Republic Bancorp, Inc. (RBCAA): PESTLE Analysis [Nov-2025 Updated]

You need to know how the macro environment impacts Republic Bancorp, Inc.'s (RBCAA) growth trajectory. The short answer: Political tailwinds and strong economic performance-like the projected $6.97 Diluted EPS for 2025-are setting the stage, but the bank must execute on digital transformation and manage fragmented Environmental, Social, and Governance (ESG) risk. Let's dig into the Political, Economic, Sociological, Technological, Legal, and Environmental forces you need to watch.

The incoming US administration's shift toward a pro-growth, deregulatory stance is a significant tailwind for Republic Bancorp, Inc. The biggest potential win is the expected rollback of the Basel III Endgame capital provisions, which would ease capital requirements for regional banks like RBCAA. Less regulation means more capital flexibility.

Also, easing the Long-Term Debt (LTD) mandates could save regional banks an estimated $70 billion in new securities issuance across the sector. Still, the political focus on regional bank stability remains high following the 2023 sector turmoil, so oversight isn't disappearing.

The regulatory pendulum is swinging back to favor growth.

The numbers for 2025 are strong and point to clear momentum. Fiscal Year 2025 revenue is forecasted at $382.03 million, representing a significant 15.62% year-over-year increase. Plus, Diluted Earnings Per Share (EPS) for 2025 is projected to hit $6.97, an impressive 35.66% jump from 2024.

This growth is grounded in solid performance; third-quarter 2025 net income rose 12% to $29.7 million, driven by a Core Bank Net Interest Margin (NIM), which is the difference between interest income and interest paid, of 3.78%. Industry tailwinds from a steepening yield curve are boosting net interest income. Here's the quick math: higher NIM on approximately $7.1 billion in total assets (as of March 31, 2025) directly translates to higher profits.

The financial foundation is robust.

Republic Bancorp, Inc. operates banking centers across five states, meaning a nuanced, local community focus is critical for deposit and loan growth. They are strategically expanding into high-growth metropolitan areas like Nashville, supported by new local partnerships established in September 2025.

The core challenge is adapting branch and product offerings for the digital-first expectations of Millennial and Gen Z customers. A new marketing partnership with BUNTIN aims to elevate brand identity and community engagment across those five core states. Honestly, if the digital experience lags, the new partnerships won't matter much.

Community engagement is the deposit engine.

Increased technology spending is now prioritized across the sector to maximize existing systems and improve operational effeciency. For Republic Bancorp, Inc., core technology investments focus on three key areas:

• Improve digital banking experience.
• Strengthen fraud prevention.
• Automate to reduce non-interest expenses.

Growing adoption of Artificial Intelligence (AI) for risk management and customer service demands new governance frameworks. Their participation in the Raymond James 2025 U.S. Bank and Banking on Tech Conferences signals a defintely active digital strategy.

Automation is the new cost-cutting tool.

Republic Bancorp, Inc. must navigate a complex legal landscape, especially with new C-Suite appointments in August 2025, including a Chief Legal Officer & General Counsel and a Chief Risk & Compliance Officer. This signals a heightened focus on governance and risk.

The bank must maintain ongoing compliance with federal regulations (e.g., Dodd-Frank) and state banking laws across Kentucky, Indiana, Ohio, Florida, and Tennessee. They also must navigate a fragmented US Environmental, Social, and Governance (ESG) regulatory environment, which contrasts sharply with stricter European standards. Shareholder ratification of Forvis Mazars, LLP as the independent auditor for the 2025 fiscal year ensures governance oversight.

New leadership means tighter compliance.

Regional banks face growing pressure for climate risk assessments and integrating Environmental, Social, and Governance (ESG) into lending practices. The US regulatory environment for ESG remains fragmented, creating both opportunity and legal risk for greenwashing claims (misrepresenting environmental practices).

Investors increasingly demand transparency on physical climate risks, especially for commercial real estate (CRE) portfolios, which are a core part of many regional banks' balance sheets. What this estimate hides is that the company does not currently have a publicly available, dedicated ESG or corporate responsibility report for its US operations.

ESG is a rising investor demand, not just a compliance issue.

Next Action: Chief Risk Officer: Draft a 1-page internal memo by the end of the year outlining the potential cost savings from the anticipated Basel III Endgame rollback and the immediate investment required for AI governance frameworks.

