
Taxable investment securities 11,384 7,450 9,798
Federal Home Loan Bank stock and other 11,725 1,364 1,416
Total interest income 244,184 228,406 252,258
INTEREST EXPENSE:
Deposits 6,757 5,039 15,089

Securities sold under agreements to repurchase and other short-term borrowings 397 63 177
Federal Reserve Payment Protection Plan Liquidity Facility — — 153
Federal Home Loan Bank advances 339 57 3,524
Subordinated note — 507 1,000
Total interest expense 7,493 5,666 19,943
NET INTEREST INCOME 236,691 222,740 232,315
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) 22,348 14,808 31,278
NET INTEREST INCOME AFTER PROVISION 214,343 207,932 201,037
NONINTEREST INCOME:
Service charges on deposit accounts 13,426 12,553 11,615

Net refund transfer fees 17,080 20,248 20,297
Mortgage banking income 6,196 19,994 31,847
Interchange fee income 13,125 13,062 11,188
Program fees 16,172 14,237 7,095
Increase in cash surrender value of bank owned life insurance 2,526 2,242 1,585
Net losses on other real estate owned (211) (160) (40)
Contract termination fee 5,000 — —
Legal settlement 13,000
Other 3,496 4,399 3,466
Total noninterest income 89,810 86,575 87,053
NONINTEREST EXPENSE:
Salaries and employee benefits 111,240 110,088 106,166

Technology, equipment, and communication 28,954 29,351 29,128
Occupancy 13,014 13,193 13,438
Marketing and development 6,875 4,390 4,031
FDIC insurance expense 1,668 1,591 1,010
State and local bank franchise tax expense — — 5,369
Interchange related expense 4,773 4,960 4,303
Legal and professional fees 4,024 4,924 4,244
FHLB advances early termination penalties — — 2,108
Other 16,760 14,568 15,660
Total noninterest expense 187,308 183,065 185,457
INCOME BEFORE INCOME TAX EXPENSE 116,845 111,442 102,633

INCOME TAX EXPENSE 25,739 23,831 19,387
NET INCOME $ 91,106 $ 87,611 $ 83,246
BASIC EARNINGS PER SHARE:

Class A Common Stock $ 4.60 $ 4.29 $ 4.00
Class B Common Stock 4.19 3.90 3.64
DILUTED EARNINGS PER SHARE:

Class A Common Stock $ 4.59 $ 4.28 $ 3.99
Class B Common Stock 4.17 3.89 3.63
93
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, (in thousands)
2022 2021 2020
Net income $ 91,106 $ 87,611 $ 83,246
OTHER COMPREHENSIVE INCOME (LOSS)
Change in fair value of derivatives used for cash flow hedges — — (177)
Reclassification amount for net derivative losses realized in income — — 281
Unrealized losses on AFS debt securities (45,109) (8,908) 7,147
Unrealized (loss) gain on AFS debt security for which a portion of OTTI has been recognized in earnings (29) 63 (35)
Total other comprehensive loss before income tax (45,138) (8,845) 7,216
Tax effect 11,285 2,210 (1,805)
Total other comprehensive loss, net of tax (33,853) (6,635) 5,411
COMPREHENSIVE INCOME $ 57,253 $ 80,976 $ 88,657
94
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
YEARS ENDED December 31, 2022, 2021, and 2020
Common Stock Accumulated

Class A Class B Additional Other Total
Shares Shares Paid In Retained Comprehensive Stockholders’
(in thousands, except per share data) Outstanding Outstanding Amount Capital Earnings Income Equity
Balance, January 1, 2020 18,737 2,206 $ 4,907 $ 142,068 $ 614,171 $ 3,098 $ 764,244
Adjustment for adoption of ASU 2016-13 — — — — (4,291) — (4,291)

Net income — — — — 83,246 — 83,246
Net change in accumulated other comprehensive income (loss) — — — — — 5,411 5,411
Dividends declared on Common Stock:
Class A Shares ($1.144 per share) — — — — (21,433) — (21,433)
Class B Shares ($1.04 per share) — — — — (2,288) — (2,288)
Stock options exercised, net of shares withheld 25 — 13 197 — — 210
Conversion of Class B to Class A Common Shares 7 (7) — — — — —
Repurchase of Class A Common Stock (115) — (26) (782) (3,127) — (3,935)
Net change in notes receivable on Class A Common Stock — — — (35) — — (35)
Deferred compensation - Class A Common Stock:
Directors 4 — — 352 — — 352
Designated key employees — — — 566 — — 566
Employee stock purchase plan - Class A Common Stock 20 — 4 623 — — 627
Stock-based awards - Class A Common Stock:
Performance stock units, net of shares tendered back 18 — — (200) — — (200)
Restricted stock, net of shares tendered back 1 — 1 385 — — 386
Stock options — — — 463 — — 463
Balance, December 31, 2020 18,697 2,199 $ 4,899 $ 143,637 $ 666,278 $ 8,509 $ 823,323
Net income — — — — 87,611 — 87,611

Net change in accumulated other comprehensive income (loss) — — — — — (6,635) (6,635)
Stock options exercised, net of shares withheld 28 — 13 (155) — — (142)
Repurchase of Class A Common Stock (980) — (216) (6,831) (40,481) — (47,528)
Net change in notes receivable on Class A Common Stock — — — 151 — — 151
Directors 4 — — 417 — — 417
Performance stock units, net of shares tendered back — — — 129 — — 129
Restricted stock, net of shares tendered back 18 — 2 736 — — 738
Stock options — — — 574 — — 574
Balance, December 31, 2021 17,816 2,165 $ 4,702 $ 139,956 $ 688,522 $ 1,874 $ 835,054
Net income — — — — 91,106 — 91,106

Net change in accumulated other comprehensive income (loss) — — — — — (33,853) (33,853)
Stock options exercised, net of shares withheld 3 — 2 50 — — 52
Repurchase of Class A Common Stock (273) — (60) (1,940) (10,577) — (12,577)
Net change in notes receivable on Class A Common Stock — — — 61 — — 61
Directors 6 — — 503 — — 503
Performance stock units, net of shares tendered back — — — 152 — — 152
Restricted stock, net of shares tendered back 12 — — 937 — — 937
Stock options — — — 560 — — 560
Balance, December 31, 2022 17,585 2,160 $ 4,648 $ 141,694 $ 742,250 $ (31,979) $ 856,613
95
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, (in thousands)
2022 2021 2020
OPERATING ACTIVITIES:
Net income $ 91,106 $ 87,611 $ 83,246
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization on investment securities and low-income housing investments 4,798 4,414 3,204
Net accretion and amortization on loans (3,760) (13,973) (13,084)
Unrealized and realized losses on equity securities with readily determinable fair value 263 463 105
Depreciation of premises and equipment 7,598 8,986 9,725
Amortization of mortgage servicing rights 2,264 3,453 3,756
(Recovery) loss of mortgage servicing rights — (500) 500
Provision for on-balance sheet exposures 22,348 14,808 31,278
Provision for off-balance sheet exposures 198 63 533
Net gain on sale of mortgage loans held for sale (4,942) (19,659) (33,179)
Origination of mortgage loans held for sale (205,365) (680,714) (782,939)
Proceeds from sale of mortgage loans held for sale 238,398 717,847 788,475
Net gain on sale of consumer loans held for sale (13,277) (11,298) (4,980)
Origination of consumer loans held for sale (1,045,715) (882,180) (518,873)
Proceeds from sale of consumer loans held for sale 1,063,801 875,570 531,321
Net gain realized on sale of other real estate owned — (51) (65)
Writedowns of other real estate owned 211 211 105
Deferred compensation expense - Class A Common Stock 1,228 1,024 918
Stock-based awards and ESPP expense - Class A Common Stock 1,753 1,545 953
Net gain on sale of bank premises and equipment — (399) (353)
Increase in cash surrender value of bank owned life insurance (2,526) (2,242) (1,585)
Death benefits in excess of cash surrender value of life insurance — (979) —
FHLB advances early termination penalties — — 2,108
Net change in other assets and liabilities:
Accrued interest receivable (3,695) 3,048 (14)
Accrued interest payable 80 (183) (2,460)
Other assets (3,896) (940) (19,391)
Other liabilities 3,919 (5,672) (3,872)
Net cash provided by operating activities 154,789 100,253 75,432
INVESTING ACTIVITIES:
Purchases of available-for-sale debt securities (329,820) (211,545) (298,878)
Purchases of held-to-maturity debt securities (75,000) — —
Proceeds from calls, maturities and paydowns of equity and available-for-sale debt securities 161,561 230,457 251,930
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities 31,945 9,139 9,009
Net change in outstanding warehouse lines of credit 446,990 112,246 (245,338)
Net change in other loans (478,958) 207,115 (142,811)
Proceeds from redemption of Federal Home Loan Bank stock 1,165 7,086 22,434
Purchase of Federal Home Loan Bank stock — — (9,000)
Proceeds from sales of other real estate owned — 611 324
Proceeds from sale of bank premises and equipment — 637 894
Purchase of bank owned life insurance, net of death benefits paid — (28,901) —
Investments in low-income housing tax partnerships (8,889) (14,507) (6,998)
Net purchases of premises and equipment (3,503) (5,785) (3,582)
Net cash (used in) provided by investing activities (254,509) 306,553 (422,016)
FINANCING ACTIVITIES:
Net change in deposits (301,471) 106,415 947,173
Net change in securities sold under agreements to repurchase and other short-term borrowings (74,011) 79,941 43,409
Payments of Federal Home Loan Bank advances (25,000) (235,000) (1,105,000)
Proceeds from Federal Home Loan Bank advances 95,000 25,000 590,000
FHLB advances early termination penalties — — (2,108)
Payoff of subordinated note, net of common security interest — (40,000) —
Repurchase of Class A Common Stock (12,577) (47,528) (3,935)
Net proceeds from Class A Common Stock purchased through employee stock purchase plan 590 591 533
Net proceeds from option exercises and equity awards vested - Class A Common Stock 52 (142) —
Cash dividends paid (26,145) (24,699) (23,204)
Net cash (used in) provided by financing activities (343,562) (135,422) 446,868
NET CHANGE IN CASH AND CASH EQUIVALENTS (443,282) 271,384 100,284
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 756,971 485,587 385,303
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 313,689 $ 756,971 $ 485,587
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION:
Cash paid during the period for:
Interest $ 7,413 $ 5,849 $ 22,403
Income taxes 21,637 20,069 24,926
SUPPLEMENTAL NONCASH DISCLOSURES:
Mortgage servicing rights capitalized $ 1,838 $ 5,054 $ 5,463
Transfers from loans to real estate acquired in settlement of loans — 64 2,750
New unfunded obligations in low-income-housing investments 29,115 10,000 10,000
Right-of-use assets recorded 6,360 1,354 14,144
Allowance for credit losses recorded upon adoption of ASC 326 — — 7,241
96
FOOTNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations and Principles of Consolidation — The consolidated financial statements include the accounts of Republic
Bancorp, Inc. (the “Parent Company”) and its wholly owned subsidiaries, Republic Bank & Trust Company and Republic Insurance
Services, Inc. As used in this filing, the terms “Republic,” the “Company,” “we,” “our,” and “us” refer to Republic Bancorp, Inc., and,
where the context requires, Republic Bancorp, Inc. and its subsidiaries. The term “Bank” refers to the Company’s subsidiary bank:
Republic Bank & Trust Company. The term “Captive” refers to the Company’s insurance subsidiary: Republic Insurance Services,
Inc. All significant intercompany balances and transactions are eliminated in consolidation.
The sole asset of RBCT represented the proceeds of the offering loaned to Republic in exchange for a subordinated note with similar
terms to the TPS. On September 30, 2021, as permitted under the terms of RBCT’s governing documents, Republic repaid the
subordinated note and redeemed the TPS at par without penalty.
Banking, TRS, and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking”
operations, while the last two segments collectively constitute RPG operations.
97
Core Bank
Traditional Banking segment — The Traditional Banking segment provides traditional banking products primarily to customers in
the Company’s market footprint. As of December 31, 2022, Republic had 42 full-service banking centers with locations as follows:
• Kentucky — 28
• Metropolitan Louisville — 18
• Central Kentucky — 7
• Georgetown — 1
• Lexington — 5
• Shelbyville — 1
• Northern Kentucky — 3
• Covington — 1
• Crestview Hills — 1
• Florence — 1
• Southern Indiana — 3
• Floyds Knobs — 1
• Jeffersonville — 1
• New Albany — 1
 Metropolitan Tampa, Florida — 7
 Metropolitan Cincinnati, Ohio — 2
 Metropolitan Nashville, Tennessee — 2
Republic’s headquarters are in Louisville, which is the largest city in Kentucky based on population.
Traditional Banking results of operations are primarily dependent upon net interest income, which represents the difference between
the interest income and fees on interest-earning assets and the interest expense on interest-bearing liabilities. Principal interest-earning
Traditional Banking assets represent investment securities and commercial and consumer loans primarily secured by real estate and/or
personal property. Interest-bearing liabilities primarily consist of interest-bearing deposit accounts, securities sold under agreements to
repurchase, as well as short-term and long-term borrowing sources. FHLB advances have traditionally been a significant borrowing
source for the Bank.
Other sources of Traditional Banking income include service charges on deposit accounts, debit and credit card interchange fee
income, title insurance commissions, and increases in the cash surrender value of BOLI.
Traditional Banking operating expenses consist primarily of: salaries and employee benefits; technology, equipment, and
communication; occupancy; interchange related expense; marketing and development; FDIC insurance expense, and various other
general and administrative costs. Traditional Banking results of operations are significantly impacted by general economic and
competitive conditions, particularly changes in market interest rates, government laws and policies, and actions of regulatory agencies.
Warehouse Lending segment — The Core Bank provides short-term, revolving credit facilities to mortgage bankers across the
United States through mortgage warehouse lines of credit. These credit facilities are primarily secured by single-family, first-lien
residential real estate loans. The credit facility enables the mortgage banking clients to close single-family, first-lien residential real
estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved
by the Bank. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days. Reverse mortgage loans
typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual
loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale
proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest
and fees. The remaining proceeds are credited to the mortgage-banking client.
98
Mortgage Banking segment — Mortgage Banking activities primarily include 15-, 20- and 30-year fixed-term single-family, first-
lien residential real estate loans that are originated and sold into the secondary market, primarily to the FHLMC and the FNMA. The
Bank typically retains servicing on loans sold into the secondary market for loans generated in states within its footprint and generally
sells servicing for loans generated in states outside of its footprint. Administration of loans with servicing retained by the Bank
includes collecting principal and interest payments, escrowing funds for property taxes and property insurance, and remitting
payments to secondary market investors. The Bank receives fees for performing these standard servicing functions.
Republic Processing Group
Tax Refund Solutions segment — Through the TRS segment, the Bank is one of a limited number of financial institutions that
facilitates the receipt and payment of federal and state tax refund products and offers a credit product through third-party tax preparers
located throughout the U.S., as well as tax-preparation software providers (collectively, the “Tax Providers”). The majority of all the
business generated by the TRS business occurs during the first half of each year. During the second half of each year, TRS generates
limited revenue and incurs costs preparing for the next year’s tax season.
RTs are fee-based products whereby a tax refund is issued to the taxpayer after the Bank has received the refund from the federal or
state government. There is no credit risk or borrowing cost associated with these products because they are only delivered to the
taxpayer upon receipt of the tax refund directly from the governmental paying authority. Fees earned by the Company on RTs, net of
revenue share, are reported as noninterest income under the line item “Net refund transfer fees.”
The RA credit product is a loan made in conjunction with the filing of a taxpayer’s final federal tax return, which allows the taxpayer
to borrow funds as an advance of a portion of their tax refund. The RA product had the following features during the first quarters of
2022 and 2021:
• Offered only during the first two months of each year;

• The taxpayer was given the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum
advance amount of $6,250;
• Multiple disbursement methods were available with most Tax Providers, including direct deposit, prepaid card, or check,
based on the taxpayer-customer’s election;
• Repayment of the RA to the Bank is deducted from the taxpayer’s tax refund proceeds; and
• If an insufficient refund to repay the RA occurs:
The ERA credit product is similar to the RA, with the distinction of the timing of when the ERA is originated and the documentation
available to underwrite the credit. The ERA is originated prior to the taxpayer receiving their fiscal year taxable income
documentation, e.g., W-2 and the filing of the taxpayer’s final federal tax return. The repayment of the ERA is incumbent upon the
taxpayer client returning to the Bank’s Tax Provider for the filing of their final federal tax return in order for the tax refund to
potentially be received by the Bank from the federal government to pay off the advance. The ERA product related to the first quarter
2023 tax filing season had the following features:
• Offered only during December 2022 and January 2023;

• The taxpayer had the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance
amount of $1,000;
• Multiple disbursement methods were available with most Tax Providers, including direct deposit or prepaid card, based on
the taxpayer-customer’s election;
• Repayment of the ERA to the Bank is deducted from the taxpayer’s tax refund proceeds; and
• If an insufficient refund to repay the ERA occurs:
99
The Company reports fees paid for RAs, including ERAs, as interest income on loans. RAs originated related to the first quarter 2022
tax season were repaid, on average, within 32 days after the taxpayer’s tax return was submitted to the applicable taxing authority.
RAs and ERAs do not have a contractual due date but the Company considered an RA, related to the first quarter 2022 tax season,
delinquent if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. The number
of days for delinquency eligibility is based on management’s annual analysis of tax return processing times. Provisions on RAs are
estimated when advances are made. Unpaid RAs, including ERAs, related to the first quarter tax season of a given year are charged-
off by June 30th of that year, with RAs collected during the second half of that year recorded as recoveries of previously charged-off
loans.
Related to the overall credit losses on RAs and ERAs, the Bank’s ability to control losses is highly dependent upon its ability to
predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s RA and ERA
approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the RA and
ERA volume occurs each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes
made, credit losses during a current year could be higher than management’s predictions if tax refund payment patterns change
materially between years.
Settlement of Lawsuit Against Green Dot — On June 3, 2022, the Bank and Green Dot entered into the Settlement Agreement to
fully resolve the Lawsuit that the Bank filed against Green Dot in the Delaware Court of Chancery on October 5, 2021.
As previously disclosed in the Company’s prior SEC filings, the Lawsuit arose from Green Dot’s inability to consummate the Sale
Transaction contemplated in the TRS Purchase Agreement through which Green Dot would purchase all of the assets and operations
of the Bank’s Tax Refund Solutions business.
In accordance with the Settlement Agreement, on June 6, 2022, Green Dot paid $13 million to the Bank, which was in addition to a $5
million termination fee that Green Dot paid to the Bank during the first quarter of 2022 under the terms of the TRS Purchase
Agreement. On June 6, 2022, the Bank and Green Dot filed a stipulation of dismissal of the Lawsuit with the Delaware Court of
Chancery, which was effective to dismiss the Lawsuit when filed.
Republic Credit Solutions segment — Through the RCS segment, the Bank offers consumer credit products. In general, the credit
products are unsecured, small dollar consumer loans that are dependent on various factors. RCS loans typically earn a higher yield but
also have higher credit risk compared to loans originated through the Traditional Banking segment, with a significant portion of RCS
clients considered subprime or near-prime borrowers. The Bank uses third-party service providers for certain services such as
marketing and loan servicing of RCS loans. Additional information regarding consumer loan products offered through RCS follows:
• RCS line-of-credit products – Using separate third-party service providers, the Bank originates two line-of-credit products to
generally subprime borrowers in multiple states. The first of these two products (the “LOC I”) has been originated by the
Bank since 2014. The second (the “LOC II”) was introduced in January 2021.
o RCS’s LOC I represented the substantial majority of RCS activity during 2021 and 2022. Elastic Marketing, LLC
and Elevate Decision Sciences, LLC, are third-party service providers for the product and are subject to the Bank’s
oversight and supervision. Together, these companies provide the Bank with certain marketing, servicing,
technology, and support services, while a separate third party provides customer support, servicing, and other
services on the Bank’s behalf. The Bank is the lender for this product and is marketed as such. Further, the Bank
controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of the
product.
participation interest in each advance, it maintains 100% ownership of the underlying LOC I account with each
100
o In January 2021, RCS began originating balances through its LOC II. One of RCS’s existing third-party service
providers, subject to the Bank’s oversight and supervision, provides the Bank with marketing services and loan
servicing for the LOC II product. The Bank is the lender for this product and is marketed as such. Furthermore, the
this product.
participation interest in each advance, it maintains 100% ownership of the underlying LOC II account with each
• RCS installment loan product – Through RCS, the Bank offers installment loans with terms ranging from 12 to 60 months to
borrowers in multiple states. The same third-party service provider for RCS’s LOC II is the third-party provider for the
installment loans. This third-party provider is subject to the Bank’s oversight and supervision and provides the Bank with
marketing services and loan servicing for these RCS installment loans. The Bank is the lender for these RCS installment
loans and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank
exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under
this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these
loans to a third-party, who is an affiliate of the Bank’s third-party service provider, generally within sixteen days following
the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under
a fair-value option, with the portfolio marked to market monthly.
• RCS healthcare receivables products – The Bank originates healthcare-receivables products across the U.S. through three
different third-party service providers.
o For two of the programs, the Bank retains 100% of the receivables, with recourse in the event of default.
o For the remaining program, in some instances the Bank retains 100% of the receivables originated, with recourse in
the event of default, and in other instances, the Bank sells 100% of the receivables within one month of origination.
Loan balances held for sale through this program are carried at the lower of cost or fair value.
The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains
or losses on sale and mark-to-market adjustments of RCS loans are reported as noninterest income under “Program fees.”
Use of Estimates — To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based
on available information. These estimates affect the amounts reported in the financial statements and the disclosures provided. Actual
amounts could differ from these estimates. The resulting change in estimates could be material to the financial statements.
Concentration of Credit Risk — With limited exception, the Company’s Traditional Banking business activity is with clients located
in Kentucky, Indiana, Florida, and Tennessee. The Company’s Traditional Banking exposure to credit risk is significantly affected by
changes in the economy in these specific areas.
The Bank’s warehouse lines of credit are secured by single family, first lien residential real estate loans originated by the Bank’s
mortgage clients across the United States. As of December 31, 2022, 28% of collateral securing warehouse lines was located in
California.
Earnings Concentration — For 2022, 2021, and 2020, approximately 31%, 24% and 23% of total Company net revenues (net
interest income plus noninterest income) were derived from the RPG operations. Within RPG, the TRS segment accounted for 18%,
13% and 14%, while the RCS segment accounting for 13%, 11% and 9% of total Company net revenues.
For 2022, 2021, and 2020, approximately 4%, 8% and 8% of total Company net revenues (net interest income plus noninterest
income) were derived from the Company’s Warehouse segment.
101
Cash Flows — Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90
days and federal funds sold. Net cash flows are reported for client loan and deposit transactions, interest-bearing deposits in other
financial institutions, repurchase agreements and income taxes.
Interest-Bearing Deposits in Other Financial Institutions — Interest-bearing deposits in other financial institutions mature within
one year and are carried at cost.
Debt Securities — Debt securities are classified as AFS when they might be sold before maturity. AFS debt securities are carried at
fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Debt securities are classified
as HTM and carried at amortized cost less any applicable ACLS when management has the positive intent and ability to hold them to
maturity.
Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are
generally amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where
prepayments are anticipated. Premiums on callable securities are amortized to the earliest call date. Gains and losses on sales are
recorded on the trade date and determined using the specific identification method.
A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent.
Interest accrued but not received for a security placed on nonaccrual is reversed against interest income.
Equity Securities — Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities
without a readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from
observable price changes in orderly transactions for the identical or a similar investment.
Allowance for Credit Losses on Available-for-Sale Securities — For the Company’s AFS corporate bond, the Company uses third-
party PD and LGD data to estimate an ACLS, which is limited by the amount that the bond’s fair value is less than its amortized cost
basis.
For all other AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or will be
required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is
met, the security’s amortized cost basis is written down to fair value through income. For other AFS debt securities that do not meet
the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In
making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of
the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment
indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the
amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a
credit loss exists and an ACLS is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost
basis. Any impairment that has not been recorded through an ACLS is recognized in other comprehensive income.
Changes in ACLS are recorded as a charge or credit to the Provision. Losses are charged against the ACLS when management
believes the lack of collectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to
sell is met.
Accrued interest on AFS debt securities totaled $2 million and $1 million as of December 31, 2022 and 2021 and is excluded from the
ACLS. Accrued interest on AFS debt securities is presented as a component of other assets on the Company’s balance sheet.
Allowance for Credit Losses on Held-to-Maturity Securities — The Company measures expected credit losses on HTM debt
securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities totaled $92,000 and
$89,000 as of December 31, 2022 and 2021 and is excluded from the ACLS. Accrued interest on HTM debt securities is presented as
a component of other assets on the Company’s balance sheet.
The estimate of ACLS on HTM debt securities considers historical credit loss information that is adjusted for current conditions and
reasonable and supportable forecasts.
102
The Company classifies its HTM portfolio into the following major security types: MBS, corporate bonds, and municipal bonds. MBS
securities include CMOs. Nearly all of the MBS portfolio is issued by U.S. government entities or government sponsored entities.
These securities are highly rated by major rating agencies and have a long history of no credit losses. The MBS portfolio also carries
ratings no lower than investment grade. The Company uses PD and LGD estimates provided by a third-party to estimate an ACLS for
its corporate and municipal bond portfolios. These PD and LGD estimates are updated at least quarterly by the Company, with these
estimates incorporating the most recent market expectations and forecasted information.
Loans Held for Sale - In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage
loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Mortgage Banking segment,
while consumer loans originated for sale are originated and sold through the RCS segment.
Mortgage Banking Activities — Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as
determined by outstanding commitments from investors. Net gains on mortgage loans held for sale are recorded as a component of
Mortgage Banking income and represent the difference between the selling price and the carrying value of the loans sold.
Substantially all of the gains or losses on the sale of loans are reported in earnings when the interest rates on loans are locked.
Commitments to fund mortgage loans (“interest rate lock commitments”) to be sold into the secondary market and non-exchange
traded mandatory forward sales contracts (“forward contracts”) for the future delivery of these mortgage loans or the purchase of TBA
securities are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in
mortgage interest rates from the date the Bank enters into the derivative. Generally, the Bank enters into forward contracts for the
future delivery of mortgage loans or the purchase of TBA securities when interest rate lock commitments are entered into, in order to
hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these mortgage
derivatives are included in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement.
Mortgage loans held for sale are generally sold with the MSRs retained. When mortgage loans are sold with servicing retained,
servicing rights are initially recorded at fair value with the income statement effect recorded as a component of Mortgage Banking
income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on
a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are
subsequently measured using the amortization method, which requires servicing rights to be amortized into Mortgage Banking income
in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Amortization of MSRs are
initially set at seven years and subsequently adjusted on a quarterly basis based on the weighted average remaining life of the
underlying loans.
MSRs are evaluated for impairment quarterly based upon the fair value of the MSRs as compared to carrying amount. Impairment is
determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate, loan type, loan terms
and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is
less than the carrying amount. If the Bank later determines that all or a portion of the impairment no longer exists for a particular
grouping, a reduction of the valuation allowance is recorded as an increase to income. Changes in valuation allowances are reported
within Mortgage Banking income on the income statement. The fair value of the MSR portfolios is subject to significant fluctuations
as a result of changes in estimated and actual prepayment speeds and default rates.
A primary factor influencing the fair value is the estimated life of the underlying serviced loans. The estimated life of the serviced
loans is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs
generally will decline due to higher expected prepayments within the portfolio. Alternatively, during a period of rising interest rates
the fair value of MSRs generally will increase, as prepayments on the underlying loans would be expected to decline.
See Footnote 16 “Mortgage Banking Activities” in this section of the filing for management’s determination of MSR impairment.
103
Loan servicing income is reported on the income statement as a component of Mortgage Banking income. Loan servicing income is
recorded as loan payments are collected and includes servicing fees from investors and certain charges collected from borrowers. The
fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when
earned. Loan servicing income totaled $3.5 million, $3.3 million and $2.9 million for the years ended December 31, 2022, 2021, and
2020. Late fees and ancillary fees related to loan servicing are considered nominal.
Consumer Loans Held for Sale, at Fair Value — The Bank offers RCS installment loans with terms ranging from 12 to 60 months to
borrowers in multiple states. Balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s
balance sheet, with the intent to sell generally within sixteen days following the Bank’s origination of the loans. Loans originated
under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market
monthly.
Consumer Loans Held for Sale, at Lower of Cost or Fair Value — RCS originates for sale 90% or 95% of the balances from its line-
of-credit products and a portion of its healthcare receivables product. Ordinary gains or losses on the sale of these RCS products are
reported as a component of “Program fees.”
Loans — The Bank’s financing receivables consist primarily of loans and lease financing receivables (together referred to as “loans”).
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at
amortized cost net of the ACLL. Amortized cost is the principal balance outstanding, net of premiums and discounts, and deferred
loan fees and costs. Accrued interest on loans, which is excluded from the ACLL, totaled $11 million and $8 million as of December
31, 2022 and 2021 and was reported as a component of other assets on the Company’s balance sheet.
Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred
and recognized in interest income using the level-yield method. Premiums on loans held for investment are amortized into interest
income on the level-yield method over the expected life of the loan.
Lease financing receivables, which are generally direct financing leases, are reported at their principal balance outstanding, including
any lease residual amount, net of any unearned income, deferred loan fees and costs, and applicable ACLL. Leasing income is
recognized on a basis that achieves a constant periodic rate of return on the outstanding lease financing balances over the lease terms.
Interest income on mortgage and commercial loans is typically discontinued at the time the loan is 80 days delinquent unless the loan
is well secured and in process of collection. Past due status is based on the contractual terms of the loan, which may define past due
status by the number of days or the number of payments past due. In most cases, loans are placed on nonaccrual or charged-off at an
earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 80 days still on accrual
include smaller balance, homogeneous loans that are evaluated collectively or individually for loss.
Interest accrued but not received for all classes of loans placed on nonaccrual is reversed against interest income. Interest received on
such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans are returned to
accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably
assured, typically a minimum of six consecutive months of performance. Consumer and credit card loans are not placed on nonaccrual
status but are reviewed periodically and charged-off when the loan is deemed uncollectible, generally no more than 120 days.
Purchased Credit Deteriorated Loans — The Company has purchased loans, some of which have experienced more than
insignificant credit deterioration since origination. The Company will generally classify a loan acquired in a business acquisition as
PCD if it meets any of the following criteria:
• Non-accretable discount assigned by the Bank;

