Republic Bank & Trust

Press Release

Republic Completes Most Successful Quarter in Company History as Net Income Surpasses $25 Million, an Increase of 16% Over the First Quarter 2008

Company Release - 4/22/2009 8:30 AM ET

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Republic Bancorp is pleased to report net income of $25.8 million for the first quarter of 2009, a $3.6 million, or 16%, increase over the first quarter of 2008. Diluted Earnings per Class A Common Share increased 16% for the quarter to $1.24. Return on average assets ("ROA") and return on average equity ("ROE") were both strong during the quarter at 2.47% and 35.11%, respectively. Steve Trager, Republic's President & CEO, noted, "Republic completed another record first quarter despite continued turbulent conditions in the national economy. The first quarter was highlighted by an improving net interest margin, exponential growth in mortgage banking and a very successful tax season."

The following chart briefly highlights Republic's first quarter 2009 financial performance compared to the first quarter of 2008.

(dollars in thousands, except per share  Three Months  Three Months  Percent
data)                                    Ended         Ended         Change
                                         3/31/09       3/31/08

Total Company

Pre Tax Net Income                       $ 42,011      $ 34,393      22%

Net Income                               25,759        22,123        16%

Diluted Earnings per Class A Share       1.24          1.07          16%



Republic Bancorp, Inc. ("Republic" or the "Company") (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company for Republic Bank & Trust Company and Republic Bank.

Tax Refund Solutions

Net income at TRS increased from $16.5 million during the first quarter of 2008 to $20.9 million for the first quarter of 2009. The rise in net income resulted primarily from a healthy increase in volume as the Company processed $7.6 billion in electronic refunds for 2.1 million customers during the first quarter of 2009, a 47% increase over the amount processed during the first quarter of 2008.

Electronic Refund Check ("ERC") volume grew substantially during the quarter resulting in a 64% increase in net ERC fee income to $22.9 million for the first quarter of 2009. Refund Anticipation Loan ("RAL") volume, which represented 32% of all refunds processed during the first quarter, grew nicely as well, contributing to a 42% increase in net RAL fees for the first three months of 2009. Overall, the average RAL originated by the Company was $3,500 with an average fee of $102 during the first quarter of the year.

The increase in fee income from the higher product origination volume during the first quarter of 2009 was partially offset by higher anticipated losses for RALs, as profitability at TRS is significantly influenced by the loss rate incurred on RALs. As of March 31, 2009, $34.9 million of total RALs originated were outstanding past their expected funding date from the IRS compared to $19.2 million at March 31, 2008, representing 1.43% and 1.11% of total gross RALs originated. The higher year-over-year "unfunded" RAL rate was primarily related to an increase in the amount of refunds held by the IRS for reasons such as audits and liens from prior debts.

The Company expects the actual loss rate realized will be less than the current uncollected amount, as the Company will continue to receive payments from the IRS throughout the year and make other collection efforts to obtain repayment on the loans. As a result of the higher current overall RAL uncollected rate, the TRS segment's provision for loan losses increased from $7.5 million during the first quarter of 2008 to $22.0 million during the first quarter of 2009. The Company's gross loss reserves for RALs equaled 1.10% and 0.87% of total RALs originated during the first quarter of each year. Based on the Company's 2009 RAL volume, each 0.10% increase in the loss rate for RALs represents approximately $2.5 million in additional provision for loan loss expense.

"We are extremely pleased with the overall performance of our tax business. As with all of our non traditional banking products, none of their successes would be possible without the sound performance of our Bank," further noted Trager.

Mortgage Banking and Traditional Banking

The Company's Mortgage Banking segment had exceptionally strong performance during the first quarter of 2009, with mortgage banking income increasing $2.6 million, or 161%. Consistent with the overall decline in long-term rates during December of 2008 and into the first quarter of 2009, the Company experienced a $114 million increase in the origination of 15- and 30-year fixed rate loans that were sold into the secondary market. In addition, the Company's pipeline of 15-, 20- and 30-year fixed rate secondary market loans in process increased to $268 million at March 31, 2009.

Mortgage banking income also benefited during the first quarter of 2009 by $1.1 million for an increase in the fair value of its Mortgage Servicing Rights ("MSRs"). The increase in the fair value of its MSRs was primarily due to a decline in the expected prepayment speed of the Company's sold loan portfolio which it services. As a result, the Company reduced a previously established valuation allowance for its MSRs to $122,000 at quarter end.