Republic Bancorp, Inc. (RBCAA) - PESTLE Analysis: Political factors

Incoming US administration favors a pro-growth, deregulatory stance

The political landscape in late 2025 is defined by a new US administration that has signaled a clear shift toward a pro-growth, deregulatory posture for the financial sector. This is a significant tailwind for regional banks like Republic Bancorp, Inc. (RBCAA). The expectation is for a 'lighter-touch regulatory regime' that will prioritize economic expansion and ease the burden of compliance, which had become increasingly complex and costly under the prior administration.

This political environment is expected to accelerate bank consolidation, as the new leadership at agencies like the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) is likely to take a more streamlined approach to bank mergers and acquisitions (M&A). For RBCAA, a bank with approximately $7.5 billion in total assets as of the 2025 fiscal year, this could mean a more favorable environment for strategic growth or a more attractive valuation if a sale were considered.

Potential rollback of Basel III Endgame capital provisions is expected to ease bank capital requirements

The most immediate and material political opportunity for RBCAA lies in the fate of the proposed Basel III Endgame (B3E) capital rules. The original 2023 proposal, which aimed to implement global standards for risk-weighted assets (RWA), would have extended rigorous new requirements to banks with $100 billion or more in total consolidated assets, with regional banks facing an estimated 10% increase in capital requirements.

However, the new administration's appointees are actively working on a re-proposal, or are expected to table the rule entirely, with some analysts suggesting the original B3E proposal is defintely dead. The prevailing political consensus favors exempting domestic regional and community banks from the most stringent provisions, focusing capital increases only on the largest, most internationally active institutions. This rollback or significant watering-down of B3E will prevent a substantial increase in compliance costs and capital reserves for the regional banking sector.

Easing of Long-Term Debt (LTD) mandates could save regional banks an estimated $70 billion in new securities issuance

A parallel regulatory proposal, the Long-Term Debt (LTD) mandate, is also poised for significant easing or withdrawal. This proposal would have required certain midsize and larger banking organizations to issue a minimum amount of unsecured long-term debt to enhance resolvability (the ability to be wound down in a crisis without taxpayer funds).

Regulators initially estimated that affected banking organizations, those with $100 billion or more in assets, would need to issue approximately $70 billion of new LTD over a three-year phase-in period. Industry groups, however, estimated the shortfall for these regional banks to be as high as $104 billion. The political pivot toward deregulation is expected to eliminate or drastically reduce this requirement, saving regional banks the high cost of issuing this new, higher-cost debt in the 2025 fiscal year and beyond. That's a huge capital cost avoided.

Political focus on regional bank stability remains high following the 2023 sector turmoil

Despite the push for deregulation, the political and regulatory focus on regional bank stability remains intense, a direct consequence of the 2023 failures of Silicon Valley Bank, Signature Bank, and First Republic Bank. The memory of that turmoil ensures that even a pro-growth administration will maintain scrutiny on key risk areas.

Regulators are still prioritizing financial resilience, with a strong emphasis on risk management and controls. For RBCAA, this means the supervisory tone will remain firm on core issues:

• Maintain strong capital buffers to cushion against shocks.
• Address commercial real estate (CRE) exposure, a key vulnerability.
• Improve liquidity and interest rate risk management practices.

The core political action for RBCAA is to capitalize on the reduced regulatory burden while demonstrating proactive, conservative risk management to satisfy the ongoing, post-crisis supervisory scrutiny.

Republic Bancorp, Inc. (RBCAA) - PESTLE Analysis: Economic factors

You're looking for a clear picture of Republic Bancorp, Inc.'s financial momentum in a complex economic environment, and the numbers for 2025 paint a strong, though nuanced, story. The core takeaway is that the company is successfully executing a margin-expansion strategy, capitalizing on both internal discipline and external market shifts like the steepening yield curve.

The firm's financial projections for the full fiscal year 2025 are defintely impressive, showing significant top- and bottom-line growth. This performance is largely driven by a strong Core Bank segment, which represents approximately 94% of the Company's total assets.

Fiscal Year 2025 Revenue and EPS Projections

The analyst consensus for Republic Bancorp, Inc. points to a robust fiscal year. Revenue is forecasted to hit $382.03 million for 2025, which is a substantial 15.62% year-over-year increase from the $330.43 million reported in 2024. That's solid growth in a competitive regional banking landscape.