• Classified by either the acquired bank or the Bank as Special Mention or Substandard;
• Nonaccrual status when purchased;
• Past due 30 days or more when purchased;
• Loans that have been at least one time over 30 days past due;
• Past maturity date when purchased;
• Select loans that are cross collateralized with any loans identified above;
104
PCD loans are recorded at the amount paid. An ACLL is determined using the same methodology as other loans held for investment.
The initial ACLL determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACLL
becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a
noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACLL are
recorded through the Provision.
Allowance for Credit Losses on Loans — The ACLL is a valuation account that is deducted from the loans’ amortized cost basis to
present the net amount expected to be collected on the loans. Loans are charged-off against the ACLL when management believes the
lack of collectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-
off and expected to be charged-off.
The ACLL is measured on a collective or pooled basis when similar risk characteristics exist. The first table of Footnote 4 illustrates
the Company’s loan portfolio by ACLL risk pool. This pooling method is primarily based on the pool’s collateral type or the pool’s
purpose and generally follows the Bank’s loan segmentation for regulatory reporting. For each of its loan pools, the Company uses a
“static-pool” method, which analyzes historical closed pools of similar loans over their expected lives to attain a loss rate. This loss
rate is then adjusted for current conditions and reasonable and supportable forecasts prior to being applied to the current balance of the
analyzed pools. Adjustments to the historical loss rate for current conditions include differences in underwriting standards, portfolio
mix, delinquency level, or term, as well as for changes in environmental conditions, such as changes in property values or other
relevant factors. A one-year forecast adjustment to the historical loss rate is based on a forecast of the U.S. national unemployment
rate, which has shown a relatively strong historical correlation to the Bank’s loan losses. For its CRE loan pool, the Company uses a
one-year forecast of general CRE values. Subsequent to one-year forecasts, loss rates are assumed to immediately revert back to long-
term historical averages.
Loans that do not share risk characteristics are evaluated on an individual basis, with the Company choosing to individually evaluate
all TDRs. Loans evaluated individually are not included in the pooled evaluation but are instead evaluated under a discounted cash
flow or collateral-dependent method. A collateral dependent method is used when foreclosure is probable, with expected credit losses
based on the fair value of the collateral at the reporting date, adjusted for selling costs if appropriate.
Determining Expected Loan Lives: Expected credit losses are estimated over the contractual loan term, adjusted for expected
prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the
following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual
borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not
unconditionally cancellable by the Company.
See Footnote 4 “Loans and Allowance for Credit Losses” in this section of the filing for additional discussion regarding the
Company’s ACLL.
Troubled Debt Restructurings — A TDR is a situation where, due to a borrower’s financial difficulties, the Bank grants a
concession to the borrower that the Bank would not otherwise have considered. The Company measures the ACLL for TDRs
individually using either a discounted cash-flow method or the collateral method, if the TDR is collateral dependent. TDRs whose
ACLL is measured using a discounted cash flow method use the original pre-modification interest rate on the loan for discounting.
Transfers of Financial Assets — Transfers of financial assets are accounted for as sales when control over the assets has been
relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the
transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the
transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase
them before their maturity.
Other Real Estate Owned — Assets acquired through loan foreclosures are initially recorded at fair value less costs to sell when
acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage
loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to
satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently
accounted for at lower of cost or fair value less estimated costs to sell. The Bank’s selling costs for OREO typically range from
105
10- 13% of each property’s fair value, depending on property class. Fair value is commonly based on recent real estate appraisals or
broker price opinions. Operating costs after acquisition are expensed.
Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or
certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the
Bank. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income
approach. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and approaches utilized in the
appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or
industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling
prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g.,
residential real estate or commercial real estate, and may lead to additional adjustments to the value of unliquidated collateral of
similar class.
Premises and Equipment, Net — Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation.
Depreciation is computed over the estimated useful lives of the related assets on the straight-line method. Estimated lives typically
range from 25 to 39 years for buildings and improvements, three to ten years for furniture, fixtures and equipment and three to five
years for leasehold improvements.
Right of Use Assets and Operating Lease Liabilities — For its long-term operating leases, the Company records on its balance sheet
operating lease liabilities equal to the present value of the required minimum lease payments plus any amounts probable of being
owed under a residual value guarantee. Offsetting these operating lease liabilities, the Company records right-of-use assets for the
underlying leased property.
Regarding lease terms, the Company’s assumes the remaining lease term includes the fixed noncancelable term, plus all periods for
which failure to renew the lease imposes a penalty on the Company, plus all periods for which the Company is reasonably certain to
exercise a lease renewal option, plus all periods for which the Company is reasonably certain not to exercise a lease termination
option. In determining whether it is reasonably certain to exercise a lease renewal or termination option, the Company considers its
overall strategic plan and all economic and environmental circumstances connected to the leased property.
To discount its operating lease payments and guarantees, the Company employs the interest rate curve published by the FHLB of
Cincinnati for the FHLB’s collateralized term borrowings, matching expected lease term to borrowing term.
The Company does not place short-term leases on its balance sheet. Short-term leases have a lease term of 12 months or less and do
not include a purchase option that the Company is reasonably certain to exercise.
Federal Home Loan Bank Stock — The Bank is a member of the FHLB system. Members are required to own a certain amount of
stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost,
classified as a restricted security and annually evaluated for impairment. Because this stock is viewed as a long-term investment,
impairment is based on ultimate recovery of par value. Both cash and stock dividends are recorded as interest income.
Bank Owned Life Insurance — The Bank maintains BOLI policies on certain employees. BOLI is recorded at the amount that can
be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other
amounts due that are probable at settlement. The Bank recognizes tax-free income from the periodic increases in cash surrender value
of these policies and from death benefits in noninterest income. Credit ratings for the Bank’s BOLI carriers are reviewed at least
annually.
Goodwill and Other Intangible Assets — Goodwill resulting from business acquisitions represents the excess of the fair value of the
consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets
assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase combination and determined to have an
indefinite useful life are not amortized but tested annually or more frequently if events and circumstances exist that indicate that a
goodwill impairment test should be performed.
106
The Company has selected September 30th as the date to perform its annual goodwill impairment test. Intangible assets with definite
useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with
an indefinite life on the Bank’s balance sheet.
All goodwill is attributable to the Company’s Traditional Banking segment and is not expected to be deductible for tax purposes.
Based on its assessment, the Company believes its goodwill of $16 million as of December 31, 2022 and 2021 was not impaired and is
properly recorded in the consolidated financial.
Off Balance Sheet Financial Instruments — Financial instruments include off-balance sheet credit instruments, such as
commitments to fund loans and standby letters of credit. The face amount for these items represents the exposure to loss, before
considering client collateral or ability to repay. Such financial instruments are recorded upon funding. Instruments such as standby
letters of credit are considered financial guarantees and are recorded at fair value.
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures — The Company estimates expected credit losses over the
contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is
unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an
estimate of expected credit losses on commitments expected to be funded over its estimated life. The likelihood that funding will
occur is based on the historical usage rate of such commitments.
For a listing of off-balance sheet credit exposures the Company generally considers for an ACLC, see Footnote 13 “Off Balance Sheet
Risks, Commitments And Contingent Liabilities” in this section of the filing.
The ACLC is recorded as a component of other liabilities on the Company’s balance sheet. Any provision for the ACLC is recorded
on the Company’s income statement as a component of other noninterest expense.
Derivatives —Derivatives are reported at fair value in other assets or other liabilities. The Company’s derivatives include interest rate
swap agreements. For asset/liability management purposes, the Bank uses interest rate swap agreements to hedge the exposure or to
modify the interest rate characteristic of certain immediately repricing liabilities.
The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a
hedging relationship. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss
is recorded as a component of other comprehensive income (loss). For derivatives not designated as hedges, the gain or loss is
recognized in current period earnings.
Net cash settlements on interest rate swaps are recorded in interest expense and cash flows related to the swaps are classified in the
cash flow statement the same as the interest expense and cash flows from the liabilities being hedged. The Bank formally documents
the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking
hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific
assets and liabilities on the balance sheet. The Bank also formally assesses, both at the hedge’s inception and on an ongoing basis,
whether a swap is highly effective in offsetting changes in cash flows of the hedged items. The Bank discontinues hedge accounting
when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is
settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended.
When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When
a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that
were accumulated in other comprehensive income are amortized into earnings over the same periods that the hedged transactions will
affect earnings.
instruments to meet client needs, the Bank enters into offsetting positions with dealer counterparties in order to minimize the Bank’s
interest rate risk. These swaps are derivatives but are not designated as hedging instruments; therefore, changes in fair value are
reported in current year earnings.
107
Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair
value of a derivative instrument contract is positive, this generally indicates that the counterparty or client owes the Bank and results
in credit risk to the Bank. When the fair value of a derivative instrument contract is negative, the Bank owes the client or counterparty
and does not have credit risk.
Stock Based Compensation — For stock options and restricted stock awards issued to employees, compensation cost is recognized
based on the fair value of these awards at the date of grant. The Company utilizes a Black-Scholes model to estimate the fair value of
stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards.
Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded
vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Forfeitures of
stock-based awards are accounted for when incurred in lieu of using forfeiture estimates.
Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax
assets and liabilities. DTAs and DTLs are the expected future tax amounts for the temporary differences between carrying amounts
and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces DTAs to the
amount expected to be realized.
A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax
examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is
greater than 50% likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit
is recorded.
The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Retirement Plans — 401(k) plan expense is recorded as a component of salaries and employee benefits and represents the amount of
Company matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years
of service.
Earnings Per Common Share — Basic earnings per share is based on net income (in the case of Class B Common Stock, less the
dividend preference on Class A Common Stock), divided by the weighted average number of shares outstanding during the period.
Diluted earnings per share include the dilutive effect of additional potential Class A common shares issuable under stock options. All
outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating
securities for this calculation. Earnings and dividends per share are restated for all stock dividends through the date of issuance of the
financial statements.
Comprehensive Income — Comprehensive income consists of net income and OCI. OCI includes, net of tax, unrealized gains and
losses on available-for-sale debt securities and unrealized gains and losses on cash flow hedges, which are also recognized as separate
components of equity.
Loss Contingencies — Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded
as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Management does
not believe there are any outstanding matters that would have a material effect on the financial statements.
Restrictions on Cash and Cash Equivalents — Republic has historically been required by the FRB to maintain average reserve
balances. Effective March 15, 2020, the FRB reduced the Bank’s reserve requirement ratio to zero percent, therefore, cash and due
from banks on the consolidated balance sheet included no required reserve balances as of December 31, 2022 and 2021.
The Company’s Captive maintains cash reserves to cover insurable claims. Reserves totaled $4 million as of December 31, 2022 and
2021.
Equity — Stock dividends in excess of 20% are reported by transferring the par value of the stock issued from retained earnings to
common stock. Stock dividends for 20% or less are reported by transferring the fair value, as of the ex-dividend date, of the stock
issued from retained earnings to common stock and additional paid in capital. Fractional share amounts are paid in cash with a
reduction in retained earnings.
108
Dividend Restrictions — Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank
to Republic or by Republic to shareholders.
Fair Value of Financial Instruments — Fair values of financial instruments are estimated using relevant market information and
other assumptions, as more fully disclosed in Footnote 15 “Fair Value” in this section of the filing. Fair value estimates involve
uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the
absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.
Revenue from Contracts with Customers - The Company’s services that fall within the scope of ASC 606, Revenue from Contracts
with Customers, are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to its
client. The Company expenses as-incurred incremental costs of obtaining a contract when the amortization period of those costs would
be less than one year.
Segment Information — Reportable segments represent parts of the Company evaluated by management with separate financial
information. Republic’s internal information is primarily reported and evaluated in five reportable segments – Traditional Banking,
Warehouse, Mortgage Banking, TRS and RCS.
Reclassifications — Certain amounts presented in prior periods have been reclassified to conform to the current period presentation.
These reclassifications had no impact on previously reported prior periods’ net income or shareholders’ equity.
109
Recently Adopted Accounting Standards
The following ASUs were adopted by the Company during the year ended December 31, 2022:
z
Method of Financial
ASU. No. Topic Nature of Update Date Adopted Adoption Statement Impact
2020-06 Debt—Debt with This ASU simplifies accounting for convertible instruments by removing major separation January 1, 2022 Prospectively Immaterial
Conversion and Other models required under current U.S. GAAP. Consequently, more convertible debt
Options (Subtopic 470- instruments will be reported as a single liability instrument and more convertible preferred
20) and Derivatives and stock as a single equity instrument with no separate accounting for embedded conversion
Hedging— Contracts in features. The ASU removes certain settlement conditions that are required for equity
Entity’s Own Equity contracts to qualify for the derivative scope exception, which will permit more equity
(Subtopic 815-40): contracts to qualify for it. The ASU also simplifies the diluted earnings per share
Accounting for calculation in certain areas.
Convertible Instruments
and Contracts in an
Entity’s Own Equity
2021-04 Earnings Per Share This ASU provides guidance for a modification or an exchange of a freestanding equity- January 1, 2022 Prospectively Immaterial
(Topic 260), Debt— classified written call option that is not within the scope of another Topic. It specifically
Modifications and addresses: (1) How an entity should treat a modification of the terms or conditions or an
Extinguishments exchange of a freestanding equity-classified written call option that remains equity
(Subtopic 470-50), classified after modification or exchange; (2) How an entity should measure the effect of a
Compensation—Stock modification or an exchange of a freestanding equity-classified written call option that
Compensation (Topic remains equity classified after modification or exchange; and (3) How an entity should
718), and Derivatives recognize the effect of a modification or an exchange of a freestanding equity-classified
and Hedging—Contracts written call option that remains equity classified after modification or exchange.
in Entity’s Own Equity
(Subtopic 815-40):
Issuer’s Accounting for
Certain Modifications or
Exchanges of
Freestanding Equity-
Classified Written Call
Options
Accounting Standards Updates

The following not-yet-effective ASUs were issued since the Company’s most recently filed Form 10-K and are considered relevant to
the Company’s financial statements. Generally, if an issued-but-not-yet-effective ASU with an expected immaterial impact to the
Company has been disclosed in prior Company filings, that ASU will not be subsequently redisclosed.
Date Adoption Adoption Expected

ASU. No. Topic Nature of Update Required Method Financial Impact
2022-02 Financial This ASU eliminates the TDR recognition and measurement guidance and, instead, January 1, 2023 Prospectively The Company is
Instruments—Credit requires the Company to evaluate (consistent with the accounting for other loan currently
Losses (Topic 326): modifications) whether a modification represents a new loan or a continuation of an analyzing the
Troubled Debt existing loan. This ASU also enhances existing disclosure requirements and introduces impact of this
Restructurings and new requirements related to certain modifications of receivables made to borrowers ASU on its
Vintage Disclosures experiencing financial difficulty. financial
statements.
This ASU requires the Company to disclose current-period gross write-offs by year of
origination for financing receivables and net investment in leases within the scope of
Subtopic 326-20. Gross writeoff information must be included in the vintage disclosures
required for the Company in accordance with ASC 326-20-50-6, which requires that the
Company disclose the amortized cost basis of financing receivables by credit quality
indicator and class of financing receivable by year of origination. (see Note 4 in this
section of the filing)
2022-03 Fair Value This ASU clarifies that a contractual restriction on the sale of an equity security is not January 1, 2024 Prospectively Immaterial
Measurement (Topic considered part of the unit of account of the equity security and, therefore, is not
820): Fair Value considered in measuring fair value.
Measurement of Equity
Securities Subject to
Contractual Sale
Restrictions
2022-06 Reference Rate Reform This ASU extends the period of time preparers can utilize the reference rate reform relief January 1, 2023 Prospectively Immaterial. The
(Topic 848): Deferral guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief Company ceased
of the Sunset Date of during the temporary transition period, so the FASB included a sunset provision within making new loans
Topic 848 Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) and renewing
would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed loans indexed to
the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. LIBOR on
January 1, 2022.
110
2. INVESTMENT SECURITIES
Available-for-Sale Debt Securities
The following tables summarize the amortized cost, fair value, and ACLS of AFS debt securities and the corresponding amounts of
related gross unrealized gains and losses recognized in AOCI:
Gross Gross Allowance

Amortized Unrealized Unrealized for Fair
December 31, 2022 (in thousands) Cost Gains Losses Credit Losses Value
U.S. Treasury securities and U.S. Government agencies $ 436,333 $ 1 $ (25,193) $ — $ 411,141
Private label mortgage-backed security 843 1,284 — — 2,127
Mortgage-backed securities - residential 189,312 16 (17,455) — 171,873
Collateralized mortgage obligations 22,774 21 (1,427) — 21,368
Corporate bonds 10,000 1 — — 10,001
Trust preferred security 3,741 114 — — 3,855
Total available-for-sale debt securities $ 663,003 $ 1,437 $ (44,075) $ — $ 620,365

Amortized Unrealized Unrealized for Fair
December 31, 2021 (in thousands) Cost Gains Losses Credit Losses Value
U.S. Treasury securities and U.S. Government agencies $ 239,880 $ 473 $ (2,894) $ — $ 237,459
Private label mortgage-backed security 1,418 1,313 — — 2,731
Mortgage-backed securities - residential 207,697 3,525 (473) — 210,749
Collateralized mortgage obligations 29,947 377 (30) — 30,294
Corporate bonds 10,000 46 — — 10,046
Trust preferred security 3,684 163 — — 3,847
Total available-for-sale debt securities $ 492,626 $ 5,897 $ (3,397) $ — $ 495,126
Held-to-Maturity Debt Securities
The following tables summarize the amortized cost, fair value, and ACLS of HTM debt securities and the corresponding amounts of
related gross unrecognized gains and losses:

Amortized Unrecognized Unrecognized Fair for
December 31, 2022 (in thousands) Cost Gains Losses Value Credit Losses
U.S. Treasury securities and U.S. Government agencies $ 75,000 $ 106 $ — $ 75,106 $ —
Mortgage-backed securities - residential 27 — (1) 26 —
Collateralized mortgage obligations 7,270 54 (148) 7,176 —
Corporate bonds 4,974 — (49) 4,925 (10)
Obligations of state and political subdivisions 125 — (1) 124 —
Total held-to-maturity debt securities $ 87,396 $ 160 $ (199) $ 87,357 $ (10)

Amortized Unrecognized Unrecognized Fair for
December 31, 2021 (in thousands) Cost Gains Losses Value Credit Losses
Mortgage-backed securities - residential $ 46 $ — $ — $ 46 $ —

Collateralized mortgage obligations 9,080 158 — 9,238 —
Corporate bonds 34,975 263 (6) 35,232 (47)
Obligations of state and political subdivisions 245 3 — 248 —
Total held-to-maturity debt securities $ 44,346 $ 424 $ (6) $ 44,764 $ (47)
111
Sales and Calls of Available-for-Sale Debt Securities
During 2022, 2021, and 2020 there were no material sales of AFS debt securities. The Company had no AFS debt securities called
during 2022. The Company did have AFS debt securities called during 2021 and 2020 with an amortized cost of $90 million and $119
million.
Debt Securities by Contractual Maturity
The following table presents the amortized cost and fair value of debt securities by contractual maturity as of December 31, 2022.
Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without
call or early termination penalties. Securities not due at a single maturity date are detailed separately.
Available-for-Sale Held-to-Maturity
Debt Securities Debt Securities
Amortized Fair Amortized Fair
December 31, 2022 (in thousands) Cost Value Cost Value
Due in one year or less $ 41,789 $ 41,433 $ 125 $ 124

Due from one year to five years 404,544 379,709 79,974 80,031
Due from five years to ten years — — — —
Due beyond ten years 3,741 3,855 — —
Private label mortgage-backed security 843 2,127 — —
Mortgage-backed securities - residential 189,312 171,873 27 26
Collateralized mortgage obligations 22,774 21,368 7,270 7,176
Total debt securities $ 663,003 $ 620,365 $ 87,396 $ 87,357
Unrealized-Loss Analysis on Debt Securities
The following tables summarize AFS debt securities in an unrealized loss position for which an ACLS had not been recorded as of
December 31, 2022 and 2021, aggregated by investment category and length of time in a continuous unrealized loss position:
Less than 12 months 12 months or more Total

Unrealized Unrealized Unrealized
December 31, 2022 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses
Available-for-sale debt securities:

U.S. Treasury securities and U.S. Government agencies $ 229,372 $ (7,139) $ 171,676 $ (18,054) $ 401,048 $ (25,193)
Mortgage-backed securities - residential 105,274 (7,434) 65,520 (10,021) 170,794 (17,455)
Collateralized mortgage obligations 20,418 (1,426) 6 (1) 20,424 (1,427)
Total available-for-sale debt securities $ 355,064 $ (15,999) $ 237,202 $ (28,076) $ 592,266 $ (44,075)
Less than 12 months 12 months or more Total

Unrealized Unrealized Unrealized
December 31, 2021 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses

U.S. Treasury securities and U.S. Government agencies $ 177,138 $ (2,622) $ 9,728 $ (272) $ 186,866 $ (2,894)
Mortgage-backed securities - residential 84,937 (473) — — 84,937 (473)
Collateralized mortgage obligations 4,495 (30) — — 4,495 (30)
Total available-for-sale debt securities $ 266,570 $ (3,125) $ 9,728 $ (272) $ 276,298 $ (3,397)
As of December 31, 2022, the Bank’s portfolio consisted of 179 securities, 163 of which were in an unrealized loss position.
As of December 31, 2021, the Bank’s portfolio consisted of 173 securities, 29 of which were in an unrealized loss position.
As of December 31, 2022 and 2021, there were no holdings of debt securities of any one issuer, other than the U.S. Government and
its agencies, in an amount greater than 10% of stockholders’ equity.
112
Mortgage-Backed Securities and Collateralized Mortgage Obligations
As of December 31, 2022, with the exception of the $2.1 million private label mortgage-backed security, all other mortgage-backed
securities and CMOs held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily the FHLMC and
FNMA. As of December 31, 2022 and 2021, there were gross unrealized losses of $18.9 million and $503,000 related to AFS
mortgage-backed securities and CMOs. Because these unrealized losses are attributable to changes in interest rates and illiquidity, and
not credit quality, and because the Bank does not have the intent to sell these securities, and it is likely that it will not be required to
sell the securities before their anticipated recovery, management does not consider these securities to have OTTI.
Trust Preferred Security
The Parent Company owns a floating rate trust preferred security with a $5 million par value. The coupon on this security is based on
the 3-month LIBOR rate plus 159 basis points. The Company performs an ongoing analysis of the credit risk of the underlying
borrower in relation to its TRUP.
Private Label Mortgage-Backed Security
The Bank owns one private label mortgage-backed security with a total carrying value of $2.1 million as of December 31, 2022. This
security is mostly backed by “Alternative A” first lien mortgage loans, but also has an insurance “wrap” or guarantee as an added
layer of protection to the security holder. This asset is illiquid, and as such, the Bank determined it to be a Level 3 security in
accordance with ASC Topic 820, Fair Value Measurement. Based on this determination, the Bank utilized an income valuation model
(“present value model”) approach, in determining the fair value of the security. This approach is beneficial for positions that are not
traded in active markets or are subject to transfer restrictions, and/or where valuations are adjusted to reflect illiquidity and/or non-
transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s
best estimate is used. Management’s best estimate consists of both internal and external support for this investment.
See additional discussion regarding the Bank’s private label mortgage-backed security in this section of the filing under Footnote 15
“Fair Value.”
The following table presents a rollforward of the Bank’s private label mortgage-backed security credit losses recognized in earnings:
Balance, beginning of period $ 1,462 $ 1,462 $ 1,462