Net interest income within the traditional Banking segment increased $2.8 million, or 11%, for the quarter to $28.0 million. Net interest income within the traditional Banking segment continued to benefit from a lowering cost of funds and disciplined pricing within the Company's loan portfolio. Overall, the Banking segment's net interest margin increased to 3.85% for the first quarter of 2009. "We are pleased with our net interest margin results for our traditional Banking segment during the first quarter of 2009. With slowing commercial and adjustable rate retail loan demand in our markets, however, it is unlikely that we will be able to continue to grow our net interest margin as we have in the past. Instead, while consumer demand for long-term fixed rate loans remains strong, the Company will continue to focus its efforts on generating secondary market loan volume, retaining the servicing on these loans while attracting a valuable long-term core deposit," further commented Steve Trager.

Within the Company's traditional Banking segment, non interest income declined $3.3 million to $2.8 million. During the first quarter of 2009, the Company recorded an Other-Than-Temporary Impairment charge of $3.1 million related to its private label securities portfolio.

Total non interest expense within the traditional Banking segment increased $3.4 million, or 16%, during the first quarter of 2009 compared to the first quarter of 2008. The increase in non interest expense was modest despite a significant growth in banking centers from the prior year, as well as a $619,000 increase in FDIC insurance assessments. The Company recorded $1.7 million in write-downs during the first quarter of 2009 for its Other Real Estate Owned ("OREO") properties. Also included in the Banking segment's non interest expense number for the quarter was a pre-tax charge in occupancy and equipment of $138,000 associated with remaining scheduled lease payments and acceleration of depreciation for leasehold improvements for one of the Company's northern Kentucky banking centers that it elected to close during the quarter.

Despite traditional Banking credit quality numbers that remain significantly better than peer, Republic continued to experience an increase in its non-performing loan portfolio during the quarter. Compared to December 31, 2008, Republic's non performing loans to total loans ratio increased from 0.58% to 1.06% at March 31, 2009. The increase in non performing loans was spread across several loan categories, with the largest increases in the real estate construction and commercial real estate categories. As a result of the increase in non performing loans, the Company recorded a loan loss provision of $3.7 million in the Banking segment during the first quarter, increasing its allowance to total loan ratio for traditional Banking loans to 0.77% as of March 31, 2009. "As always, credit quality remains our number one focus at Republic. We continue to deploy significant resources, including those at the most senior levels within the Company, in order to maintain our credit quality standards," noted Trager.

CONCLUSION

"As we conclude another successful quarter, we look ahead to the remainder of 2009 with much optimism. While the economy continues to weaken and more Americans struggle to meet their monthly payment obligations, Republic remains committed to serving credit-worthy clients, including small businesses and homeowners. While others in the industry are incurring significant losses for activities that we largely avoided, the Company's capital position has grown stronger and our credit quality remains better than peer, as we continue to be a sanctuary for our clients' hard earned dollars in these uncertain economic times. As we do each year, we look forward to meeting our challenges head-on, seeking to capitalize on opportunities that create long-term shareholder value. As we are proud to remind our clients, our associates and our shareholders, 'we were here for you yesterday, we are here for you today, and we will be here for you tomorrow,(TM)'"concluded Steve Trager.

Republic Bancorp, Inc. (Republic) has 45 banking centers and is the parent company of: Republic Bank & Trust Company with 36 banking centers in 14 Kentucky communities - Bowling Green, Covington, Crestwood, Elizabethtown, Florence, Fort Wright, Frankfort, Georgetown, Independence Lexington, Louisville, Owensboro, Shelbyville and Shepherdsville and three banking centers in southern Indiana: Floyds Knobs, Jeffersonville and New Albany. Republic Bank has banking centers in Hudson, Palm Harbor, Port Richey, New Port Richey and Temple Terrace, Florida as well as Cincinnati, Ohio. Republic operates Tax Refund Solutions, a nationwide tax refund loan and check provider. Republic offers internet banking at www.republicbank.com. Republic has $3.3 billion in assets and $1 billion in trust assets under custody and management. Republic is headquartered in Louisville, Kentucky, and Republic's Class A Common Stock is listed under the symbol 'RBCAA' on the NASDAQ Global Select Market.

Statements in this press release relating to Republic's plans, objectives, or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations. Republic's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed in Republic's 2008 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.