More critically, Diluted Earnings Per Share (EPS) for 2025 is projected to reach $6.97, an impressive 35.66% jump from the $5.14 recorded in the prior year. This kind of EPS acceleration signals effective capital deployment and margin management, not just simple balance sheet expansion.

Third-Quarter 2025 Performance and Margin Strength

The third quarter of 2025 confirmed this strong trajectory. Net income for the quarter rose 12% year-over-year to $29.7 million. This increase was primarily fueled by the Core Bank segment, which posted a 15% increase in net income. The Core Bank Net Interest Margin (NIM)-which is the difference between the interest income generated by assets and the interest paid on liabilities-improved significantly to 3.78%, up from 3.53% in the same quarter last year. This margin expansion is a direct result of disciplined pricing and a meaningful decrease in the cost of deposits.

Here's the quick math: a higher NIM on a large asset base translates directly to higher profitability, even if loan growth is moderate.

Industry Tailwinds and Asset Base

Republic Bancorp, Inc. is benefiting from broader economic tailwinds impacting regional banks. The most significant is the steepening yield curve. Regional banks operate on a model of 'maturity transformation,' meaning they fund themselves with short-term deposits and lend at longer-term rates. When the yield curve steepens-with long-term rates rising faster than short-term rates-this spread widens, which directly boosts Net Interest Income (NII) for banks like Republic Bancorp.

This macro-economic factor, combined with the company's size, positions it well:

• Total assets stood at approximately $7.1 billion as of March 31, 2025, providing a solid foundation for NII growth.
• The Core Bank's NII rose by $6.6 million, or 12%, in Q3 2025, demonstrating the immediate benefit of the improved margin.
• Regional banks are more sensitive to these yield curve movements than larger, more diversified counterparts, making the steepening curve a potent profit driver.

The key risk here is if the Federal Reserve is forced to cut rates too sharply due to a growth or credit shock, which could flatten the curve and pressure margins again. Still, the current environment is highly favorable for their core lending business.

Republic Bancorp, Inc. (RBCAA) - PESTLE Analysis: Social factors

You're operating in a banking environment where customer loyalty is no longer a given; it's earned minute-by-minute through digital convenience and local relevance. For Republic Bancorp, Inc., the social landscape in 2025 is defined by a dual mandate: expand strategically into high-growth metros while radically modernizing the customer experience for a younger, digital-first demographic. Honestly, the bank's core strength-its local, five-state footprint-is also its biggest challenge in a national, mobile-first market.

Strategic expansion into high-growth metropolitan areas like Nashville, supported by new local partnerships in September 2025

Republic Bancorp is wisely chasing population and economic growth, which is a key social trend. The Greater Nashville market, a high-growth metropolitan statistical area (MSA), is a prime example of this strategy. The bank currently operates four banking centers in the Nashville MSA, specifically in Franklin, Murfreesboro, Nashville, and Spring Hill, Tennessee. This isn't just about opening doors; it's about deep community integration.

In September 2025, the bank announced new local partnerships in the Greater Nashville area, underscoring a commitment to community investment that resonates with modern consumers. This local, partnership-driven approach is crucial for building trust and capturing market share in a competitive, fast-growing region. You can't just be a bank in the area; you must be of the community.

Need to adapt branch and product offerings for the digital-first expectations of Millennial and Gen Z customers

The biggest demographic shift is the financial coming-of-age of Generation Z (born 1997-2012). By 2025, an estimated 42.9 million Gen Zers in the U.S. and Canada are expected to use mobile banking, and over 4 million new accounts will be opened by this group annually through 2026. This is a massive opportunity, but it requires a different product mix and service model.

Millennial and Gen Z customers prioritize seamless digital experiences; over 55.7% of Gen Z prioritize mobile banking when choosing a bank. So, Republic Bancorp must ensure its mobile apps (available for iPhone, Android, and tablets) and online banking are defintely top-tier. Interestingly, research shows Gen Z still values the physical branch for complex transactions, so the bank's 47 banking centers must evolve into advice and expertise hubs, not just transaction centers. Here's the quick math: if your digital onboarding takes 10 minutes, you win; if it takes two days, you lose that customer to a neobank.

