LOUISVILLE, Ky.--(BUSINESS WIRE)-- Republic Bancorp, Inc. (Republic or the Company) is pleased to report record net income of $112.7 million for the first nine months of 2012, representing a $24.8 million, or 28%, increase over the first nine months of 2011. Diluted Earnings per Class A Common Share increased to $5.36 for the first nine months of 2012, while return on average assets (ROA) and return on average equity (ROE) during the same period were both industry-strong at 4.18% and 28.44%, respectively.

Republic also earned record third quarter net income of $20.7 million, a $12.8 million increase over the third quarter of 2011. Diluted Earnings per Class A Common Share increased to $0.98 for the third quarter of 2012. ROA and ROE were both solid during the quarter at 2.49% and 15.31%, respectively.

Steve Trager, Republics Chairman and CEO, commented: We are proud of our third quarter results, as we were able to continue our trend of strong organic loan growth, healthy net interest margin and solid asset quality ratios. In addition, we are most excited that we were able to capitalize on the experience we gained through our first quarter purchase of Tennessee Commerce Bank (TCB) by acquiring another failed institution from the Federal Deposit Insurance Corporation (FDIC) during September. With the purchase of First Commercial Bank (FCB) in Bloomington, Minnesota, we were able to once again extend the reach of our franchise while adding to our industry-strong capital base through the recording of a pre-tax bargain purchase gain of $27.1 million. We look forward to providing the same high level of customer service to our new Minnesota clients as we have provided to our long-time clients in our more traditional markets.

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

The following chart highlights Republics third quarter and year-to-date 2012 financial performance compared to the same period in 2011:

		Three Months Ended						%		Nine Months Ended						%
(dollars in thousands, except per share data)			9/30/12			9/30/11		Change			9/30/12			9/30/11		Change
Gross Operating Profit		$	31,572		$	11,341		178%		$	173,759		$	135,834		28%
Net Income		$	20,668		$	7,870		163%		$	112,718		$	87,945		28%
Diluted Earnings per Class A Share		$	0.98		$	0.38		158%		$	5.36		$	4.19		28%
ROA			2.49%			1.00%		149%			4.18%			3.37%		24%
ROE			15.31%			7.01%		118%			28.44%			26.98%		5%

Results of Operations for the Third Quarter of 2012 Compared to the Third Quarter of 2011

Traditional Banking and Mortgage Banking (collectively Core Banking)

Net income from Core Banking increased from $9.3 million during the third quarter of 2011 to $22.0 million during the third quarter of 2012. The increase in the Core Banks earnings was primarily driven by the bargain purchase gain from the FCB acquisition in combination with an increase in mortgage banking income.

Net interest income within the Core Bank rose to $28.6 million for the third quarter of 2012, an increase of $1.4 million, or 5%, over the third quarter of 2011. The increase in net interest income for the quarter was primarily attributable to year-over-year growth in loans of $422 million. Included in the year-over-year growth in loans was approximately $160 million in loans outstanding as of September 30, 2012 related to the two failed bank acquisitions. In addition, Republics existing franchise grew loans by $262 million from September 30, 2011 with $150 million of that growth attributable to the Companys mortgage warehouse lending division. As a result, the Core Banks net interest margin remained healthy at 3.54% for the third quarter of 2012, compared to 3.61% for the third quarter of 2011.

The Core Banks provision for loan losses was higher during the third quarter of 2012, increasing from $547,000 during the third quarter of 2011 to $2.5 million. Approximately $550,000 of the provision expense for the third quarter of 2012 was the result of an increase in the Core Banks general allowance for loan losses, which was driven by growth in its loan portfolio. This compares to a decrease in the Core Banks general allowance for loan losses of $109,000 during the third quarter of 2011, which resulted from a decline in loan balances related primarily to a branch divestiture. Furthermore, the Core Bank also recorded additional provisions during the quarter related to a few classified loan relationships. In contrast, the Core Banks delinquent loans to total loans and non-performing loans to total loans ratios reached their lowest levels since 2007. Overall, the Core Banks credit metrics continue to place it among the highest performers in the banking industry.

The table below illustrates the Core Banks credit quality ratios for the most recent quarter-ends and the previous three calendar year-ends.