Recovery of losses previously recorded — — —
Balance, end of period $ 1,462 $ 1,462 $ 1,462
Further deterioration in economic conditions could cause the Bank to record an additional impairment charge related to credit losses of
up to $843,000, which is the current gross amortized cost of the Bank’s remaining private label mortgage-backed security.
113
Rollforward of the Allowance for Credit Losses on Debt Securities
The tables below present a rollforward for 2022 and 2021 of the ACLS on AFS and HTM debt securities:
ACLS Rollforward
2022 2021
Beginning Charge- Ending Beginning Charge- Ending
(in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance
Available-for-Sale Securities:
Corporate Bonds $ — $ — $ — $ — $ — $ — $ — $ — $ — $ —
Held-to-Maturity Securities:
Corporate Bonds 47 (37) — — 10 178 (131) — — 47
Total $ 47 $ (37) $ — $ — $ 10 $ 178 $ (131) $ — $ — $ 47
The Company decreased the ACLS on its HTM corporate bonds during 2022 based on improved PD and LGD estimates on these
bonds. PD and LGD estimates for these bonds were elevated during 2020 due to pandemic-driven economic concerns.
There were no HTM debt securities in nonaccrual status or past due 90 days or more as of December 31, 2022 and 2021. All of the
Company’s HTM corporate bonds were rated investment grade as of December 31, 2022 and 2021.
There were no HTM debt securities considered collateral dependent as of December 31, 2022 and 2021.
Pledged Debt Securities
Debt securities pledged to secure public deposits, securities sold under agreements to repurchase, and securities held for other
purposes, as required or permitted by law are as follows:
December 31, (in thousands) 2022 2021
Carrying amount $ 217,562 $ 319,650

Fair value 217,562 319,808
Equity Securities
During 2022, the Company sold an equity security for $2.2 million and realized a loss of $55,000. There were no material sales of
equity securities in 2021 or 2020. The following tables present the carrying value, gross unrealized gains and losses, and fair value of
equity securities with readily determinable fair values:
Gross Gross
Amortized Unrealized Unrealized Fair
December 31, 2022 (in thousands) Cost Gains Losses Value
Freddie Mac preferred stock $ — $ 111 $ — $ 111

Total equity securities with readily determinable fair values $ — $ 111 $ — $ 111
Gross Gross
Amortized Unrealized Unrealized Fair
December 31, 2021 (in thousands) Cost Gains Losses Value

Community Reinvestment Act mutual fund 2,500 — (50) 2,450
Total equity securities with readily determinable fair values $ 2,500 $ 170 $ (50) $ 2,620
114
For equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the
Company’s consolidated statements of income were as follows:
Gains (Losses) Recognized on Equity Securities

(in thousands) Realized Unrealized Total Realized Unrealized Total
Freddie Mac preferred stock $ — $ (59) $ (59) $ — $ (390) $ (390)

Community Reinvestment Act mutual fund (204) — (204) — (73) (73)
Total equity securities with readily determinable fair value $ (204) $ (59) $ (263) $ — $ (463) $ (463)
3. LOANS HELD FOR SALE
In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale
are primarily originated and sold into the secondary market through the Bank’s Mortgage Banking segment, while consumer loans
originated for sale are originated and sold through the RCS segment.
Mortgage Loans Held for Sale, at Fair Value
See additional detail regarding mortgage loans originated for sale, at fair value under Footnote 16 “Mortgage Banking Activities” of
this section of the filing.
Consumer Loans Held for Sale, at Fair Value
The Bank offers RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Balances originated
under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intent to sell generally
within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are
carried at fair value under a fair-value option, with the portfolio marked to market monthly.
Activity for consumer loans held for sale and carried at fair value was as follows:
Balance, beginning of period $ 19,747 $ 3,298 $ 598

Origination of consumer loans held for sale 311,704 271,430 58,833
Proceeds from the sale of consumer loans held for sale (333,438) (260,730) (57,814)
Net gain on sale of consumer loans held for sale 6,693 5,749 1,681
Consumer Loans Held for Sale, at Lower of Cost or Fair Value
RCS originates for sale 90% of the balances from its line-of-credit product and a portion of its healthcare receivables product.
Ordinary gains or losses on the sale of these RCS products are reported as a component of “Program fees.”
Activity for consumer loans held for sale and carried at the lower of cost or market value was as follows:

Origination of consumer loans held for sale 734,011 610,750 460,040
Proceeds from the sale of consumer loans held for sale (730,363) (614,840) (473,507)
Net gain on sale of consumer loans held for sale 6,584 5,549 3,299
115
4. LOANS AND ALLOWANCE FOR CREDIT LOSSES
The composition of the loan portfolio follows:
Owner occupied $ 911,427 $ 820,731
Nonowner occupied 321,358 306,323
Commercial real estate 1,599,510 1,456,009
Construction & land development 153,875 129,337
Commercial & industrial 408,407 340,363
Paycheck Protection Program 4,980 56,014
Lease financing receivables 10,505 8,637
Aircraft 179,785 142,894
Home equity 241,739 210,578
Consumer:
Credit cards 15,473 14,510
Overdrafts 726 683
Automobile loans 6,731 14,448
Other consumer 626 1,432
Total Traditional Banking 3,855,142 3,501,959
Warehouse lines of credit* 403,560 850,550
Total Core Banking 4,258,702 4,352,509
Republic Processing Group*:

Refund Advances 97,505 —
Other TRS commercial & industrial loans 51,767 50,987
Republic Credit Solutions 107,828 93,066
Total Republic Processing Group 257,100 144,053
Total loans** 4,515,802 4,496,562

Allowance for credit losses (70,413) (64,577)
Total loans, net $ 4,445,389 $ 4,431,985
*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.
The following table reconciles the contractually receivable and carrying amounts of loans as of December 31, 2022 and 2021:
Contractually receivable $ 4,519,136 $ 4,498,671

Unearned income (835) (542)
Unamortized premiums 99 116
Unaccreted discounts (479) (641)
PPP net unamortized deferred origination (fees) and costs (91) (1,203)
Other net unamortized deferred origination (fees) and costs (2,028) 161
Carrying value of loans $ 4,515,802 $ 4,496,562
Paycheck Protection Program
The CARES Act was enacted in March 2020 and provided for the SBA’s PPP, which allowed the Bank to lend to its qualifying small
business clients to assist them in their efforts to meet their cash-flow needs during the COVID-19 pandemic. The Economic Aid Act
was enacted in December 2020 and provided for a second round of PPP loans. PPP loans are fully backed by the SBA and may be
entirely forgiven if the loan client uses loan funds for qualifying reasons. As of December 31, 2022, net PPP loans of $5 million
remained on the Core Bank’s balance sheet with $91,000 of yet-to-be-earned PPP lender fees reported as a credit offset to these
originated balances.
116
To provide liquidity to banks administering the SBA’s PPP, the FRB created the PPPLF, a liquidity facility secured by the PPP loans
of the participating banks. As of December 31, 2022, the Bank had no outstanding borrowings from the FRB under the PPPLF.
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 the 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, troubled debt restructurings, 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
117
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, formerly PCI, 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,
formerly PCI, 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.
118
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, formerly PCI, 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 troubled debt restructuring 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 TDRs and remain in the PCD population.
119
The following tables include loans by segment, risk category, and, for non-revolving loans, origination year. Regarding origination
year, loan extensions and renewals are generally considered originated in the year extended or renewed unless the loan is classified as
a TDR. Loan extensions and renewals classified as TDRs generally receive no change in origination date upon extension or renewal.
Revolving Loans Revolving Loans

(in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted
As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total
Residential real estate owner occupied:

Risk Rating
Pass or not rated $ 231,638 $ 189,495 $ 188,004 $ 71,306 $ 208,296 $ — $ — $ 888,739
Special Mention — 160 — — 7,240 — — 7,400
Substandard 1,230 1,103 1,501 1,460 9,994 — — 15,288
Doubtful — — — — — — — —
Total $ 232,868 $ 190,758 $ 189,505 $ 72,766 $ 225,530 $ — $ — $ 911,427
Residential real estate nonowner occupied:

Risk Rating
Pass or not rated $ 78,337 $ 91,778 $ 55,058 $ 32,803 $ 57,053 $ — $ 6,147 $ 321,176
Special Mention — — — — 32 — — 32
Substandard — 30 — — 120 — — 150
Doubtful — — — — — — — —
Total $ 78,337 $ 91,808 $ 55,058 $ 32,803 $ 57,205 $ — $ 6,147 $ 321,358
Commercial real estate:

Risk Rating
Pass or not rated $ 451,327 $ 394,317 $ 210,055 $ 117,928 $ 253,213 $ 25,499 $ 99,791 $ 1,552,130
Special Mention 3,124 11,870 — 21,296 9,967 318 — 46,575
Substandard — — — — 805 — — 805
Doubtful — — — — — — — —
Total $ 454,451 $ 406,187 $ 210,055 $ 139,224 $ 263,985 $ 25,817 $ 99,791 $ 1,599,510
Construction and land development:

Risk Rating
Pass or not rated $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875
Special Mention — — — — — — — —
Substandard — — — — — — — —
Doubtful — — — — — — — —
Total $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875
Commercial and industrial:

Risk Rating
Pass or not rated $ 116,483 $ 78,224 $ 17,171 $ 36,254 $ 36,367 $ 103,257 $ 4,865 $ 392,621
Special Mention 536 13,239 — — 1,756 255 — 15,786
Doubtful — — — — — — — —
Total $ 117,019 $ 91,463 $ 17,171 $ 36,254 $ 38,123 $ 103,512 $ 4,865 $ 408,407
Paycheck Protection Program:

Risk Rating
Pass or not rated $ — $ 4,207 $ 773 $ — $ — $ — $ — $ 4,980
Doubtful — — — — — — — —
Total $ — $ 4,207 $ 773 $ — $ — $ — $ — $ 4,980
Lease financing receivables:

Risk Rating
Pass or not rated $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505
Doubtful — — — — — — — —
Total $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505
Aircraft:
Risk Rating
Pass or not rated $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,454 $ — $ — $ 179,575
Substandard — — — — 210 — — 210
Doubtful — — — — — — — —
Total $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,664 $ — $ — $ 179,785
Home equity:
Risk Rating
Pass or not rated $ — $ — $ — $ — $ — $ 240,704 $ — $ 240,704
Special Mention — — — — — 171 — 171
Substandard — — — — — 864 — 864
Doubtful — — — — — — — —
Total $ — $ — $ — $ — $ — $ 241,739 $ — $ 241,739
120
(in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted
Consumer:
Risk Rating
Pass or not rated $ 415 $ 499 $ 168 $ 2,531 $ 4,328 $ 15,573 $ — $ 23,514
Substandard — — — 9 33 — — 42
Doubtful — — — — — — — —
Total $ 415 $ 499 $ 168 $ 2,540 $ 4,361 $ 15,573 $ — $ 23,556
Warehouse:
Risk Rating
Pass or not rated $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560
Doubtful — — — — — — — —
Total $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560
TRS:
Risk Rating
Pass or not rated $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272
Doubtful — — — — — — — —
Total $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272
RCS:
Risk Rating
Pass or not rated $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 50,589 $ — $ 106,679
Substandard — — — — — 1,149 — 1,149
Doubtful — — — — — — — —
Total $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 51,738 $ — $ 107,828
Grand Total:
Risk Rating
Pass or not rated $ 1,078,578 $ 860,795 $ 508,758 $ 280,501 $ 597,660 $ 990,235 $ 110,803 $ 4,427,330
Special Mention 3,660 25,269 — 21,296 18,995 744 — 69,964
Substandard 1,230 1,133 1,501 1,469 11,162 2,013 — 18,508
Doubtful — — — — — — — —
Grand Total $ 1,083,468 $ 887,197 $ 510,259 $ 303,266 $ 627,817 $ 992,992 $ 110,803 $ 4,515,802

(in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted
Residential real estate owner occupied:

Risk Rating
Pass or not rated $ 218,981 $ 213,010 $ 89,186 $ 50,301 $ 226,852 $ — $ — $ 798,330
Special Mention 301 — — 33 8,209 — — 8,543
Substandard 45 870 679 1,189 11,075 — — 13,858
Doubtful — — — — — — — —
Total $ 219,327 $ 213,880 $ 89,865 $ 51,523 $ 246,136 $ — $ — $ 820,731
Residential real estate nonowner occupied:

Risk Rating
Pass or not rated $ 107,041 $ 65,786 $ 44,376 $ 29,292 $ 55,872 $ — $ 3,729 $ 306,096
Special Mention — — — — 132 — — 132
Substandard — — — — 95 — — 95
Doubtful — — — — — — — —
Total $ 107,041 $ 65,786 $ 44,376 $ 29,292 $ 56,099 $ — $ 3,729 $ 306,323
Commercial real estate:

Risk Rating
Pass or not rated $ 472,095 $ 256,039 $ 153,224 $ 94,212 $ 286,223 $ 25,188 $ 80,211 $ 1,367,192
Special Mention 20,059 2,399 29,639 11,207 18,778 — — 82,082
Substandard — 111 266 2,453 3,905 — — 6,735
Doubtful — — — — — — — —
Total $ 492,154 $ 258,549 $ 183,129 $ 107,872 $ 308,906 $ 25,188 $ 80,211 $ 1,456,009
Construction and land development:

Risk Rating
Pass or not rated $ 88,743 $ 30,593 $ 2,599 $ 1,155 $ 128 $ 1,925 $ — $ 125,143
Special Mention — 524 3,670 — — — — 4,194
Doubtful — — — — — — — —
Total $ 88,743 $ 31,117 $ 6,269 $ 1,155 $ 128 $ 1,925 $ — $ 129,337
Commercial and industrial:

Risk Rating
Pass or not rated $ 105,148 $ 34,361 $ 54,524 $ 18,110 $ 44,972 $ 60,454 $ 2,541 $ 320,110
Special Mention 15,015 1,921 785 34 1,956 350 — 20,061
Substandard — 13 179 — — — — 192
Doubtful — — — — — — — —
Total $ 120,163 $ 36,295 $ 55,488 $ 18,144 $ 46,928 $ 60,804 $ 2,541 $ 340,363
121
(in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted
Paycheck Protection Program:

Risk Rating
Pass or not rated $ 40,607 $ 15,407 $ — $ — $ — $ — $ — $ 56,014
Doubtful — — — — — — — —
Total $ 40,607 $ 15,407 $ — $ — $ — $ — $ — $ 56,014
Lease financing receivables:

Risk Rating
Pass or not rated $ 2,638 $ 839 $ 2,641 $ 1,264 $ 1,255 $ — $ — $ 8,637
Doubtful — — — — — — — —
Total $ 2,638 $ 839 $ 2,641 $ 1,264 $ 1,255 $ — $ — $ 8,637
Aircraft:
Risk Rating
Pass or not rated $ 65,886 $ 43,301 $ 22,933 $ 9,119 $ 1,655 $ — $ — $ 142,894
Doubtful — — — — — — — —
Total $ 65,886 $ 43,301 $ 22,933 $ 9,119 $ 1,655 $ — $ — $ 142,894
Home equity:
Risk Rating
Pass or not rated $ — $ — $ — $ — $ — $ 208,429 $ — $ 208,429
Special Mention — — — — — 279 — 279
Substandard — — — — — 1,870 — 1,870
Doubtful — — — — — — — —
Total $ — $ — $ — $ — $ — $ 210,578 $ — $ 210,578
Consumer:
Risk Rating
Pass or not rated $ 978 $ 417 $ 4,694 $ 4,326 $ 5,768 $ 14,613 $ — $ 30,796
Substandard — — 22 61 194 — — 277
Doubtful — — — — — — — —
Total $ 978 $ 417 $ 4,716 $ 4,387 $ 5,962 $ 14,613 $ — $ 31,073
Warehouse:
Risk Rating
Pass or not rated $ — $ — $ — $ — $ — $ 850,550 $ — $ 850,550
Doubtful — — — — — — — —
Total $ — $ — $ — $ — $ — $ 850,550 $ — $ 850,550
TRS:
Risk Rating
Pass or not rated $ — $ — $ — $ — $ — $ 50,987 $ — $ 50,987
Doubtful — — — — — — — —
Total $ — $ — $ — $ — $ — $ 50,987 $ — $ 50,987
RCS:
Risk Rating
Pass or not rated $ 5,524 $ 3,409 $ 1,642 $ 869 $ 3,699 $ 77,544 $ — $ 92,687
Substandard — — — — — 379 — 379
Doubtful — — — — — — — —
Total $ 5,524 $ 3,409 $ 1,642 $ 869 $ 3,699 $ 77,923 $ — $ 93,066
Grand Total:
Risk Rating
Pass or not rated $ 1,107,641 $ 663,162 $ 375,819 $ 208,648 $ 626,424 $ 1,289,690 $ 86,481 $ 4,357,865
Special Mention 35,375 4,844 34,094 11,274 29,075 629 — 115,291
Substandard 45 994 1,146 3,703 15,269 2,249 — 23,406
Doubtful — — — — — — — —
Grand Total $ 1,143,061 $ 669,000 $ 411,059 $ 223,625 $ 670,768 $ 1,292,568 $ 86,481 $ 4,496,562
122
Subprime Lending
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 $49 million and $48 million as of December 31, 2022 and 2021.
Approximately $30 million and $28 million of the outstanding Traditional Bank subprime loan portfolio as of December 31, 2022 and
2021 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 $29 million and $26 million as of December 31, 2022 and 2021.
Allowance for Credit Losses
The following tables present the activity in the ACLL by portfolio class for the years ended December 31, 2022, 2021, and 2020:
ACLL Rollforward
2022 2021
Owner occupied $ 8,647 $ 181 $ (21) $ 102 $ 8,909 $ 9,715 $ (1,461) $ — $ 393 $ 8,647
Nonowner occupied 2,700 129 — 2 2,831 2,466 231 — 3 2,700
Commercial real estate 23,769 (308) (9) 287 23,739 23,606 509 (428) 82 23,769
Construction & land development 4,128 (5) — — 4,123 3,274 854 — — 4,128
Commercial & industrial 3,487 218 — 271 3,976 2,797 700 (86) 76 3,487
Paycheck Protection Program — — — — — — — — — —
Lease financing receivables 91 19 — — 110 106 (15) — — 91
Aircraft 357 92 — — 449 253 104 — — 357
Home equity 4,111 396 — 121 4,628 4,990 (874) (51) 46 4,111
Consumer:
Credit cards 934 140 (155) 77 996 929 107 (163) 61 934
Overdrafts 683 866 (1,038) 215 726 587 425 (641) 312 683
Automobile loans 186 (111) (3) 15 87 399 (233) (19) 39 186
Other consumer 314 (151) (94) 66 135 577 (254) (72) 63 314
Total Traditional Banking 49,407 1,466 (1,320) 1,156 50,709 49,699 93 (1,460) 1,075 49,407
Warehouse lines of credit 2,126 (1,117) — — 1,009 2,407 (281) — — 2,126
Total Core Banking 51,533 349 (1,320) 1,156 51,718 52,106 (188) (1,460) 1,075 51,533

Refund Advances — 10,471 (11,505) 4,831 3,797 — 6,723 (10,256) 3,533 —
Other TRS commercial & industrial loans 96 (516) (154) 665 91 158 (40) (51) 29 96
Republic Credit Solutions 12,948 12,081 (11,390) 1,168 14,807 8,803 8,444 (4,707) 408 12,948
Total Republic Processing Group 13,044 22,036 (23,049) 6,664 18,695 8,961 15,127 (15,014) 3,970 13,044
Total $ 64,577 $ 22,385 $ (24,369) $ 7,820 $ 70,413 $ 61,067 $ 14,939 $ (16,474) $ 5,045 $ 64,577
123
ACLL Rollforward
Year Ended December 31, 2020
Beginning ASC 326 Provision Charge- Ending
(in thousands) Balance Adoption for Credit Loss offs Recoveries Balance
Owner occupied $ 4,729 $ 4,199 $ 785 $ (169) $ 171 $ 9,715
Nonowner occupied 1,737 148 570 — 11 2,466
Commercial real estate 10,486 273 13,170 (795) 472 23,606
Construction & land development 2,152 1,447 (325) — — 3,274
Commercial & industrial 2,882 (1,318) 1,421 (310) 122 2,797
Paycheck Protection Program — — — — —
Lease financing receivables 147 — (41) — — 106
Aircraft 176 — 77 — — 253
Home equity 2,721 1,652 516 (14) 115 4,990
Consumer:
Credit cards 1,020 33 111 (295) 60 929
Overdrafts 1,169 — 79 (886) 225 587
Automobile loans 612 (7) (176) (60) 30 399
Other consumer 374 307 (57) (240) 193 577
Total Traditional Banking 28,205 6,734 16,130 (2,769) 1,399 49,699
Warehouse lines of credit 1,794 — 613 — — 2,407
Total Core Banking 29,999 6,734 16,743 (2,769) 1,399 52,106

Refund Advances — — 13,033 (19,575) 6,542 —
Other TRS commercial & industrial loans 234 — 156 (234) 2 158
Republic Credit Solutions 13,118 — 1,219 (6,163) 629 8,803
Total Republic Processing Group 13,352 — 14,408 (25,972) 7,173 8,961
Total $ 43,351 6,734 $ 31,151 $ (28,741) $ 8,572 $ 61,067
The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of December 31, 2022 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 2020, 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., TDRs.
For its CRE loan pool, the Company initially employed a one-year forecast of CRE vacancy rates through March 31, 2021 but
discontinued use of this forecast during the second quarter of 2021 in favor of a one-year forecast of general CRE values. This change
in forecast method had no material impact on the Company’s ACLL.
124
Nonperforming Loans and Nonperforming Assets
Detail of nonperforming loans and nonperforming assets and select credit quality ratios follows:
Loans on nonaccrual status* $ 15,562 $ 20,504

Loans past due 90-days-or-more and still on accrual** 756 48
Total nonperforming loans 16,318 20,552
Other real estate owned 1,581 1,792
Total nonperforming assets $ 17,899 $ 22,344
Nonperforming loans to total loans 0.36 % 0.46 %

Nonperforming assets to total loans (including OREO) 0.40 0.50
Nonperforming assets to total assets 0.31 0.37
Credit Quality Ratios - Core Bank:
Nonperforming loans to total loans 0.37 % 0.47 %

Nonperforming assets to total loans (including OREO) 0.40 0.51
Nonperforming assets to total assets 0.32 0.40
*Loans on nonaccrual status include collateral-dependent loans.

**Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans.
125
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) 2022 2021 2022 2021
Owner occupied $ 13,388 $ 12,039 $ — $ —
Nonowner occupied 117 95 — —
Commercial real estate 1,001 6,557 — —
Construction & land development — — — —
Commercial & industrial — 13 — —
Paycheck Protection Program — —
Lease financing receivables — — — —
Aircraft — —
Home equity 815 1,700 — —
Consumer:
Credit cards — — — —
Overdrafts — — — 1
Automobile loans 31 97 — —
Other consumer 210 3 — —
Total Traditional Banking 15,562 20,504 — 1
Warehouse lines of credit — — — —
Total Core Banking 15,562 20,504 — 1

Refund Advances — — — —
Other TRS commercial & industrial loans — — — —
Republic Credit Solutions — — 756 47
Total Republic Processing Group — — 756 47
Total $ 15,562 $ 20,504 $ 756 $ 48
* Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans.
Year Ended
As of December 31, 2022 December 31, 2022
Nonaccrual Nonaccrual Total Interest Income
Loans with Loans without Nonaccrual Recognized
(in thousands) ACLL ACLL Loans on Nonaccrual Loans*

Owner occupied $ 2,252 $ 11,136 $ 13,388 $ 1,000
Nonowner occupied 56 61 117 1
Commercial real estate 1,001 — 1,001 1,384
Commercial & industrial — — — —
Paycheck Protection Program — — — —
Aircraft — — — —
Home equity — 815 815 263
Consumer 15 226 241 16
Total $ 3,324 $ 12,238 $ 15,562 $ 2,664
* Includes interest income for loans on nonaccrual loans as of the beginning of the period that were paid off during the period.
126
Year Ended
As of December 31, 2021 December 31, 2021
Nonaccrual Nonaccrual Total Interest Income
Loans with Loans without Nonaccrual Recognized
(in thousands) ACLL ACLL Loans on Nonaccrual Loans*

Owner occupied $ 1,944 $ 10,095 $ 12,039 $ 874
Nonowner occupied 31 64 95 6
Commercial real estate 4,105 2,452 6,557 154
Commercial & industrial — 13 13 3
Paycheck Protection Program — — — —
Aircraft — — — —
Home equity — 1,700 1,700 152
Consumer 17 83 100 10
$ 6,097 $ 14,407 $ 20,504 $ 1,199
* 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 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. TDRs on
nonaccrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance
under the modified terms.
127
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, 2022 Days Days Days Total Total
(dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total
Owner occupied $ 2,382 $ 1,185 $ 1,267 $ 4,834 $ 906,593 $ 911,427
Nonowner occupied — — — — 321,358 321,358
Commercial real estate 604 — — 604 1,598,906 1,599,510
Construction & land development — — — — 153,875 153,875
Commercial & industrial 177 — — 177 408,230 408,407
Paycheck Protection Program — — — — 4,980 4,980
Lease financing receivables — — — — 10,505 10,505
Aircraft — — — — 179,785 179,785
Home equity 56 93 26 175 241,564 241,739
Consumer:
Credit cards 50 5 — 55 15,418 15,473
Overdrafts 158 1 1 160 566 726
Automobile loans 8 — 3 11 6,720 6,731
Other consumer 43 1 — 44 582 626
Total Traditional Banking 3,478 1,285 1,297 6,060 3,849,082 3,855,142
Warehouse lines of credit — — — — 403,560 403,560
Total Core Banking 3,478 1,285 1,297 6,060 4,252,642 4,258,702

Refund Advances — — — — 97,505 97,505
Other TRS commercial & industrial loans — — — — 51,767 51,767
Republic Credit Solutions 6,488 1,956 756 9,200 98,628 107,828
Total Republic Processing Group 6,488 1,956 756 9,200 247,900 257,100
Total $ 9,966 $ 3,241 $ 2,053 $ 15,260 $ 4,500,542 $ 4,515,802

Delinquency ratio*** 0.22 % 0.07 % 0.05 % 0.34 %
*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.
128
30 - 59 60 - 89 90 or More
December 31, 2021 Days Days Days Total Total
(dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total
Owner occupied $ 606 $ 383 $ 610 $ 1,599 $ 819,132 $ 820,731
Nonowner occupied — — — — 306,323 306,323
Commercial real estate — — 5,292 5,292 1,450,717 1,456,009
Construction & land development — — — — 129,337 129,337
Commercial & industrial 8 — 13 21 340,342 340,363
Paycheck Protection Program — — — — 56,014 56,014
Lease financing receivables — — — — 8,637 8,637
Aircraft — — — — 142,894 142,894
Home equity 38 35 241 314 210,264 210,578
Consumer:
Credit cards 19 11 — 30 14,480 14,510
Overdrafts 160 3 1 164 519 683
Automobile loans — — 9 9 14,439 14,448
Other consumer 1 — — 1 1,431 1,432
Total Traditional Banking 832 432 6,166 7,430 3,494,529 3,501,959
Warehouse lines of credit — — — — 850,550 850,550
Total Core Banking 832 432 6,166 7,430 4,345,079 4,352,509

Other TRS commercial & industrial loans — — — — 50,987 50,987
Republic Credit Solutions 5,010 978 47 6,035 87,031 93,066
Total Republic Processing Group 5,010 978 47 6,035 138,018 144,053
Total $ 5,842 $ 1,410 $ 6,213 $ 13,465 $ 4,483,097 $ 4,496,562

Delinquency ratio*** 0.13 % 0.03 % 0.14 % 0.30 %
*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, 2022, 2021,
and 2020:
December 31, 2022 December 31, 2021 December 31, 2020

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
Owner occupied $ 18,057 $ — $ 14,798 $ — $ 17,212 $ —
Nonowner occupied 150 — 95 — 81 —
Commercial real estate 1,041 — 6,736 — 10,205 —
Commercial & industrial — — — 192 — 12
Aircraft — 210 — — — —
Home equity 967 — 1,976 — 2,899 —
Consumer — 26 — 274 — 237
Total Traditional Banking $ 20,215 $ 236 $ 23,605 $ 466 $ 30,397 $ 249
129
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 cost, when selling
costs are applicable. Selling costs range from 10%-13%, with those percentages based on annual studies performed by the Company.
Troubled Debt Restructurings
A TDR is a situation where, due to a borrower’s financial difficulties, the Bank grants a concession to the borrower that the Bank
would not otherwise have considered. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is
performed of the probability that the borrower will be in payment default on any of their debt in the foreseeable future without the
modification. This evaluation is performed in accordance with the Bank’s internal underwriting policy.
The majority of the Bank’s commercial-related and construction TDRs involve a restructuring of financing terms, such as a reduction
in the payment amount to require only interest and escrow (if required) and/or extending the maturity date of the debt. The substantial
majority of the Bank’s residential real estate TDR concessions involve reducing the client’s loan payment through a rate reduction for
a set period based on the borrower’s ability to service the modified loan payment. Retail loans may also be classified as TDRs due to
legal modifications, such as bankruptcies.
Nonaccrual loans modified as TDRs typically remain on nonaccrual status and continue to be reported as nonperforming loans for a
minimum of six consecutive months. Accruing loans modified as TDRs are evaluated for nonaccrual status based on a current
evaluation of the borrower’s financial condition and ability and willingness to service the modified debt. As of December 31, 2022
and 2021, $3 million and $6 million of TDRs were on nonaccrual status.
Detail of TDRs differentiated by loan type and accrual status follows:
Troubled Debt Troubled Debt Total

Restructurings on Restructurings on Troubled Debt
Nonaccrual Status Accrual Status Restructurings
Number of Recorded Number of Recorded Number of Recorded
December 31, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment
Residential real estate 66 $ 3,427 84 $ 7,345 150 $ 10,772
Commercial real estate — — 1 847 1 847
Commercial & industrial — — 1 1 1 1
Consumer 1 9 2,322 397 2,323 406
Total troubled debt restructurings 67 $ 3,436 2,408 $ 8,590 2,475 $ 12,026
Troubled Debt Troubled Debt Total

Restructurings on Restructurings on Troubled Debt
Nonaccrual Status Accrual Status Restructurings
Residential real estate 63 $ 3,179 89 $ 7,856 152 $ 11,035
Commercial real estate 2 2,575 2 1,239 4 3,814
Commercial & industrial 2 45 1 1 3 46
Consumer 1 12 2,269 479 2,270 491
Total troubled debt restructurings 68 $ 5,811 2,361 $ 9,575 2,429 $ 15,386
130
The Bank considers a TDR to be performing to its modified terms if the loan is in accrual status and not past due 30 days-or-more as
of the reporting date. A summary of the categories of TDR loan modifications outstanding and respective performance under modified
terms as of December 31, 2022 and 2021 follows:
Troubled Debt Troubled Debt

Restructurings Restructurings Total
Performing to Not Performing to Troubled Debt
Modified Terms Modified Terms Restructurings
Residential real estate loans (including home equity loans):

Rate reduction 67 $ 6,305 3 $ 242 70 $ 6,547
Principal deferral 7 699 — — 7 699
Legal modification 67 3,149 6 377 73 3,526
Total residential TDRs 141 10,153 9 619 150 10,772
Commercial related and construction/land development loans:

Rate reduction 1 847 — — 1 847
Total commercial TDRs 2 848 — — 2 848
Consumer loans:
Principal deferral 2,320 393 — — 2,320 393
Legal modification 3 13 — — 3 13
Total consumer TDRs 2,323 406 — — 2,323 406
Total troubled debt restructurings 2,466 $ 11,407 9 $ 619 2,475 $ 12,026


Rate reduction 82 $ 7,461 4 $ 303 86 $ 7,764

Rate reduction 1 919 — — 1 919
Principal deferral 5 477 1 2,464 6 2,941
Total commercial TDRs 6 1,396 1 2,464 7 3,860
Consumer loans:
Total troubled debt restructurings 2,413 $ 12,177 16 $ 3,209 2,429 $ 15,386
As of December 31, 2022 and 2021, 95% and 79% of the Bank’s TDR balances were performing according to their modified terms.
The Bank had provided $769,000 and $2 million of specific reserve allocations to clients whose loan terms have been modified in
TDRs as of December 31, 2022 and 2021. The Bank had no commitments to lend any additional material amounts to its existing TDR
relationships as of December 31, 2022 and 2021.
131
A summary of the categories of TDR loan modifications and respective performance as of December 31, 2022, 2021, and 2020 that
were modified during the years ended December 31, 2022, 2021, and 2020 follows:


Rate reduction 1 $ 192 — $ — 1 $ 192
Consumer loans:
Total troubled debt restructurings 1,073 $ 1,944 3 $ 297 1,076 $ 2,241


Principal deferral 1 $ 159 — $ — 1 $ 159
Legal modification 9 309 5 272 14 581
Total residential TDRs 10 468 5 272 15 740

Consumer loans:
Total consumer TDRs 623 96 — — 623 96
Total troubled debt restructurings 635 $ 609 5 $ 272 640 $ 881
The tables above are inclusive of loans that were TDRs at the end of previous years and were re-modified, e.g., a maturity date extension during the current year.
132

Rate reduction 2 $ 53 1 $ 3 3 $ 56
Legal modification 15 701 3 131 18 832
Total residential TDRs 17 754 4 134 21 888

Consumer loans:
Total consumer TDRs 487 85 — — 487 85
Total troubled debt restructurings 506 $ 972 4 $ 134 510 $ 1,106
The table above is inclusive of loans that were TDRs at the end of previous years and were re-modified, e.g., a maturity date extension during the current year.
As of December 31, 2022, 2021, and 2020, 87%, 69% and 88% of the Bank’s TDR balances that occurred during the years ended
December 31, 2022, 2021, and 2020 were performing according to their modified terms. The Bank provided approximately $45,000,
$45,000 and $48,000 in specific reserve allocations to clients whose loan terms were modified in TDRs during 2022, 2021, and 2020.
There was no significant change between the pre and post modification loan balances as of December 31, 2022, 2021, and 2020.
The following tables present loans by class modified as troubled debt restructurings within the previous 12 months of December 31,
2022, 2021, and 2020 and for which there was a payment default during 2022, 2021, and 2020:

2022 2021 2020
(dollars in thousands) Loans Investment Loans Investment Loans Investment

Owner occupied 7 $ 441 5 $ 314 5 $ 218
Commercial real estate — — — — — —
Home equity 2 43 1 14 2 32
Total 9 $ 484 6 $ 328 7 $ 250
133
Foreclosures
The following table presents the carrying amount of foreclosed properties held as of December 31, 2022 and 2021 as a result of the
Bank obtaining physical possession of such properties:
Residential real estate $ — $ —

Commercial real estate 1,581 1,792
Total other real estate owned $ 1,581 $ 1,792
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, 2022 and 2021:
Recorded investment in consumer residential real estate

mortgage loans in the process of foreclosure $ 909 $ 508
Refund advances
The Company’s TRS segment offered its RA product during the first two months of 2022, 2021, and 2020 and its ERA product during
December 2022 related to the first quarter 2023 tax filing season. The Company bases its estimated Provision for RAs on the current
year’s RA delinquency information, the prior year’s tax refund payment patterns subsequent to the first quarter, and any Tax Provider
loss guarantee arrangements. Each year, all unpaid RAs and ERAs are charged off by June 30th, and each quarter thereafter, any
credits to the Provision for RAs and ERAs match the recovery of previously charged-off accounts.
Information regarding RA follows:
Years Ended
December 31,
(dollars in thousands) 2022 2021 2020
Refund Advances originated $ 311,207 $ 250,045 $ 387,762

Net charge (credit) to the Provision for Refund Advances 6,674 6,723 13,033
Provision to total Refund Advances originated 2.14 % 2.69 % 3.36 %
Refund Advances net charge-offs (recoveries) $ 6,674 $ 6,723 $ 13,033
Refund Advances net charge-offs (recoveries) to total Refund
Advances originated 2.14 % 2.69 % 3.36 %
Information regarding ERAs follows:
Years Ended
December 31,
(dollars in thousands) 2022 2021 2020
Early Season Refund Advances originated $ 97,505 $ — $ —

Net charge (credit) to the Provision for Early Season Refund Advances 3,797 — —
Provision to total Early Season Refund Advances originated 3.89 % —% —%
Early Season Refund Advances net charge-offs (recoveries) $ — $ — $ —
ERAs net charge-offs (recoveries) to total Early Season Refund
Advances originated —% —% —%
134
5. PREMISES AND EQUIPMENT
A summary of the cost and accumulated depreciation of premises and equipment follows:
Land $ 3,818 $ 3,818

Buildings and improvements 32,780 32,629
Furniture, fixtures and equipment 51,652 51,429
Leasehold improvements 21,755 22,430
Construction in progress 547 —
Total premises and equipment 110,552 110,306
Less: Accumulated depreciation and amortization 78,574 74,233
Premises and equipment, net $ 31,978 $ 36,073
Depreciation expense related to premises and equipment follows:
Depreciation expense $ 7,598 $ 8,986 $ 9,725
6. RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES
The Company records as operating lease liabilities the present value of its required minimum lease payments plus any amounts
probable of being owed under a residual value guarantee. Offsetting these operating lease liabilities, the Company records right-of-use
assets for the underlying leased property.
As of December 31, 2022, the Company was under 45 separate and distinct operating lease contracts to lease the land and/or buildings
for 37 of its offices, with 12 such operating leases contracted with a related party of the Company. As of December 31, 2022,
payments on 22 of the Company’s operating leases were considered variable because such payments were adjustable based on
periodic changes in the Consumer Price Index.
The Company recorded two new third-party office leases, renewed one of its existing related-party leases, and extended six of its
third-party leases during the first nine months of 2022, with a related total right-of-use asset value of $6 million connected to this 2022
activity.
The Company executed no new operating leases during 2021. The Company renewed a related-party lease on one of its Louisville,
Kentucky banking centers during the fourth quarter of 2020 that commenced in January 2021 with a right-of-use asset value of
$392,000. During the second quarter of 2021, the Company extended one third-party lease for an additional five years, with the
extended term beginning during the third quarter of 2021 and valued at approximately $263,000. During the fourth quarter of 2021,
the Company recorded two amendments to one related-party lease to add leased space, with these amendments valued at
approximately $1.1 million.
135
The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within
the category “Occupancy and equipment, net” for years ended December 31, 2022, 2021, and 2020:
Operating lease expense:

Related Party:
Variable lease expense $ 4,831 $ 4,921 $ 4,885
Fixed lease expense 207 137 91
Third Party:
Variable lease expense 1,001 787 786
Fixed lease expense 1,526 1,372 1,617
Total operating lease expense $ 7,565 $ 7,217 $ 7,379
Other information concerning operating leases:

Cash paid for amounts included in the measurement of operating lease liabilities $ 6,847 $ 7,286 $ 7,254
Cash paid for variable rent payments not included in measurement of operating lease liabilities 603 —
Short-term lease payments not included in the measurement of lease liabilities — — —
The following table presents the weighted average remaining term and weighted average discount rate for the Company’s non-short-
term operating leases as of December 31, 2022 and 2021:
December 31, (dollars in thousands) 2022 2021
Weighted average remaining term in years 8.44 7.57

Weighted average discount rate 2.10 % 3.05 %
The following table presents a maturity schedule of the Company’s operating lease liabilities based on undiscounted cash flows, and a
reconciliation of those undiscounted cash flows to the operating lease liabilities recognized on the Company’s balance sheet as of
December 31, 2022:
Year (in thousands) Related Party Third Party Total
2023 $ 4,050 $ 2,522 $ 6,572

2024 3,726 2,144 5,870
2025 3,570 1,609 5,179
2026 3,640 1,310 4,950
2027 3,680 987 4,667
Thereafter 11,751 3,601 15,352
Total undiscounted cash flows $ 30,417 $ 12,173 $ 42,590
Discount applied to cash flows (3,258) (1,523) (4,781)
Total discounted cash flows reported as operating lease liabilities $ 27,159 $ 10,650 $ 37,809
136
7. GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS
A progression of the balance for goodwill follows:
Beginning of period $ 16,300 $ 16,300 $ 16,300

Acquired goodwill — — —
Impairment — — —
End of period $ 16,300 $ 16,300 $ 16,300
The goodwill balance relates entirely to the Company’s Traditional Banking segment and Core Banking operations.
Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. As of December 31, 2022 and 2021, the
Company’s Core Banking reporting unit had positive equity and the Company elected to perform a qualitative assessment to
determine if it was more-likely-than-not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The
qualitative assessment indicated that it was not more-likely-than-not that the carrying value of the reporting unit exceeded its fair
value.
8. INTEREST RATE SWAPS
Non-hedge Interest Rate Swaps
instruments to meet client needs, the Bank enters into offsetting positions in order to minimize the Bank’s interest rate risk. These
swaps are derivatives, but are not designated as hedging instruments, and therefore changes in fair value are reported in current year
earnings.
Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair
value of a derivative instrument contract is positive, this generally indicates that the counter party or client owes the Bank, and results
in credit risk to the Bank. When the fair value of a derivative instrument contract is negative, the Bank owes the client or counterparty
and has no credit risk.
A summary of the Bank’s interest rate swaps related to clients as of December 31, 2022 and 2021 is included in the following table:
2022 2021
Notional Notional
December 31, (in thousands) Bank Position Amount Fair Value Amount Fair Value
Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 40,032 $ 1,386 $ 107,502 $ 5,786
Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 91,636 (6,742) 16,423 (298)
Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 131,668 $ (5,356) $ 123,925 $ 5,488
Offsetting interest rate swaps with institutional swap dealer - Assets Pay fixed/receive variable 91,636 6,742 16,423 298
Offsetting interest rate swaps with institutional swap dealer - Liabilities Pay fixed/receive variable 40,032 (1,386) 107,502 (5,786)
Offsetting interest rate swaps with institutional swap dealer - Total Pay fixed/receive variable $ 131,668 $ 5,356 $ 123,925 $ (5,488)
Total $ 263,336 $ — $ 247,850 $ —
The Bank is required to pledge securities or cash as collateral when the Bank is in a net loss position for all swaps with dealer
counterparties when such net loss positions exceed $250,000. The fair value of cash or investment securities pledged as collateral by
the Bank to cover such net loss positions totaled $560,000 and $6.8 million as of December 31, 2022 and 2021.
137
9. DEPOSITS
The composition of the deposit portfolio follows:
Core Bank:
Demand $ 1,336,082 $ 1,381,522
Money market accounts 707,272 789,876
Savings 323,015 311,624
Reciprocal money market 28,635 60,685
Individual retirement accounts (1) 38,640 43,724
Time deposits, $250 and over (1) 54,855 81,050
Other certificates of deposit (1) 129,324 154,174
Reciprocal time deposits (1) 7,405 17,265
Total Core Bank interest-bearing deposits 2,625,228 2,839,920
Total Core Bank noninterest-bearing deposits 1,464,493 1,579,171
Total Core Bank deposits 4,089,721 4,419,091

Money market accounts 3,849 9,717
Total RPG interest-bearing deposits 3,849 9,717
Brokered prepaid card deposits 328,655 320,907

Other noninterest-bearing deposits 115,620 89,601
Total RPG noninterest-bearing deposits 444,275 410,508
Total RPG deposits 448,124 420,225
Total deposits $ 4,537,845 $ 4,839,316
(1) Represents time deposits.
As of December 31, 2022, the scheduled maturities and weighted average rate of all time deposits, including brokered and reciprocal
certificates of deposit, were as follows:
Weighted
Average
Years (dollars in thousands) Principal Rate
2023 $ 173,120 1.40 %

2024 27,226 1.42
2025 16,815 1.45
2026 3,611 0.29
2027 8,589 1.45
Thereafter 128 1.98
Total $ 229,489 1.39
10. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements
and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in
their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements
collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets
and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of
138
currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional
securities. To mitigate the risk of under collateralization, the Bank typically pledges at least two percent more in securities than the
associated repurchase agreements. All such securities are under the Bank’s control.
As of December 31, 2022 and 2021, all securities sold under agreements to repurchase had overnight maturities. Additional
information regarding securities sold under agreements to repurchase follows:
Outstanding balance at end of period $ 216,956 $ 290,967

Weighted average interest rate at end of period 0.41 % 0.04 %
Fair value of securities pledged:

U.S. Treasury securities and U.S. Government agencies $ 254,296 $ 108,813
Mortgage-backed securities - residential — 167,561
Collateralized mortgage obligations — 33,441
Total securities pledged $ 254,296 $ 309,815
Additional information regarding securities sold under agreements to repurchase for the years ended December 31, 2022, 2021, and
2020 follows:

Maximum outstanding at any month end during the period $ 303,315 $ 432,047 $ 295,698
11. FEDERAL HOME LOAN BANK ADVANCES
As of December 31, 2022 and 2021, FHLB advances were as follows:
Overnight advances $ 75,000 $ 25,000

Fixed interest rate advances 20,000 —
Total FHLB advances $ 95,000 $ 25,000
The Company incurred $2.1 million early termination penalties on the payoff of $60 million in FHLB advances during 2020, with no
similar penalty incurred in 2022 or 2021.
FHLB advances are collateralized by a blanket pledge of eligible real estate loans. As of December 31, 2022 and 2021, Republic had
available borrowing capacity of $899 million and $900 million, respectively, from the FHLB. In addition to its borrowing capacity
with the FHLB, Republic also had unsecured lines of credit totaling $125 million available through various other financial institutions
as of December 31, 2022 and 2021.
139
Aggregate future principal payments on FHLB advances based on contractual maturity and the weighted average cost of such
advances are detailed below:
Weighted
Average
Year (dollars in thousands) Principal Rate
2023 $ 75,000 4.36 %

2024 — —
2025 — —
2026 — —
2027 20,000 1.89
Total $ 95,000 3.84 %
Information regarding overnight FHLB advances follows:
Outstanding balance at end of period $ 75,000 $ 25,000

Weighted average interest rate at end of period 4.36 % 0.14 %

Maximum outstanding at any month end during the period $ 75,000 $ 25,000 $ 250,000
The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB:
First lien, single family residential real estate $ 1,106,287 $ 1,041,461

Home equity lines of credit 219,644 186,396
12. SUBORDINATED NOTE
The sole asset of RBCT represented the proceeds of the offering loaned to Republic in exchange for a subordinated note with similar
terms to the TPS. On September 30, 2021, as permitted under the terms of RBCT’s governing documents, Republic repaid the
subordinated note and redeemed the TPS at par without penalty.
13. OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES
Commitments to Extend Credit
The Company, in the normal course of business, is party to financial instruments with off balance sheet risk. These financial
instruments primarily include commitments to extend credit and standby letters of credit. The contract or notional amounts of these
instruments reflect the potential future obligations of the Company pursuant to those financial instruments. Creditworthiness for all
instruments is evaluated on a case-by-case basis in accordance with the Company’s credit policies. Collateral from the client may be
required based on the Company’s credit evaluation of the client and may include business assets of commercial clients, as well as
personal property and real estate of individual clients or guarantors.
The Company also extends binding commitments to clients and prospective clients. Such commitments assure a borrower of financing
for a specified period of time at a specified rate. The risk to the Company under such loan commitments is limited by the terms of the
140
contracts. For example, the Company may not be obligated to advance funds if the client’s financial condition deteriorates or if the
client fails to meet specific covenants.
An approved but unfunded loan commitment represents a potential credit risk and a liquidity risk, since the Company’s client(s) may
demand immediate cash that would require funding. In addition, unfunded loan commitments represent interest rate risk as market
interest rates may rise above the rate committed to the Company’s client. Since a portion of these loan commitments normally expire
unused, the total amount of outstanding commitments at any point in time may not require future funding.
The following table presents the Company’s commitments, exclusive of Mortgage Banking loan commitments for each year ended:
Unused warehouse lines of credit $ 733,940 $ 565,950

Unused home equity lines of credit 410,057 348,681
Unused loan commitments - other 951,021 828,229
Standby letters of credit 9,735 11,305
FHLB letter of credit 643 643
Total commitments $ 2,105,396 $ 1,754,808
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third party.
The terms and risk of loss involved in issuing standby letters of credit are similar to those involved in issuing loan commitments and
extending credit. In addition to credit risk, the Company also has liquidity risk associated with standby letters of credit because
funding for these obligations could be required immediately. The Company does not deem this risk to be material.
The following tables present a rollforward of the ACLC for years ended December 31, 2022 and 2021:
ACLC Rollforward
2022 2021
Loan Commitments
Unused warehouse lines of credit $ 154 $ 36 $ — $ — $ 190 $ 79 $ 75 $ — $ — $ 154
Unused home equity lines of credit 247 85 — — 332 173 74 — — 247
Unused loan commitments - other 651 77 — — 728 737 (86) — — 651
Total $ 1,052 $ 198 $ — $ — $ 1,250 $ 989 $ 63 $ — $ — $ 1,052
The Company increased its ACLC during 2022 primarily due to a $192 million increase in unused commitments.
14. STOCKHOLDERS’ EQUITY AND REGULATORY CAPITAL MATTERS
Common Stock — The Company’s Class A Common shares are entitled to cash dividends equal to 110% of the cash dividend paid per
share on Class B Common Stock. Class A Common shares have one vote per share and Class B Common shares have ten votes per
share. Class B Common shares may be converted, at the option of the holder, to Class A Common shares on a share-for-share basis.
The Class A Common shares are not convertible into any other class of Republic’s capital stock.
Dividend Restrictions — The Parent Company’s principal source of funds for dividend payments are dividends received from the
Bank. Banking regulations limit the amount of dividends that may be paid to the Parent Company by the Bank without prior approval
of the respective states’ banking regulators. Under these regulations, the amount of dividends that may be paid in any calendar year is
limited to the current year’s net profits, combined with the retained net profits of the preceding two years. As of January 1, 2023, the
Bank could, without prior approval, declare dividends of approximately $92 million. Any payment of dividends in the future will
depend, in large part, on the Company’s earnings, capital requirements, financial condition, and other factors considered relevant by
the Company’s Board of Directors.
141
Regulatory Capital Requirements — The Parent Company and the Bank are subject to various regulatory capital requirements
administered by banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly
additional discretionary actions by regulators that, if undertaken, could have a direct material effect on Republic’s financial
statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Parent Company and
the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-
balance sheet items, as calculated under regulatory accounting practices. The capital amounts and classification are also subject to
qualitative judgments by the regulators about components, risk weightings, and other factors.
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized,
significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial
condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital
distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2022 and
2021, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt
corrective action. There are no conditions or events since that notification that management believes have changed the institution’s
category.
142
For prompt corrective action, the regulations in accordance with Basel III define “well capitalized” as a 10.0% Total Risk-Based
Capital ratio, a 6.5% Common Equity Tier 1 Risk-Based Capital ratio, an 8.0% Tier 1 Risk-Based Capital ratio, and a 5.0% Tier 1
Leverage ratio. Additionally, in order to avoid limitations on capital distributions, including dividend payments and certain
discretionary bonus payments to executive officers, the Company and Bank must hold a capital conservation buffer of 2.5% composed
of Common Equity Tier 1 Risk-Based Capital above their minimum risk-based capital requirements.
Minimum Requirement
to be Well Capitalized
Minimum Requirement Under Prompt
for Capital Adequacy Corrective Action
Actual Purposes Provisions
(dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2022