New marketing partnership with BUNTIN aims to elevate brand identity and community engagement across five core states

To bridge the gap between its local community roots and the need for a modern, unified brand, Republic Bank & Trust Company announced a strategic partnership with advertising agency BUNTIN in May 2025. This partnership is designed to elevate the bank's brand identity and amplify community engagement across its core markets. The new multi-stage marketing campaign, 'Time to Thrive™,' launched in June 2025.

This campaign is a direct response to the social demand for banks to be more than just transactional entities. It's a values-based marketing push. The core markets targeted by this enhanced marketing effort are:

• Louisville, Kentucky
• Nashville, Tennessee
• Cincinnati/Northern Kentucky
• Lexington, Kentucky
• Tampa, Florida

Banking centers operate across five states, requiring a nuanced, local community focus for deposit and loan growth

Republic Bancorp's structure is inherently local, operating 47 banking centers across five states: Kentucky, Indiana, Ohio, Florida, and Tennessee. This wide, yet concentrated, footprint means the bank can't use a single, national strategy. Each of its five Metropolitan Statistical Areas (MSAs) has distinct economic and social characteristics.

The bank's total assets were approximately $7.01 billion as of September 30, 2025. Maintaining this asset base and driving deposit growth requires a hyper-local approach to community engagement, particularly in the competitive deposit-gathering environment of 2025. The challenge is scaling a community-bank feel across five different state cultures. The table below shows the distribution of the bank's physical presence, highlighting the concentration in the Louisville MSA.

Republic Bancorp, Inc. (RBCAA) - PESTLE Analysis: Technological factors

Increased technology spending is prioritized across the sector to maximize existing systems and improve operational effeciency.

You're seeing a clear trend across the banking sector: technology spending is no longer just about new gadgets; it's a strategic, defensive investment to maximize existing core systems and drive down long-term operating costs. For Republic Bancorp, Inc., this is evident in their Q2 2025 Core Bank noninterest expenses, where Technology expenses increased by $1.0 million, or 16%, over the second quarter of 2024. Here's the quick math: that $1.0 million increase was primarily driven by enhanced security measures and the rollout of new ancillary systems, like the call center management upgrade, all aimed at boosting efficiency and customer experience.

This is a necessary cost of doing business right now. To be fair, you also have to factor in the one-time, significant cost of a major system overhaul. The company's presentation at the Raymond James 2025 U.S. Bank Conference noted a $5.9 million expense related to core conversion as of the first half of 2025, which is a massive commitment to modernizing the underlying infrastructure. That's a big, one-time hit, but it's a necessary step to future-proof the bank.

Core technology investments focus on digital banking experience, fraud prevention, and automation to reduce non-interest expenses.

The strategic focus of these elevated tech investments is clear: better customer experience and stronger risk mitigation. The banking industry as a whole is prioritizing efficiency, with 44% of bankers citing increasing operational efficiencies as a top strategic priority for 2025. This focus translates directly into investments in digital channels and automation.

For Republic Bancorp, the investments in new ancillary systems and enhanced security directly address the industry's top concerns. The new call center system is a direct play for a better digital banking experience, while the security enhancements are a response to the rising threat of financial crime. Across the industry, two key trends driving investment are Real-time Fraud Detection (17% of bankers) and Digital Transformation (16% of bankers). These are the areas where the bank must defintely stay competitive.

• Invest in Digital Channels to streamline customer service.
• Enhance Security to mitigate rising fraud risks.
• Automate back-office processes to reduce non-interest expenses.

Growing adoption of Artificial Intelligence (AI) for risk management and customer service, demanding new governance frameworks.

Artificial Intelligence (AI) is rapidly moving from pilot programs to production in the financial sector in 2025, and this shift is creating both a huge opportunity and a governance challenge. While Republic Bancorp has not publicly detailed its specific AI adoption figures, the pressure to adopt is immense, particularly for risk management and compliance.

The industry is already reacting to the governance demands of this technology. According to a 2025 Technology Survey, majorities of bank leaders have taken initial steps:

The next action for Republic Bancorp will be to move beyond policy drafting and integrate AI into core functions like fraud detection and personalized customer interactions. What this estimate hides is the complexity of integrating AI with legacy core systems, which is a major hurdle for regional banks.

Participation in the Raymond James 2025 U.S. Bank and Banking on Tech Conferences signals a defintely active digital strategy.