Republic Bancorp, Inc. Financial Information
First Quarter 2009 Earnings Release
(all amounts other than per share amounts and number of employees and number of
banking centers are expressed in thousands unless otherwise noted)

Balance Sheet Data

                                     Mar. 31, 2009  Dec. 31, 2008  Mar. 31, 2008

Assets:

Cash and cash equivalents            $ 442,039      $ 616,303      $ 102,726

Investment securities                  452,782        904,674        552,320

Mortgage loans held for sale           11,499         11,298         10,866

Loans                                  2,314,689      2,303,857      2,360,610

Allowance for loan losses              (17,878   )    (14,832   )    (15,025   )

Federal Home Loan Bank stock, at       26,248         25,082         24,433
cost

Premises and equipment, net            40,700         42,885         39,373

Goodwill                               10,168         10,168         10,168

Other assets and accrued interest      57,398         39,933         38,560
receivable

Total assets                         $ 3,337,645    $ 3,939,368    $ 3,124,031

Liabilities and Stockholders'
Equity:

Deposits:

Non interest-bearing                 $ 380,039      $ 273,203      $ 324,279

Interest-bearing                       1,588,756      2,470,166      1,481,157

Total deposits                         1,968,795      2,743,369      1,805,436

Securities sold under agreements to
repurchase and other short-term        325,214        339,012        329,472
borrowings

Federal Home Loan Bank advances        635,191        515,234        623,580

Subordinated note                      41,240         41,240         41,240

Other liabilities and accrued          63,622         24,591         61,398
interest payable

Total liabilities                      3,034,062      3,663,446      2,861,126

Stockholders' equity                   303,583        275,922        262,905

Total liabilities and Stockholders'  $ 3,337,645    $ 3,939,368    $ 3,124,031
equity



Average Balance Sheet Data

                                                    Three Months Ended March 31,

                                                    2009         2008

Assets:

Investment securities                               $ 572,694    $ 624,470

Federal funds sold and other                          795,834      119,573

Loans and fees                                        2,612,313    2,463,090

Total earning assets                                  3,980,841    3,207,133

Total assets                                          4,174,783    3,393,186

Liabilities and Stockholders' Equity:

Non interest-bearing deposits                       $ 531,496    $ 435,867

Interest-bearing deposits                             2,355,747    1,680,480

Securities sold under agreements to repurchase and    327,006      405,214
other short-term borrowings

Federal Home Loan Bank advances                       547,540      519,637

Subordinated note                                     41,240       41,240

Total interest-bearing liabilities                    3,271,533    2,646,571

Stockholders' equity                                  293,456      254,736



Income Statement Data

                                            Three Months Ended March 31,

                                            2009        2008

Total interest income (1)                   $ 97,357    $ 67,760

Total interest expense                        16,541      23,132

Net interest income                           80,816      44,628

Provision for loan losses                     25,665      10,499

Non interest income:

Service charges on deposit accounts           4,422       4,545

Electronic refund check fees                  22,905      13,960

Net RAL securitization income                 412         12,587

Mortgage banking income                       4,174       1,602

Debit card interchange fee income             1,159       1,149

Net loss on sales, calls and impairment of    (3,125 )    (219   )
securities

Other                                         555         320

Total non interest income                     30,502      33,944

Non interest expenses:

Salaries and employee benefits                14,516      14,500

Occupancy and equipment, net                  5,909       4,672

Communication and transportation              1,923       1,338

Marketing and development                     10,977      6,759

FDIC insurance assessment                     1,050       59

Bank franchise tax expense                    635         723

Data processing                               770         717

Debit card interchange expense                674         576

Supplies                                      878         556

Other                                         6,310       3,780

Total non interest expenses                   43,642      33,680

Income before income tax expense              42,011      34,393

Income tax expense                            16,252      12,270

Net income                                  $ 25,759    $ 22,123



                                                   Three Months Ended March 31,

                                                   2009        2008

Per Share Data:

Basic average shares outstanding                     20,662      20,339

Diluted average shares outstanding                   20,832      20,615

End of period shares outstanding:

Class A Common Stock                                 18,412      18,057

Class B Common Stock                                 2,310       2,344

Book value per share                               $ 14.65     $ 12.89

Earnings per share:

Basic earnings per Class A Common Stock              1.25        1.09

Basic earnings per Class B Common Stock              1.24        1.08

Diluted earnings per Class A Common Stock            1.24        1.07

Diluted earnings per Class B Common Stock            1.23        1.06

Cash dividends declared per share:

Class A Common Stock                                 0.121       0.110

Class B Common Stock                                 0.110       0.100

Performance Ratios:

Return on average assets                             2.47   %    2.61   %

Return on average equity                             35.11       34.74

Efficiency ratio (2)                                 38          43

Yield on average earning assets                      9.78        8.45

Cost of interest-bearing liabilities                 2.02        3.50

Net interest spread                                  7.76        4.95

Net interest margin                                  8.12        5.57

Asset Quality Ratios:

Loans on non-accrual status                          24,133      16,791

Loans past due 90 days or more and still on          352         1,340
accrual

Total non-performing loans                           24,485      18,131

Other real estate owned                              6,386       950

Total non-performing assets                          30,871      19,081

Non-performing loans to total loans                  1.06   %    0.77   %

Non-performing assets to total loans (including      1.33        0.81
OREO)

Allowance for loan losses to total loans             0.77        0.64

Allowance for loan losses to non-performing loans    73          83

Net loan charge-offs to average loans - Total        3.46        1.32
Company

Net loan charge-offs to average loans - Banking      0.13        0.14
Segment

Delinquent loans to total loans (3)                  1.53        0.70

Other Information:

End of period full-time equivalent employees         742         717

Number of banking centers at period end              45          39



Balance Sheet
Data

                  Quarterly Comparison

                  March 31,      Dec. 31, 2008  Sept. 30,      June 30, 2008  March 31,
                  2009                          2008                          2008

Assets:

Cash and cash     $ 442,039      $ 616,303      $ 72,735       $ 88,565       $ 102,726
equivalents

Investment          452,782        904,674        546,328        510,661        552,320
securities

Mortgage loans      11,499         11,298         6,758          11,621         10,866
held for sale

Loans               2,314,689      2,303,857      2,318,373      2,348,509      2,360,610

Allowance for       (17,878   )    (14,832   )    (14,247   )    (17,995   )    (15,025   )
loan losses

Federal Home
Loan Bank stock,    26,248         25,082         25,082         24,754         24,433
at cost

Premises and        40,700         42,885         42,225         39,859         39,373
Equipment, net

Goodwill            10,168         10,168         10,168         10,168         10,168

Other assets and
interest            57,398         39,933         37,632         37,067         38,560
receivable

Total assets      $ 3,337,645    $ 3,939,368    $ 3,045,054    $ 3,053,209    $ 3,124,031

Liabilities and
Stockholders'
Equity:

Deposits:

Non               $ 380,039      $ 273,203      $ 279,260      $ 293,210      $ 324,279
interest-bearing

Interest-bearing    1,588,756      2,470,166      1,521,607      1,335,743      1,481,157

Total deposits      1,968,795      2,743,369      1,800,867      1,628,953      1,805,436

Securities sold
under agreements
to repurchase       325,214        339,012        322,608        330,730        329,472
and other
short-term
borrowings

Federal Home
Loan Bank           635,191        515,234        577,294        749,837        623,580
advances

Subordinated        41,240         41,240         41,240         41,240         41,240
note

Other
liabilities and     63,622         24,591         25,808         31,461         61,398
accrued interest
payable

Total               3,034,062      3,663,446      2,767,817      2,782,221      2,861,126
liabilities

Stockholders'       303,583        275,922        277,237        270,988        262,905
equity

Total
liabilities and   $ 3,337,645    $ 3,939,368    $ 3,045,054    $ 3,053,209    $ 3,124,031
Stockholders'
equity

Average Balance
Sheet Data

                  Quarterly Comparison

                  March 31,      Dec. 31, 2008  Sept. 30,      June 30, 2008  March 31,
                  2009                          2008                          2008

Assets:

Investment        $ 572,694      $ 792,641      $ 538,270      $ 562,322      $ 624,470
securities

Federal funds       795,834        232,591        7,723          7,661          119,573
sold and other

Loans and fees      2,612,313      2,315,382      2,340,007      2,361,208      2,463,090

Total earning       3,980,841      3,340,614      2,886,000      2,931,191      3,207,133
assets

Total assets        4,174,783      3,470,788      3,010,211      3,055,623      3,393,186

Liabilities and
Stockholders'
Equity:

Non
interest-bearing  $ 531,496      $ 269,903      $ 279,061      $ 301,421      $ 435,867
deposits

Interest-bearing    2,355,747      1,940,405      1,413,704      1,360,818      1,680,480
deposits

Securities sold
under agreements
to repurchase       327,006        381,695        352,498        363,485        405,214
and other
short-term
borrowings

