AI-extracted from the 10-Q filed 2026-05-07 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net income fell 10% YoY to $42.6M amid RPG headwinds, particularly a $8.4M after-tax hit from TRS's largest tax provider contract nonrenewal.
Biggest Revenue Drivers
Traditional Banking$75.1M+10% YoY
Net interest income grew 11% driven by higher average loans and improved asset yields; gain on RBF sale added $5.8M.
Tax Refund Solutions$21.0M-52% YoY
Largest tax provider contract not renewed for 2026 tax season; RA originations down 63% YoY to $246M.
Biggest Revenue Drivers
Total revenue: $120.4M-11% YoY
Traditional Banking$75.1M+10% YoY
Net interest income grew 11% driven by higher average loans and improved asset yields; gain on RBF sale added $5.8M.
Tax Refund Solutions$21.0M-52% YoY
Largest tax provider contract not renewed for 2026 tax season; RA originations down 63% YoY to $246M.
Republic Credit Solutions$16.5M-2% YoY
Net interest income $12.8M; higher-yielding LOC portfolios driving portfolio mix improvement.
Warehouse Lending$3.9M+29% YoY
Average lines increased to $1.22B with 50% utilization; mortgage origination demand stable.
Republic Payment Solutions$3.8M-3% YoY
Prepaid card yields declined from 4.55% to 3.69% due to 75bp FFTR reduction; revenue share threshold not met.
Largest Expense Items
Salaries and employee benefits$32.1M+3% YoY
Increased headcount in core banking and RPG operations.
Technology, equipment, and communication$7.9M-8% YoY
2025 included $5.7M core system deconversion costs not repeated in 2026.
FHLB advances early termination penalties$2.3MN/A
Prepaid $220M of long-term fixed-rate FHLB advances at 4.57%; expected to recoup penalty in ~1.2 years.
Occupancy and other noninterest expense$11.2M-1% YoY
Largely flat; includes FDIC insurance, legal, and general administrative costs.
Margins: Total company NIM compressed 82bp YoY to 5.46%, driven primarily by $18.4M decline in TRS net interest income following contract nonrenewal. Traditional Banking NIM expanded to 4.10% from 3.79% despite FFTR reductions, benefiting from higher-yielding loan originations and improved deposit mix, though management expects FFTR cuts will pressure future margins.
Watch Items from the Filing
TRS revenue concentration risk: nonrenewal of largest tax provider contract eliminated $8.4M of net income (~18% of segment). Remaining RA originations down 63% YoY to $246M; era/RA volume entirely dependent on tax season marketing success.
Net interest margin vulnerability: 82bp YoY compression driven by rate cuts; traditional banking benefited from yield curve steepness but faces pressure from continued FFTR reductions and deposit beta management.
RPS revenue share uncertainty: largest prepaid marketer-servicer did not meet minimum contractual deposit thresholds in Q1 2026, eliminating revenue share; threshold levels near critical, making future realization uncertain.
Warehouse lending sensitivity: demand highly dependent on long-end mortgage rates; 16% QoQ loan decline reflects volatile origination activity despite increased committed line capacity to $1.22B.
Nonperforming assets deterioration: traditional banking nonperforming loans increased to 0.69% from 0.52% QoQ; delinquent loans surged to 0.72% from 0.31%, signaling potential credit stress ahead.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About REPUBLIC BANCORP INC /KY/ (RBCAA): stock profile, AI score and financials
REPUBLIC BANCORP INC /KY/ (RBCAA) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores RBCAA at 58.8/100 on a composite quality score built from its SEC filings, placing it at rank #980 of 2,925 stocks — the top half of the AI-ranked universe. RBCAA scores in the top quartile across profitability (89.9), institutional flow (88.4), free cash flow (87.2). Areas of concern include revenue scale (33.9), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), REPUBLIC BANCORP INC /KY/ reports quarterly revenue of $101.3M, net income of $32.9M, an operating margin of 42.0%. Top institutional holders of RBCAA by reported 13-F value include DIMENSIONAL FUND ADVISORS, BlackRock, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. RBCAA trades on the Nasdaq exchange and files with the SEC under CIK 921557. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate RBCAA daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for REPUBLIC BANCORP INC /KY/ directly from SEC EDGAR.