			As of and for the:
			Quarter Ending									Year Ending
Core Banking Credit Quality Ratios			9/30/12			6/30/12			3/31/2012			12/31/11			12/31/10			12/31/09
Non-performing loans / Total loans			0.77	%		0.93	%		1.03	%		1.02	%		1.30	%		1.90	%
Non-performing assets / Total loans including OREO			1.71	%		1.66	%		2.02	%		1.49	%		1.84	%		2.11	%
Delinquent loans / Total loans			0.68	%		0.74	%		1.14	%		1.07	%		1.24	%		1.98	%
Net loan charge-offs / Average loans			0.15	%		0.28	%		0.65	%		0.24	%		0.51	%		0.34	%
(Annualized as of 9/30/12, 6/30/12 and 3/31/12)
OREO = Other Real Estate Owned

Non-interest income for the Core Bank was $34.6 million for the third quarter of 2012 compared to $10.0 million for the third quarter of 2011. In addition to the previously discussed bargain purchase gain, the Core Bank also had a solid quarter of mortgage banking income, which increased $922,000, or 68%, over the third quarter of 2011. The increase in mortgage banking income was driven by continued strong application volume for long-term fixed rate mortgages combined with favorable secondary market pricing terms. Partially offsetting these quarter-over quarter increases was a $2.9 million gain the Core Bank recorded during the third quarter of 2011 related to the divestiture of a banking center.

The Core Banks non-interest expenses increased $4.2 million, or 18%, for the third quarter of 2012 to $27.0 million. Included in the salaries and benefits category was $467,000 for short-term retention bonuses for FCB personnel, incentive compensation bonuses for Republic associates that are contingent upon a successful core system conversion of FCB, and a two-year profit goal specific to the performance of FCB. Also related to FCB in the other non-interest expense category was $695,000 in expenses for third party legal, valuation and consulting services.

Republic Processing Group (RPG)

The Company has combined its previous business segment Tax Refund Solutions (TRS) with its relatively new prepaid card division, Republic Payment Solutions (RPS), and its newly formed consumer credit division, Republic Credit Solutions (RCS). Collectively, this combination is designated as RPG for the Companys business segment reporting. RPS is preparing to expand its client base into general purpose reloadable prepaid debit and payroll cards, while RCS is preparing to pilot short-term consumer credit products through multiple channels, including the internet and retail locations. These programs are expected to serve as a source of net interest income, fee income and low-cost deposits for the Company.

RPG, 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. For the third quarter of 2012, RPG recorded a net loss of $1.3 million compared to a net loss of $1.5 million for the third quarter of 2011. RPG recorded a net credit of $460,000 to its provision for loan losses during the third quarter of 2012 compared to a net credit of $687,000 for the third quarter of 2011. The net credit in both periods resulted from better-than-previously-projected paydowns within RB&Ts Refund Anticipation Loan (RAL) portfolio. The estimated loss rate on RALs decreased from 1.43% of total RALs originated as of September 30, 2011 to 1.35% of total RALs originated as of September 30, 2012. The current year tax season represents the last season that RB&T will originate RALs. RB&T will continue to offer Refund Transfer (formerly referred to as Electronic Refund Checks/Electronic Refund Deposits) products in the future.

TCB

During the first quarter of 2012, the Company recorded an initial bargain purchase gain of $27.9 million, as a result of the TCB acquisition. The bargain purchase gain was realized because the overall price paid by RB&T was substantially less than the fair value of the TCB assets acquired and liabilities assumed in the transaction. During the third quarter of 2012, the Bank posted adjustments to the acquired assets for the Day One fair values in the transaction and recorded a slight decrease to the bargain purchase gain of $189,000, as additional information relative to the acquisition date fair values became available.

Overall, the contractual amount of the loans purchased through the TCB acquisition was reduced from $79 million as of March 31, 2012 to $46 million as of September 30, 2012. The carrying value of the loans purchased in the TCB transaction was $57 million as of March 31, 2012 compared to $34 million as of September 30, 2012.

FCB

On September 7, 2012, RB&T acquired, without a loss indemnification agreement, specific assets and assumed substantially all of the liabilities of FCB, headquartered in Bloomington, Minnesota from the FDIC, as receiver for FCB. On September 10, 2012, FCBs sole location re-opened as a banking center of RB&T.

RB&T acquired approximately $215 million in notional assets from the FDIC as receiver for FCB. In addition, RB&T received cash from the FDIC of approximately $64 million, which represented the net difference between the assets acquired and the liabilities assumed adjusted for the discount RB&T received for the transaction. Because the overall price paid by RB&T was substantially less than the fair value of the FCB assets acquired and liabilities assumed in the transaction, the Company recorded a bargain purchase gain of $27.1 million during the third quarter of 2012.

These fair value estimates are considered preliminary and are subject to change for up to one year after the closing date of the acquisition, as additional information relative to the acquisition date fair values becomes available. More specifically, fair value adjustments for loans and other real estate owned may be made as market value data applicable to the date of acquisition is received by the Bank. Due to the compressed due diligence period of a FDIC acquisition, the measurement period analysis of information that may be reflective of conditions existing as of the acquisition date generally extends longer within the one year measurement period compared to non-assisted transactions.

