LOUISVILLE, Ky.--(BUSINESS WIRE)-- Republic Bancorp, Inc. is pleased to announce its fourth consecutive year of increased earnings by completing 2011 with net income of $94.1 million, a $29.4 million, or 45%, increase over 2010. Diluted Earnings per Class A Common Share increased 45% for the year ended December 31, 2011 to $4.49. For the fourth quarter of 2011, Republic earned net income of $6.2 million, a 40% increase over the fourth quarter of 2010. Diluted Earnings per Class A Common Share increased 43% to $0.30 for the quarter.

Steve Trager, Republics President and CEO, commented: It gives me great pleasure to report another solid quarter of operating results, capping off a good year of earnings in 2011. In addition, Im proud that our associates were able to generate core deposit and loan growth of 9% and 5% during the year, while maintaining good credit quality and high capital standards. With core capital and credit quality among the very best in the banking industry, we remain well-positioned to take advantage of unique opportunities that often arise in an uncertain economy.

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

The following table highlights Republics fourth quarter and annual financial performance for 2011 compared to the same periods in 2010:

		Three Months Ended								%			Year Ended								%
(dollars in thousands, except per share data)		12/31/11				12/31/10				Increase			12/31/11				12/31/10				Increase
Net Income		$	6,204			$	4,418			40	%		$	94,149			$	64,753			45	%
Diluted Earnings per Class A Share		$	0.30			$	0.21			43	%		$	4.49			$	3.10			45	%
ROA			0.76	%			0.54	%		41	%			2.76	%			1.85	%		49	%
ROE			5.46	%			4.75	%		15	%			21.42	%			17.92	%		20	%

Year in Review

The year 2011 represented another successful year for Republic. In addition to strong earnings results for the year, the Company also achieved many other successes while positioning itself well for the future. Following are a few brief highlights from 2011:

Resolution with the Federal Deposit Insurance Corporation (FDIC) regarding Tax Refund Solutions (TRS) RB&T settled its disagreement with the FDIC regarding the offering of Refund Anticipation Loans (RALs) through the TRS business segment. As a result of the resolution, RB&T is immediately positioned to resume traditional banking expansionary activities and will no longer offer RALs after April 30, 2012. For additional information regarding RB&Ts resolution with the FDIC, see the Companys Form 8-K filed with the Securities and Exchange Commission on December 9, 2011.

Improved Credit Quality As it has throughout the Companys history, credit quality remains a primary focus at Republic. The Company continued to dedicate many resources and high level associates to improving its already industry solid credit metrics in 2011. As a result of the efforts of all Republic associates, the Traditional Banking credit metrics continued to improve significantly from peak levels reached in 2009 as illustrated below:

		As of and for the Year Ending
Traditional Banking Credit Quality Ratios		12/31/11		12/31/10		12/31/09
Non-performing loans / Total loans		1.02%		1.30%		1.90%
Non-performing assets / Total loans (including OREO)		1.49%		1.84%		2.11%
Delinquent loans / Total loans		1.07%		1.24%		1.98%
Net loan charge-offs / Average loans		0.24%		0.51%		0.34%
OREO = Other Real Estate Owned

Traditional Bank Deposit Growth As it was during 2010, the year 2011 represented another solid year of core deposit growth. Despite historically low interest rates, the Traditional Bank was able to grow its low cost core deposit account base by $110 million during the year. The Company was able to attract these low cost deposit accounts by capitalizing on its attractive technology offerings, such as business on-site deposit and business on-line banking, in combination with superior customer service and the safety and soundness of a high performing institution.

Mortgage Warehouse Lending Division - In June 2011, the Bank commenced business in its newly established warehouse lending division. As of December 31, 2011, warehouse lines of credit outstanding were $41 million from total credit commitments of $80 million. Through this division, the Bank provides short-term, revolving credit facilities to mortgage banking companies secured by single family first lien residential real estate loans.

Increased Cash Dividends Despite continued uncertainty in the economic environment, Republic once again increased its cash dividend by 8% in the second quarter of 2011 thanks to its strong earnings and strong capital position. This represents the 12th consecutive year that the Company has increased its quarterly cash dividend.

National Recognition In July 2011, Sandler O'Neil & Partners released its annual rankings of the top 150 financial institutions in Bank Director Magazine, and for the second consecutive year, ranked Republic as the 5^th best performing bank in the country based on total assets, profitability, capital adequacy and asset quality.

