24.

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. The Company’s Executive Chair/CEO serves as the Company’s CODM. Income before income tax expense is the reportable measure of segment profit or loss that the CODM regularly reviews and utilizes to allocate resources and evaluate performance.

As of December 31, 2025, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending, TRS, RPS, and RCS. Management considers the first two segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last three segments collectively constitute RPG operations.

The nature of segment operations and the primary drivers of net revenue 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 via its banking center network and to clients outside of its market footprint primarily via its digital delivery channels.

Net interest income

Warehouse Lending

Provides short-term, revolving credit facilities to mortgage bankers across the U.S.

Net interest income

Republic Processing Group:

Tax Refund Solutions

Offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. TRS products are primarily provided to clients outside of the Bank’s market footprint.

Net interest income and Net refund transfer fees

Republic Payment Solutions

Offers general-purpose reloadable cards. RPS products are primarily provided to clients outside of the Bank’s market footprint.

Net interest income and Program fees

Republic Credit Solutions

Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers.

Net interest income and Program fees

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 before income taxes. 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. Net Interest income is reflected within each applicable business segment based on the underlying financial instruments assigned to each segment as well as the impact of the Company’s internal FTP applied to each instrument. FTP is allocated from the Traditional Bank to each segment based on the assumed terms of the underlying financial instruments within that segment in combination with applicable market interest rates matching the assumed terms of each instrument.

The Company adopted ASU 2023-07 in 2024 retrospectively. Segment information for the years ended December 31, 2025, 2024, and 2023 follows:

Year Ended December 31, 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

$

226,608

$

14,620

$

241,228

$

30,489

$

13,810

$

49,143

$

93,442

$

334,670

Provision for expected credit loss expense

 

5,485

 

508

 

5,993

 

9,466

 

 

16,138

 

25,604

 

31,597

Net refund transfer fees

 

 

 

 

17,685

 

 

 

17,685

 

17,685

Mortgage banking income

 

7,401

 

 

7,401

 

 

 

 

 

7,401

Program fees

2,948

14,657

17,605

17,605

Gain on sale of Visa Class B-1 shares

4,090

4,090

4,090

Other noninterest income (1)

 

35,541

 

83

 

35,624

 

265

 

152

 

3

 

420

 

36,044

Total noninterest income

 

47,032

 

83

 

47,115

 

17,950

 

3,100

 

14,660

 

35,710

 

82,825

Salaries and employee benefits

107,441

2,899

110,340

8,081

3,924

4,715

16,720

127,060

Technology, Equipment, and Communication

29,949

172

30,121

495

89

3,913

4,497

34,618

Occupancy

13,764

126

13,890

245

20

20

285

14,175

Marketing and development

4,619

4,619

268

34

2,799

3,101

7,720

Core conversion and contract consulting fees

6,213

6,213

6,213

Other noninterest expense (2)

27,094

571

27,665

1,776

570

392

2,738

30,403

Total noninterest expense

 

189,080

 

3,768

 

192,848

 

10,865

 

4,637

 

11,839

 

27,341

 

220,189

Income (loss) before income tax expense

 

79,075

 

10,427

 

89,502

 

28,108

 

12,273

 

35,826

 

76,207

 

165,709

Income tax expense (benefit)

15,395

2,350

17,745

6,116

2,678

7,853

16,647

34,392

Net income (loss)

$

63,680

$

8,077

$

71,757

$

21,992

$

9,595

$

27,973

$

59,560

$

131,317

Period-end assets

$

5,817,278

$

754,564

$

6,571,842

$

32,165

$

314,814

$

123,240

$

470,219

$

7,042,061

Period-end loans

$

4,546,297

$

754,090

$

5,300,387

$

32,397

$

$

113,545

$

145,942

$

5,446,329

Period-end deposits

$

4,764,303

$

44,876

$

4,809,179

$

20,461

$

314,814

$

58,693

$

393,968

$

5,203,147

Net interest margin

 

3.88

%  

 

2.63

%  

 

3.77

%  

 

NM

 

NM

 

NM

 

NM

 

5.05

%  

Net-revenue concentration*

65

%  

4

%  

69

%  

12

%

4

%  

15

%  

31

%  

100

%  

Year Ended December 31, 2024

 

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

$

203,139

$

12,469

$

215,608

$

34,420

$

11,811

$

50,315

$

96,546

$

312,154

Provision for expected credit loss expense

 

3,241

 

527

 

3,768

 

29,983

 

 

20,625

 

50,608

 

54,376

Net refund transfer fees

 

 

 

 

15,356

 

 

 

15,356

 

15,356

Mortgage banking income

 

5,438

 

 

5,438

 

 

 

 

 

5,438

Program fees

3,121

14,697

17,818

17,818

Death benefits in excess of cash surrender value of life insurance

Gain on sale of Visa Class B-1 shares

Other noninterest income (1)

 

33,641

 

62

 

33,703

 

180

 

151

 

4

 

335

 

34,038

Total noninterest income

 

39,079

 

62

 

39,141

 

15,536

 