Conclusion

We are pleased with our third quarter operating results and excited about the long-term direction of the Company. Our strong capital base, industry-solid asset quality and history of performance have afforded Republic a wealth of opportunities for the future. In addition to the expansion of our footprint into exciting new markets, the Company is also expanding its product offering in the non-traditional banking space, as we seek to diversify our revenue streams and increase the long-term value for our shareholders. As always, we will embrace these and all opportunities with an air of caution, as we seek to grow the Company in a prudent and steady manner. It is this philosophy that focuses on growing our Company over the long-term horizon, which allows me to always remind our associates, our clients and our shareholders: 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 44 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, three banking centers in southern Indiana Floyds Knobs, Jeffersonville and New Albany, one banking center in Franklin (Nashville), Tennessee, and one banking center in Bloomington (Minneapolis), Minnesota. Republic Bank has banking centers in Hudson, Palm Harbor, Port Richey and Temple Terrace, Florida as well as Blue Ash (Cincinnati), Ohio. Republic operates Tax Refund Solutions, a nationwide tax refund check provider. Republic offers internet banking at www.republicbank.com. Republic has $3.4 billion in assets and is headquartered in Louisville, Kentucky. 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 release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, future acquisitions, current expectations and assumptions regarding its business, the economy and other future conditions. Forward-looking statements can be identified by the use of the words expect, anticipate, believe, intend, could and should, and other words of similar meaning. These forward-looking statements express managements current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements.

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-K for the year ended December 31, 2011. The Company undertakes no obligation to update any forward-looking statements. These forward-looking statements are made only as of the date of this release, and the Company undertakes no obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 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
			Sept. 30, 2012				Dec. 31, 2011				Sept. 30, 2011
Assets:
Cash and cash equivalents			$	96,187			$	362,971			$	75,573
Investment securities				581,262				674,022				702,142
Mortgage loans held for sale				3,385				4,392				4,721
Loans				2,642,357				2,285,295				2,219,916
Allowance for loan losses				(24,100	)			(24,063	)			(23,945	)
Federal Home Loan Bank stock, at cost				28,784				25,980				26,153
Premises and equipment, net				32,984				34,681				34,044
Goodwill				10,168				10,168				10,168
Other assets and accrued interest receivable				64,749				46,545				46,369
Total assets			$	3,435,776			$	3,419,991			$	3,095,141
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing			$	514,893			$	408,483			$	385,511
Interest-bearing				1,540,717				1,325,495				1,416,887
Total deposits				2,055,610				1,733,978				1,802,398
Securities sold under agreements to repurchase and other short-term borrowings				169,839				230,231				227,504
Federal Home Loan Bank advances				553,487				934,630				524,731
Subordinated note				41,240				41,240				41,240
Other liabilities and accrued interest payable				57,844				27,545				46,197
Total liabilities				2,878,020				2,967,624				2,642,070
Stockholders' equity				557,756				452,367				453,071
Total liabilities and Stockholders' equity			$	3,435,776			$	3,419,991			$	3,095,141

Average Balance Sheet Data
			Three Months Ended Sept. 30,								Nine Months Ended Sept. 30,
			2012				2011				2012				2011
Assets:
Investment securities, including FHLB stock			$	629,542			$	711,050			$	666,531			$	659,753
Federal funds sold and other interest-earning deposits				82,404				68,108				277,550				379,713
Loans and fees, including loans held for sale				2,520,174				2,237,559				2,453,313				2,243,059
Total earning assets				3,232,120				3,016,717				3,397,394				3,282,525
Total assets				3,322,077				3,147,230				3,593,576				3,474,431
Liabilities and Stockholders' Equity:
Non interest-bearing deposits			$	505,127			$	396,568			$	652,498			$	536,007
Interest-bearing deposits				1,462,069				1,444,577				1,513,644				1,594,889
Securities sold under agreements to repurchase and other short-term borrowings
				208,051				249,002				243,168				280,133
Federal Home Loan Bank advances				523,053				517,739				561,072				535,738
Subordinated note				41,240				41,240				41,240				41,240
Total interest-bearing liabilities				2,234,413				2,252,558				2,359,124				2,452,000
Stockholders' equity				539,863				449,177				528,366				434,687