Republic Bancorp, Inc. $ 941,865 17.92 % $ 420,514 8.00 % NA NA
Republic Bank & Trust Company 904,592 17.23 420,040 8.00 $ 525,050 10.00 %

Republic Bancorp, Inc. 877,735 16.70 236,539 4.50 NA NA
Republic Bank & Trust Company 840,462 16.01 236,273 4.50 341,283 6.50


Minimum Requirement
to be Well Capitalized
Minimum Requirement Under Prompt
for Capital Adequacy Corrective Action
Actual Purposes Provisions
(dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2021

Republic Bancorp, Inc. $ 879,310 17.48 % $ 402,327 8.00 % NA NA
Republic Bank & Trust Company 862,637 17.16 402,166 8.00 $ 502,707 10.00 %



143
15. FAIR VALUE
Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or
most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
There are three levels of inputs that may be used to measure fair values:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of
the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted
prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market
participants would use in pricing an asset or liability.
The Bank used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:
Available-for-sale debt securities: Except for the Bank’s U.S. Treasury securities, its private label mortgage-backed security, and its
TRUP investment, the fair value of AFS debt securities is typically determined by matrix pricing, which is a mathematical technique
used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather
by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).
The Bank’s U.S. Treasury securities are based on quoted market prices (Level 1 inputs) and considered highly liquid.
The Bank’s private label mortgage-backed security remains illiquid, and as such, the Bank classifies this security as a Level 3 security
in accordance with ASC Topic 820, Fair Value Measurement. Based on this determination, the Bank utilized an income valuation
model (present value model) approach in determining the fair value of this security.
See in this section of the filing under Footnote 2 “Investment Securities” for additional discussion regarding the Bank’s private label
mortgage-backed security.
The Company acquired its TRUP investment in 2015 and considered the most recent bid price for the same instrument to approximate
market value as of December 31, 2022. The Company’s TRUP investment is considered highly illiquid and also valued using Level 3
inputs, as the most recent bid price for this instrument is not always considered generally observable.
Equity securities with readily determinable fair value: Quoted market prices in an active market are available for the Bank’s CRA
mutual fund investment and fall within Level 1 of the fair value hierarchy.
The fair value of the Company’s Freddie Mac preferred stock is determined by matrix pricing, as described above (Level 2 inputs).
Mortgage loans held for sale, at fair value: The fair value of mortgage loans held for sale is determined using quoted secondary
market prices. Mortgage loans held for sale are classified as Level 2 in the fair value hierarchy.
Consumer loans held for sale, at fair value: The fair value for these loans is based on contractual sales terms, Level 3 inputs.
Consumer loans held for investment, at fair value: The Bank held an immaterial amount of consumer loans at fair value through a
consumer loan program the Company is currently unwinding. The fair value of these loans was based on the discounted cash flows of
the underlying loans, Level 3 inputs. Further disclosure of these loans is considered immaterial and thus omitted.
144
Mortgage Banking derivatives: Mortgage Banking derivatives used in the ordinary course of business primarily consist of
mandatory forward sales contracts (“forward contracts”) and interest rate lock loan commitments. The fair value of the Bank’s
derivative instruments is primarily measured by obtaining pricing from broker-dealers recognized to be market participants. The
pricing is derived from market observable inputs that can generally be verified and do not typically involve significant judgment by
the Bank. Forward contracts and rate lock loan commitments are classified as Level 2 in the fair value hierarchy.
Interest rate swap agreements: Interest rate swaps are recorded at fair value on a recurring basis. The Company values its interest
rate swaps using a third-party valuation service and classifies such valuations as Level 2. Valuations of these interest rate swaps are
also received from the relevant dealer counterparty and validated against the Company’s calculations. The Company has considered
counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its
interest rate swap liabilities.
Collateral-dependent loans: Collateral-dependent loans generally reflect partial charge-downs to their respective fair value, which is
commonly based on recent real estate appraisals or BPOs. These appraisals or BPOs may utilize a single valuation approach or a
combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the process by
the independent experts to adjust for differences between the comparable sales and income data available. Such adjustments are
usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral
may be valued using an appraisal, net book value per the borrower’s financial statements or aging reports, adjusted or discounted
based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s
expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Collateral-dependent loans
are evaluated on a quarterly basis for additional impairment and adjusted accordingly.
Other real estate owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell
when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated
costs to sell. Fair value is commonly based on recent real estate appraisals or BPOs. These appraisals or BPOs may utilize a single
approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the
process by the independent experts to adjust for differences between the comparable sales and income data available. Such
adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value.
Appraisals for collateral-dependent loans, impaired premises and other real estate owned are performed by certified general appraisers
(for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been
reviewed and verified by the Bank. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and
approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as
recent market data or industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by
comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for
each collateral class, e.g., residential real estate or commercial real estate, and may lead to additional adjustments to the value of
unliquidated collateral of similar class.
Mortgage servicing rights: At least quarterly, MSRs are evaluated for impairment based upon the fair value of the MSRs as
compared to carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded, and the
respective individual tranche is carried at fair value. If the carrying amount of an individual tranche does not exceed fair value,
impairment is reversed if previously recognized and the carrying value of the individual tranche is based on the amortization method.
The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and can
generally be validated against available market data (Level 2).
145
Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Bank has
elected the fair value option, are summarized below:
Fair Value Measurements at

December 31, 2022 Using:
Quoted Prices in Significant
Active Markets Other Significant
for Identical Observable Unobservable Total
Assets Inputs Inputs Fair
(in thousands) (Level 1) (Level 2) (Level 3) Value
Financial assets:
U.S. Treasury securities and U.S. Government agencies $ 193,385 $ 217,756 $ — $ 411,141
Private label mortgage-backed security — — 2,127 2,127
Mortgage-backed securities - residential — 171,873 — 171,873
Collateralized mortgage obligations — 21,368 — 21,368
Corporate bonds — 10,001 — 10,001
Trust preferred security — — 3,855 3,855
Total available-for-sale debt securities $ 193,385 $ 420,998 $ 5,982 $ 620,365
Equity securities with readily determinable fair value:

Total equity securities with readily determinable fair value $ — $ 111 $ — $ 111
Mortgage loans held for sale $ — $ 1,302 $ — $ 1,302

Consumer loans held for sale — — 4,706 4,706
Consumer loans held for investment — — 2 2
Rate lock loan commitments — 2 — 2
Mandatory forward contracts — — — —

Interest rate swap agreements — 8,127 — 8,127
Financial liabilities:
Rate lock loan commitments $ — $ — $ — $ —
Mandatory forward contracts — 67 — 67
146
Financial assets:
U.S. Treasury securities and U.S. Government agencies $ 70,112 $ 167,347 $ — $ 237,459
Private label mortgage-backed security — — 2,731 2,731
Mortgage-backed securities - residential — 210,749 — 210,749
Collateralized mortgage obligations — 30,294 — 30,294
Corporate bonds — 10,046 — 10,046
Trust preferred security — — 3,847 3,847
Total available-for-sale debt securities $ 70,112 $ 418,436 $ 6,578 $ 495,126
Equity securities with readily determinable fair value:

Community Reinvestment Act mutual fund 2,450 — — 2,450
Total equity securities with readily determinable fair value $ 2,450 $ 170 $ — $ 2,620
Mortgage loans held for sale $ — $ 29,393 $ — $ 29,393

Consumer loans held for sale — — 19,747 19,747
Consumer loans held for investment — — 170 170
Rate lock loan commitments — 1,404 — 1,404
Mandatory forward contracts — 66 — 66
Financial liabilities:
All transfers between levels are generally recognized at the end of each quarter. There were no transfers into or out of Level 1, 2 or 3
assets during the years ended December 31, 2022 and 2021.
Private Label Mortgage-Backed Security
The following table presents a reconciliation of the Bank’s private label mortgage-backed security measured at fair value on a
recurring basis using significant unobservable inputs (Level 3):

Total gains or losses included in earnings:
Net change in unrealized gain (29) 63 (35)
Principal paydowns (575) (289) (503)
The fair value of the Bank’s single private label mortgage-backed security is supported by analysis prepared by an independent third
party. The third party’s approach to determining fair value involved several steps: 1) detailed collateral analysis of the underlying
mortgages, including consideration of geographic location, original loan-to-value and the weighted average FICO score of the
borrowers; 2) collateral performance projections for each pool of mortgages underlying the security (probability of default, severity of
default, and prepayment probabilities) and 3) discounted cash flow modeling.
The significant unobservable inputs in the fair value measurement of the Bank’s single private label mortgage-backed security are
prepayment rates, probability of default and loss severity in the event of default. Significant fluctuations in any of those inputs in
isolation would result in a significantly different fair value measurement.
147
The following tables present quantitative information about recurring Level 3 fair value measurements as of December 31, 2022 and
2021:
Fair Valuation
December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Range
Private label mortgage-backed security $ 2,127 Discounted cash flow (1) Constant prepayment rate 4.5% - 4.7%
(2) Probability of default 1.8% - 9.3%
(3) Loss severity 25% - 35%
Fair Valuation
December 31, 2021 (dollars in thousands) Value Technique Unobservable Inputs Range
Private label mortgage-backed security $ 2,731 Discounted cash flow (1) Constant prepayment rate 4.5% - 5.7%
(2) Probability of default 1.8% - 9.3%
(3) Loss severity 50% - 75%
Trust Preferred Security
The Company invested in its TRUP in November 2015. The following table presents a reconciliation of the Company’s TRUP
measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ending December 31, 2022,
2021, and 2020:

Total gains or losses included in earnings:
Discount accretion 57 53 56
Net change in unrealized gain (49) (6) (256)
The fair value of the Company’s TRUP investment is based on the most recent bid price for this instrument, as provided by a third-
party broker.
Mortgage Loans Held for Sale
The Bank has elected the fair value option for mortgage loans held for sale. These loans are intended for sale and the Bank believes
that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the
loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more nor on nonaccrual
as of December 31, 2022 and 2021.
As of December 31, 2022 and 2021, the aggregate fair value, contractual balance (including accrued interest), and unrealized gain was
as follows:
Aggregate fair value $ 1,302 $ 29,393

Contractual balance 1,265 28,668
Unrealized (loss) gain 37 725
148
The total amount of gains and losses from changes in fair value of mortgage loans held for sale included in earnings for 2022, 2021,
and 2020 are presented in the following table:
Interest income $ 519 $ 1,081 $ 1,362

Change in fair value (688) (1,361) 1,552
Total included in earnings $ (169) $ (280) $ 2,914
Consumer Loans Held for Sale
RCS carries loans originated through its installment loan program at fair value. Interest income is recorded based on the contractual
terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on
nonaccrual as of December 31, 2022 and 2021.
The significant unobservable inputs in the fair value measurement of the Bank’s short-term installment loans are the net contractual
premiums and level of loans sold at a discount price. Significant fluctuations in any of those inputs in isolation would result in a
significantly lower/higher fair value measurement.
The following table presents quantitative information about recurring Level 3 fair value measurement inputs for installment loans:
Fair Valuation
December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Rate
Consumer loans held for sale $ 4,706 Contract Terms (1) Net Premium 0.15%
(2) Discounted Sales 10.00%
Fair Valuation
December 31, 2021 (dollars in thousands) Value Technique Unobservable Inputs Rate
Consumer loans held for sale $ 19,747 Contract Terms (1) Net Premium 1.4%
(2) Discounted Sales 5.00%
The aggregate fair value, contractual balance, and unrealized gain on consumer loans held for sale, at fair value, were as follows:
Aggregate fair value $ 4,706 $ 19,747

Contractual balance 4,734 19,633
Unrealized (loss) gain (28) 114
The total amount of net gains from changes in fair value included in earnings for consumer loans held for sale, at fair value, are
presented in the following table:
Interest income $ 9,970 $ 7,708 $ 1,808

Change in fair value (142) 100 9
Total included in earnings $ 9,828 $ 7,808 $ 1,817
149
Assets measured at fair value on a non-recurring basis are summarized below:

Collateral-dependent loans:
Owner occupied $ — $ — $ 1,456 $ 1,456
Commercial real estate — — 906 906
Total collateral-dependent loans* $ — $ — $ 2,362 $ 2,362
Other real estate owned:

Commercial real estate $ — $ — $ 1,581 $ 1,581
Total other real estate owned $ — $ — $ 1,581 $ 1,581

Collateral-dependent loans:
Owner occupied $ — $ — $ 1,626 $ 1,626
Commercial real estate — — 2,841 2,841
Home equity — — 378 378
Total collateral-dependent loans* $ — $ — $ 4,845 $ 4,845
Other real estate owned:

Residential real estate $ — $ — $ 1,792 $ 1,792
Total other real estate owned $ — $ — $ 1,792 $ 1,792
* The difference between the carrying value and the fair value of collateral dependent or impaired loans measured at fair value is reconciled in a subsequent table of
this Footnote.
The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair
value on a non-recurring basis as of December 31, 2022 and 2021:
Range
Fair Valuation Unobservable (Weighted
December 31, 2022 (dollars in thousands) Value Technique Inputs Average)
Collateral-dependent loans - residential real estate owner $ 1,456 Sales comparison approach Adjustments determined for 0% - 41% (11%)
occupied differences between comparable sales
Collateral-dependent loans - commercial real estate $ 906 Sales comparison approach Adjustments determined for 16% (16%)
differences between comparable sales
Other real estate owned - commercial real estate $ 1,581 Sales comparison approach Adjustments determined for 39% (39%)
differences between comparable sales
150
Range
Fair Valuation Unobservable (Weighted
December 31, 2021 (dollars in thousands) Value Technique Inputs Average)
Collateral-dependent loans - residential real estate owner $ 1,626 Sales comparison approach Adjustments determined for differences 0% - 51% (10%)
occupied between comparable sales
Collateral-dependent loans - commercial real estate $ 2,841 Sales comparison approach Adjustments determined for differences 12% - 13% (12%)
between comparable sales
Collateral-dependent loans - home equity $ 378 Sales comparison approach Adjustments determined for differences 2%-4% (3%)
Other real estate owned - commercial real estate $ 1,792 Sales comparison approach Adjustments determined for differences 33% (33%)
Collateral Dependent Loans
Collateral-dependent loans are generally measured for loss using the fair value for reasonable disposition of the underlying collateral.
The Bank’s practice is to obtain new or updated appraisals or BPOs on the loans subject to the initial review and then to evaluate the
need for an update to this value on an as-necessary or possibly annual basis thereafter (depending on the market conditions impacting
the value of the collateral). The Bank may discount the valuation amount as necessary for selling costs and past due real estate taxes.
If a new or updated appraisal or BPO is not available at the time of a loan’s loss review, the Bank may apply a discount to the existing
value of an old valuation to reflect the property’s current estimated value if it is believed to have deteriorated in either: (i) the physical
or economic aspects of the subject property or (ii) material changes in market conditions. The review generally results in a partial
charge-off of the loan if fair value, less selling costs, are below the loan’s carrying value. Collateral-dependent loans are valued within
Level 3 of the fair value hierarchy.
Provision on collateral-dependent loans $ 7 $ 960 $ 559
Other Real Estate Owned
Other real estate owned, which is carried at the lower of cost or fair value, is periodically assessed for impairment based on fair value
at the reporting date. Fair value is determined from external appraisals or BPOs using judgments and estimates of external
professionals. Many of these inputs are not observable and, accordingly, these measurements are classified as Level 3.
Details of other real estate owned carrying value and write downs follow:
Other real estate owned carried at fair value $ 1,581 $ 1,792 $ 2,003
Other real estate owned carried at cost — — 496
Total carrying value of other real estate owned $ 1,581 $ 1,792 $ 2,499
Other real estate owned write-downs during the years ended $ 211 $ 211 $ 105
151
Financial Instruments
The carrying amounts and estimated exit price fair values of financial instruments, as of December 31, 2022 and 2021 follow:

December 31, 2022:
Total
Carrying Fair
(in thousands) Value Level 1 Level 2 Level 3 Value
Assets:
Cash and cash equivalents $ 313,689 $ 313,689 $ — $ — $ 313,689
Available-for-sale debt securities 620,365 193,385 420,998 5,982 620,365
Held-to-maturity debt securities 87,386 — 87,357 — 87,357
Equity securities with readily determinable fair values 111 — 111 — 111
Mortgage loans held for sale, at fair value 1,302 — 1,302 — 1,302
Consumer loans held for sale, at fair value 4,706 — — 4,706 4,706
Consumer loans held for sale, at the lower of cost or fair value 13,169 — — 13,169 13,169
Loans, net 4,445,389 — — 4,276,423 4,276,423
Federal Home Loan Bank stock 9,146 — — — NA
Accrued interest receivable 13,572 — 2,462 11,110 13,572
Mortgage servicing rights 8,769 — 17,592 — 17,592
Mandatory forward contracts — — — — —
Interest rate swap agreements 8,127 — 8,127 — 8,127
Liabilities:
Noninterest-bearing deposits $ 1,908,768 $ — $ 1,908,768 $ — $ 1,908,768
Transaction deposits 2,398,853 — 2,398,853 — 2,398,853
Time deposits 230,224 — 223,912 — 223,912
Securities sold under agreements to repurchase and other short-term borrowings 216,956 — 216,956 — 216,956
Federal Home Loan Bank advances 95,000 — 93,044 — 93,044
Accrued interest payable 239 — 239 — 239
Rate lock loan commitments — — — — —
NA - Not applicable
152
December 31, 2021:
Total
Carrying Fair
(in thousands) Value Level 1 Level 2 Level 3 Value
Assets:
Cash and cash equivalents $ 756,971 $ 756,971 $ — $ — $ 756,971
Available-for-sale debt securities 495,126 70,112 418,436 6,578 495,126
Held-to-maturity debt securities 44,299 — 44,764 — 44,764
Equity securities with readily determinable fair values 2,620 2,450 170 — 2,620
Mortgage loans held for sale, at fair value 29,393 — 29,393 — 29,393
Consumer loans held for sale, at fair value 19,747 — — 19,747 19,747
Consumer loans held for sale, at the lower of cost or fair value 2,937 — — 2,937 2,937
Loans, net 4,431,985 — — 4,445,244 4,445,244
Federal Home Loan Bank stock 10,311 — — — NA
Accrued interest receivable 9,877 — 1,441 8,436 1,441
Mortgage servicing rights 9,196 — 11,540 — 11,540
Rate lock loan commitments 1,404 — 1,404 — 1,404
Mandatory forward contracts 66 — 66 — 66
Liabilities:
Noninterest-bearing deposits $ 1,989,679 $ — $ 1,989,679 $ — $ 1,989,679
Transaction deposits 2,553,424 — 2,553,424 — 2,553,424
Time deposits 296,213 — 298,236 — 298,236
Securities sold under agreements to repurchase and other short-term borrowings 290,967 — 290,967 — 290,967
Federal Home Loan Bank advances 25,000 — 25,000 — 25,000
Accrued interest payable 159 — 159 — 159
NA - Not applicable
16. MORTGAGE BANKING ACTIVITIES
Mortgage Banking activities primarily include residential mortgage originations and servicing.
Activity for mortgage loans held for sale was as follows:

Origination of mortgage loans held for sale 205,365 680,714 782,939
Proceeds from the sale of mortgage loans held for sale (238,398) (717,847) (788,475)
Net gain on sale of mortgage loans held for sale 4,942 19,659 33,179
153
Mortgage loans serviced for others are not reported as assets. The following table provides information for loans serviced by the Bank
for the FHLMC and FNMA as of December 31, 2022 and 2021:
FHLMC $ 966,677 $ 1,004,199

FNMA 420,637 378,942
Total $ 1,387,314 $ 1,383,141
Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to
investors and processing foreclosures. Custodial escrow account balances maintained in connection with serviced loans were
approximately $11 million and $14 million as of December 31, 2022 and 2021.
The following table presents the components of Mortgage Banking income:
Net gain realized on sale of mortgage loans held for sale $ 7,164 $ 23,114 $ 28,721
Net change in fair value recognized on loans held for sale (688) (1,361) 1,552
Net change in fair value recognized on rate lock loan commitments (1,402) (3,136) 3,751
Net change in fair value recognized on forward contracts (132) 1,042 (845)
Net gain recognized 4,942 19,659 33,179
Loan servicing income 3,518 3,288 2,924

Amortization of mortgage servicing rights (2,264) (3,453) (3,756)
Change in mortgage servicing rights valuation allowance — 500 (500)
Net servicing income recognized 1,254 335 (1,332)
Total Mortgage Banking income $ 6,196 $ 19,994 $ 31,847
Activity for capitalized mortgage servicing rights was as follows:

Additions 1,838 5,054 5,463
Amortized to expense (2,264) (3,453) (3,756)
Change in valuation allowance — 500 (500)
Activity in the valuation allowance for capitalized mortgage servicing rights follows:
Beginning valuation allowance $ — $ 500 $ —

Charge during the period — (500) 500
Ending valuation allowance $ — $ — $ 500
154
Other information relating to mortgage servicing rights follows:
Fair value of mortgage servicing rights portfolio $ 17,145 $ 11,540

Monthly weighted average prepayment rate of unpaid principal balance* 127 % 208 %
Discount rate 10.21 % 10.15 %
Weighted average foreclosure rate 0.10 % 0.19 %
Weighted average life in years 7.54 5.93
* Rates are applied to individual tranches with similar characteristics.
Estimated future amortization expense of the MSR portfolio (net of any applicable impairment charge) follows; however, actual
amortization expense will be impacted by loan payoffs and changes in estimated lives that occur during each respective year:
Year (in thousands)
2023 $ 1,130
2024 1,127
2025 1,124
2026 1,098
2027 1,064
2028 936
Thereafter 2,291
Total $ 8,770
Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts and
interest rate lock loan commitments. Mandatory forward contracts represent future commitments to deliver loans at a specified price
and date or to purchase TBA securities and are used to manage interest rate risk on loan commitments and mortgage loans held for
sale. Interest rate lock loan commitments represent commitments to fund loans at a specific rate. These derivatives involve underlying
items, such as interest rates, and are designed to transfer risk. Substantially all of these instruments expire within 90 days from the date
of issuance. Notional amounts are amounts on which calculations and payments are based, but which do not represent credit exposure,
as credit exposure is limited to the amounts required to be received or paid.
Mandatory forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such
agreements. In the event the counterparties fail to deliver commitments or are unable to fulfill their obligations, the Bank could
potentially incur significant additional costs by replacing the positions at then current market rates. The Bank manages its risk of
exposure by limiting counterparties to those banks and institutions deemed appropriate by management and the Board of Directors.
The Bank does not expect any counterparty to default on their obligations and therefore, the Bank does not expect to incur any cost
related to counterparty default.
The Bank is exposed to interest rate risk on loans held for sale and rate lock loan commitments. As market interest rates fluctuate, the
fair value of mortgage loans held for sale and rate lock commitments will decline or increase. To offset this interest rate risk the Bank
enters into derivatives, such as mandatory forward contracts to sell loans or purchase TBA securities. The fair value of these
mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is
expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective
of this activity is to minimize the exposure to losses on rate loan lock commitments and loans held for sale due to market interest rate
fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors,
including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before
expiration; and the time period required to close and sell loans.
155
The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives as
of the period ends presented:
2022 2021
Notional Notional
(in thousands) Amount Fair Value Amount Fair Value
Included in Mortgage loans held for sale:

Mortgage loans held for sale, at fair value $ 1,265 $ 1,302 $ 28,668 $ 29,393
Included in other assets:

Rate lock loan commitments $ 4,118 $ 2 $ 56,736 $ 1,404
Mandatory forward contracts — — 70,812 66
Included in other liabilities:

Rate lock loan commitments $ — $ — $ — $ —
Mandatory forward contracts 4,009 67 — —
17. STOCK PLANS AND STOCK BASED COMPENSATION
In January 2015, the Company’s Board of Directors adopted the Republic Bancorp, Inc. 2015 Stock Incentive Plan (the “2015 Plan”),
which replaced the 2005 Stock Incentive Plan. The number of authorized shares under the 2015 Plan is fixed at 3,000,000, with such
number subject to adjustment in the event of certain events, such as stock dividends, stock splits, or the like. There is a minimum
three-year vesting period for awards granted to employees under the 2015 Plan that vest based solely on the completion of a specified
period of service, with options generally exercisable three to six years after the issue date. Stock options generally must be exercised
within one year from the date the options become exercisable and have an exercise price that is at least equal to the fair market value
of the Company’s stock on their grant date.
All shares issued under the 2015 Plan were from authorized and reserved unissued shares. The Company has a sufficient number of
authorized and reserved unissued shares to satisfy all anticipated option exercises. There are no Class B stock options outstanding or
available for exercise under the Company’s plans.
Stock Options
The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes based stock option valuation
model. This model requires the input of subjective assumptions that will usually have a significant impact on the fair value estimate.
Expected volatilities are based on historical volatility of Republic’s stock and other factors. Expected dividends are based on dividend
trends and the market price of Republic’s stock price at grant. Republic uses historical data to estimate option exercises and employee
terminations within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S.
Treasury yield curve at the time of grant.
All share-based payments to employees, including grants of employee stock options, are recognized as compensation expense over the
service period (generally the vesting period) in the consolidated financial statements based on their fair values.
The fair value of stock options granted was determined using the following weighted average assumptions as of grant date:
Risk-free interest rate 1.35 % 0.20 % 0.44 %

Expected dividend yield 2.50 % 3.18 % 3.53 %
Expected stock price volatility 32.12 % 31.71 % 23.71 %
Expected life of options (in years) 4 4 5
Estimated fair value per share $ 10.41 $ 6.26 $ 4.06
156
The following table summarizes stock option activity from January 1, 2021 through December 31, 2022:
Weighted
Weighted Average
Options Average Remaining Aggregate
Class A Exercise Contractual Intrinsic
Shares Price Term (years) Value
Outstanding, January 1, 2022 460,502 $ 37.54
Granted 54,281 50.34
Exercised (5,250) 34.17
Forfeited or expired (44,500) 40.32
Outstanding, December 31, 2022 465,033 $ 38.81 2.25 $ 2,322,635
Unvested 414,033 $ 37.69 2.44 $ 2,319,200

Exercisable (vested) at December 31, 2022 51,000 $ 47.87 0.72 $ 3,435
Information related to the stock options during each year follows:
Total intrinsic value of options exercised $ 57 $ 1,335 $ 634

