Republic Bancorp — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $31.1 million for the third quarter of 2026, a 4% increase from $29.7 million in the same period in 2025.
• Diluted EPS was $1.59, up 5% from $1.52 in the third quarter of 2025.
• Achieved a Return on Average Assets (ROA) of 1.74% and a Return on Average Equity (ROE) of 10.48% for the quarter.
• Core Banking net income totaled $22.8 million, a 15% increase from $19.8 million in the prior year quarter.
• Core Banking net interest income increased 8% to $66.1 million, driven by a 25 basis point expansion in net interest margin to 4.03%.
• Core Banking noninterest income rose 4% to $10.9 million, while noninterest expenses decreased 3% to $45.9 million.
• Provision for expected credit losses was a net charge of $2.0 million for the quarter, compared to a net credit of $479,000 in the prior year period.
• Total Company Allowance for Credit Losses increased 15% to $93.1 million as of September 30, 2026, from $79.9 million in 2025.
• Total assets were approximately $7.08 billion as of September 30, 2026.

Guidance and Future Outlook:

• Management expects the higher-rate environment, following the Federal Reserve's 25 basis point rate increase in September 2026, to provide incremental growth to Core Bank net interest income in the near term.
• The Company aims to capitalize on growth opportunities, deepen client relationships, and deliver sustainable long-term value for shareholders, clients, and communities as it approaches 2027.
• Management remains well-positioned to navigate an evolving economic environment and continue executing its long-term strategy.

Business Segments and Product Lines:

• Core Banking: Traditional Banking average loans increased 3% to $4.70 billion, driven by strong commercial lending demand and reinvestment of cash flows into higher-yielding originations. Warehouse Lending average outstanding lines increased 2% to $585 million.
• Republic Payment Solutions (RPS): Launched late in the second quarter, the program generated approximately $180 million of lower-cost average deposits during the third quarter, enhancing liquidity and lowering the loan-to-deposit ratio.
• Republic Credit Solutions (RCS): Net income decreased 15% to $6.2 million due to higher provisions and noninterest expenses offsetting revenue growth; provision expense increased specifically due to growth in the LOC II product portfolio.
• Tax Refund Solutions (TRS): Net income was $1.0 million, down from $1.1 million in the prior year quarter.
• Noninterest Income Drivers: Service charges on deposits increased 26% to $10.9 million total noninterest income, driven by higher international margin and insufficient funds fees; mortgage banking income decreased 41% due to lower origination activity from higher long-term interest rates.
• Expense Management: Technology and interchange-related expenses decreased 7% combined, driven by a new core operating system contract implemented in October 2025.

Market and Competitive Landscape:

• Recognized as one of Bank Director's Top 25 publicly traded banks for the second consecutive year, based on profitability, capital adequacy, and credit quality among approximately 300 banks with assets exceeding $2 billion.
• The Federal Reserve increased the Federal Funds Target Rate to 3.75%-4.00% in September 2026, marking the first rate increase since July 2023.
• The Company operates 47 banking centers across five metropolitan statistical areas (Louisville, Lexington, Cincinnati, Tampa, and Nashville) in five states.

Risks and Challenges:

• The sale of approximately $82 million of loans and lease financing receivables in the first quarter of 2026 negatively impacted period-over-period comparisons.
• Higher provisioning requirements for the RCS LOC II product contributed to lower net income in that segment.
• Mortgage banking income was negatively impacted by a significant increase in long-term interest rates reducing origination activity.
• Nonperforming loans to total loans increased to 0.63% as of September 30, 2026, from 0.42% in the prior year quarter.

Management Commentary and Tone:

• Logan Pichel, President and CEO, described the results as "solid financial performance" reflecting the strength and consistency of the Core Banking franchise.
• Management highlighted "disciplined expense management," "solid credit quality," and a "relationship-driven business model" as key differentiators.
• Pichel noted that the successful launch of the RPS program and strong organic loan growth demonstrate the ability to generate high-quality earnings across market cycles.
• The tone was confident regarding the ability to capitalize on the return to a tightening interest rate cycle and the benefits of the new core operating system.

Other Key Points:

• The Company prepayed $220 million of higher-cost Federal Home Loan Bank (FHLB) advances in March 2026, reducing average FHLB advances by 63% and lowering borrowing costs.
• Average interest-bearing deposit costs decreased 33 basis points to 1.99%, driven by disciplined deposit pricing and generally lower market rates.
• The Company's Class A Common Stock is listed on the NASDAQ Global Select Market under the symbol "RBCAA."
• Financial supplements containing segment-level results are available as Exhibit 99.2 to the Company's Form 8-K filed with the SEC on October 23, 2026.