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 Earnings Release (continued)
Income Statement Data
			Three Months Ended Sept. 30,										Nine Months Ended Sept. 30,
			2012					2011					2012				2011
Total interest income (1)			$	34,128				$	34,426				$	147,529			$	161,508
Total interest expense				5,556					7,263					17,425				23,545
Net interest income				28,572					27,163					130,104				137,963
Provision for loan losses				2,083					(140	)				13,719				17,503
Non interest income:
Service charges on deposit accounts				3,438					3,421					10,027				10,581
Refund transfer fees				231					425					78,127				88,071
Mortgage banking income				2,274					1,352					5,591				3,092
Debit card interchange fee income				1,390					1,415					4,387				4,392
Bargain purchase gain - Tennessee Commerce Bank				(189	)				-					27,614				-
Bargain purchase gain - First Commercial Bank				27,112					-					27,112				-
Gain on sale of banking center				-					2,856					-				2,856
Net gain on sales, calls and impairment of securities				-					301					56				1,929
Other				589					706					2,826				2,235
Total non interest income				34,845					10,476					155,740				113,156
Non interest expenses:
Salaries and employee benefits				14,921					13,145					46,205				43,634
Occupancy and equipment, net				5,718					5,138					16,936				16,436
Communication and transportation				1,045					1,081					4,667				4,468
Marketing and development				828					736					2,670				2,508
FDIC insurance expense				287					918					1,008				3,718
Bank franchise tax expense				729					713					3,363				2,992
Data processing				1,030					787					3,446				2,352
Debit card interchange expense				648					566					1,909				1,690
Supplies				270					409					1,748				1,617
Other real estate owned expense				1,328					608					2,488				1,467
Charitable contributions				232					178					3,110				5,710
Legal expense				388					784					1,283				3,123
FDIC civil money penalty				-					-					-				2,000
FHLB advance prepayment penalty				-					-					2,436				-
Other				2,338					1,375					7,097				6,067
Total non interest expenses				29,762					26,438					98,366				97,782
Income before income tax expense				31,572					11,341					173,759				135,834
Income tax expense				10,904					3,471					61,041				47,889
Net income			$	20,668				$	7,870				$	112,718			$	87,945

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 Earnings Release (continued)
			As of and for the										As of and for the
			Three Months Ended Sept. 30,										Nine Months Ended Sept. 30,
			2012					2011					2012					2011
Per Share Data:
Basic average shares outstanding				20,948					20,953					20,954					20,942
Diluted average shares outstanding				21,029					20,994					21,032					20,992
End of period shares outstanding:
Class A Common Stock				18,673					18,655					18,673					18,655
Class B Common Stock				2,271					2,300					2,271					2,300
Book value per share			$	26.63				$	21.62				$	26.63				$	21.62
Tangible book value per share (2)				25.88					20.81					25.88					20.81
Earnings per share:
Basic earnings per Class A Common Stock				0.99					0.38					5.38					4.20
Basic earnings per Class B Common Stock				0.97					0.36					5.34					4.16
Diluted earnings per Class A Common Stock				0.98					0.38					5.36					4.19
Diluted earnings per Class B Common Stock				0.97					0.36					5.32					4.15
Cash dividends declared per share:
Class A Common Stock				0.165					0.154					0.484					0.451
Class B Common Stock				0.150					0.140					0.440					0.410
Performance Ratios:
Return on average assets				2.49	%				1.00	%				4.18	%				3.37	%
Return on average equity				15.31					7.01					28.44					26.98
Efficiency ratio (3)				47					71					34					39
Yield on average interest-earning assets				4.22					4.56					5.79					6.56
Cost of interest-bearing liabilities				0.99					1.29					0.98					1.28
Net interest spread				3.23					3.27					4.81					5.28
Net interest margin - Total Company				3.54					3.60					5.11					5.60
Net interest margin - Traditional Banking				3.54					3.61					3.51					3.48
Asset Quality Ratios:
Loans on non-accrual status			$	20,436				$	23,822				$	20,436				$	23,822
Loans past due 90 days or more and still on accrual				-					-					-					-
Total non-performing loans				20,436					23,822					20,436					23,822
Other real estate owned				25,148					11,185					25,148					11,185
Total non-performing assets				45,584					35,007					45,584					35,007
Total Company Credit Quality Ratios:
Non-performing loans to total loans				0.77	%				1.07	%				0.77	%				1.07	%
Non-performing assets to total loans (including OREO)				1.71					1.57					1.71					1.57
Non-performing assets to total assets				1.33					1.13					1.33					1.13
Allowance for loan losses to total loans				0.91					1.08					0.91					1.08
Allowance for loan losses to non-performing loans				118					101					118					101
Delinquent loans to total loans (4)				0.68					0.90					0.68					0.90
Net loan charge-offs to average loans (annualized)				0.08					0.33					0.74					0.99
Traditional Banking Credit Quality Ratios:
Non-performing loans to total loans				0.77					1.07					0.77					1.07
Non-performing assets to total loans (including OREO)				1.71					1.57					1.71					1.57
Non-performing assets to total assets				1.33					1.14					1.33					1.14
Allowance for loan losses to total loans				0.91					1.08					0.91					1.08
Allowance for loan losses to non-performing loans				118					101					118					101
Delinquent loans to total loans (4)				0.68					0.90					0.68					0.90
Net loan charge-offs to average loans (annualized)				0.15					0.45					0.36					0.28
Other Information:
End of period full-time equivalent employees				772					705					772					705
Number of banking centers				44					42					44					42