Republic Bank Foundation In March 2010, the Company created the Republic Bank Foundation with a $5 million initial contribution. The Republic Bank Foundation was created to ensure the on-going legacy of giving that Republic has displayed throughout its 30-year history. Thanks to another strong year in 2011, Republic was able to further its support of the Foundation with another $5 million contribution during the year.

Sale of Bowling Green Banking Center During the third quarter of 2011, the Bank completed the sale of its Bowling Green, Kentucky, banking center. As a result of the sale, the Company recorded a pre-tax gain of $2.9 million. Republic sold its Bowling Green banking center to enable the Company to more efficiently deploy its capital.

Tax Refund Solutions (TRS) TRS completed another record year in 2011 generating net income of $67.3 million, as it processed over $15 billion in tax refunds for 3.9 million clients across the United States.

Results of Operations for the Fourth Quarter of 2011 Compared to the Fourth Quarter of 2010

Traditional Banking and Mortgage Banking (collectively Core Banking)

Net income from Core Banking rose from $6.8 million during the fourth quarter of 2010 to $7.8 million during the fourth quarter of 2011, an increase of 14%. As it did during the third quarter of 2011, the Core Bank continued to achieve positive operating results by increasing net interest income and reducing its provision for loan losses.

Net interest income within the Core Bank rose to $26.9 million for the fourth quarter of 2011, an increase of $1.4 million, or 5%, from the fourth quarter of 2010. The increase in net interest income for the quarter was attributable to continued positive results from strategies implemented by the Bank during 2011, which reversed a previously negative trend for net interest income, and contributed to a second consecutive quarterly increase in net interest income over prior year same quarter.

More specifically contributing to the increase in the Core Banks net interest income for the quarter was year-over-year growth in the loan portfolio combined with the continued redeployment of excess cash into higher-yielding investment securities. Overall, total loans increased $110 million, or 5%, for 2011, despite the loss of $13 million in loans associated with the sale of the Banks Bowling Green banking center. Supplementing the Banks internally-originated loan growth for the year was the purchase of $33 million in commercial real estate loans during the second quarter of 2011. The growth in the loan portfolio during the year was further complemented by Republics continued deployment of its excess cash into higher-yielding investment alternatives, such as 5/1 agency hybrid mortgage-backed securities and callable agency securities. As a result of the loan growth and strategic investment decisions, the Core Banks net interest margin increased from 3.40% for the fourth quarter of 2010 to 3.56% for the fourth quarter of 2011.

The Core Banks provision for loan losses decreased $1.1 million during the fourth quarter of 2011 compared to the fourth quarter of 2010. In general, the Core Banks provision continued to benefit from improvement in its credit quality metrics. Improvements continued to be recognized in the Core Banks ratio of delinquent loans to total loans, which was 1.07% at December 31, 2011 compared to 1.24% at December 31, 2010. In addition, the Core Banks ratio of nonperforming loans to total loans was 1.02% at December 31, 2011 compared to 1.30% at December 31, 2010.

Non-interest income, while lower compared to a strong fourth quarter 2010, contributed $6.3 million to the Core Banking segment for the fourth quarter of 2011. Notable activity within non-interest income during the quarter included mortgage banking income and service charges on deposits. Mortgage banking income, while contributing $807,000 during the fourth quarter of 2011, was negatively impacted by a slowdown in consumer refinance activity as compared to the fourth quarter of 2010. Overall, the Bank originated $41 million of secondary market loans during the fourth quarter of 2011 compared to $92 million during the fourth quarter of 2010.

Deposit fee income continued to be a significant contributor to the Core Banks bottom line. While lower compared to the fourth quarter of 2010 due to recently enacted regulatory constraints on consumer checking accounts, deposit fees generated $3.5 million in revenue for the quarter. Included in the figure for the quarter was approximately $488,000 in additional deposit fee income resulting from the Core Banks retail deposit account restructuring, which implemented new fees for many accounts based on transaction activity and account balances. These new fees were primarily implemented on August 1, 2011 and helped partially offset a reduction in the Banks other deposit fee categories as compared to the fourth quarter of 2010.

Core Banking non-interest expenses decreased $251,000 for the fourth quarter of 2011 to $20.6 million. Non-interest expenses benefited during the fourth quarter of 2011 from a $1.9 million credit to salary expense as the Company finalized its incentive compensation payouts for the year. By comparison, the Company recorded a $2.2 million credit to salary expense for reduced incentive compensation accruals during the fourth quarter of 2010.