The company's decision to present at the Raymond James 2025 U.S. Bank and Banking on Tech Conferences on September 3-4, 2025, is a strong, public signal of an active and forward-looking digital strategy. This conference is a key venue for institutional investors and analysts to gauge a bank's technological roadmap and its commitment to innovation.

This participation confirms that technology is a central part of the bank's investor narrative and growth plan, not just a back-office cost. It shows management is actively benchmarking against peers and seeking capital to fund its tech-driven strategic priorities, which include creating 'best-in-class experiences' and continually improving operational efficiency, as highlighted in their presentation materials.

Finance: Track and report the return on investment (ROI) for the $1.0 million Q2 2025 technology expense increase by the end of Q4 2025.

Republic Bancorp, Inc. (RBCAA) - PESTLE Analysis: Legal factors

New C-Suite appointments in August 2025, including a Chief Legal Officer & General Counsel and a Chief Risk & Compliance Officer.

The legal and compliance framework for Republic Bancorp, Inc. saw a significant internal strengthening with key C-Suite promotions in mid-2025. On August 1, 2025, the Bank promoted two seasoned leaders from within, signaling a clear commitment to internal expertise for managing the increasingly complex regulatory environment.

Christy Ames was named Executive Vice President (EVP), Chief Legal Officer & General Counsel. She brings over 25 years of legal experience in the banking sector and is now responsible for overseeing the Bank's Legal and Audit departments, plus serving as Corporate Secretary for Republic Bancorp, Inc. and Republic Bank & Trust Company. Scott Nardi was promoted to Senior Vice President (SVP), Chief Risk & Compliance Officer, leading the Compliance, Risk, Bank Secrecy Act (BSA), Fraud, and Security departments. This move consolidates critical risk and compliance functions under one senior leader. Honestly, putting your most experienced legal and risk talent into these top roles is the only smart play right now.

Must navigate a fragmented US ESG regulatory environment, contrasting with stricter European standards.

Republic Bancorp, Inc. must navigate a highly fragmented and politically charged Environmental, Social, and Governance (ESG) regulatory landscape across the United States. While the European Union (EU) has moved toward mandatory, standardized disclosure-such as the EU Pillar 3 requirements for banks, which include calculating the Green Asset Ratio-the US environment is characterized by a patchwork of federal, state, and anti-ESG initiatives. This is defintely a challenge.

Specifically, the Bank operates in states that have enacted anti-ESG legislation in 2025, including Florida and Kentucky, plus Ohio and Tennessee. These state-level laws, often referred to as 'anti-boycott' or 'fair access' laws, generally prohibit financial institutions from denying services or discriminating against customers based on non-quantitative factors like ESG standards. For example, Florida's expanded fair access law (FL HB 989) and Tennessee's law (TN HB 2100) introduce new compliance layers, forcing the Bank to balance its own risk management practices with state mandates that restrict the consideration of certain ESG factors in lending or services. This state-by-state divergence complicates the Bank's enterprise risk management (ERM) framework significantly.

Ongoing compliance with federal regulations (e.g., Dodd-Frank) and state banking laws across Kentucky, Indiana, Ohio, Florida, and Tennessee.

As a financial holding company with approximately $7.01 billion in total assets as of September 30, 2025, Republic Bancorp, Inc. faces continuous, evolving compliance obligations under federal and state dual-banking systems. Key federal regulations stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act remain a central focus, even as new administrations attempt to roll back or refine certain provisions.

Two critical, near-term Dodd-Frank-related compliance issues for 2025 are:

• Section 1071 (Small Business Data Collection): Tier 1 filers must begin collecting data on small business loan applications starting July 18, 2025. This mandates significant operational changes for the Bank's lending platforms and data infrastructure.
• Section 1033 (Personal Financial Data Rights): The Consumer Financial Protection Bureau (CFPB) has signaled an intent to vacate the final rule on open banking in May 2025, following a lawsuit filed in the U.S. District Court for the Eastern District of Kentucky. This creates regulatory uncertainty around the future of consumer data rights and sharing standards.

In addition to federal oversight, the Bank must adhere to the specific state banking laws across its 47 banking centers in five states, each with its own regulator. This includes Kentucky, Indiana, Ohio, Florida, and Tennessee, which adds a layer of complexity to everything from lending practices to branch operations.

Shareholder ratification of Forvis Mazars, LLP as the independent auditor for the 2025 fiscal year ensures governance oversight.