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 Earnings Release (continued)
Balance Sheet Data
			Quarterly Comparison
			Sept. 30, 2012					June 30, 2012					March 31, 2012					Dec. 31, 2011					Sept. 30, 2011
Assets:
Cash and cash equivalents			$	96,187				$	124,357				$	186,504				$	362,971				$	75,573
Investment securities				581,262					608,090					630,298					674,022					702,142
Mortgage loans held for sale				3,385					4,093					4,459					4,392					4,721
Loans held for sale				-					-					17,003					-					-
Loans				2,642,357					2,440,394					2,394,787					2,285,295					2,219,916
Allowance for loan losses				(24,100	)				(22,510	)				(23,732	)				(24,063	)				(23,945	)
Federal Home Loan Bank stock, at cost				28,784					28,391					28,439					25,980					26,153
Premises and Equipment, net				32,984					32,962					34,321					34,681					34,044
Goodwill				10,168					10,168					10,168					10,168					10,168
Other assets and interest receivable				64,749					52,855					62,587					46,545					46,369
Total assets			$	3,435,776				$	3,278,800				$	3,344,834				$	3,419,991				$	3,095,141
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing			$	514,893				$	513,136				$	595,498				$	408,483				$	385,511
Interest-bearing				1,540,717					1,392,155					1,453,301					1,325,495					1,416,887
Total deposits				2,055,610					1,905,291					2,048,799					1,733,978					1,802,398
Securities sold under agreements to repurchase and other short-term borrowings				169,839					194,412					225,719					230,231					227,504
Federal Home Loan Bank advances				553,487					538,555					413,593					934,630					524,731
Subordinated note				41,240					41,240					41,240					41,240					41,240
Other liabilities and accrued interest payable				57,844					59,589					81,990					27,545					46,197
Total liabilities				2,878,020					2,739,087					2,811,341					2,967,624					2,642,070
Stockholders' equity				557,756					539,713					533,493					452,367					453,071
Total liabilities and Stockholders' equity			$	3,435,776				$	3,278,800				$	3,344,834				$	3,419,991				$	3,095,141
Average Balance Sheet Data
			Quarterly Comparison
			Sept. 30, 2012					June 30, 2012					March 31, 2012					Dec. 31, 2011					Sept. 30, 2011
Assets:
Investment securities, including FHLB stock			$	629,542				$	680,134				$	690,328				$	735,336				$	711,050
Federal funds sold and other interest-earning deposits				82,404					100,407					695,863					126,045					68,108
Loans and fees, including loans held for sale				2,520,174					2,406,180					2,439,331					2,255,757					2,237,559
Total earning assets				3,232,120					3,186,721					3,775,523					3,117,138					3,016,717
Total assets				3,322,077					3,309,764					4,153,256					3,246,296					3,147,230
Liabilities and Stockholders' Equity:
Non interest-bearing deposits			$	505,127				$	533,649				$	922,628				$	430,705				$	396,568
Interest-bearing deposits				1,462,069					1,414,427					1,670,167					1,379,159					1,444,577
Securities sold under agreements to repurchase and other short-term borrowings
				208,051					250,515					271,322					275,085					249,002
Federal Home Loan Bank advances				523,053					479,064					681,518					625,047					517,739
Subordinated note				41,240					41,240					41,240					41,240					41,240
Total interest-bearing liabilities				2,234,413					2,185,246					2,664,247					2,320,531					2,252,558
Stockholders' equity				539,863					534,576					511,694					454,343					449,177