TRS

TRS, which derives substantially all of its revenues during the first and second quarters of the year, historically operates at a net loss during the third and fourth quarters, as the Company prepares for the upcoming tax season. The net loss for TRS was $1.5 million for the fourth quarter of 2011 compared to a net loss of $2.4 million for the same period in 2010. TRS net loss during the fourth quarter of 2011 benefited from a $1.1 million credit to noninterest expense related to a previously disclosed Civil Money Penalty (CMP) assessed by the FDIC. The Company accrued $2.0 million for the full amount of the CMP during the second quarter of 2011 and reached a final settlement with the FDIC for $900,000 during the fourth quarter of 2011. Other items impacting the comparability of financial results for TRS during the fourth quarter of 2011 included higher legal fees for the Companys now-settled disagreement with the FDIC regarding RALs and higher salary costs for TRS staff.

Conclusion

As we look to the promise of a new year, I am more excited than ever about the prospects for Republic. The landscape for growth combined with Republics strong capital levels is reason for great optimism, as we seek to expand the Company through strategic acquisition opportunities and new business lines such as Mortgage Warehouse Lending. As always, we will be assertive as we embark on new opportunities, but cautious as well, keeping the long-term success of the Company and the long-term interests of the shareholder in mind. Its this long standing and proven approach to business that allows us to continue to say: We were here for you yesterday. We are here for you today. We will be here for you tomorrow, concluded Trager.

Republic Bancorp, Inc. (Republic) has 42 banking centers and is the parent company of Republic Bank & Trust Company and Republic Bank. Republic Bank & Trust Company has 34 banking centers in 12 Kentucky communities - Covington, Crestwood, Elizabethtown, Florence, 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 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 $3.4 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.

We were here for you yesterday. We are here for you today. We will be here for you tomorrow. ^®

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Companys current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. The Company cautions you therefore against relying on any of these forward-looking statements, which speak only as of the date on which they are made. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include factors disclosed from time to time in the Companys filings with the U.S. Securities and Exchange Commission, including those factors set forth as Risk Factors in the Companys Form 10-Q for the quarter ended September 30, 2011. The Company undertakes no obligation to update any forward-looking statements.

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 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
				Dec. 31, 2011				Dec. 31, 2010
Assets:
Cash and cash equivalents				$	362,971			$	786,371
Investment securities					674,022				542,694
Mortgage loans held for sale					4,392				15,228
Loans					2,285,295				2,175,240
Allowance for loan losses					(24,063	)			(23,079	)
Federal Home Loan Bank stock, at cost					25,980				26,212
Premises and equipment, net					34,681				37,770
Goodwill					10,168				10,168
Other assets and accrued interest receivable					46,545				52,099
Total assets				$	3,419,991			$	3,622,703
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing				$	408,483			$	325,375
Interest-bearing					1,325,495				1,977,317
Total deposits					1,733,978				2,302,692
Securities sold under agreements to repurchase and other short-term borrowings					230,231				319,246
Federal Home Loan Bank advances					934,630				564,877
Subordinated note					41,240				41,240
Other liabilities and accrued interest payable					27,545				23,272
Total liabilities					2,967,624				3,251,327
Stockholders' equity					452,367				371,376
Total liabilities and Stockholders' equity				$	3,419,991			$	3,622,703

Average Balance Sheet Data
		Three Months Ended Dec. 31,								Year Ended Dec. 31,
		2011				2010				2011				2010
Assets:
Investment securities, including FHLB stock		$	735,336			$	627,434			$	678,804			$	561,273
Federal funds sold and other interest-earning deposits			126,045				335,593				315,530				473,137
Loans and fees, including loans held for sale			2,255,757				2,188,937				2,246,259				2,338,990
Total earning assets			3,117,138				3,151,964				3,240,593				3,373,400
Total assets			3,246,296				3,283,198				3,416,921				3,503,886
Liabilities and Stockholders' Equity:
Non interest-bearing deposits		$	430,705			$	341,556			$	509,457			$	421,162
Interest-bearing deposits			1,379,159				1,579,281				1,540,515				1,725,891
Securities sold under agreements to repurchase and other short-term borrowings			275,085				352,890				278,861				330,154
Federal Home Loan Bank advances			625,047				565,314				558,249				574,181
Subordinated note			41,240				41,240				41,240				41,240
Total interest-bearing liabilities			2,320,531				2,538,725				2,418,865				2,671,466
Stockholders' equity			454,343				372,222				439,636				361,357