Total cash received from options exercised, net of shares redeemed 52 (142) 210
Total tax benefit of options exercised 6 223 78
Loan balances of employees that were originated solely to fund stock option exercises were as follows:
Outstanding loans $ 178 $ 239
Restricted Stock Awards
Restricted stock awards generally vest within three to six years after issuance, with accelerated vesting due to “change in control” or
“death or disability of a participant” as defined and outlined in the 2015 Plan.
The following table summarizes all restricted stock activity from January 1, 2021 through December 31, 2022:
Restricted Weighted-Average Weighted-Average

Stock Awards Grant Date Remaining Contractual
Class A Shares Fair Value Term (years)
Granted 12,174 46.05
Forfeited — —
Earned and issued (3,500) 37.74
Outstanding, December 31, 2022 64,733 $ 40.49 1.23
Unvested 64,733 $ 40.49 1.23
The fair value of the restricted stock awards is based on the closing stock price on the date of grant with the associated expense
amortized to compensation expense over the vesting period, generally three to six years. The total fair value of restricted shares that
vested during 2022, 2021 and 2020 was approximately $186,000, $50,000, and $46,000.
157
Performance Stock Units
Performance stock units are earned within one year of issuance and vest within three years of issuance, with accelerated vesting due to
“change in control” or “death or disability of a participant” as defined and outlined in the 2015 Plan.
The following table summarizes all PSU activity from January 1, 2021 through December 31, 2022:
Performance
Stock Units Weighted-Average
Class A Shares Grant Date Fair Value
Outstanding, January 1, 2021 — $ —
Granted 10,667 36.29
Forfeited (10,667) 36.29
Earned and issued — —
Outstanding, December 31, 2021 — $ —
Outstanding, January 1, 2022 — $ —

Granted 8,874 51.39
Forfeited (8,874) 51.39
Earned and issued — —
Outstanding, December 31, 2022 — $ —
Expense Related to Stock Incentive Plans
The Company recorded expense related to stock incentive plans for the years ended December 31, 2022, 2021, and 2020 as follows:
Stock option expense $ 560 $ 574 $ 463

Restricted stock award expense 937 738 396
Performance stock unit expense 152 129 —
Total expense $ 1,649 $ 1,441 $ 859
Unrecognized expenses related to unvested awards under stock incentive plans are estimated as follows:
Stock Restricted
Year (in thousands) Options Stock Awards Total
2023 $ 622 $ 565 $ 1,187

2024 267 273 540
2025 38 54 92
2026 18 27 45
2027 5 8 13
Total $ 950 $ 927 $ 1,877
158
Deferred Compensation
On April 19, 2018, the shareholders of Republic approved an amendment and restatement of the Non-Employee Director and Key
Employee Deferred Compensation Plan (the “Plan”). Prior to the Plan’s 2018 amendment and restatement, only directors participated
in the plan, with the 2018 amendment and restatement initiating key-employee participation. The Plan provides non-employee
directors and designated key employees the ability to defer compensation and have those deferred amounts paid later in the form of
Company Class A Common shares based on the shares that could have been acquired as the deferrals were made. The Company
maintains a bookkeeping account for each director or key-employee participant, and at the end of each fiscal quarter, deferred
compensation is converted to “stock units” equal to the amount of compensation deferred during the quarter divided by the quarter-
end fair market value of the Company’s Class A Common stock. Stock units for each participant’s account are also credited with an
amount equal to the cash dividends that would have been paid on the number of stock units in the account if the stock units were
deemed to be outstanding shares of stock. Any dividends credited are converted into additional stock units at the end of the fiscal
quarter in which the dividends were paid.
DIRECTORS
Members of the Board of Directors may defer board and committee fees from two to five years, with each director participant
retaining a nonforfeitable interest in his or her deferred compensation account.
The following table presents information on director deferred compensation under the Plan for the periods presented:
Outstanding Weighted-Average
Stock Market Price
Units at Date of Deferral
Deferred fees and dividend equivalents converted to stock units 18,241 46.58
Stock units converted to Class A Common Shares (5,814) 49.51
Outstanding, December 31, 2022 99,227 $ 31.43
Vested 99,227 $ 31.43
Director deferred compensation has been expensed as follows:
Director deferred compensation expense $ 503 $ 417 $ 352
159
KEY EMPLOYEES
Designated key employees may defer a portion of their base salaries on a pre-tax basis under the Plan, with the Company matching
employee deferrals up to a prescribed limit. With limited exception, the Company match amount remains unvested until December
31st of the year that is five years from the beginning of the year that the Company match is made.
The following table presents information on key-employee deferred compensation under the Plan for the periods presented:
Outstanding Weighted-Average Weighted-Average

Stock Market Price Remaining Contractual
Units at Date of Deferral Term (years)
Deferred base salaries and dividend equivalents converted to
stock units 9,389 43.08
Matching stock units credited 9,315 43.08
Matching stock units forfeited (1,151) 48.25
Stock units converted to Class A Common Shares — —
Outstanding, December 31, 2022 82,871 $ 41.03 3.13
Vested 47,742 $ 41.47

Unvested 35,129 $ 40.43 3.13
The following presents key-employee deferred compensation expense for the period presented:
Key-employee - base salary $ 408 $ 429 $ 408

Key-employee - employer match 317 178 158
Total $ 725 $ 607 $ 566
Employee Stock Purchase Plan
On April 19, 2018, the shareholders of Republic approved the ESPP. Under the ESPP, participating employees may purchase shares of
the Company Class A Common Stock through payroll withholdings at a purchase price that cannot be less than 85% of the lower of
the fair market value of the Company’s Class A Common Stock on the first trading day of each offering period, or on the last trading
day of each offering period. Participating employees were able purchase the Company’s Class A Common Stock through the ESPP at:
• 85% of fair market value on the last day of the three-month offering periods ended March 31, 2020, June 30, 2020,
September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021, March
31, 2022, June 30, 2022, September 30, 2022, and December 31, 2022.
The following presents expense under the ESPP for the period presented:
ESPP expense $ 104 $ 104 $ 94
160
18. BENEFIT PLANS
401(k) Plan
Republic maintains a 401(k) plan for eligible employees. All eligible employees are automatically enrolled at 6% of their eligible
compensation within 30 days of their date of hire unless the eligible employee elects to enroll sooner. Participants in the plan have the
option to contribute from 1% to 75% of their annual eligible compensation, up to the maximum allowed by the IRS. The Company
matches 100% of participant contributions up to 1% and an additional 75% for participant contributions between 2% and 5% of each
participant’s annual eligible compensation. Participants are fully vested after two years of employment.
Republic may also contribute discretionary matching contributions in addition to the matching contributions if the Company achieves
certain operating goals. Normal and discretionary contributions for each of the periods ended were as follows:
Employer matching contributions $ 3,096 $ 3,373 $ 3,205

Discretionary employer bonus matching contributions — — 117
Supplemental Executive Retirement Plan
In association with its May 17, 2016 Cornerstone acquisition, the Company inherited a SERP. The SERP requires the Company to pay
monthly benefits following retirement of the SERP’s four participants. The Company accrues the present value of such benefits
monthly. The SERP liability was approximately $2 million as of December 31, 2022 and 2021. Expense under the SERP was $0,
$232,000, and $34,000 for the years ended December 31, 2022, 2021, and 2020.
19. INCOME TAXES
Allocation of federal and state income tax between current and deferred portion is as follows:
Current expense:
Federal $ 24,537 $ 19,348 $ 25,762
State 5,939 4,169 2,450
Deferred expense:
Federal (4,273) (246) (7,249)
State (464) 560 (1,576)
Total $ 25,739 $ 23,831 $ 19,387
161
Effective tax rates differ from federal statutory rate applied to income before income taxes due to the following:
Federal corporate tax rate 21.00 % 21.00 % 21.00 %

Effect of:
State taxes, net of federal benefit 3.70 3.32 1.43
General business tax credits (1.88) (1.76) (2.01)
Nontaxable income (1.00) (1.06) (0.75)
Reversal of valuation allowance/establishment of net operating loss DTA — — (0.04)
Tax benefit of vesting employee benefits (0.01) (0.20) (0.15)
Deferred tax asset due to KY HB354 — — (0.97)
Other, net 0.22 0.08 0.38
Effective tax rate 22.03 21.38 18.89
Year-end DTAs and DTLs were due to the following:
Deferred tax assets:

Allowance for credit losses $ 17,427 $ 16,071
Operating lease liabilities 9,362 9,884
Accrued expenses 5,901 5,721
Net operating loss carryforward(1) 1,371 1,550
Acquisition fair value adjustments 101 124
Other-than-temporary impairment 567 402
Paycheck Protection Program Fees 31 337
R&D Capitalization 2,271 —
Unrealized investment security losses 10,657 —
Other 2,217 2,079
Total deferred tax assets 49,905 36,168
Deferred tax liabilities:

Right of use assets - operating leases (9,166) (9,673)
Depreciation and amortization (2,835) (3,682)
Federal Home Loan Bank dividends (745) (709)
Deferred loan costs (2,153) (2,275)
Lease Financing Receivables (1,996) (2,094)
Mortgage servicing rights (2,172) (2,291)
Unrealized investment securities gains — (625)
Total deferred tax liabilities (19,067) (21,349)
Less: Valuation allowance — —

Net deferred tax asset $ 30,838 $ 14,819
(1) The Company has federal and state net operating loss carryforwards (acquired in its 2016 Cornerstone acquisition) of $5.9
million (federal) and $3.2 million (state). These carryforwards begin to expire in 2030 for both federal and state purposes. The
use of these federal and state carryforwards is each limited under IRC Section 382 to $722,000 annually for federal and $634,000
annually for state. Finally, the Company has state AMT credit carryforwards of $15,000 with no expiration date.
162
Unrecognized Tax Benefits
The following table shows a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Additions based on tax related to the current period 950 433 455
Additions for tax positions of prior periods — 253 24
Reductions for tax positions of prior periods — — (72)
Reductions due to the statute of limitations (275) (436) (82)
Settlements — — (91)
Of the 2022 total, $2.4 million represented the amount of unrecognized tax benefits that, if recognized, would favorably affect the
effective income tax rate in future periods.
It is the Company’s policy to recognize interest and penalties as a component of income tax expense related to its unrecognized tax
benefits. Amounts related to interest and penalties recorded in the income statements for the years ended December 31, 2022, 2021,
and 2020, and accrued on the balance sheets as of December 31, 2022, 2021, and 2020 are presented below:
Interest and penalties recorded in the income statement as a component of income tax expense $ 72 $ 267 $ 57
Interest and penalties accrued on balance sheet 849 777 510
The Company files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal income tax
examinations by taxing authorities for all years prior to and including 2018.
Low-Income Housing Tax Credits Investments and Obligations
The Company is a limited partner in several low-income housing partnerships whose purpose is to invest in qualified affordable
housing. The Company expects to recover its remaining investments in these partnerships through the use of tax credits that are
generated by the investments.
The following table summarizes information related to the Company’s qualified low-income housing investments and obligations:

Unfunded Unfunded
Investment Accounting Method Investments Obligations Investments Obligations
Low-income housing tax credit - Gross Proportional amortization $ 42,306 $ 43,609 $ 33,417 $ 23,383
Life-to-date amortization (10,591) NA (6,181) NA
Low-income housing tax credit - Net $ 31,715 $ 43,609 $ 27,236 $ 23,383
163
20. EARNINGS PER SHARE
The Company calculates earnings per share under the two-class method. Under the two-class method, earnings available to common
shareholders for the period are allocated between Class A Common Stock and Class B Common Stock according to dividends
declared (or accumulated) and participation rights in undistributed earnings. The difference in earnings per share between the two
classes of common stock results from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on
Class B Common Stock. See Footnote 14, “Stockholders’ Equity and Regulatory Capital Matters” of this section of the filing.
A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and
diluted earnings per share computations is presented below:
Years Ended December 31, (in thousands, except per share data) 2022 2021 2020
Net income $ 91,106 $ 87,611 $ 83,246

Class A Shares (24,122) (22,451) (21,433)
Class B Shares (2,679) (2,435) (2,288)
Undistributed net income for basic earnings per share 64,305 62,725 59,525
Weighted average potential dividends on Class A shares upon exercise of dilutive options (87) (100) (35)
Undistributed net income for diluted earnings per share $ 64,218 $ 62,625 $ 59,490
Weighted average shares outstanding:

Class A Shares 17,876 18,497 18,838
Class B Shares 2,161 2,178 2,201
Effect of dilutive securities on Class A Shares outstanding 64 82 30
Weighted average shares outstanding including dilutive securities 20,101 20,757 21,069
Basic earnings per share:

Class A Common Stock:
Per share dividends distributed $ 1.36 $ 1.23 $ 1.14
Undistributed earnings per share* 3.24 3.06 2.86
Total basic earnings per share - Class A Common Stock $ 4.60 $ 4.29 $ 4.00
Class B Common Stock:

Total basic earnings per share - Class B Common Stock $ 4.19 $ 3.90 $ 3.64
Diluted earnings per share:

Class A Common Stock:
Total diluted earnings per share - Class A Common Stock $ 4.59 $ 4.28 $ 3.99
Class B Common Stock:

Total diluted earnings per share - Class B Common Stock $ 4.17 $ 3.89 $ 3.63
*To arrive at undistributed earnings per share, undistributed net income is first pro rated between Class A and Class B Common Shares, with Class A Common Shares
receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class.
Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows:
Antidilutive stock options 178,000 144,000 338,995

Average antidilutive stock options 128,000 142,625 282,489
164
21. TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES
Republic leases office facilities under operating leases from limited liability companies in which Republic’s Executive Chair/Chief
Executive Officer and Vice Chair are partners. Rent expense and obligations under these leases are presented in Footnote 6 in this
section of the filing.
Loans made to executive officers and directors of Republic and their related interests during 2022 were as follows:
(in thousands)
Beginning balance $ 7,448

Effect of changes in composition of related parties (740)
New loans 3,728
Repayments (3,609)
Ending balance $ 6,827
Deposits from executive officers, directors, and their affiliates totaled $126 million and $123 million as of December 31, 2022 and
2021.
By an agreement dated December 14, 1989, as amended August 8, 1994, the Company entered into a split-dollar insurance agreement
with a trust established by the Company’s deceased former Chair, Bernard M. Trager. Pursuant to the agreement, from 1989 through
2002 the Company paid $690,000 in total annual premiums on the insurance policies held in the trust. The policies are joint-life
policies payable upon the death of Mrs. Jean Trager, as the survivor of her husband Bernard M. Trager. The cash surrender value of
the policies was approximately $2 million as of December 31, 2022 and 2021.
Pursuant to the terms of the trust, the beneficiaries of the trust will each receive the proceeds of the policies after the repayment of any
unreimbursed portion of the $690,000 annual premiums paid by the Company. The unreimbursed portion constitutes indebtedness
from the trust to the Company and is secured by a collateral assignment of the policies. As of December 31, 2022 and 2021, the
unreimbursed portion was $240,000 and $340,000, and the net death benefit under the policies was approximately $5 million. Upon
the termination of the agreement, whether by the death of Mrs. Trager or earlier cancellation, the Company is entitled to be repaid by
the trust the amount of indebtedness outstanding at that time.
22. OTHER COMPREHENSIVE INCOME
OCI components and related tax effects were as follows:
Available-for-Sale Debt Securities:

Unrealized losses on AFS debt securities $ (45,109) $ (8,908) $ 7,147
Unrealized (loss) gain on AFS debt security for which a portion of OTTI has been recognized in earnings (29) 63 (35)
Net gains (losses) (45,138) (8,845) 7,112
Tax effect 11,285 2,210 (1,778)
Net of tax (33,853) (6,635) 5,334
Cash Flow Hedges:

Change in fair value of derivatives used for cash flow hedges — — (177)
Reclassification amount for net derivative losses realized in income — — 281
Net gains (losses) — — 104
Tax effect — — (27)
Net of tax — — 77
Total other comprehensive (loss) income components, net of tax $ (33,853) $ (6,635) $ 5,411
165
Amounts reclassified out of each component of accumulated OCI for the years ended December 31, 2022, 2021, and 2020:
Amounts Reclassified From

Affected Line Items Accumulated Other
in the Consolidated Comprehensive Income (Loss)
Years Ended December 31, (in thousands) Statements of Income 2022 2021 2020
Cash Flow Hedges:

Interest rate swap on money market deposits Interest expense on deposits — — (138)
Interest rate swap on FHLB advance Interest expense on FHLB advances — — (143)
Total derivative losses on cash flow hedges Total interest expense — — (281)
Tax effect Income tax expense — — 70
Net of tax Net income — — (211)
The following is a summary of the accumulated OCI balances, net of tax:
2022
(in thousands) December 31, 2021 Change December 31, 2022
Unrealized gain (loss) on AFS debt securities $ 890 $ (33,824) $ (32,934)

Unrealized (loss) gain on AFS debt security for which a portion of OTTI has
been recognized in earnings 984 (29) 955
Total unrealized gain (loss) $ 1,874 $ (33,853) $ (31,979)
2021
(in thousands) December 31, 2020 Change December 31, 2021
Unrealized gain (loss) on AFS debt securities $ 7,571 $ (6,681) $ 890

Unrealized gain on AFS debt security for which a portion of OTTI has been
recognized in earnings 938 46 984
Total unrealized gain (loss) $ 8,509 $ (6,635) $ 1,874
23. PARENT COMPANY CONDENSED FINANCIAL INFORMATION
BALANCE SHEETS
Assets:
Cash and cash equivalents $ 36,436 $ 16,881

Security available for sale 3,855 3,847
Investment in bank subsidiary 819,144 818,092
Investment in non-bank subsidiaries 2,773 2,409
Other assets 2,465 3,741
Total assets $ 864,673 $ 844,970
Liabilities and Stockholders’ Equity:
Subordinated note $ — $ —
Other liabilities 8,060 9,916
Stockholders’ equity 856,613 835,054
Total liabilities and stockholders’ equity $ 864,673 $ 844,970
166
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Income and expenses:
Dividends from subsidiary $ 59,460 $ 28,300 $ 25,980

Interest income 229 143 182
Other income 54 53 57
Less: Interest expense — 507 1,000
Less: Other expenses 819 760 691
Income before income tax benefit 58,924 27,229 24,528

Income tax benefit 124 245 344
Income before equity in undistributed net income of subsidiaries 59,048 27,474 24,872
Equity in undistributed net income of subsidiaries 32,058 60,137 58,374
Net income $ 91,106 $ 87,611 $ 83,246
Comprehensive income $ 57,253 $ 80,976 $ 88,657
STATEMENTS OF CASH FLOWS
Operating activities:
Net income $ 91,106 $ 87,611 $ 83,246

Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of investment security (56) (53) (56)
Equity in undistributed net income of subsidiaries (32,058) (60,137) (58,374)
Director deferred compensation - Parent Company 427 347 181
Change in other assets 4,571 (736) 1,609
Change in other liabilities (5,428) 1,694 54
Net cash provided by operating activities 58,562 28,726 26,660
Investing activities:
Investment in venture capital fund (337) — —

Investment in subsidiary bank (590) (591) (533)
Net cash used in investing activities (927) (591) (533)
Financing activities:
Common Stock repurchases (12,577) (47,528) (3,935)

Net proceeds from Class A Common Stock purchased through employee stock purchase plan 590 591 533
Net proceeds from Common Stock options exercised 52 (142) —
Payoff of subordinated note, net of common security interest — (40,000) —
Cash dividends paid (26,145) (24,699) (23,204)
Net cash used in financing activities (38,080) (111,778) (26,606)
Net change in cash and cash equivalents 19,555 (83,643) (479)
Cash and cash equivalents at beginning of period 16,881 100,524 101,003
Cash and cash equivalents at end of period $ 36,436 $ 16,881 $ 100,524
167
24. REVENUE FROM CONTRACTS WITH CUSTOMERS
The following tables present the Company’s net revenue by reportable segment for the years ended December 31, 2022, 2021, and
2020:

Core Banking Republic Processing Group
Total Tax Republic
Traditional Warehouse Mortgage Core Refund Credit Total Total
(dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company
Net interest income (1) $ 171,543 $ 13,729 $ 519 $ 185,791 $ 21,715 $ 29,185 $ 50,900 $ 236,691
Noninterest income:
Service charges on deposit accounts 13,388 50 — 13,438 (12) — (12) 13,426
Net refund transfer fees — — — — 17,080 — 17,080 17,080
Mortgage banking income (1) — — 6,196 6,196 — — — 6,196
Interchange fee income 12,943 — — 12,943 182 — 182 13,125
Program fees (1) — — — — 2,872 13,300 16,172 16,172
Increase in cash surrender value of BOLI (1) 2,526 — — 2,526 — — — 2,526
Net losses on OREO (211) — — (211) — — — (211)
Contract termination fee — — — — 5,000 — 5,000 5,000
Legal settlement — — — — 13,000 — 13,000 13,000
Other 3,002 — 136 3,138 358 — 358 3,496
Total noninterest income 31,648 50 6,332 38,030 38,480 13,300 51,780 89,810
Total net revenue $ 203,191 $ 13,779 $ 6,851 $ 223,821 $ 60,195 $ 42,485 $ 102,680 $ 326,501
Net-revenue concentration (2) 63 % 4% 2% 69 % 18 % 13 % 31 % 100 %
(1) This revenue is not subject to ASC 606.

(2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company
net revenue.
Years Ended December 31, 2021

Total Tax Republic
Net interest income (1) $ 157,249 $ 25,218 $ 1,081 $ 183,548 $ 15,837 $ 23,355 $ 39,192 $ 222,740
Noninterest income:
Program fees (1) — — — — 3,171 11,066 14,237 14,237
Other 4,127 — 191 4,318 81 — 81 4,399
Net-revenue concentration (2) 61 % 8% 7% 76 % 13 % 11 % 24 % 100 %

net revenue.
168
Total Tax Republic
Net interest income (1) $ 159,381 $ 25,957 $ 1,362 $ 186,700 $ 22,972 $ 22,643 $ 45,615 $ 232,315
Noninterest income:
Program fees (1) — — — — 2,193 4,902 7,095 7,095
Gain on branch divestiture(1) — — — — — — — —
Other 3,310 (39) 103 3,374 92 — 92 3,466
Net-revenue concentration (2) 59 % 8% 10 % 77 % 14 % 9% 23 % 100 %

net revenue.
The following represents information for significant revenue streams subject to ASC 606:
Service charges on deposit accounts – The Company earns revenue for account-based and event-driven services on its retail and
commercial deposit accounts. Contracts for these services are generally in the form of deposit agreements, which disclose fees for
deposit services. Revenue for event-driven services is recognized in close proximity or simultaneously with service performance.
Revenue for certain account-based services may be recognized at a point in time or over the period the service is rendered, typically
no longer than a month. Examples of account-based and event-driven service charges on deposits include per item fees, paper-
statement fees, check-cashing fees, and analysis fees.
Net refund transfer fees – An RT is a fee-based product offered by the Bank through third-party tax preparers located throughout the
United States, as well as tax-preparation software providers (collectively, the “Tax Providers”), with the Bank acting as an
independent contractor of the Tax Providers. An RT allows a taxpayer to pay any applicable tax preparation and filing related fees
directly from his federal or state government tax refund, with the remainder of the tax refund disbursed directly to the taxpayer. RT
fees and all applicable tax preparation, transmitter, audit, and any other taxpayer authorized amounts are deducted from the tax refund
by either the Bank or the Bank’s service provider and automatically forwarded to the appropriate party as authorized by the taxpayer.
RT fees generally receive first priority when applying fees against the taxpayer’s refund, with the Bank’s share of RT fees generally
superior to the claims of other third-party service providers, including the Tax Providers. The remainder of the refund is disbursed to
the taxpayer by a Bank check printed at a tax office, direct deposit to the taxpayer’s personal bank account, or loaded to a prepaid
card.
The Company executes contracts with individual Tax Providers to offer RTs to their taxpayer customers. RT revenue is recognized by
the Bank immediately after the taxpayer’s refund is disbursed in accordance with the RT contract with the taxpayer customer. The fee
paid by the taxpayer for the RT is shared between the Bank and the Tax Providers based on contracts executed between the parties.
The Company presents RT revenue net of any amounts shared with the Tax Providers. The Bank’s share of RT revenue is generally
based on the obligations undertaken by the Tax Provider for each individual RT program, with more obligations generally
corresponding to higher RT revenue share. The significant majority of net RT revenue is recognized and obligations under RT
contracts fulfilled by the Bank during the first half of each year. Incremental expenses associated with the fulfilment of RT contracts
are generally expensed during the first half of the year.
169
Interchange fee income – As an “issuing bank” for card transactions, the Company earns interchange fee income on transactions
executed by its cardholders with various third-party merchants. Through third-party intermediaries, merchants compensate the
Company for each transaction for the ability to efficiently settle the transaction, and for the Company’s willingness to accept certain
risks inherent in the transaction. There is no written contract between the merchant and the Company, but a contract is implied
between the two parties by customary business practices. Interchange fee income is recognized almost simultaneously by the
Company upon the completion of a related card transaction.
The Company compensates its cardholders by way of cash or other “rewards” for generating card transactions. These rewards are
disclosed in cardholder agreements between the Company and its cardholders. Reward costs are accrued over time based on card
transactions generated by the cardholder. Interchange fee income is presented net of reward costs within noninterest income.
Net gains/(losses) on other real estate – The Company routinely sells OREO it has acquired through loan foreclosure. Net
gains/(losses) on OREO reflect both 1) the gain or loss recognized upon an executed deed and 2) mark-to-market write-downs the
Company takes on its OREO inventory.
The Company generally recognizes gains or losses on OREO at the time of an executed deed, although gains may be recognized over
a financing period if the Company finances the sale. For financed OREO sales, the Company assesses whether the buyer is committed
to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are
met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer.
In determining the gain or loss on sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant
financing component is present.
Mark-to-market write-downs taken by the Company during the property’s holding period are generally at least 10% per year but may
be higher based on updated real estate appraisals or BPOs. Incremental expenditures to bring OREO to salable condition are generally
expensed as-incurred.
170
25. 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.
Banking, TRS and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking”
operations, while the last two segments collectively constitute RPG operations.
The nature of segment operations and the primary drivers of net revenues by reportable segment are provided below:
Reportable Segment: Nature of Operations: Primary Drivers of Net Revenue:
Core Banking:
Traditional Banking Provides traditional banking products to clients in its market footprint primarily via its Loans, investments, and deposits
network of banking centers and to clients outside of its market footprint primarily via
its digital delivery channels.
Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the United Mortgage warehouse lines of credit
States.
Mortgage Banking Primarily originates, sells, and services long-term, single-family, first-lien residential Loan sales and servicing
real estate loans primarily to clients in the Bank's market footprint.
Tax Refund Solutions TRS offers tax-related credit products and facilitates the receipt and payment of Loans, refund transfers, and prepaid
federal and state tax refunds through Refund Transfer products. The RPS division of cards.
TRS offers general-purpose reloadable cards. TRS and RPS products are primarily
provided to clients outside of the Bank’s market footprint.
Republic Credit Solutions Offers consumer credit products. RCS products are primarily provided to clients Unsecured, consumer loans
outside of the Bank’s market footprint, with a substantial portion of RCS clients
considered subprime or near-prime borrowers.
The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant
accounting policies. Segment performance is evaluated using operating income. Goodwill is allocated to the Traditional Banking
segment. Income taxes are generally allocated based on income before income tax expense unless specific segment allocations can be
reasonably made. Transactions among reportable segments are made at carrying value.
171
Segment information for the years ended December 31, 2022, 2021, and 2020 is as follows:

Total Tax Republic
Net interest income $ 171,543 $ 13,729 $ 519 $ 185,791 $ 21,715 $ 29,185 $ 50,900 $ 236,691
Provision for expected credit loss expense 1,429 (1,117) — 312 9,955 12,081 22,036 22,348

Mortgage banking income — — 6,196 6,196 — — — 6,196
Program fees — — — — 2,872 13,300 16,172 16,172
Contract termination fee — — — — 5,000 — 5,000 5,000
Legal settlement — — — — 13,000 — 13,000 13,000
Other noninterest income 31,648 50 136 31,834 528 — 528 32,362
Total noninterest expense 149,681 3,604 9,912 163,197 15,717 8,394 24,111 187,308
Income (loss) before income tax expense 52,081 11,292 (3,061) 60,312 34,523 22,010 56,533 116,845
Income tax expense (benefit) 11,104 2,539 (673) 12,970 7,847 4,922 12,769 25,739
Net income (loss) $ 40,977 $ 8,753 $ (2,388) $ 47,342 $ 26,676 $ 17,088 $ 43,764 $ 91,106
Period-end assets $ 4,894,773 $ 405,052 $ 13,938 $ 5,313,763 $ 409,259 $ 112,521 $ 521,780 $ 5,835,543
Net interest margin 3.38 % 2.69 % NM 3.32 % NM NM NM 4.12 %
Net-revenue concentration* 63 % 4% 2% 69 % 18 % 13 % 31 % 100 %

Total Tax Republic
Net interest income $ 157,249 $ 25,218 $ 1,081 $ 183,548 $ 15,837 $ 23,355 $ 39,192 $ 222,740
Provision for expected credit loss expense (38) (281) — (319) 6,683 8,444 15,127 14,808

Program fees — — — — 3,171 11,066 14,237 14,237
Income before income tax expense 43,403 21,346 8,910 73,659 16,585 21,198 37,783 111,442
Income tax expense 7,685 4,962 1,960 14,607 3,964 5,260 9,224 23,831
Net income $ 35,718 $ 16,384 $ 6,950 $ 59,052 $ 12,621 $ 15,938 $ 28,559 $ 87,611
Net-revenue concentration* 61 % 8% 7% 76 % 13 % 11 % 24 % 100 %
172
Total Tax Republic
Net interest income $ 159,381 $ 25,957 $ 1,362 $ 186,700 $ 22,972 $ 22,643 $ 45,615 $ 232,315
Provision for expected credit loss expense 16,257 613 — 16,870 13,189 1,219 14,408 31,278

Program fees — — — — 2,193 4,902 7,095 7,095
Gain on branch divestiture — — — — — — — —
Income before income tax expense 21,467 20,981 22,552 65,000 15,042 22,591 37,633 102,633
Income tax expense 1,395 4,721 4,736 10,852 3,323 5,212 8,535 19,387
Net income $ 20,072 $ 16,260 $ 17,816 $ 54,148 $ 11,719 $ 17,379 $ 29,098 $ 83,246
Net-revenue concentration* 59 % 8% 10 % 77 % 14 % 9% 23 % 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.
NM - Not Meaningful
26. ACQUISITION OF CBANK (UNAUDITED)
On October 26, 2022, the Company, RB&T, and CBank entered into the CBank Agreement. Upon completion of the transaction,
CBank will be merged with and into RB&T, with RB&T as the survivor of the merger. CBank is headquartered in Cincinnati, Ohio.
Under the terms of the CBank Agreement, the Company will acquire all of CBank’s outstanding common stock in an all-cash direct
merger of CBank with RB&T, resulting in a total cash payment of approximately $51 million to CBank’s existing shareholders.
Republic expects to fund the cash payment through existing resources on-hand at RB&T. The completion of the transaction is subject
to customary closing conditions, including regulatory approval and approval by CBank’s shareholders. The CBank Agreement also
contains reciprocal termination provisions in the event the transaction does not receive the required regulatory approvals within six
months of the effective date of the CBank Agreement or if certain minimum capital levels are not maintained by CBank as of the
closing date.
The CBank Agreement was unanimously approved by the Republic, RB&T and CBank boards of directors on October 25, 2022. In
connection with entering into the CBank Agreement, Republic entered into customary support agreements with the members of
CBank’s board of directors and other shareholders in their capacities as shareholders of CBank (the “CBank Support Agreements”).
Subject to the terms and conditions, and non-termination, of the CBank Support Agreements, each such shareholder agreed, among
other things, to vote his or her respective shares of CBank Common Stock in favor of the approval of the CBank Agreement and the
transaction contemplated thereby, and against alternative acquisition proposals. The CBank Support Agreements do not prevent the
shareholders, in their capacity as directors, from exercising their fiduciary obligations in connection with alternative acquisition
proposals. The CBank Agreement provides certain termination rights for both Republic and CBank and further provides that a
termination fee of $2,040,000 will be payable by CBank to Republic upon termination of the CBank Agreement under certain
circumstances, including CBank’s termination of the CBank Agreement to accept a Superior Proposal (as defined in the CBank
Agreement). The CBank Agreement was approved by its shareholders on December 13, 2022.
As of January 31, 2023, CBank had approximately $257 million in assets, consisting of approximately $221 million in gross loans, no
other real estate owned, approximately $16 million of marketable securities, approximately $14 million in cash and cash equivalents
and approximately $6 million in other assets. Also as of January 31, 2023, CBank had approximately $228 million of liabilities,
including approximately $209 million in customer deposits and $13 million in Federal Home Loan Bank advances.
173
27. CORRECTION OF PRIOR PERIOD ERROR
The Company identified a prior period accounting error substantially in the form of an immaterial understatement of revenue, solely
related to one RCS line of credit product. In general, three business days following the Bank’s funding of the associated advances for
this RCS line of credit product, the Bank sells a 95% participation interest in the advances. The error that was identified related to the
under-recording of revenue during this first three business day period after each advance was made when the Bank owned 100% of the
advance.
The financial reporting periods affected by this error include the Company’s previously reported audited consolidated financial
statements for the fiscal year ended December 31, 2021, and the Company’s previously reported interim unaudited consolidated
financial statements for each of the quarterly and fiscal year-to-date periods ended June 30, 2021; September 30, 2021; March 31,
2022; June 30, 2022; and September 30, 2022; and the unaudited consolidated quarterly financial data for the quarter ending
December 31, 2021 (collectively the “previously reported financial statements”). The three month period ended December 31, 2021
and year ended December 31, 2021 also reflected certain immaterial revisions to reclassify certain gains and losses on the sale of the
same RCS line of credit product. These reclassifications impact noninterest income, noninterest expense and interest income with no
impact to net income.
Based on the Company’s evaluation of this error in consideration of the Financial Accounting Standards Board (“FASB) Accounting
Standards Codification (“ASC”) 250 and the SEC Staff’s Accounting Bulletins Nos. 99 (“SAB 99”) and 108 (“SAB 108”) and
interpretations therewith, the Company concluded this error was not material, on an individual or aggregate basis, to the Company’s
previously reported financial statements and correction of the error would not be material to the current year financial statements,
including any interim periods. However, the Company corrected this error as a voluntary immaterial revision to the accompanying
financial statements in this Annual Report on Form 10-K, as of and for the fiscal years ended December 31, 2022, and 2021, in the
periods in which the error occurred. In addition, the Company expects to present the corrected interim 2022 amounts in its 2023
consolidated interim financial statements upon the filing of its Quarterly Reports on Form 10-Q on a quarterly basis and a year-to-date
basis as a voluntary immaterial revision to all applicable 2022 periods.
For additional discussion of Management’s evaluation of its internal control over financial reporting as a result of this error, as well
as Managements plans to remediate the Company’s material weaknesses, see Item 9A of this Annual Report on Form 10-K.
174
The following tables present the impact of correcting the accounting error to the Company’s previously reported financial statements.
Consolidated Income Statement

($ in thousands, except per share data) Period Ended March 31, 2022 (Unaudited)
3 Months Immaterial 3 Months
As Reported Revision Revised
Interest Income $ 63,555 $ 555 $ 64,110

Net Interest Income 62,612 555 63,167
Income before income taxes 35,814 555 36,369
Income tax expense 7,888 131 8,019
Net income 27,926 424 28,350
Basic EPS - Class A Common Stock $ 1.40 $ 0.02 $ 1.42

Basic EPS - Class B Common Stock 1.27 0.02 1.29
Diluted EPS - Class A Common Stock 1.40 0.02 1.42
Diluted EPS - Class B Common Stock 1.27 0.02 1.29
Consolidated Balance Sheet

($ in thousands) Period Ended March 31, 2022 (Unaudited)
Period End Balance Immaterial Period End Balance
Total Liabilities $ 5,509,540 $ (1,247) $ 5,508,293

Total Stockholders' Equity 840,329 1,247 841,576

($ in thousands, except per share data) Period Ended June 30, 2022 (Unaudited)
3 Months Immaterial 3 Months 6 Months Immaterial 6 Months
As Reported Revision Revised As Reported Revision Revised
Interest Income $ 52,320 $ 582 $ 52,902 $ 115,875 $ 1,137 $ 117,012

Net Interest Income 51,232 582 51,814 113,844 1,137 114,981
Income before income taxes 30,440 582 31,022 66,254 1,137 67,391
Income tax expense 6,539 136 6,675 14,427 267 14,694
Net income 23,901 446 24,347 51,827 870 52,697
Basic EPS - Class A Common Stock $ 1.20 $ 0.03 $ 1.23 $ 2.60 $ 0.05 $ 2.65
Basic EPS - Class B Common Stock 1.09 0.03 1.12 2.37 0.04 2.41
Diluted EPS - Class A Common Stock 1.20 0.02 1.22 2.59 0.05 2.64
Diluted EPS - Class B Common Stock 1.09 0.02 1.11 2.36 0.04 2.40

($ in thousands) Period Ended June 30, 2022 (Unaudited)


($ in thousands, except per share data) Period Ended September 30, 2022 (Unaudited)
Interest Income $ 60,056 $ 561 $ 60,617 $ 175,931 $ 1,698 $ 177,629

Net income 19,483 413 19,896 71,310 1,283 72,593

($ in thousands) Period Ended September 30, 2022 (Unaudited)

175
($ in thousands, except per share data) Period Ended June 30, 2021 (Unaudited)
Interest Income $ 51,815 $ 45 $ 51,860 $ 121,458 $ 45 $ 121,503

Net Interest Income 50,304 45 50,349 118,170 45 118,215
Income before income taxes 30,561 45 30,606 64,305 45 64,350
Net income 23,922 36 23,958 49,975 36 50,011
Basic EPS - Class A Common Stock $ 1.16 $ — $ 1.16 $ 2.42 $ — $ 2.42

Basic EPS - Class B Common Stock 1.05 0.01 1.06 2.20 — 2.20
Diluted EPS - Class A Common Stock 1.16 — 1.16 2.41 — 2.41
Diluted EPS - Class B Common Stock 1.05 — 1.05 2.19 — 2.19

($ in thousands) Period Ended June 30, 2021 (Unaudited)
Total Liabilities $ 5,338,220 $ (36) $ 5,338,184

Total Stockholders' Equity 845,090 36 845,126

($ in thousands, except per share data) Period Ended September 30, 2021 (Unaudited)
Interest Income $ 54,469 $ 497 $ 54,966 $ 175,927 $ 542 $ 176,469

Net Interest Income 53,129 497 53,626 171,299 542 171,841
Income before income taxes 26,227 497 26,724 90,532 542 91,074
Net income 20,009 373 20,382 69,984 409 70,393

($ in thousands) Period Ended September 30, 2021 (Unaudited)


($ in thousands, except per share data) Period Ended December 31, 2021 (Unaudited) Period Ended December 31, 2021 (Unaudited)
Interest Income $ 51,379 $ 558 $ 51,937 $ 226,260 $ 2,146 $ 228,406

Noninterest Income 16,630 449 17,079 86,859 (284) 86,575
Noninterest Expense 44,585 449 45,034 182,304 761 183,065
Net income 16,805 413 17,218 86,789 822 87,611

($ in thousands) Period Ended December 31, 2021 (Unaudited)

176
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None
Item 9A. Controls and Procedures.
In preparing this report, the Company’s Management, under the supervision and with the participation of the Chief Executive Officer
and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and
procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), as of the last day of the
period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that,
due to the material weaknesses in the Company’s internal control over financial reporting described below, the Company’s disclosure
controls and procedures were not effective as of December 31, 2022. However, after giving full consideration to these material
weaknesses, and the additional analyses and other procedures Management performed to ensure that the Company’s consolidated
financial statements included in this Annual Report on Form 10-K were prepared in accordance with U.S. generally accepted
accounting principles (“GAAP”), Management concluded that the Company’s consolidated financial statements present fairly, in all
material respects, its financial position, results of operations and cash flows for the periods disclosed in conformity with GAAP.
Management’s Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over
financial reporting includes those policies and procedures that:
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the Company;
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
Company’s assets that could have a material effect on the financial statements.
Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. There are inherent limitations in the effectiveness of internal control, including the possibility of human error and the
circumvention or overriding of controls. Accordingly, even effective internal control can provide only reasonable assurance with
respect to reliability of financial statements.
Management has made its own assessment of the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2022, in relation to the criteria described in the report, Internal Control — Integrated Framework (2013), issued by the
Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
As a result of its review, Management identified material weaknesses in the Company’s internal control over financial reporting as of
December 31, 2022. Based on its assessment under the COSO, Management concluded that the Company’s system of internal control
over financial reporting was not effective due to these material weaknesses, which are further described below.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a
reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or
detected on a timely basis.
177
The material weaknesses that Management identified were the following:
within RPG. Specifically, Management identified that an RCS product’s contractual terms were not sufficiently
Company’s financial statements for the product;
basis.
The material weaknesses identified above resulted in the correction of an error through a voluntary immaterial revision of revenue and
net income solely related to one RCS product during 2021 and the first three quarters of 2022. This understatement could have
become material to the Company’s current and historical financial statements if it had remained undetected. The Company corrected
this error as a voluntary immaterial revision to the accompanying financial statements, as of and for the fiscal years ended December
31, 2022, and 2021, and in the periods in which the error occurred.
The 2022 financial statements have been audited by the independent registered public accounting firm of Crowe LLP (“Crowe”).
Crowe has also issued a report on the effectiveness of internal control over financial reporting. That report has also been made a part
of this Annual Report.
Remediation Plan and Status
Management believes that the material weaknesses as of December 31, 2022, are in the process of being remediated. A material
weakness will not be considered fully remediated until the enhanced controls related to that material weakness are fully implemented
and operate for a sufficient period and management has concluded that these controls are operating effectively.
To remediate the material weaknesses, the Company has implemented or plans to implement the following measures as it relates to
each:
Material Weakness 1: the Company did not maintain effective controls over the initial implementation of new products offered
through third parties within RPG. Specifically, Management identified that an RCS product’s contractual terms were not sufficiently
Company’s financial statements for the product.
• The Company will evaluate and enhance its new product implementation policies and procedures for new third-party
products offered through RPG to ensure proper implementation and design, as well as adequate reviews and approvals from
all required stakeholders within the Company.
Material Weakness 2: the Company did not maintain effective controls over the information and communication as it relates to the
reconciliation function. Specifically, the controls were not precisely designed to identify, communicate, resolve, and timely escalate
reconciliation issues to the appropriate levels within the organization.
• The Company will designate a new accounting position specific to the RPG operations that will report up through the Chief
Financial Officer of the Company and not to the business unit. This position will have day-to-day responsibilities overseeing
the financial reporting of the RPG segment.
• The Company has engaged an outside technology company to assist it in automating internal reconciliations, which will
allow the Company’s personnel to more quickly identify and resolve reconciliation issues.
• The Company will enhance its training, policies, and procedures to provide better guidance to reconciliation personnel for
escalation requirements of reconciliation items as well as internal responsibilities for resolving reconciliation issues.
178
Material Weakness 3: the Company did not design and maintain effective controls over the financial analysis of RCS products’
yields. Specifically, the Company reviewed the weighted average yield of all RCS products on a segment basis rather than an
individual product basis.
• Management is enhancing its internal monthly financial reporting to provide a more detailed yield analysis at the product
level for the performance of each RCS product.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting during the quarter ended December 31, 2022 that
have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. After
December 31, 2022, the Company began the remediation steps described above.
Item 9B. Other Information.
None
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
None
PART III
Item 10. Directors, Executive Officers and Corporate Governance.
The information required by this Item appears under the headings “PROPOSAL ONE: ELECTION OF DIRECTORS,”
“DELINQUENT SECTION 16(a) REPORTS” and “THE BOARD OF DIRECTORS AND ITS COMMITTEES” of the Proxy Statement
of Republic for the 2023 Annual Meeting of Shareholders (“Proxy Statement”) to be held April 20, 2023, all of which is incorporated
herein by reference.
Set forth below is certain information with respect to the Company’s executive officers:
Name Age Position with the Company
Steven E. Trager 62 Executive Chair and CEO of the Company; Executive Chair of RB&T
A. Scott Trager 70 Vice Chair and President of the Company; Director of the Company and RB&T
Kevin Sipes 51 EVP, CFO, and Chief Accounting Officer of the Company and RB&T
Logan Pichel 58 Director of the Company and RB&T; President and CEO of RB&T
Christy Ames 50 Secretary of the Company; EVP of RB&T
John Rippy 62 Assistant Secretary of the Company; EVP of RB&T
William R. Nelson 59 President of RB&T's Republic Processing Group
Pedro Bryant 61 EVP of RB&T
Steven E. DeWeese 54 EVP of RB&T
Juan Montano 53 EVP of RB&T
Anthony T. Powell 55 EVP of RB&T
Jeff Starke 45 EVP of RB&T
Margaret Wendler 68 EVP of RB&T
Executive officers of the Company are elected by the Board of Directors and serve at the pleasure of the Board of Directors. Steven E.
Trager and A. Scott Trager are cousins.
179
Steven E. Trager has served as Executive Chair (previously titled Chair) and CEO of Republic since 2012. He was named Executive
Chair of the Bank in September 2021, prior to which he served as Chair and CEO of the Bank since 1998. From 1994 to 1997 he
served as Vice Chair of the Company. From 1994 to 1998 he served as Secretary, and from 1998 to 2012 he served as President and
CEO of Republic.
A. Scott Trager has served as Vice Chair of Republic and the Bank since April 2017. He has also served as Director and President of
Republic since 2012. He served as President of the Bank from 1984 to 2017 and Vice Chair of Republic from 1994 to 2012.
Kevin Sipes joined the Company in 1995 and has served as EVP and Treasurer of Republic and the Company since 2002 and CFO of
Republic and the Company since 2000. He began serving as Chief Accounting Officer of the Company in 2000.
Logan Pichel was appointed CEO of the Bank effective October 1, 2021 and was elected to the boards of the Company and the Bank
in September 2021. He joined the Company in June 2020 as the Bank’s President and has over 25 years in the banking industry. Prior
to joining Republic, he served from 2005 to 2020 at Regions Bank, most recently as their Executive Vice President, Head of Corporate
Development and Financial Planning & Analysis and Mergers and Acquisitions.
Christy Ames joined Republic Bank & Trust Company on January 2, 2018 as the Bank’s Senior Vice President, General Counsel. She
also serves as the Secretary for the Bank and the Company. Ms. Ames has represented financial institutions for over twenty years,
most recently serving as a member at Stites & Harbison, PLLC and Chair of the firm’s Financial Institution Litigation Sub Group and
as General Counsel for First Residential Mortgage Network, Inc. d/b/a SurePoint Lending. In January 2022, Ms. Ames was named an
EVP of the Bank.
John Rippy joined the Company in 2005 as SVP and Risk Management Officer. In 2009, he was named SVP and Chief Legal and
Compliance Officer. In 2013, he was named SVP and Chief Risk Management Officer. In 2018, he was named EVP and Chief Risk
Officer. He also serves as assistant Secretary of the Company.
William R. Nelson has served as President of Republic Processing Group since 2007. He previously served as Director of Relationship
Management of HSBC, Taxpayer Financial Services, in 2004 and was promoted to Group Director — Independent Program in 2006
through 2007. He previously served as Director of Sales, Marketing and Customer Service with the Bank from 1999 through 2004.
Pedro Bryant, who has almost 40 years in the banking industry, joined the Company in July 2020 as an EVP of the Bank and the
Bank’s Managing Director of Community Lending. Prior to joining Republic, he served from 2002 to 2020 as President and CEO of
Metro Bank, a Louisville-based community development bank.
Steven E. DeWeese joined the Company in 1990 and has held various positions within the Company since then. In 2000, he was
promoted to SVP. In 2003, he was promoted to Managing Director of Business Development. In 2006, he was promoted to Managing
Director of Retail Banking, and in January 2010 he was promoted to EVP of the Company. In 2019, he was named the Company’s
Managing Director of Private and Business Banking.
Juan Montano has served as the Bank’s EVP and Chief Mortgage Banking Officer since 2018. He previously served as SVP and
Managing Director of Mortgage Lending from 2015 to 2018. He joined the Company in 2009 as SVP and Managing Director of
Finance.
Anthony T. Powell joined the Company in 1999 as VP. In 2001, he was promoted to SVP and Senior Commercial Lending Officer. In
2005, he was promoted to SVP and Managing Director of Business Lending. In 2015, he assumed responsibility for the Retail
Banking division of the Company and was named SVP and Chief Credit and Retail Officer. In January 2017, he was named EVP and
Chief Lending Officer.
Jeff Starke joined Republic Bank & Trust Company on July 19, 2021 as the Bank’s Executive Vice President, Chief Information
Officer. He has held various technological and operational roles in the financial services vertical for over 20 years. Prior to joining
Republic, he served from 2010 to 2021 at Bank OZK, most recently as Chief Technology Officer and Chair of the Information
Systems Steering Committee.
Margaret S Wendler joined the Company in 1996. She has served the Company in human resources since 2005. Most recently, in 2019
she was named Chief Human Resources Officer. In 2021, she was also named an EVP of the Bank.
180
Item 11. Executive Compensation.
The compensation-related information required by this Item appears under the headings “COMPENSATION DISCUSSION AND
ANALYSIS,” COMPENSATION COMMITTEE REPORT,” “DIRECTOR COMPENSATION” and “CERTAIN INFORMATION AS TO
MANAGEMENT” of the Proxy Statement, all of which is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
Equity Compensation Plan Information
The following table sets forth information regarding Republic’s Common Stock that may be issued upon exercise of options, warrants
and rights under all equity compensation plans as of December 31, 2022. Republic’s security holders approved each of the equity
compensation plans listed in the table below. There were no equity compensation plans not approved by security holders as of
December 31, 2022.
(a) (1) (b) (c)

Number of Securities Remaining
Available for Future Issuance
Number of Securities to be Issued Weighted-Average Exercise Price Under Equity Compensation Plans
Upon Exercise of Outstanding of Outstanding Options, Warrants (Excluding Securities Reflected in
Plan Category Options, Warrants and Rights and Rights Column (a))
2015 Stock Incentive Plan 711,864 (2) $ 38.81 1,983,383

2018 Employee Stock Purchase Plan (3) — $ — 183,562
(1) Column (a) above includes options issued for Class A Common Stock only. Options for Class B Common Stock have been authorized but are not issued.
(2) Includes 182,098 shares of Class A Common Stock subject to issuance in accordance with the Republic Bancorp, Inc. Non-Employee Director and Key Employee
Deferred Compensation Plan for service previously rendered. Republic’s security holders previously approved this plan. These shares are to be issued from
shares available for issuance under the 2015 Stock Incentive Plan. Also includes 64,733 restricted shares of Class A Common Stock. The weighted-average
exercise price in Column (b) does not take these awards into account. For further information, see Footnote 17 “Stock Plans and Stock Based Compensation” of
Part II Item 8 “Financial Statements and Supplementary Data.”
(3) The 2018 Employee Stock Purchase Plan is a qualified Employee Stock Purchase Plan under Section 423 of the Code, pursuant to which up to 250,000 shares of
Class A Common Stock were authorized for issuance. Under the ESPP, employees may purchase shares at a purchase price that cannot be less than 85% of the
lower of the fair market value of the Company’s Class A Common Stock on the first trading day of each offering period or on the last trading day of each offering
period. No offering period may exceed 27 months in length. As of the close of business on December 31, 2022, there were no shares of Class A Common Stock
subject to purchase during open offering periods.
Additional information required by this Item appears under the heading “SHARE OWNERSHIP” of the Proxy Statement, which is
incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence.
Information required by this Item is under the headings “PROPOSAL ONE: ELECTION OF DIRECTORS” and “CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS” of the Proxy Statement, all of which is incorporated herein by reference.
Item 14. Principal Accountant Fees and Services.
Information required by this Item appears under the heading “PROPOSAL TWO: RATIFICATION OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM” of the Proxy Statement which is incorporated herein by reference.
181
PART IV
Item 15. Exhibits, Financial Statement Schedules.
(a)(1) Financial Statements:
The following are included under Item 8 “Financial Statements and Supplementary Data:”
Management’s Report on Internal Control Over Financial Reporting