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 Earnings Release (continued)
Income Statement Data
			Three Months Ended
			Sept. 30, 2012					June 30, 2012					March 31, 2012				Dec. 31, 2011					Sept. 30, 2011
Total interest income (5)			$	34,128				$	33,814				$	79,587			$	33,607				$	34,426
Total interest expense				5,556					5,502					6,367				6,710					7,263
Net interest income				28,572					28,312					73,220				26,897					27,163
Provision for loan losses				2,083					466					11,170				463					(140	)
Non interest income:
Service charges on deposit accounts				3,438					3,286					3,303				3,524					3,421
Refund transfer fees				231					6,147					71,749				124					425
Mortgage banking income				2,274					1,963					1,354				807					1,352
Debit card interchange fee income				1,390					1,441					1,556				1,399					1,415
Bargain purchase gain - TCB				(189	)				(96	)				27,899				-					-
Bargain purchase gain - FCB				27,112					-					-				-					-
Gain on sale of banking center				-					-					-				-					2,856
Net gain on sales, calls and impairment of securities				-					-					56				77					301
Other				589					1,345					892				537					706
Total non interest income				34,845					14,086					106,809				6,468					10,476
Non interest expenses:
Salaries and employee benefits				14,921					14,313					16,971				11,332					13,145
Occupancy and equipment, net				5,718					5,144					6,074				5,277					5,138
Communication and transportation				1,045					961					2,661				1,227					1,081
Marketing and development				828					904					938				729					736
FDIC insurance expense				287					291					430				707					918
Bank franchise tax expense				729					703					1,931				653					713
Data processing				1,030					1,195					1,221				855					787
Debit card interchange expense				648					660					601				549					566
Supplies				270					529					949				736					409
Other real estate owned expense				1,328					555					605				889					608
Charitable contributions				232					200					2,678				223					178
Legal expense				388					527					368				846					784
FDIC civil money penalty				-					-					-				(1,100	)				-
FHLB advance prepayment penalty				-					-					2,436				-					-
Other				2,338					1,469					3,290				1,616					1,375
Total non interest expenses				29,762					27,451					41,153				24,539					26,438
Income before income tax expense				31,572					14,481					127,706				8,363					11,341
Income tax expense				10,904					4,903					45,234				2,159					3,471
Net income			$	20,668				$	9,578				$	82,472			$	6,204				$	7,870

Republic Bancorp, Inc. Financial Information Third Quarter 2012 Earnings Release (continued)
			As of and for the Three Months Ended
			Sept. 30, 2012					June 30, 2012					March 31, 2012					Dec. 31, 2011					Sept. 30, 2011
Per Share Data:
Basic average shares outstanding				20,948					20,958					20,956					20,954					20,953
Diluted average shares outstanding				21,029					21,017					21,055					20,996					20,994
End of period shares outstanding:
Class A Common Stock				18,673					18,658					18,662					18,652					18,655
Class B Common Stock				2,271					2,299					2,299					2,300					2,300
Book value per share			$	26.63				$	25.75				$	25.45				$	21.59				$	21.62
Tangible book value per share (2)				25.88					25.01					24.69					20.81					20.81
Earnings per share:
Basic earnings per Class A Common Stock				0.99					0.46					3.94					0.30					0.38
Basic earnings per Class B Common Stock				0.97					0.44					3.92					0.28					0.36
Diluted earnings per Class A Common Stock				0.98					0.46					3.92					0.30					0.38
Diluted earnings per Class B Common Stock				0.97					0.44					3.90					0.28					0.36
Cash dividends declared per share:
Class A Common Stock				0.165					0.165					0.154					0.154					0.154
Class B Common Stock				0.150					0.150					0.140					0.140					0.140
Performance Ratios:
Return on average assets				2.49	%				1.16	%				7.94	%				0.76	%				1.00	%
Return on average equity				15.31					7.17					64.47					5.46					7.01
Efficiency ratio (3)				47					65					23					74					71
Yield on average interest-earning assets				4.22					4.22					8.56					4.31					4.56
Cost of interest-bearing liabilities				0.99					1.01					0.96					1.16					1.29
Net interest spread				3.23					3.21					7.60					3.15					3.27
Net interest margin - Total Company				3.54					3.55					7.76					3.45					3.60
Net interest margin - Traditional Banking				3.54					3.57					3.40					3.56					3.61
Asset Quality Data:
Loans on non-accrual status			$	20,436				$	22,578				$	24,710				$	23,306				$	23,822
Loans past due 90 days or more and still on accrual				-					-					-					-					-
Total non-performing loans				20,436					22,578					24,710					23,306					23,822
Other real estate owned				25,148					18,345					24,149					10,956					11,185
Total non-performing assets				45,584					40,923					48,859					34,262					35,007
Total Company Credit Quality Ratios:
Non-performing loans to total loans				0.77	%				0.93	%				1.03	%				1.02	%				1.07	%
Non-performing assets to total loans (including OREO)				1.71					1.66					2.02					1.49					1.57
Non-performing assets to total assets				1.33					1.25					1.46					1.00					1.13
Allowance for loan losses to total loans				0.91					0.92					0.99					1.05					1.08
Allowance for loan losses to non-performing loans				118					100					96					103					101
Delinquent loans to total loans (4)				0.68					0.74					1.14					1.07					0.90
Net loan charge-offs to average loans (annualized)				0.08					0.28					1.89					0.06					0.33
Traditional Banking Credit Quality Ratios:
Non-performing loans to total loans				0.77					0.93					1.03					1.02					1.07
Non-performing assets to total loans (including OREO)				1.71					1.66					2.02					1.49					1.57
Non-performing assets to total assets				1.33					1.26					1.51					1.10					1.14
Allowance for loan losses to total loans				0.91					0.92					0.98					1.05					1.08
Allowance for loan losses to non-performing loans				118					100					95					103					101
Delinquent loans to total loans (4)				0.68					0.74					1.14					1.07					0.90
Net loan charge-offs to average loans (annualized)				0.15					0.28					0.65					0.15					0.45
Other Information:
End of period full-time equivalent employees				772					749					723					710					705
Number of banking centers				44					43					43					42					42