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 Earnings Release (continued)
Income Statement Data
	Three Months Ended Dec. 31,								Year Ended Dec. 31,
	2011				2010				2011				2010
Total interest income (1)	$	33,607			$	34,087			$	195,115			$	193,473
Total interest expense		6,710				8,652				30,255				36,661
Net interest income		26,897				25,435				164,860				156,812
Provision for loan losses		463				1,748				17,966				19,714
Non interest income:
Service charges on deposit accounts		3,524				3,860				14,105				15,562
Electronic refund check fees		124				276				88,195				58,789
Net RAL securitization income		4				37				207				265
Mortgage banking income		807				1,703				3,899				5,797
Debit card interchange fee income		1,399				1,322				5,791				5,067
Gain on sale of banking center		-				-				2,856				-
Net gain (loss) on sales, calls and impairment of securities		77				(95	)			2,006				(221	)
Other		533				551				2,565				2,399
Total non interest income		6,468				7,654				119,624				87,658
Non interest expenses:
Salaries and employee benefits		11,332				11,503				54,966				55,246
Occupancy and equipment, net		5,277				5,373				21,713				21,958
Communication and transportation		1,227				1,343				5,695				5,418
Marketing and development		729				697				3,237				10,813
FDIC insurance expense		707				670				4,425				3,155
Bank franchise tax expense		653				755				3,645				3,187
Data processing		855				719				3,207				2,697
Debit card interchange expense		549				507				2,239				1,741
Supplies		736				762				2,353				2,359
Other real estate owned expense		889				464				2,356				1,829
Charitable contributions		223				168				5,933				6,232
Legal expense		846				727				3,969				1,832
FDIC civil money penalty		(1,100	)			-				900				-
FHLB advance prepayment penalty		-				-				-				1,531
Other		1,616				1,729				7,683				8,325
Total non interest expenses		24,539				25,417				122,321				126,323
Income before income tax expense		8,363				5,924				144,197				98,433
Income tax expense		2,159				1,506				50,048				33,680
Net income	$	6,204			$	4,418			$	94,149			$	64,753

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 Earnings Release (continued)
		As of and for the								As of and for the
		Three Months Ended Dec. 31,								Year Ended Dec. 31,
		2011				2010				2011				2010
Per Share Data:
Basic average shares outstanding			20,954				20,935				20,945				20,877
Diluted average shares outstanding			20,996				21,001				20,993				20,960
End of period shares outstanding:
Class A Common Stock			18,652				18,628				18,652				18,628
Class B Common Stock			2,300				2,307				2,300				2,307
Book value per share		$	21.59			$	17.74			$	21.59			$	17.74
Tangible book value per share (2)			20.81				16.88				20.81				16.88
Earnings per share:
Basic earnings per Class A Common Stock			0.30				0.21				4.50				3.11
Basic earnings per Class B Common Stock			0.28				0.20				4.45				3.06
Diluted earnings per Class A Common Stock			0.30				0.21				4.49				3.10
Diluted earnings per Class B Common Stock			0.28				0.20				4.44				3.04
Cash dividends declared per share:
Class A Common Stock			0.154				0.143				0.605				0.561
Class B Common Stock			0.140				0.130				0.550				0.510
Performance Ratios:
Return on average assets			0.76	%			0.54	%			2.76	%			1.85	%
Return on average equity			5.46				4.75				21.42				17.92
Efficiency ratio (3)			74				77				43				52
Yield on average interest-earning assets			4.31				4.33				6.02				5.74
Cost of interest-bearing liabilities			1.16				1.36				1.25				1.37
Net interest spread			3.15				2.97				4.77				4.37
Net interest margin - Total Company			3.45				3.23				5.09				4.65
Net interest margin - Traditional Banking			3.56				3.40				3.55				3.57
Asset Quality Ratios:
Loans on non-accrual status		$	23,306			$	28,317			$	23,306			$	28,317
Loans past due 90 days or more and still on accrual			-				-				-				-
Total non-performing loans			23,306				28,317				23,306				28,317
Other real estate owned			10,956				11,969				10,956				11,969
Total non-performing assets			34,262				40,286				34,262				40,286
Total Company Credit Quality Ratios:
Non-performing loans to total loans			1.02	%			1.30	%			1.02	%			1.30	%
Non-performing assets to total loans (including OREO)			1.49				1.84				1.49				1.84
Non-performing assets to total assets			1.00				1.11				1.00				1.11
Allowance for loan losses to total loans			1.05				1.06				1.05				1.06
Allowance for loan losses to non-performing loans			103				82				103				82
Delinquent loans to total loans (4)			1.07				1.24				1.07				1.24
Net loan charge-offs to average loans (annualized)			0.06				0.59				0.76				0.83
Traditional Banking Credit Quality Ratios:
Non-performing loans to total loans			1.02				1.30				1.02				1.30
Non-performing assets to total loans (including OREO)			1.49				1.84				1.49				1.84
Non-performing assets to total assets			1.10				1.32				1.10				1.32
Allowance for loan losses to total loans			1.05				1.06				1.05				1.06
Allowance for loan losses to non-performing loans			103				82				103				82
Delinquent loans to total loans (4)			1.07				1.24				1.07				1.24
Net loan charge-offs to average loans (annualized)			0.15				0.65				0.24				0.51
Other Information:
End of period full-time equivalent employees			710				744				710				744
Number of banking centers			42				43				42				43