3,272

 

14,701

 

33,509

 

72,650

Salaries and employee benefits

100,298

2,845

103,143

7,785

3,267

4,455

15,507

118,650

Technology, Equipment, and Communication

26,467

145

26,612

430

4

3,644

4,078

30,690

Occupancy

13,387

71

13,458

342

28

28

398

13,856

Marketing and development

3,617

3,617

398

95

5,329

5,822

9,439

Other noninterest expense (2)

25,529

550

26,079

2,650

707

654

4,011

30,090

Total noninterest expense

 

169,298

 

3,611

 

172,909

 

11,605

 

4,101

 

14,110

 

29,816

 

202,725

Income before income tax expense

 

69,679

 

8,393

 

78,072

 

8,368

 

10,982

 

30,281

 

49,631

 

127,703

Income tax expense

 

13,306

 

1,892

 

15,198

 

1,970

 

2,427

 

6,737

 

11,134

 

26,332

Net income

$

56,373

$

6,501

$

62,874

$

6,398

$

8,555

$

23,544

$

38,497

$

101,371

Period-end assets

$

5,608,110

$

551,747

$

6,159,857

$

217,662

$

335,369

$

133,779

$

686,810

$

6,846,667

Period-end loans

$

4,569,179

$

550,760

$

5,119,939

$

190,794

$

$

128,733

$

319,527

$

5,439,466

Period-end deposits

$

4,572,044

$

34,414

$

4,606,458

$

216,998

$

334,989

$

52,101

$

604,088

$

5,210,546

Net interest margin

 

3.55

%  

 

2.65

%  

 

3.48

%  

 

NM

 

NM

 

NM

 

NM

 

4.85

%  

Net-revenue concentration*

63

%  

3

%  

66

%  

13

%

4

%  

17

%  

34

%  

100

%  

Year Ended December 31, 2023

 

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

$

194,798

$

9,447

$

204,245

$

29,557

$

15,729

$

39,247

$

84,533

$

288,778

Provision for expected credit loss expense

 

8,698

 

(162)

 

8,536

 

22,559

 

 

16,529

 

39,088

 

47,624

Net refund transfer fees

 

 

 

 

15,748

 

 

 

15,748

 

15,748

Mortgage banking income

 

3,542

 

 

3,542

 

 

 

 

 

3,542

Program fees

2,827

12,755

15,582

15,582

Death benefits in excess of cash surrender value of life insurance

1,728

1,728

1,728

Other noninterest income (1)

 

34,231

 

44

 

34,275

 

341

 

158

 

83

 

582

 

34,857

Total noninterest income

 

39,501

 

44

 

39,545

 

16,089

 

2,985

 

12,838

 

31,912

 

71,457

Salaries and employee benefits

97,522

2,924

100,446

8,011

3,070

4,342

15,423

115,869

Technology, Equipment, and Communication

26,393

87

26,480

406

12

2,209

2,627

29,107

Occupancy

13,523

68

13,591

326

25

25

376

13,967

Marketing and development

3,193

3,193

523

1

4,729

5,253

8,446

Other noninterest expense (2)

27,489

468

27,957

2,769

602

681

4,052

32,009

Total noninterest expense

 

168,120

 

3,547

 

171,667

 

12,035

 

3,710

 

11,986

 

27,731

 

199,398

Income before income tax expense

 

57,481

 

6,106

 

63,587

 

11,052

 

15,004

 

23,570

 

49,626

 

113,213

Income tax expense

 

10,766

 

1,365

 

12,131

 

2,196

 

3,307

 

5,205

 

10,708

 

22,839

Net income

$

46,715

$

4,741

$

51,456

$

8,856

$

11,697

$

18,365

$

38,918

$

90,374

Period-end assets

$

5,519,632

$

340,224

$

5,859,856

$

228,738

$

366,117

$

140,180

$

735,035

$

6,594,891

Period-end loans

$

4,618,569

$

339,723

$

4,958,292

$

149,207

$

$

132,362

$

281,569

$

5,239,861

Period-end deposits

$

4,362,959

$

34,048

$

4,397,007

$

228,371

$

366,118

$

61,667

$

656,156

$

5,053,163

Net interest margin

 

3.70

%  

 

2.38

 

3.61

%  

 

NM

 

NM

 

NM

 

NM

 

4.91

%  

Net-revenue concentration*

65

%  

3

%  

68

%  

13

%  

5

%  

14

%  

32

%  

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.

(1) Other noninterest income includes Service charges on deposit accounts, Interchange fee income, Increase in cash surrender value of BOLI, Net losses on other real estate owned, and Other noninterest income.

(2) Other noninterest expense includes FDIC insurance expense, Interchange related expense, Legal and professional fees, Merger expense, and Other noninterest expense.

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 6, 2025
2023Mar 14, 2024
2022Mar 3, 2023
2021Mar 1, 2022
2020Feb 26, 2021
2019Mar 13, 2020
2018Mar 15, 2019
2017Mar 9, 2018
2016Mar 10, 2017
2015Mar 11, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.