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 Earnings Release (continued)

Segment Data:

Reportable segments are determined by the type of products and services offered and 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.

As of September 30, 2012, the Company was divided into three distinct business operating segments: Traditional Banking, Mortgage Banking and Republic Processing Group (RPG). During 2012, the Company realigned the previously reported Tax Refund Solutions (TRS) segment as a division of the newly formed RPG segment. Along with the TRS division, Republic Payment Solutions (RPS) and Republic Credit Solutions (RCS) were created to operate as divisions of the RPG segment.

Nationally, through Republic Bank & Trust Company (RB&T), RPG facilitates the receipt and payment of federal and state tax refund products under the TRS division. Nationally, through Republic Bank, the RPS division is preparing to become an issuing bank to offer general purpose reloadable prepaid debit, payroll, gift and incentive cards through third party program managers. Nationally, through RB&T, the RCS division is preparing to pilot short-term consumer credit products through multiple channels, including the internet and retail locations. For the projected near-term, as the programs are established, the operating results of the RPS and RCS divisions are expected to be immaterial to the Companys overall results of operations and will therefore not be reported as a separate business operating segment until such time, if any, that they become material to the Companys overall results of operations.

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; Refund Anticipation Loan (RAL) fees and Refund Transfer fees (RTs) (formerly referred to as Electronic Refund Checks/Electronic Refund Deposits or ERCs/ERDs or ARs/ARDs) provide the majority of the revenue from TRS. All Company operations are domestic.

The accounting policies used for Republics reportable segments are the same as those described in the summary of significant accounting policies. Segment performance is evaluated using operating income. Goodwill is not allocated. Income taxes which are not segment specific are allocated based on income before income tax expense. Transactions among reportable segments are made at fair value.

Segment information for the three and nine months ended September 30, 2012 and 2011 follows:

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 Earnings Release (continued)
			Three Months Ended September 30, 2012
(dollars in thousands)			Traditional Banking					Mortgage Banking				Republic Processing Group					Total Company
Net interest income			$	28,444				$	110			$	18				$	28,572
Provision for loan losses				2,543					-				(460	)				2,083
Refund transfer fees				-					-				231					231
Mortgage banking income				-					2,274				-					2,274
Bargain purchase gains				26,923					-				-					26,923
Other non interest income				5,387					11				19					5,417
Total non interest income				32,310					2,285				250					34,845
Total non interest expenses				26,118					851				2,793					29,762
Gross operating profit (loss)				32,093					1,544				(2,065	)				31,572
Income tax expense (benefit)				11,145					541				(782	)				10,904
Net income (loss)			$	20,948				$	1,003			$	(1,283	)			$	20,668
Segment end of period assets			$	3,413,293				$	8,765			$	13,718				$	3,435,776
Net interest margin				3.54	%				NM				NM					3.54	%
			Three Months Ended September 30, 2011
(dollars in thousands)			Traditional Banking					Mortgage Banking				Republic Processing Group					Total Company
Net interest income			$	27,059				$	100			$	4				$	27,163
Provision for loan losses				547					-				(687	)				(140	)
Refund transfer fees				-					-				425					425
Mortgage banking income				-					1,352				-					1,352
Net gain on sales, calls and impairment of securities				301					-				-					301
Other non interest income				8,367					26				5					8,398
Total non interest income				8,668					1,378				430					10,476
Total non interest expenses				22,065					705				3,668					26,438
Gross operating profit (loss)				13,115					773				(2,547	)				11,341
Income tax expense (benefit)				4,293					270				(1,092	)				3,471
Net income (loss)			$	8,822				$	503			$	(1,455	)			$	7,870
Segment end of period assets			$	3,067,504				$	11,810			$	15,827				$	3,095,141
Net interest margin				3.61	%				NM				NM					3.60	%