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 Earnings Release (continued)
Balance Sheet Data
		Quarterly Comparison
		Dec. 31, 2011				Sept. 30, 2011				June 30, 2011				March 31, 2011				Dec. 31, 2010
Assets:
Cash and cash equivalents		$	362,971			$	75,573			$	130,262			$	472,315			$	786,371
Investment securities			674,022				702,142				633,959				645,636				542,694
Loans held for sale			4,392				4,721				21,456				1,381				15,228
Loans			2,285,295				2,219,916				2,222,697				2,178,886				2,175,240
Allowance for loan losses			(24,063	)			(23,945	)			(25,931	)			(29,144	)			(23,079	)
Federal Home Loan Bank stock, at cost			25,980				26,153				26,153				26,213				26,212
Premises and Equipment, net			34,681				34,044				36,183				36,734				37,770
Goodwill			10,168				10,168				10,168				10,168				10,168
Other assets and interest receivable			46,545				46,369				49,623				53,555				52,099
Total assets		$	3,419,991			$	3,095,141			$	3,104,570			$	3,395,744			$	3,622,703
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing		$	408,483			$	385,511			$	380,970			$	561,095			$	325,375
Interest-bearing			1,325,495				1,416,887				1,409,691				1,463,616				1,977,317
Total deposits			1,733,978				1,802,398				1,790,661				2,024,711				2,302,692
Deposits held for sale			-				-				35,383				-				-
Securities sold under agreements to repurchase and other short-term borrowings			230,231				227,504				218,227				259,722				319,246
Federal Home Loan Bank advances			934,630				524,731				519,799				554,837				564,877
Subordinated note			41,240				41,240				41,240				41,240				41,240
Other liabilities and accrued interest payable			27,545				46,197				53,517				74,799				23,272
Total liabilities			2,967,624				2,642,070				2,658,827				2,955,309				3,251,327
Stockholders' equity			452,367				453,071				445,743				440,435				371,376
Total liabilities and Stockholders' equity		$	3,419,991			$	3,095,141			$	3,104,570			$	3,395,744			$	3,622,703
Average Balance Sheet Data
		Quarterly Comparison
		Dec. 31, 2011				Sept. 30, 2011				June 30, 2011				March 31, 2011				Dec. 31, 2010
Assets:
Investment securities, including FHLB stock		$	735,336			$	711,050			$	652,693			$	614,454			$	627,434
Federal funds sold and other interest-earning deposits			126,045				68,108				221,695				856,579				335,593
Loans and fees, including loans held for sale			2,255,757				2,237,559				2,192,819				2,299,479				2,188,937
Total earning assets			3,117,138				3,016,717				3,067,207				3,770,512				3,151,964
Total assets			3,246,296				3,147,230				3,208,936				4,077,318				3,283,198
Liabilities and Stockholders' Equity:
Non interest-bearing deposits		$	430,705			$	396,568			$	409,391			$	806,532			$	341,556
Interest-bearing deposits			1,379,159				1,444,577				1,454,006				1,890,993				1,579,281
Securities sold under agreements to repurchase and other short-term borrowings			275,085				249,002				274,074				318,083				352,890
Federal Home Loan Bank advances			625,047				517,739				527,669				562,294				565,314
Subordinated note			41,240				41,240				41,240				41,240				41,240
Total interest-bearing liabilities			2,320,531				2,252,558				2,296,989				2,812,610				2,538,725
Stockholders' equity			454,343				449,177				446,132				408,328				372,222

