Form 4: Republic Bancorp CIO Exercises Options, Adjusts Holdings
Insider Transaction Report
Republic Bancorp's EVP and Chief Information Officer, Jeff Starke, reported the exercise of stock options and subsequent share adjustments, including tax-related dispositions.
Summary
- Jeff Starke, EVP, Chief Information Officer of Republic Bancorp Inc. /KY/ (RBCAA), exercised 6,085 employee stock options for Class A Common Stock at an exercise price of $51.39 per share on December 8, 2025.
- Concurrently, 5,232 shares of Class A Common Stock were disposed of at $68.92 per share, likely to cover tax liabilities or the exercise price.
- Following these transactions, Starke directly holds 5,909.994 shares of Class A Common Stock.
- Indirect holdings include 852.76 shares through a 401(k) Plan, reflecting additions and changes in value since the last report.
- The total shares beneficially owned directly after the acquisition transaction was 11,141.994, which then reduced to 5,909.994 after the disposition.
- Remaining unexercised employee stock options include 6,720 shares at an exercise price of $42.74 (exercisable 12/31/2025, expires 12/31/2026), 5,605 shares at $49.25 (exercisable 01/01/2027, expires 01/01/2030), and 4,055 shares at $68.02 (exercisable 01/01/2028, expires 01/01/2031).
- Adjustments were made for additional dividend equivalent rights and 12.373 shares acquired under the Issuer's dividend reinvestment plan.
- Total shares were adjusted due to a transfer to Republic Bancorp's new Stock Incentive Plan administrator, resulting in fractional shares being cashed out.
Sentiment
Score: 6
Explanation: The filing reflects a standard insider transaction involving option exercise and tax-related share disposition. The executive realized value from options, which is generally positive, but also reduced direct holdings. No significant positive or negative operational news is conveyed.
Positives
- The executive exercised stock options, indicating a realization of value from previously granted incentives.
- The exercise price of $51.39 is lower than the disposition price of $68.92, suggesting a gain on the exercised options.
Negatives
- A significant portion of the acquired shares (5,232 out of 6,085) was immediately disposed of, likely to cover taxes, which reduces the executive's direct ownership stake post-exercise.
- Fractional shares were cashed out due to a plan administrator transfer, which might indicate minor administrative friction.
Future Outlook
NA
Industry Context
NA
Stakeholder Impact
- Shareholders may view the executive's exercise of options and retention of some shares as a sign of continued confidence, while the tax-related disposition is a common practice that does not necessarily indicate a lack of confidence.
Key Dates
| Date | Description |
|---|---|
| 12/31/2024 | Date employee stock option became exercisable (for the 6,085 shares exercised). |
| 12/08/2025 | Date of stock option exercise and share disposition transactions. |
| 12/10/2025 | Date the Form 4 was signed. |
| 12/31/2025 | Expiration date of the exercised employee stock option. |
| 12/31/2025 | Date employee stock option becomes exercisable (for 6,720 shares). |
| 12/31/2026 | Expiration date of employee stock option (for 6,720 shares). |
| 01/01/2027 | Date employee stock option becomes exercisable (for 5,605 shares). |
| 01/01/2028 | Date employee stock option becomes exercisable (for 4,055 shares). |
| 01/01/2030 | Expiration date of employee stock option (for 5,605 shares). |
| 01/01/2031 | Expiration date of employee stock option (for 4,055 shares). |
Recommendation
holdThis Form 4 filing details a routine insider transaction where an executive exercised stock options and subsequently sold a portion of the shares to cover taxes. Such transactions are common and do not typically provide new fundamental information about the company's operational performance or future prospects. Therefore, it does not warrant a change in investment recommendation based solely on this filing.
Keywords
Republic Bancorp, RBCAA, Jeff Starke, Insider Trading, Stock Options, Form 4, Beneficial Ownership, Executive Compensation, Equity Transactions, Dividend Reinvestment Plan, 401(k) Plan
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