| REVENUE FROM CONTRACTS WITH CUSTOMERS |
14.REVENUE FROM CONTRACTS WITH CUSTOMERS The following tables present net revenue and net revenue concentration by reportable segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | | | Core Banking | | | Republic Processing Group | | | | | | | | | | | | | | | Total | | | Tax | | Republic | | Republic | | | | | | | | | | | | Traditional | | Warehouse | | | Core | | | Refund | | Payment | | Credit | | | Total | | | | Total | | (dollars in thousands) | | Banking | | Lending | | | Banking | | | Solutions | | Solutions | | Solutions | | | RPG | | | | Company | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net interest income (1) | | $ | 60,375 | | $ | 3,744 | | | $ | 64,119 | | | $ | 27 | | $ | 3,006 | | $ | 14,550 | | | $ | 17,583 | | | | $ | 81,702 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service charges on deposit accounts | | | 4,044 | | | 23 | | | | 4,067 | | | | — | | | 1 | | | — | | | | 1 | | | | | 4,068 | | Net refund transfer fees | | | — | | | — | | | | — | | | | 3,208 | | | — | | | — | | | | 3,208 | | | | | 3,208 | | Mortgage banking income (1) | | | 1,799 | | | — | | | | 1,799 | | | | — | | | — | | | — | | | | — | | | | | 1,799 | | Interchange fee income | | | 3,590 | | | — | | | | 3,590 | | | | 33 | | | — | | | — | | | | 33 | | | | | 3,623 | | Program fees (1) | | | — | | | — | | | | — | | | | — | | | 743 | | | 4,315 | | | | 5,058 | | | | | 5,058 | | Increase in cash surrender value of BOLI (1) | | | 943 | | | — | | | | 943 | | | | — | | | — | | | — | | | | — | | | | | 943 | | Net losses on other real estate owned | | | (41) | | | — | | | | (41) | | | | — | | | — | | | — | | | | — | | | | | (41) | | Other | | | 907 | | | — | | | | 907 | | | | 4 | | | — | | | — | | | | 4 | | | | | 911 | | Total noninterest income | | | 11,242 | | | 23 | | | | 11,265 | | | | 3,245 | | | 744 | | | 4,315 | | | | 8,304 | | | | | 19,569 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total net revenue | | $ | 71,617 | | $ | 3,767 | | | $ | 75,384 | | | $ | 3,272 | | $ | 3,750 | | $ | 18,865 | | | $ | 25,887 | | | | $ | 101,271 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net-revenue concentration (2) | | | 70 | % | | 4 | % | | | 74 | % | | | 3 | % | | 4 | % | | 19 | % | | | 26 | % | | | | 100 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | Core Banking | | | Republic Processing Group | | | | | | | | | | | | | | | Total | | | Tax | | Republic | | Republic | | | | | | | | | | | | Traditional | | Warehouse | | | Core | | | Refund | | Payment | | Credit | | | Total | | | | Total | | (dollars in thousands) | | Banking | | Lending | | | Banking | | | Solutions | | Solutions | | Solutions | | | RPG | | | | Company | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net interest income (1) | | $ | 56,380 | | $ | 3,549 | | | $ | 59,929 | | | $ | 62 | | $ | 3,563 | | $ | 12,648 | | | $ | 16,273 | | | | $ | 76,202 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service charges on deposit accounts | | | 3,482 | | | 23 | | | | 3,505 | | | | — | | | — | | | — | | | | — | | | | | 3,505 | | Net refund transfer fees | | | — | | | — | | | | — | | | | 2,567 | | | — | | | — | | | | 2,567 | | | | | 2,567 | | Mortgage banking income (1) | | | 1,896 | | | — | | | | 1,896 | | | | — | | | — | | | — | | | | — | | | | | 1,896 | | Interchange fee income | | | 3,157 | | | — | | | | 3,157 | | | | 42 | | | 1 | | | — | | | | 43 | | | | | 3,200 | | Program fees (1) | | | — | | | — | | | | — | | | | — | | | 735 | | | 3,716 | | | | 4,451 | | | | | 4,451 | | Increase in cash surrender value of BOLI (1) | | | 821 | | | — | | | | 821 | | | | — | | | — | | | — | | | | — | | | | | 821 | | Net losses on other real estate owned | | | (53) | | | — | | | | (53) | | | | — | | | — | | | — | | | | — | | | | | (53) | | Other | | | 1,143 | | | — | | | | 1,143 | | | | 114 | | | — | | | — | | | | 114 | | | | | 1,257 | | Total noninterest income | | | 10,446 | | | 23 | | | | 10,469 | | | | 2,723 | | | 736 | | | 3,716 | | | | 7,175 | | | | | 17,644 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total net revenue | | $ | 66,826 | | $ | 3,572 | | | $ | 70,398 | | | $ | 2,785 | | $ | 4,299 | | $ | 16,364 | | | $ | 23,448 | | | | $ | 93,846 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net-revenue concentration (2) | | | 71 | % | | 4 | % | | | 75 | % | | | 3 | % | | 5 | % | | 17 | % | | | 25 | % | | | | 100 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Revenue component 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. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | | Core Banking | | | Republic Processing Group | | | | | | | | | | | | | | | Total | | | Tax | | Republic | | Republic | | | | | | | | | | | | Traditional | | Warehouse | | | Core | | | Refund | | Payment | | Credit | | | Total | | | | Total | | (dollars in thousands) | | Banking | | Lending | | | Banking | | | Solutions | | Solutions | | Solutions | | | RPG | | | | Company | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net interest income (1) | | $ | 119,702 | | $ | 7,644 | | | $ | 127,346 | | | $ | 11,457 | | $ | 6,043 | | $ | 27,308 | | | $ | 44,808 | | | | $ | 172,154 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service charges on deposit accounts | | | 7,903 | | | 45 | | | | 7,948 | | | | — | | | 2 | | | 1 | | | | 3 | | | | | 7,951 | | Net refund transfer fees | | | — | | | — | | | | — | | | | 12,733 | | | — | | | — | | | | 12,733 | | | | | 12,733 | | Mortgage banking income (1) | | | 3,624 | | | — | | | | 3,624 | | | | — | | | — | | | — | | | | — | | | | | 3,624 | | Interchange fee income | | | 6,429 | | | — | | | | 6,429 | | | | 66 | | | 1 | | | — | | | | 67 | | | | | 6,496 | | Program fees (1) | | | — | | | — | | | | — | | | | — | | | 1,519 | | | 8,088 | | | | 9,607 | | | | | 9,607 | | Increase in cash surrender value of BOLI (1) | | | 1,873 | | | — | | | | 1,873 | | | | — | | | — | | | — | | | | — | | | | | 1,873 | | Net losses on other real estate owned | | | (91) | | | — | | | | (91) | | | | — | | | — | | | — | | | | — | | | | | (91) | | Gain on sale of Republic Bank Finance loans and leases | | | 5,845 | | | — | | | | 5,845 | | | | — | | | — | | | — | | | | — | | | | | 5,845 | | Other | | | 1,434 | | | 2 | | | | 1,436 | | | | 54 | | | — | | | — | | | | 54 | | | | | 1,490 | | Total noninterest income | | | 27,017 | | | 47 | | | | 27,064 | | | | 12,853 | | | 1,522 | | | 8,089 | | | | 22,464 | | | | | 49,528 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total net revenue | | $ | 146,719 | | $ | 7,691 | | | $ | 154,410 | | | $ | 24,310 | | $ | 7,565 | | $ | 35,397 | | | $ | 67,272 | | | | $ | 221,682 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net-revenue concentration (2) | | | 67 | % | | 3 | % | | | 70 | % | | | 11 | % | | 3 | % | | 16 | % | | | 30 | % | | | | 100 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | Core Banking | | | Republic Processing Group | | | | | | | | | | | | | | | Total | | | Tax | | Republic | | Republic | | | | | | | | | | | | Traditional | | Warehouse | | | Core | | | Refund | | Payment | | Credit | | | Total | | | | Total | | (dollars in thousands) | | Banking | | Lending | | | Banking | | | Solutions | | Solutions | | Solutions | | | RPG | | | | Company | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net interest income (1) | | $ | 109,701 | | $ | 6,577 | | | $ | 116,278 | | | $ | 29,874 | | $ | 7,557 | | $ | 25,181 | | | $ | 62,612 | | | | $ | 178,890 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service charges on deposit accounts | | | 6,921 | | | 43 | | | | 6,964 | | | | — | | | — | | | 1 | | | | 1 | | | | | 6,965 | | Net refund transfer fees | | | — | | | — | | | | — | | | | 16,460 | | | — | | | — | | | | 16,460 | | | | | 16,460 | | Mortgage banking income (1) | | | 3,717 | | | — | | | | 3,717 | | | | — | | | — | | | — | | | | — | | | | | 3,717 | | Interchange fee income | | | 6,201 | | | — | | | | 6,201 | | | | 75 | | | 1 | | | — | | | | 76 | | | | | 6,277 | | Program fees (1) | | | — | | | — | | | | — | | | | — | | | 1,502 | | | 6,771 | | | | 8,273 | | | | | 8,273 | | Increase in cash surrender value of BOLI (1) | | | 1,614 | | | — | | | | 1,614 | | | | — | | | — | | | — | | | | — | | | | | 1,614 | | Net losses on other real estate owned | | | (106) | | | — | | | | (106) | | | | — | | | — | | | — | | | | — | | | | | (106) | | Gain on sale of Visa Class B-1 shares (1) | | | 4,090 | | | — | | | | 4,090 | | | | — | | | — | | | — | | | | — | | | | | 4,090 | | Other | | | 3,373 | | | — | | | | 3,373 | | | | 135 | | | — | | | — | | | | 135 | | | | | 3,508 | | Total noninterest income | | | 25,810 | | | 43 | | | | 25,853 | | | | 16,670 | | | 1,503 | | | 6,772 | | | | 24,945 | | | | | 50,798 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total net revenue | | $ | 135,511 | | $ | 6,620 | | | $ | 142,131 | | | $ | 46,544 | | $ | 9,060 | | $ | 31,953 | | | $ | 87,557 | | | | $ | 229,688 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net-revenue concentration (2) | | | 59 | % | | 3 | % | | | 62 | % | | | 20 | % | | 4 | % | | 14 | % | | | 38 | % | | | | 100 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Revenue component 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. |
The following describes the Company's significant revenue streams within the scope of ASC 606: Service charges on deposit accounts – The Company earns revenue from account-based and transaction-based services provided to retail and commercial deposit customers. Contracts for these services are generally governed by deposit agreements that disclose applicable fees. Revenue from transaction-based services is recognized when, or as, the related service is performed. Revenue from account-based services is recognized either at a point in time or over the period the service is provided, generally within one month. Examples of deposit service charges include per-item fees, stop-payment fees, paper statement fees, check-cashing fees, low-balance fees, check upcharge 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 U.S., 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, direct deposit to the taxpayer’s personal bank account, or loaded to a prepaid card. 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 fulfillment of RT contracts are generally expensed during the first half of each year. Interchange fee income – As an issuing bank, the Company earns interchange fee income on debit and credit card transactions made by its cardholders. Interchange fees are paid by merchants, through payment network intermediaries, for transaction processing, settlement services, and the assumption of certain transaction-related risks. Interchange fee income is recognized upon completion of the related card transaction. Reward costs provided to cardholders under the Company's rewards programs are accrued as qualifying transactions occur and are presented as a reduction of interchange fee income within noninterest income. Net gains/(losses) on other real estate – The Company routinely sells OREO acquired through foreclosure. Net gains (losses) on OREO reflect gains or losses recognized upon disposition of OREO properties, as well as valuation adjustments recorded to reflect declines in the fair value of OREO HFS. Other noninterest income – Other noninterest income consists primarily of fees generated from various customer service activities that are within the scope of ASC 606, however, these revenue streams are not separately disclosed as they are not material, individually or in the aggregate.
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