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 Earnings Release (continued)
Income Statement Data
		Three Months Ended
		Dec. 31, 2011				Sept. 30, 2011				June 30, 2011				March 31, 2011				Dec. 31, 2010
Total interest income (5)		$	33,607			$	34,426			$	34,459			$	92,623			$	34,087
Total interest expense			6,710				7,263				7,630				8,652				8,652
Net interest income			26,897				27,163				26,829				83,971				25,435
Provision for loan losses			463				(140	)			(439	)			18,082				1,748
Non interest income:
Service charges on deposit accounts			3,524				3,421				3,736				3,424				3,860
Electronic refund check fees			124				425				6,584				81,062				276
Net RAL securitization income			4				5				19				179				37
Mortgage banking income			807				1,352				924				816				1,703
Debit card interchange fee income			1,399				1,415				1,493				1,484				1,322
Gain on sale of banking center			-				2,856				-				-				-
Net gain (loss) on sales, calls and impairment of securities			77				301				1,907				(279	)			(95	)
Other			533				701				705				626				551
Total non interest income			6,468				10,476				15,368				87,312				7,654
Non interest expenses:
Salaries and employee benefits			11,332				13,145				13,250				17,239				11,503
Occupancy and equipment, net			5,277				5,138				5,001				6,297				5,373
Communication and transportation			1,227				1,081				878				2,509				1,343
Marketing and development			729				736				868				904				697
FDIC insurance expense			707				918				1,165				1,635				670
Bank franchise tax expense			653				713				714				1,565				755
Data processing			855				787				817				748				719
Debit card interchange expense			549				566				601				523				507
Supplies			736				409				314				894				762
Other real estate owned expense			889				608				378				481				464
Charitable contributions			223				178				234				5,298				168
Legal expense			846				784				979				1,360				727
FDIC civil money penalty			(1,100	)			-				2,000				-				-
Other			1,616				1,375				1,327				3,365				1,729
Total non interest expenses			24,539				26,438				28,526				42,818				25,417
Income before income tax expense			8,363				11,341				14,110				110,383				5,924
Income tax expense			2,159				3,471				5,447				38,971				1,506
Net income		$	6,204			$	7,870			$	8,663			$	71,412			$	4,418

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 Earnings Release (continued)
		As of and for the Three Months Ended
		Dec. 31, 2011		Sept. 30, 2011		June 30, 2011		March 31, 2011		Dec. 31, 2010
Per Share Data:
Basic average shares outstanding		20,954		20,953		20,936		20,938		20,935
Diluted average shares outstanding		20,996		20,994		20,994		20,991		21,001
End of period shares outstanding:
Class A Common Stock		18,652		18,655		18,635		18,633		18,628
Class B Common Stock		2,300		2,300		2,300		2,304		2,307
Book value per share		$ 21.59		$ 21.62		$ 21.29		$ 21.04		$ 17.74
Tangible book value per share (2)		20.81		20.81		20.46		20.18		16.88
Earnings per share:
Basic earnings per Class A Common Stock		0.30		0.38		0.42		3.41		0.21
Basic earnings per Class B Common Stock		0.28		0.36		0.40		3.40		0.20
Diluted earnings per Class A Common Stock		0.30		0.38		0.41		3.40		0.21
Diluted earnings per Class B Common Stock		0.28		0.36		0.40		3.39		0.20
Cash dividends declared per share:
Class A Common Stock		0.154		0.154		0.154		0.143		0.143
Class B Common Stock		0.140		0.140		0.140		0.130		0.130
Performance Ratios:
Return on average assets		0.76%		1.00%		1.08%		7.01%		0.54%
Return on average equity		5.46		7.01		7.77		69.96		4.75
Efficiency ratio (3)		74		71		71		25		77
Yield on average interest-earning assets		4.31		4.56		4.49		9.83		4.33
Cost of interest-bearing liabilities		1.16		1.29		1.33		1.23		1.36
Net interest spread		3.15		3.27		3.16		8.60		2.97
Net interest margin - Total Company		3.45		3.60		3.50		8.91		3.23
Net interest margin - Traditional Banking		3.56		3.61		3.50		3.33		3.40
Asset Quality Data:
Loans on non-accrual status		$ 23,306		$ 23,822		$ 28,499		$ 26,668		$ 28,317
Loans past due 90 days or more and still on accrual		-		-		-		-		-
Total non-performing loans		23,306		23,822		28,499		26,668		28,317
Other real estate owned		10,956		11,185		12,012		14,761		11,969
Total non-performing assets		34,262		35,007		40,511		41,429		40,286
Total Company Credit Quality Ratios:
Non-performing loans to total loans		1.02%		1.07%		1.28%		1.22%		1.30%
Non-performing assets to total loans (including OREO)		1.49		1.57		1.81		1.89		1.84
Non-performing assets to total assets		1.00		1.13		1.30		1.22		1.11
Allowance for loan losses to total loans		1.05		1.08		1.17		1.34		1.06
Allowance for loan losses to non-performing loans		103		101		91		109		82
Delinquent loans to total loans (4)		1.07		0.90		1.28		1.04		1.24
Net loan charge-offs to average loans (annualized)		0.06		0.33		0.51		2.09		0.59
Traditional Banking Credit Quality Ratios:
Non-performing loans to total loans		1.02		1.07		1.28		1.23		1.30
Non-performing assets to total loans (including OREO)		1.49		1.57		1.81		1.89		1.84
Non-performing assets to total assets		1.10		1.14		1.31		1.14		1.32
Allowance for loan losses to total loans		1.05		1.08		1.17		1.21		1.06
Allowance for loan losses to non-performing loans		103		101		91		109		82
Delinquent loans to total loans (4)		1.07		0.90		1.28		1.04		1.24
Net loan charge-offs to average loans (annualized)		0.15		0.45		0.17		0.21		0.65
Other Information:
End of period full-time equivalent employees		710		705		733		758		744
Number of banking centers		42		42		43		43		43