Federal Home
Loan Bank           547,540        536,161        622,011        675,918        519,637
advances

Subordinated        41,240         41,240         41,240         41,240         41,240
note

Total
interest-bearing    3,271,533      2,899,501      2,429,453      2,441,461      2,646,571
liabilities

Stockholders'       293,456        276,663        272,500        266,148        254,736
equity



Income
Statement Data

                Quarterly Comparison

                March 31,   Dec. 31, 2008  Sept. 30,   June 30, 2008  March 31,
                2009                       2008                       2008

Total interest  $ 97,357    $ 44,782       $ 43,927    $ 45,673       $ 67,760
income (4)

Total interest    16,541      16,805         16,081      16,400         23,132
expense

Net interest      80,816      27,977         27,846      29,273         44,628
income

Provision for     25,665      1,753          324         3,629          10,499
loan losses

Non interest
income:

Service
charges on        4,422       4,809          5,117       4,933          4,545
deposit
accounts

Electronic
refund check      22,905      88             738         2,970          13,960
fees

Net RAL
securitization    412         317            157         286            12,587
income

Mortgage          4,174       (270   )       1,071       1,133          1,602
banking income

Debit card
interchange       1,159       1,187          1,194       1,246          1,149
fee income

Net loss on
sales, calls      (3,125 )    (5,484 )       (5,273 )    (3,388 )       (219   )
and impairment
of securities

Other             555         313            410         356            320

Total non
interest          30,502      960            3,414       7,536          33,944
income

Non interest
expenses:

Salaries and
employee          14,516      12,392         12,611      12,615         14,500
benefits

Occupancy and     5,909       5,456          4,878       4,754          4,672
equipment, net

Communication
and               1,923       1,426          1,024       884            1,338
transportation

Marketing and     10,977      866            853         730            6,759
development

FDIC insurance    1,050       880            150         63             59
assessment

Bank franchise    635         573            599         703            723
tax expense

Data              770         739            646         669            717
processing

Debit card
interchange       674         590            624         612            576
expense

Supplies          878         392            328         373            556

Other             6,310       2,882          2,270       2,224          3,780

Total non
interest          43,642      26,196         23,983      23,627         33,680
expenses

Income before
income tax        42,011      988            6,953       9,553          34,393
expense

Income tax        16,252      384            2,451       3,130          12,270
expense

Net income      $ 25,759    $ 604          $ 4,502     $ 6,423        $ 22,123



                  Quarterly Comparison

                  March 31,   Dec. 31,    Sept. 30,   June 30, 2008  March 31,
                  2009        2008        2008                       2008

Per Share Data:

Basic average
shares              20,662      20,615      20,591      20,525         20,339
outstanding

Diluted average
shares              20,832      20,886      20,978      20,839         20,615
outstanding

End of period
shares
outstanding:

Class A Common      18,412      18,318      18,283      18,221         18,057
Stock

Class B Common      2,310       2,310       2,322       2,339          2,344
Stock

Book value per    $ 14.65     $ 13.38     $ 13.45     $ 13.18        $ 12.89
share

Earnings per
share:

Basic earnings
per Class A         1.25        0.03        0.22        0.31           1.09
Common Stock

Basic earnings
per Class B         1.24        0.02        0.21        0.30           1.08
Common Stock

Diluted earnings
per Class A         1.24        0.03        0.22        0.31           1.07
Common Stock

Diluted earnings
per Class B         1.23        0.02        0.20        0.30           1.06
Common Stock

Cash dividends
declared per
share:

Class A Common      0.121       0.121       0.121       0.121          0.110
Stock

Class B Common      0.110       0.110       0.110       0.110          0.100
Stock

Performance
Ratios:

Return on           2.47   %    0.07   %    0.60   %    0.84   %       2.61   %
average assets

Return on           35.11       0.87        6.61        9.65           34.74
average equity

Efficiency ratio    38          76          66          59             43
(2)

Yield on average    9.78        5.36        6.09        6.23           8.45
earning assets

Cost of
interest-bearing    2.02        2.32        2.65        2.69           3.50
liabilities

Net interest        7.76        3.04        3.44        3.54           4.95
spread

Net interest        8.12        3.35        3.86        3.99           5.57
margin

Asset Quality
Data:

Loans on
non-accrual         24,133      11,324      14,763      17,688         16,791
status

Loans past due
90 days or more     352         2,133       1,217       1,476          1,340
and still on
accrual

