Company overview

Republic Bancorp’s business depends on its subsidiary, Republic Bank & Trust Company. Traditional banking under the RB&T brand supplies most of its revenue. The bank takes deposits and uses deposits and borrowings to fund business, property and household loans, as well as securities investments. Its earnings depend heavily on the gap between what these assets earn and what funding costs. Its branch business is concentrated in Kentucky and selected nearby and southeastern markets.

The bank also lends to mortgage bankers nationwide, temporarily financing mortgages they have already closed until investors buy them. It earns interest and fees while the financing is outstanding; proceeds from the mortgage sales repay the advances.

Republic Processing Group adds a nationwide business delivered through third-party providers. Republic Credit Solutions earns interest and fees from small consumer loans, often to borrowers with weaker credit, and sells much of the lending exposure to third parties. Its revenue leans heavily on lines of credit, and continued lending depends on buyers for those loans. Republic Payment Solutions provides card, deposit and payment services through partners, earning program and card-transaction fees alongside interest income supported by program deposits.

Tax Refund Solutions advances money against expected tax refunds and processes refunds so taxpayers can pay preparation fees from the proceeds. It earns advance fees and a share of refund-processing fees, mainly during the first half of the year. Advance repayment depends on refunds arriving, without recourse to taxpayers if refunds fall short. Its former largest tax-provider contract, which supplied most advance-fee income, was not renewed for the current tax season. Consumer-finance laws govern the partner programs’ terms, rates and fees, and compliance failures can require the bank to stop offering them.