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2011 Earnings Release (continued)

Segment Data:

The reportable segments are determined by the type of products and services offered, distinguished among Traditional Banking, Mortgage Banking and Tax Refund Solutions (TRS). They are also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as branches and subsidiary banks), which are then aggregated if operating performance, products/services, and customers are similar. Loans, investments and deposits provide the majority of the net revenue from Traditional Banking operations; servicing fees and loan sales provide the majority of revenue from Mortgage Banking operations; RAL fees and ERC/ERD fees provide the majority of the revenue from TRS. All Company operations are domestic.

Segment information for the three months and years ended December 31, 2011 and 2010 follows:

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 Earnings Release (continued)
		Three Months Ended December 31, 2011
(dollars in thousands)		Traditional Banking				Mortgage Banking				Tax Refund Solutions				Total Company
Net interest income		$	26,766			$	110			$	21			$	26,897
Provision for loan losses			952				-				(489	)			463
Electronic refund check fees			-				-				124				124
Net RAL securitization income			-				-				4				4
Mortgage banking income			-				807				-				807
Net gain on sales, calls and impairment of securities			77				-				-				77
Other non interest income			5,426				27				3				5,456
Total non interest income			5,503				834				131				6,468
Total non interest expenses			19,549				1,094				3,896				24,539
Gross operating profit (loss)			11,768				(150	)			(3,255	)			8,363
Income tax expense (benefit)			3,920				(52	)			(1,709	)			2,159
Net income (loss)		$	7,848			$	(98	)		$	(1,546	)		$	6,204
Segment end of period assets		$	3,099,426			$	10,880			$	309,685			$	3,419,991
Net interest margin			3.56	%			NM				NM				3.45	%
		Three Months Ended December 31, 2010
(dollars in thousands)		Traditional Banking				Mortgage Banking				Tax Refund Solutions				Total Company
Net interest income		$	25,321			$	184			$	(70	)		$	25,435
Provision for loan losses			2,069				-				(321	)			1,748
Electronic refund check fees			-				-				276				276
Net RAL securitization income			-				-				37				37
Mortgage banking income			-				1,703				-				1,703
Net gain on sales, calls and impairment of securities			(95	)			-				-				(95	)
Other non interest income			5,716				14				3				5,733
Total non interest income			5,621				1,717				316				7,654
Total non interest expenses			20,401				493				4,523				25,417
Gross operating profit (loss)			8,472				1,408				(3,956	)			5,924
Income tax expense (benefit)			2,752				331				(1,577	)			1,506
Net income (loss)		$	5,720			$	1,077			$	(2,379	)		$	4,418
Segment end of period assets		$	3,026,628			$	23,359			$	572,716			$	3,622,703
Net interest margin			3.40	%			NM				NM				3.23	%