Total
non-performing      24,485      13,457      15,980      19,164         18,131
loans

Other real          6,386       5,737       2,017       2,160          950
estate owned

Total
non-performing      30,871      19,194      17,997      21,324         19,081
assets

Non-performing
loans to total      1.06   %    0.58   %    0.69   %    0.82   %       0.77   %
loans

Non-performing
assets to total     1.33        0.83        0.78        0.91           0.81
loans (including
OREO)

Allowance for
loan losses to      0.77        0.64        0.61        0.77           0.64
total loans

Allowance for
loan losses to      73          110         89          94             83
non-performing
loans

Net loan
charge-offs to      3.46        0.20        0.70        0.11           1.32
average loans -
Total Company

Net loan
charge-offs to      0.13        0.25        0.51        0.12           0.14
average loans -
Banking Segment

Delinquent loans
to total loans      1.53        1.07        1.05        1.01           0.70
(3)

Other
Information:

End of period
full-time           742         724         720         710            717
equivalent
employees

Number of
banking centers     45          45          45          42             39
at period end



Segment Data:

The reportable segments are determined by the type of products and services offered, distinguished between banking operations, mortgage banking operations and Tax Refund Solutions ("TRS"). Loans, investments and deposits provide the majority of revenue from banking operations; servicing fees and loan sales provide the majority of revenue from mortgage banking operations; Refund Anticipation Loan ("RAL") fees, Electronic Refund Check ("ERC")/ Electronic Refund Deposit ("ERD") fees and Net RAL securitization income provide the majority of the revenue from TRS. All Company segments are domestic. Segment information for the three months ended March 31, 2009 and 2008 follows:

                     Three Months Ended March 31, 2009

(dollars in          Banking        Tax Refund  Mortgage Banking  Total Company
thousands)                          Solutions

Net interest income  $ 27,958       $ 52,574    $ 284             $ 80,816

Provision for loan     3,657          22,008      -                 25,665
losses

Electronic Refund      -              22,905      -                 22,905
Check fees

Net RAL
securitization         -              412         -                 412
income

Mortgage banking       -              -           4,174             4,174
income

Other revenue          2,834          15          162               3,011

Total non interest     2,834          23,332      4,336             30,502
income

Total non interest     24,307         18,901      434               43,642
expenses

Gross operating        2,828          34,997      4,186             42,011
profit

Income tax expense     697            14,112      1,443             16,252

Net income           $ 2,131        $ 20,885    $ 2,743           $ 25,759

Segment assets       $ 3,187,188    $ 137,555   $ 12,902          $ 3,337,645

Net interest margin    3.85      %    NM          NM                8.12      %

                     Three Months Ended March 31, 2008

(dollars in          Banking        Tax Refund  Mortgage Banking  Total Company
thousands)                          Solutions

Net interest income  $ 25,130       $ 19,396    $ 102             $ 44,628

Provision for loan     3,046          7,453       -                 10,499
losses

Electronic Refund      -              13,960      -                 13,960
Check fees

Net RAL
securitization         -              12,587      -                 12,587
income

Mortgage banking       -              -           1,602             1,602
income

Other revenue          6,121          9           (335   )          5,795

Total non interest     6,121          26,556      1,267             33,944
income

Total non interest     20,877         12,564      239               33,680
expenses

Gross operating        7,328          25,935      1,130             34,393
profit

Income tax expense     2,499          9,385       386               12,270

Net income           $ 4,829        $ 16,550    $ 744             $ 22,123

Segment assets       $ 2,852,709    $ 260,379   $ 10,943          $ 3,124,031

Net interest margin    3.84      %    NM          NM                5.57      %



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(1) - The amount of loan fee income included in total interest income was $57.8 million and $19.4 million for the quarters ended March 31, 2009 and 2008.

(2) - Equals total non-interest expense divided by the sum of net interest income and non interest income. The ratio excludes net loss on sales, calls and impairment of investment securities.

(3) - Equals total loans over 30 days past due divided by total loans.

(4) - The amount of loan fee income included in total interest income per quarter was as follows: $57.8 million (quarter ended March 31, 2009), $1.4 million (quarter ended December 31, 2008), $1.3 million (quarter ended September 30, 2008), $2.2 million (quarter ended June 30, 2008) and $19.4 million (quarter ended March 31, 2008).

    Source: Republic Bancorp, Inc.
Contact: Republic Bancorp, Inc. Kevin Sipes, 502-560-8628 Executive Vice President and Chief Financial Officer