Strong corporate governance is a non-negotiable legal requirement, and the ratification of the independent auditor provides a clear measure of that oversight. At the Annual Meeting of Shareholders held on April 24, 2025, the shareholders ratified the appointment of Forvis Mazars, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

This ratification ensures that the Bank's financial statements and internal controls over financial reporting will be subject to independent scrutiny, which is crucial for maintaining investor confidence and meeting Securities and Exchange Commission (SEC) filing requirements. Here's the quick math on the vote:

The overwhelming majority of votes in favor-over 35.4 million-demonstrates solid shareholder support for the Board's governance oversight and financial reporting process. This is a key indicator of stability in the legal and governance pillar.

Republic Bancorp, Inc. (RBCAA) - PESTLE Analysis: Environmental factors

Regional banks face growing pressure for climate risk assessments and integrating ESG into lending practices.

You are operating in a financial climate where investors, regulators, and the public are defintely pushing for greater transparency on environmental, social, and governance (ESG) factors, even for regional players like Republic Bancorp, Inc. The pressure isn't just about optics; it's about core risk management. Regional banks, in particular, hold a disproportionately high concentration of Commercial Real Estate (CRE) loans, which are directly exposed to physical climate risks.

This pressure maps directly to your lending portfolio. As of September 30, 2025, the Traditional Bank loan portfolio, which includes your CRE exposure, stood at $4.56 billion. That is a substantial asset base that needs climate-aware underwriting. You need to start quantifying how much of that $4.56 billion is in Federal Emergency Management Agency (FEMA) flood zones or coastal areas.

• Integrate physical risk data into CRE underwriting.
• Quantify loan-to-value (LTV) impact from severe weather events.
• Map high-risk assets against insurance coverage gaps.

The US regulatory environment for ESG remains fragmented, creating both opportunity and legal risk for greenwashing claims.

The regulatory landscape in the United States is currently a mess of conflicting signals, and that creates a strategic risk for you. Honestly, it's a double-edged sword. On one hand, the pressure for mandatory, standardized climate disclosure has eased for now. In October 2025, US federal bank regulators-the Federal Reserve, FDIC, and OCC-formally withdrew the framework of principles that were intended to help large banks manage climate-related financial risk. Their rationale is that existing standards are sufficient, but this move signals a political pullback on a unified, top-down climate risk mandate.

But here is the quick math on the risk: the lack of a clear federal mandate does not eliminate investor demand. Plus, without a dedicated, public report, you face an increased risk of greenwashing claims (exaggerating environmental efforts) or being perceived as a laggard. Investors are still demanding climate-related financial disclosures, and the withdrawal of the regulatory framework just shifts the burden back to market-driven expectations.

The company does not currently have a publicly available, dedicated ESG or corporate responsibility report for its US operations.

This is a major transparency gap that you need to address immediately. Republic Bancorp, Inc. does not currently publish a standalone, dedicated ESG or Corporate Responsibility report for its US operations. This absence makes it nearly impossible for analysts and investors to gauge your management of environmental and social risks, especially compared to peers who are moving toward Task Force on Climate-related Financial Disclosures (TCFD) or Global Reporting Initiative (GRI) standards.

The lack of a report means all your positive community and governance efforts are siloed, and you are missing the opportunity to influence your ESG ratings. This is costing you in terms of potential investor capital, as funds with ESG mandates simply cannot allocate to you without the data. You are leaving money on the table.

Investors increasingly demand transparency on physical climate risks, especially for commercial real estate (CRE) portfolios.

Your geographic footprint makes physical climate risk a material financial concern. Republic Bancorp, Inc. operates banking centers in five metropolitan statistical areas (MSAs), including the Tampa MSA in Florida and the Nashville MSA in Tennessee. Florida is ground zero for hurricane and sea-level rise risk, while Tennessee faces increasing flood and severe storm risks.

The convergence of CRE concentration and high-risk geography is a clear vulnerability. Investors are demanding to see how you model the impact of a Category 4 hurricane on the collateral value of your Tampa-area CRE loans. Since the specific CRE balance is not publicly broken out, the entire Traditional Bank loan portfolio of $4.56 billion is viewed with a higher risk premium until you provide granular data.

Here is a summary of the material exposure risk:

Next Step: Risk Management: Mandate a third-party climate risk vendor to conduct a scenario analysis on the Florida and Tennessee CRE portfolios by the end of Q1 2026.