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 Earnings Release (continued)
		Year Ended December 31, 2011
(dollars in thousands)		Traditional Banking				Mortgage Banking			Tax Refund Solutions			Total Company
Net interest income		$	105,346			$	401		$	59,113		$	164,860
Provision for loan losses			6,406				-			11,560			17,966
Electronic refund check fees			-				-			88,195			88,195
Net RAL securitization income			-				-			207			207
Mortgage banking income			-				3,899			-			3,899
Net gain on sales, calls and impairment of securities			2,006				-			-			2,006
Other non interest income			25,089				78			150			25,317
Total non interest income			27,095				3,977			88,552			119,624
Total non interest expenses			87,389				3,849			31,083			122,321
Gross operating profit (loss)			38,646				529			105,022			144,197
Income tax expense (benefit)			12,183				185			37,680			50,048
Net income (loss)		$	26,463			$	344		$	67,342		$	94,149
Segment end of period assets		$	3,099,426			$	10,880		$	309,685		$	3,419,991
Net interest margin			3.55	%			NM			NM			5.09	%

	Year Ended December 31, 2010
(dollars in thousands)	Traditional Banking				Mortgage Banking			Tax Refund Solutions			Total Company
Net interest income	$	105,685			$	468		$	50,659		$	156,812
Provision for loan losses		11,571				-			8,143			19,714
Electronic refund check fees		-				-			58,789			58,789
Net RAL securitization income		-				-			265			265
Mortgage banking income		-				5,797			-			5,797
Net gain on sales, calls and impairment of securities		(221	)			-			-			(221	)
Other non interest income		22,899				73			56			23,028
Total non interest income		22,678				5,870			59,110			87,658
Total non interest expenses		90,968				2,559			32,796			126,323
Gross operating profit (loss)		25,824				3,779			68,830			98,433
Income tax expense (benefit)		7,929				1,161			24,590			33,680
Net income (loss)	$	17,895			$	2,618		$	44,240		$	64,753
Segment end of period assets	$	3,026,628			$	23,359		$	572,716		$	3,622,703
Net interest margin		3.57	%			NM			NM			4.65	%

Republic Bancorp, Inc. Financial Information Fourth Quarter 2011 Earnings Release (continued)
(1) The amount of loan fee income included in total interest income was $788,000 and $726,000 for the quarters ended December 31, 2011 and 2010. The amount of loan fee income included in total interest income was $62.3 million and $54.9 million for the years ended December 31, 2011 and 2010.
(2) The following table provides a reconciliation of total stockholders' equity in accordance with GAAP to tangible stockholders equity in accordance with applicable regulatory requirements. The Company provides the tangible common equity ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.
		Quarterly Comparison
(in thousands, except per share data)		Dec. 31, 2011				Sept. 30, 2011				June 30, 2011				March 31, 2011				Dec. 31, 2010
Total stockholders' equity (a)		$	452,367			$	453,071			$	445,743			$	440,435			$	371,376
Less: Goodwill			10,168				10,168				10,168				10,168				10,168
Less: Core deposit intangible			58				73				87				102				117
Less: Mortgage servicing rights			6,087				6,688				7,169				7,573				7,800
Tangible stockholders' equity (c)		$	436,054			$	436,142			$	428,319			$	422,592			$	353,291
Total assets (b)		$	3,419,991			$	3,095,141			$	3,104,570			$	3,395,744			$	3,622,703
Less: Goodwill			10,168				10,168				10,168				10,168				10,168
Less: Core deposit intangible			58				73				87				102				117
Less: Mortgage servicing rights			6,087				6,688				7,169				7,573				7,800
Tangible assets (d)		$	3,403,678			$	3,078,212			$	3,087,146			$	3,377,901			$	3,604,618
Total stockholders' equity to total assets (a/b)			13.23	%			14.64	%			14.36	%			12.97	%			10.25	%
Tangible stockholders' equity to tangible assets (c/d)			12.81	%			14.17	%			13.87	%			12.51	%			9.80	%
Number of shares outstanding (e)			20,952				20,955				20,935				20,937				20,935
Book value per share (a/e)		$	21.59			$	21.62			$	21.29			$	21.04			$	17.74
Tangible book value per share (c/e)			20.81				20.81				20.46				20.18				16.88
(3) Equals total non-interest expense divided by the sum of net interest income and non interest income. The ratio excludes net gain (loss) on sales, calls and impairment of investment securities.
(4) Equals total loans over 30 days past due divided by total loans.
(5) The amount of loan fee income included in total interest income per quarter was as follows: $788,000 (quarter ended December 31, 2011), $1.1 million (quarter ended September 30, 2011), $1.1 million (quarter ended June 30, 2011), $59.3 million (quarter ended March 31, 2011) and $726,000 (quarter ended December 31, 2010).
NM Not meaningful

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

Source: Republic Bancorp, Inc.

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