REPUBLIC BANCORP INC /KY/ 8-K

What Happened
Republic Bancorp, Inc. (filed on Dec. 22, 2025) announced that its subsidiary Republic Bank & Trust Company entered into an Asset Purchase Agreement on Dec. 19, 2025 to sell substantially all assets of its Republic Bank Finance division (RBF) to CAN Capital Merchant Services, Inc. CAN is expected to purchase roughly $80 million of loans and leases, assume about $3 million of related liabilities, and take over ongoing RBF operations. The parties expect the transaction to close in the first quarter of 2026, subject to customary conditions and CAN obtaining financing.

Key Details

• Asset Purchase Agreement dated Dec. 19, 2025; 8‑K filed Dec. 22, 2025.
• RBF assets to be sold: ~ $80 million in loans and leases; liabilities to be assumed: ~ $3 million.
• Purchase price = net book value at closing + a fixed premium; Republic expects a gain of about $6 million (net of broker commissions).
• RBF was acquired in March 2023 with the CBank purchase; CAN (Marietta, GA) is an alternative small‑business finance provider. Closing depends on customary conditions and CAN’s financing.

Why It Matters
This is a divestiture of a small, specialized lending unit (RBF) that will reduce Republic’s on‑balance-sheet loans/leases by about $80 million and result in an expected one‑time gain (~$6M net). For investors, the deal may modestly improve reported earnings at closing and narrows Republic’s business focus by exiting the single‑office leasing/small‑ticket finance operation. The transaction is still subject to closing conditions, including CAN obtaining financing, so timing and final economics could change.