Report of Independent Registered Public Accounting Firm
Consolidated balance sheets — December 31, 2022 and 2021
Consolidated statements of income and comprehensive income — years ended December 31, 2022, 2021, and 2020
Consolidated statements of stockholders’ equity — years ended December 31, 2022, 2021, and 2020
Consolidated statements of cash flows — years ended December 31, 2022, 2021, and 2020
Notes to consolidated financial statements
(a)(2) Financial Statements Schedules:
Financial statement schedules are omitted because the information is not applicable.
(a)(3) Exhibits:
The Exhibit Index of this report is incorporated herein by reference. The management contracts and compensatory plans or
arrangements required to be filed as exhibits to this Form 10-K pursuant to Item 15(b) are noted in the Exhibit Index.
Item 16. Form 10-K Summary.
Not applicable.
182
INDEX TO EXHIBITS
No. Description
3(i) Articles of Incorporation of Registrant, as amended (Incorporated by reference to Exhibit 3(i) to the Registrant’s Form 8-K
filed October 13, 2016 (Commission File Number: 0-24649))
3(ii) Amended and Restated Bylaws (Incorporated by reference to Exhibit 3.1 of Registrant’s Form 8-K filed April 26, 2021
(Commission File Number: 0-24649))
4.1 Provisions of Articles of Incorporation of Registrant defining rights of security holders (see Articles of Incorporation, as
amended, of Registrant incorporated as Exhibit 3(i) herein)
4.2 Agreement Pursuant to Item 601 (b)(4)(iii) of Regulation S-K (Incorporated by reference to Exhibit 4.2 of the Registrant’s
Form 10-K for the year ended December 31, 1997 (Commission File Number: 33-77324))
4.3 Description of Securities (Incorporated by reference to Exhibit 4.3 of Registrant’s Form 10-K for the year ended
December 31, 2019 (Commission File Number: 0-24649))
10.01* Agreement of Employment dated April 24, 2020, between Republic Bank & Trust Company and Logan Pichel
(Incorporated by reference to Exhibit 10.1 of Registrant’s Form 8-K filed May 5, 2020 (Commission File Number: 0-
24649))
10.02* Termination of Employment Agreement dated September 15, 2021 between Republic Bank & Trust Company and Logan
M. Pichel (Incorporated by reference to Exhibit 10.1 of Registrant’s Form 8-K filed September 15, 2021 (Commission File
Number: 0-24649))
10.03* Change in Control Severance Agreement dated January 27, 2021 between Republic Bank & Trust Company and William
Nelson (Incorporated by reference to Exhibit 10.4 of Registrant’s Form 8-K filed February 1, 2021 (Commission File
Number: 0-24649))
10.04* Form of Executive Officer Change in Control Agreement between Republic Bank & Trust Company and designated
Executive Officers (Incorporated by reference to Exhibit 10.5 of Registrant’s Form 8-K filed February 1, 2021
10.05 Split Dollar Insurance Policy with Citizens Fidelity Bank and Trust Company as the Trustee of the Bernard Trager
Irrevocable Trust, dated December 14, 1989, as amended August 8, 1994 (Incorporated by reference to Exhibit 10.70 to
Registrant’s Form 10-K for the year ended December 31, 2012 (Commission File Number: 33-77324))
10.06 Right of First Offer Agreement by and among Republic Bancorp, Inc., Teebank Family Limited Partnership, Bernard M.
Trager and Jean S. Trager. (Incorporated by reference to Exhibit 10.1 of Registrant’s Form 8-K filed September 19, 2007
10.07 Lease between Republic Bank & Trust Company and Jaytee Properties, dated August 1, 1982, relating to 2801 Bardstown
Road, Louisville (Incorporated by reference to Exhibit 10.11 of Registrant’s Form 10-Q for the quarter ended March 31,
1998 (Commission File Number: 0-24649))
10.08 Lease between Republic Bank & Trust Company and Jaytee Properties, dated August 1, 2008, relating to 2801 Bardstown
Road, Louisville (Incorporated by reference to Exhibit 10.2 of Registrant’s Form 8-K filed June 9, 2008 (Commission File
Number: 0-24649))
10.09 First Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated August 1, 2008, relating
to 2801 Bardstown Road, Louisville (Incorporated by reference to Exhibit 10.23 of Registrant’s Form 10-K filed March 9,
183
No. Description
10.10 Lease between Republic Bank & Trust Company and Teeco Properties, dated April 1, 1995, relating to property at 601
West Market Street (Incorporated by reference to exhibit 10.10 of Registrant’s Form 10-Q for the quarter ended March 31,
10.11 Lease between Republic Bank & Trust Company and Teeco Properties, dated October 1, 1996, relating to property at 601
West Market Street (Incorporated by reference to exhibit 10.10 of Registrant’s Form S-1 (Commission File Number: 333-
56583))
10.12 Lease extension between Republic Bank & Trust Company and Teeco Properties, dated September 25, 2001, relating to
property at 601 West Market Street (Incorporated by reference to exhibit 10.25 of Registrant’s Form 10-Q for the quarter
ended September 30, 2001 (Commission File Number: 0-24649))
10.13 First Amendment to Lease between Republic Bank & Trust Company and Teeco Properties, dated May 1, 2002, relating to
property at 601 West Market Street (Incorporated by reference to exhibit 10.1 of Registrant’s Form 10-Q for the quarter
ended March 31, 2002 (Commission File Number: 0-24649))
10.14 Lease between Republic Bank & Trust Company and Teeco Properties, dated October 1, 2005, relating to property at 601
West Market Street, Louisville, KY (Floor 4), amending and modifying previously filed exhibit 10.1 of Registrant’s
Form 10-Q for the quarter ended March 31, 2002 (Incorporated by reference to exhibit 10.1 of Registrant’s Form 10-Q for
the quarter ended September 30, 2005 (Commission File Number: 0-24649))
10.15 Lease between Republic Bank & Trust Company and Teeco Properties, as of October 1, 2006, relating to property at 601
West Market Street, Louisville, KY. (Incorporated by reference to exhibit 10.1 of Registrant’s Form 8-K filed
September 25, 2006 (Commission File Number: 0-24649))
10.16 First Amendment to Lease between Republic Bank & Trust Company and Teeco Properties, as of July 8, 2008, relating to
property at 601 West Market Street (Floors 1,2,3,5 and 6), Louisville, KY. (Incorporated by reference to exhibit 10.1 of
Registrant’s Form 10-Q for the quarter ended June 30, 2008 (Commission File Number: 0-24649))
10.17 First Amendment to Lease between Republic Bank & Trust Company and Teeco Properties, as of July 8, 2008, relating to
property at 601 West Market Street (Floor 4), Louisville, KY. (Incorporated by reference to exhibit 10.2 of Registrant’s
Form 10-Q for the quarter ended June 30, 2008 (Commission File Number: 0-24649))
10.18 Assignment of Lease relating to property at 601 West Market Street (Floors 1,2,3,5 and 6), Louisville, KY. (Incorporated
by reference to exhibit 10.31 of Registrant’s Form 10-K for the year ended December 31, 2016 (Commission File Number:
0-24649))
10.19 Assignment of Lease relating to property at 601 West Market Street (Floor 4), Louisville, KY. (Incorporated by reference
to exhibit 10.32 of Registrant’s Form 10-K for the year ended December 31, 2016 (Commission File Number: 0-24649))
10.20 Master Office Lease between Republic Bank & Trust Company and Makbe LLC, dated August 1, 2020, relating to property
at 601 West Market Street (Incorporated by reference to exhibit 10.1 of Registrant’s Form 10-Q for the quarter ended June
30, 2020 (Commission File Number: 0-24649))
10.21 Lease between Republic Bank & Trust Company and Jaytee Properties, dated February 3, 1993, as amended, relating to
661 South Hurstbourne Parkway, Louisville (Incorporated by reference to Exhibit 10.12 of Registrant’s Form 10-Q for the
quarter ended March 31, 1998 (Commission File Number: 0-24649))
10.22 Fifth Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated February 1, 1999, as
amended, relating to 661 South Hurstbourne Parkway (Incorporated by reference to Exhibit 10.17 of Registrant’s Form 10-
Q for the quarter ended June 30, 1999 (Commission File Number: 0-24649))
184
No. Description
10.23 Sixth Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated February 1, 2000, as
amended, relating to 661 South Hurstbourne Parkway (Incorporated by reference to Exhibit 10.21 of Registrant’s Form 10-
K for the year ended December 31, 1999 (Commission File Number: 0-24649))
10.24 Seventh Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated July 1, 2003, as
amended, relating to 661 South Hurstbourne Parkway, Louisville (Incorporated by reference to Exhibit 10.1 of Registrant’s
10.25 First Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated August 2, 1993, relating
to 661 South Hurstbourne Parkway, Louisville (Incorporated by reference to Exhibit 10.16 of Registrant’s Form 10-K for
the year ended December 31, 2003 (Commission File Number: 0-24649))
10.26 Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated September 1, 1995, as
amended, relating to 661 South Hurstbourne Parkway, Louisville (Incorporated by reference to Exhibit 10.18 of
10.27 Second Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated February 16, 1996, as
10.28 Third Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated January 21, 1998, as
10.29 Fourth Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated September 11, 1998,
as amended, relating to 661 South Hurstbourne Parkway, Louisville (Incorporated by reference to Exhibit 10.21 of
10.30 Eighth Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated February 1, 2004, as
Form 10-Q for the quarter ended March 31, 2004 (Commission File Number: 0-24649))
10.31 Lease between Republic Bank & Trust Company and Jaytee Properties, dated September 1, 2005, relating to 661 South
Hurstbourne Parkway, Louisville, KY, amending and modifying previously filed exhibit 10.12 of Registrant’s Form 10-Q
for the quarter ended March 31, 1998 (Incorporated by reference to Exhibit 10.2 of Registrant’s Form 10-Q for the quarter
ended September 30, 2005 (Commission File Number: 0-24649))
10.31.1 First Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated August 14, 2015, as
Form 10Q for the quarter ended September 30, 2015 (Commission File Number: 0-24649))
10.31.2 Second Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated January 31, 2018, as
Registrant’s Form 10-K filed March 9, 2018 (Commission File Number: 0-24649))
10.31.3 Third Amendment to Lease between Republic Bank & Trust Company and Jaytee-Hurstbourne LLC, dated January 10,
2023, as amended, relating to 661 South Hurstbourne Parkway, Louisville
10.32.1 First amendment to Lease between Republic Bank & Trust Company and Jaytee-Hurstbourne LLC, dated January 10, 2023,
as amended, relating to 661 South Hurstbourne Parkway, Louisville
185
No. Description
10.33 Lease between Republic Bank & Trust Company and Jaytee Properties, dated November 17, 1997, relating to 9600
Brownsboro Road (Incorporated by reference to Exhibit 10.13 of Registrant’s Form 10-Q for the quarter ended March 31,
10.34 Lease between Republic Bank & Trust Company and Jaytee Properties, dated August 1, 1999, relating to 9600 Brownsboro
Road (Incorporated by reference to Exhibit 10.18 of Registrant’s Form 10-Q for the quarter ended June 30, 1999
10.35 Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated October 30, 1999, as
amended, relating to 9600 Brownsboro Road (Incorporated by reference to Exhibit 10.20 of Registrant’s Form 10-K for the
year ended December 31, 1999 (Commission File Number: 0-24649))
10.36 Third Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated May 1, 2003, as
amended, relating to 9600 Brownsboro Road (Incorporated by reference to Exhibit 10.2 of Registrant’s Form 10-Q for the
quarter ended June 30, 2003 (Commission File Number: 0-24649))
10.37 Lease between Republic Bank & Trust Company and Jaytee Properties, dated November 1, 2005, relating to 9600
Brownsboro Road (Incorporated by reference to Exhibit 10.33 of Registrant’s Form 10-K for the year ended December 31,
10.38 Assignment and Assumption of Lease by Republic Bank & Trust Company with the consent of Jaytee Properties, dated
May 1, 2006, relating to 9600 Brownsboro Road, Louisville, KY. (Incorporated by reference to Exhibit 10.2 of Registrant’s
10.39 First Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated January 17, 2008, as
amended, relating to 9600 Brownsboro Road, Louisville, KY (Incorporated by reference to Exhibit 10.40 of Registrant’s
10.40 Fourth Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated January 15, 2014, as
10.41 Fifth Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated March 15, 2017, as
amended, relating to 9600 Brownsboro Road (Incorporated by reference to Exhibit 10.1 of Registrant’s Form 10-Q for the
quarter ended March 31, 2017 (Commission File Number: 0-24649))
10.42 Sixth Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties, dated August 1, 1999, as
10.43 Seventh Amendment to Office Lease dated as of September 1, 2021 to the Office Lease dated August 1, 1999, as amended,
by and between Jaytee-Springhurst, LLC and Republic Bank & Trust Company (Incorporated by reference to Exhibit 10.1
of Registrant’s Form 10-Q for the quarter ended September 30, 2021 (Commission Number: 0-24649))
10.44 Eighth Amendment to Office Lease dated as of November 17, 2021 to the Office Lease dated August 1, 1999, as amended,
by and between Jaytee-Springhurst, LLC and Republic Bank & Trust Company (Incorporated by reference to Exhibit 10.46
of Registrant’s Form 10-K for the year ended December 31, 2021 (Commission Number: 0-24649))
10.45 Ground lease between Republic Bank & Trust Company and Jaytee Properties, relating to 9600 Brownsboro Road, dated
January 17, 2008, relating to 9600 Brownsboro Road, Louisville, KY (Incorporated by reference to Exhibit 10.41 of
186
No. Description
10.46 Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated June 27, 2008, relating to 200
South Seventh Street, Louisville, KY. (Incorporated by reference to Exhibit 10.1 of Registrant’s Form 8-K filed July 1,
10.47 Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated March 1, 2011, relating to 200
South Seventh Street, Louisville, KY (Incorporated by reference to Exhibit 10.66 of the Registrant’s Form 10-K for the
10.48 Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated May 1, 2013, relating to 200
South Seventh Street, Louisville, KY (Incorporated by reference to Exhibit 10.1 of the Registrant’s Form 10-Q for the
quarter ended June 30, 2013 (Commission File Number: 0-24649))
10.49 First Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated January 15,
2014, as amended, relating to 200 South Seventh Street, Louisville, KY (Incorporated by reference to Exhibit 10.54 of
10.50 First Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated March 18,
2015, as amended, relating to 200 South Seventh Street, Louisville, KY. (Incorporated by reference to Exhibit 10.1 of
Registrant’s Form 10-Q for the quarter ended March 31, 2015 (Commission File Number: 0-24649))
10.51 Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated September 30, 2015, relating to
200 South Seventh Street, Louisville, KY. (Incorporated by reference to Exhibit 10.2 of Registrant’s Form 10-Q for the
quarter ended September 30, 2015 (Commission File Number: 0-24649))
10.52 Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated March 15 2017 relating to 200
South Seventh Street, Louisville, KY. (Incorporated by reference to Exhibit 10.2 of Registrant’s Form 10-Q for the quarter
10.53 First Amendment to Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated September
20 2017, as amended, relating to 200 South Seventh Street, Louisville, KY. (Incorporated by reference to Exhibit 10.1 of
Registrant’s Form 10-Q for the quarter ended September 30, 2017 (Commission File Number: 0-24649))
10.54 Master Office Lease between Republic Bank & Trust Company and Jaytee Properties II SPE, LLC, dated October 1 2020,
relating to 200 South Seventh Street, Louisville, KY. (Incorporated by reference to Exhibit 10.56 of Registrant’s Form 10-
K for the year ended December 31, 2021 (Commission File Number: 0-24649))
10.55* 2015 Stock Incentive Plan (Incorporated by reference to Annex A of Registrant’s 2015 Proxy Statement (Commission File
Number: 0-24649))
10.56* Option Award Agreement for 2015 Stock Incentive Plan (Incorporated by reference to Exhibit 10.1 of Registrant’s
10.57* Restricted Stock Award Agreement for 2015 Stock Incentive Plan (Incorporated by reference to Exhibit 10.2 of
Registrant’s Form 10-Q for the quarter ended June 30, 2015 (Commission File Number: 0-24649))
10.58* Performance Stock Unit Award Agreement for 2015 Stock Incentive Plan (Incorporated by reference to Exhibit 10.1 of
Registrant’s Form 8-K filed January 27, 2016 (Commission File Number: 0-24649))
10.59* Form of Restricted Stock Award Agreement (Incorporated by reference to Exhibit 10.1 of Registrant’s Form 8-K filed
February 1, 2021 (Commission File Number: 0-24649))
187
No. Description
10.60* Form of Performance Stock Unit Award (Incorporated by reference to Exhibit 10.2 of Registrant’s Form 8-K filed February
1, 2021 (Commission File Number: 0-24649))
10.61* Form of Option Award Agreement (Incorporated by reference to Exhibit 10.3 of Registrant’s Form 8-K filed February 1,
10.62* Form of Agreement for TRS Transaction Bonus Program (Incorporated by reference to Exhibit 10.1 of Registrant’s Form
8-K filed May 19, 2021 (Commission File Number: 0-24649))
10.63* Republic Bancorp, Inc. 401(k)/Profit Sharing Plan and Trust (Incorporated by reference to Form S-8 filed December 28,
10.64* Republic Bancorp, Inc. 401(k) Retirement Plan, as Amended and Restated, effective April 1, 2011 (Incorporated by
reference to Exhibit 23.2 to Form 11-K for the year ended December 31, 2011 (Commission File Number: 0-24649))
10.65* Republic Bancorp, Inc. 401(k) Retirement Plan, as Amended and Restated, effective January 1, 2015 (Incorporated by
reference to Exhibit 23.2 of Form 11-K for the year ended December 31, 2014 (Commission File Number: 0-24649))
10.66* Republic Bancorp, Inc. 401(k) Retirement Plan, as Amended and Restated, effective May 1, 2021 (Incorporated by
reference to Exhibit 10.1 of Form 10-Q for the quarter ended June 30, 2021 (Commission File Number: 0-24649))
10.67* Republic Bancorp, Inc. and subsidiaries Non-Employee Director and Key Employee Deferred Compensation and the
Republic Bank & Trust Company Non-Employee Director and Key Employee Deferred Compensation Plan (as adopted
November 18, 2004) (Incorporated by reference to Form S-8 filed November 30, 2004 (Commission File
Number: 333- 120857))
10.68* Republic Bancorp, Inc. and Subsidiaries Non-Employee Director and Key Employee Deferred Compensation Plan Post-
Effective Amendment No. 1 (Incorporated by reference to Form S-8 filed April 13, 2005 (Commission File Number: 333-
120857))
10.69* Republic Bancorp, Inc. and subsidiaries Non-Employee Director and Key Employee Deferred Compensation, as amended
and restated as of March 16, 2005 (Incorporated by reference to Exhibit 10.2 of Registrant’s Form 8-K filed March 18,
10.70* Republic Bancorp, Inc. and subsidiaries Non-Employee Director and Key Employee Deferred Compensation as amended
and restated as of March 19, 2008 (Incorporated by reference to Exhibit 10.1 of Registrant’s Form 10-Q for the quarter
10.71* Republic Bancorp, Inc. and subsidiaries Non-Employee Director and Key Employee Deferred Compensation, as adopted
November 18 2004 and then amended and restated as on March 16, 2005, March 19, 2008, and again on January 24, 2018
(Incorporated by reference to Annex A of Registrant’s 2018 Proxy Statement (Commission File Number: 0-24649))
10.72* Amendment 2019-1 to the Republic Bancorp, Inc. and Subsidiaries Non-Employee Director and Key Employee Deferred
Compensation Plan (Incorporated by reference to Exhibit 10.1 of Registrant’s Form 10-Q for the quarter ended March 31,
10.73* Republic Bancorp, Inc. Employee Stock Purchase Plan (Incorporated by reference to Annex B of Registrant’s 2018 Proxy
Statement (Commission File Number: 0-24649))
10.74* Consulting Agreement dated as of July 16, 2019, between David P. Feaster and Republic Bank & Trust Company
(Incorporated by reference to Exhibit 10.70 of Registrant’s Form 10-K for the year ended December 31, 2019 (Commission
File Number: 0-24649))
188
No. Description
10.75** Amended and Restated Joint Marketing Agreement, dated July 1, 2015, by and between Republic Bank & Trust Company
and Elevate@Work, LLC (Incorporated by reference to Exhibit 10.87 of Registrant’s Form 10-K for the year ended
December 31, 2018 (Commission File Number: 0-24649))
10.76** Written Consent to the Amended and Restated Joint Marketing Agreement, dated September 1, 2016, by and between
Republic Bank & Trust Company and Elevate@Work, LLC (Incorporated by reference to Exhibit 10.88 of Registrant’s
10.77** Amended and Restated License and Support Agreement, dated July 1, 2015, by and between Republic Bank & Trust
Company and Elevate Decision Sciences, LLC (Incorporated by reference to Exhibit 10.89 of Registrant’s Form 10-K for
the year ended December 31, 2018 (Commission File Number: 0-24649))
10.78** Participation Agreement, dated July 1, 2015, by and between Elastic SPV, Ltd. and Republic Bank & Trust Company
(Incorporated by reference to Exhibit 10.90 of Registrant’s Form 10-K for the year ended December 31, 2018 (Commission
File Number: 0-24649))
10.79 Asset Purchase Agreement dated as of May 13, 2021, between Republic Bank & Trust Company and Green Dot
Corporation (Incorporated by reference to Exhibit 2.1 of Registrant’s Form 8-K filed May 19, 2021 (Commission File
Number: 0-24649)) (Termination of this agreement has been disclosed in Registrant’s Form 8-K filed January 10, 2022)
21 Subsidiaries of Republic Bancorp, Inc.
23 Consent of Independent Registered Public Accounting Firm
31.1 Certification of Principal Executive Officer, pursuant to the Sarbanes-Oxley Act of 2002
31.2 Certification of Principal Financial Officer, pursuant to the Sarbanes-Oxley Act of 2002
32*** Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2003
101 The following financial statements from the Company’s annual report on Form 10-K were formatted in iXBRL (Inline
eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2022 and 2021,
(ii) Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2022, 2021, and
2020, (iii) Consolidated Statement of Stockholders’ Equity for the years ended December 31, 2022, 2021, and 2020,
(iv) Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021, and 2020 and (v) Notes to
Consolidated Financial Statements.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
* Denotes management contracts and compensatory plans or arrangements required to be filed as exhibits to this Form 10-K
pursuant to Item 15(b).
** Confidential treatment has been requested for the redacted portions of this agreement. A complete copy of the agreement,
including the redacted portions, has been filed separately with the Securities and Exchange Commission.
*** This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise
subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of
1933 or the Securities Exchange Act of 1934.
189
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
REPUBLIC BANCORP, INC.
/s/ Steven E. Trager

March 3, 2023 By: Steven E. Trager
Executive Chair and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on
behalf of the registrant and in the capacities indicated.
/s/ Steven E. Trager Executive Chair, Chief Executive Officer March 3, 2023
Steven E. Trager and Director
/s/ A. Scott Trager Vice Chair, President and Director March 3, 2023
A. Scott Trager
/s/ Kevin Sipes Chief Financial Officer and March 3, 2023

Kevin Sipes Chief Accounting Officer
/s/ David P. Feaster Director March 3, 2023

David P. Feaster
/s/ Jennifer N. Green Director March 3, 2023

Jennifer N. Green
/s/ Heather V. Howell Director March 3, 2023

Heather V. Howell
/s/ Timothy S. Huval Director March 3, 2023

Timothy S. Huval
/s/ Ernest W. Marshall, Jr. Director March 3, 2023

Ernest W. Marshall, Jr.
/s/ W. Patrick Mulloy, II Director March 3, 2023

W. Patrick Mulloy, II
/s/ George Nichols III Director March 3, 2023

George Nichols III
/s/ W. Kennett Oyler, III Director March 3, 2023

W. Kennett Oyler, III
/s/ Logan M. Pichel Director March 3, 2023

Logan M. Pichel
/s/ Michael T. Rust Director March 3, 2023

Michael T. Rust
190
SIGNATURES (continued)
/s/ Susan Stout Tamme Director March 3, 2023

Susan Stout Tamme
/s/ Andrew Trager-Kusman Director March 3, 2023

Andrew Trager-Kusman
/s/ Mark A. Vogt Director March 3, 2023

Mark A. Vogt
191

Nasdaq Rbcaa 2022

Uploaded by

Copyright:

Available Formats

Nasdaq Rbcaa 2022

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Nasdaq Rbcaa 2022

Uploaded by

Copyright:

Available Formats

2022 LETTER TO SHAREHOLDERS

Dear Fellow Shareholders,

NOTABLE COMPANY HIGHLIGHTS

lending and private banking will be further strengthened by

REPUBLIC BANCORP, INC.

601 West Market Street, Louisville, Kentucky 40202

Term Definition Term Definition Term Definition

Broadly speaking, forward-looking statements include:

• the potential impact of inflation on Company operations;

• the impact of inflation on the Company’s operations and credit losses;

Website Access to Reports

General Business Overview

(I) Traditional Banking segment

The Bank’s principal lending activities consist of the following:

• Part I Item 1A “Risk Factors”

(III) Mortgage Banking segment

• Offered only during the first two months of each year;

• Offered only during December 2022 and January 2023;

• Part I Item 1A “Risk Factors”

Republic Payment Solutions division

• Part I Item 1A “Risk Factors”

(V) Republic Credit Solutions segment

• Part I Item 1A “Risk Factors”

Information about our Executive Officers

Tax Refund Solutions

Republic Payment Solutions (a division of TRS)

Republic Credit Solutions

Supervision and Regulation

The Dodd-Frank Act

II. The Bank

Capital Adequacy Requirements

Total capital to risk-weighted assets

Common equity tier 1 capital to risk-weighted assets

Tier 1 (core) capital to risk-weighted assets

Tier 1 leverage capital to average assets

Other Regulation and Legislative Initiatives

Item 1A. Risk Factors.

FACTORS THAT MAY AFFECT FUTURE RESULTS

REGULATORY AND LEGAL RISKS

OPERATIONAL AND STRATEGIC RISKS

ECONOMIC, FINANCIAL MARKETS, INTEREST RATES, AND LIQUIDITY RISKS

• Variations in the Company’s and its competitors’ operating results;

The material weaknesses that Management identified were the following:

Item 1B. Unresolved Staff Comments.

Kentucky Banking Centers:

Louisville Metropolitan Area

Georgetown, 430 Connector Road 5,000 O/L (2)

Shelbyville, 1614 Midland Trail 4,000 L (2)

Florida Banking Centers:

Southern Indiana Banking Centers:

Tennessee Banking Centers:

Ohio Banking Center:

Support and Operations:

Item 3. Legal Proceedings.

Item 4. Mine Safety Disclosures.

Market and Dividend Information

October 1 - October 31 — $ — — 292,806 500,000

Total Return Performance