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 Earnings Release (continued)
			Nine Months Ended September 30, 2012
(dollars in thousands)			Traditional Banking				Mortgage Banking			Republic Processing Group			Total Company
Net interest income			$	84,406			$	283		$	45,415		$	130,104
Provision for loan losses				6,505				-			7,214			13,719
Refund transfer fees				-				-			78,127			78,127
Mortgage banking income				-				5,591			-			5,591
Net gain on sales, calls and impairment of securities				56				-			-			56
Bargain purchase gains				54,726				-			-			54,726
Other non interest income				17,005				27			208			17,240
Total non interest income				71,787				5,618			78,335			155,740
Total non interest expenses				76,752				2,928			18,686			98,366
Gross operating profit				72,936				2,973			97,850			173,759
Income tax expense				25,150				1,041			34,850			61,041
Net income			$	47,786			$	1,932		$	63,000		$	112,718
Segment end of period assets			$	3,413,293			$	8,765		$	13,718		$	3,435,776
Net interest margin				3.51	%			NM			NM			5.11	%
			Nine Months Ended September 30, 2011
(dollars in thousands)			Traditional Banking				Mortgage Banking			Republic Processing Group			Total Company
Net interest income			$	78,580			$	291		$	59,092		$	137,963
Provision for loan losses				5,454				-			12,049			17,503
Refund transfer fees				-				-			88,071			88,071
Mortgage banking income				-				3,092			-			3,092
Net gain on sales, calls and impairment of securities				1,929				-			-			1,929
Other non interest income				19,663				51			350			20,064
Total non interest income				21,592				3,143			88,421			113,156
Total non interest expenses				67,840				2,755			27,187			97,782
Gross operating profit (loss)				26,878				679			108,277			135,834
Income tax expense (benefit)				8,263				237			39,389			47,889
Net income (loss)			$	18,615			$	442		$	68,888		$	87,945
Segment end of period assets			$	3,067,504			$	11,810		$	15,827		$	3,095,141
Net interest margin				3.48	%			NM			NM			5.60	%

Republic Bancorp, Inc. Financial Information
Third Quarter 2012 Earnings Release (continued)

_____________________________________

(1) The amount of loan fee income included in total interest income was $1.1 million and $1.1 million for the quarters ended September 30, 2012 and 2011. The amount of loan fee income included in total interest income was $48.4 million and $61.5 million for the nine months ended September 30, 2012 and 2011.

(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)			Sept. 30, 2012				June 30, 2012				March 31, 2012				Dec. 31, 2011				Sept. 30, 2011
Total stockholders' equity (a)			$	557,756			$	539,713			$	533,493			$	452,367			$	453,071
Less: Goodwill				10,168				10,168				10,168				10,168				10,168
Less: Core deposit intangible				589				104				113				58				73
Less: Mortgage servicing rights				4,980				5,351				5,606				6,087				6,688
Tangible stockholders' equity (c )			$	542,019			$	524,090			$	517,606			$	436,054			$	436,142
Total assets (b)			$	3,435,776			$	3,278,800			$	3,344,834			$	3,419,991			$	3,095,141
Less: Goodwill				10,168				10,168				10,168				10,168				10,168
Less: Core deposit intangible				589				104				113				58				73
Less: Mortgage servicing rights				4,980				5,351				5,606				6,087				6,688
Tangible assets (d)			$	3,420,039			$	3,263,177			$	3,328,947			$	3,403,678			$	3,078,212
Total stockholders' equity to total assets (a/b)				16.23	%			16.46	%			15.95	%			13.23	%			14.64	%
Tangible stockholders' equity to tangible assets (c/d)				15.85	%			16.06	%			15.55	%			12.81	%			14.17	%
Number of shares outstanding (e)				20,944				20,957				20,961				20,952				20,955
Book value per share (a/e)			$	26.63			$	25.75			$	25.45			$	21.59			$	21.62
Tangible book value per share (c/e)				25.88				25.01				24.69				20.81				20.81

(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 exceeding 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: $1.1 million (quarter ended September 30, 2012), $1.3 million (quarter ended June 30, 2012), $46.0 million (quarter ended March 31, 2012), $788,000 (quarter ended December 31, 2011) and $1.1 million (quarter ended September 30, 2011).

NM Not meaningful

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

Source: Republic Bancorp, Inc.

Copyright Business Wire 2012