Republic Posts Net Income of $5.7 Million for the Third Quarter of 2009, a 26% Increase Over the Third Quarter of 2008

Republic Bancorp is pleased to report net income of $5.7 million for the third quarter of 2009, a $1.2 million, or 26%, increase over the same period in 2008. Diluted Earnings per Class A Common Share increased 23% for the quarter to $0.27. For the first nine months of 2009, the Company achieved net income of $38.3 million, a $5.2 million, or 16%, increase over the first nine months of 2008. Diluted Earnings per Class A Common Share increased 16% for the first nine months of 2009 to $1.84. "Once again the Company reported strong earnings for the quarter in a turbulent economic environment. Our core banking performance remained solid, as we continued to benefit from strong net interest margin driven by a growing lower-cost deposit base," Steve Trager, Republic's President and Chief Executive Officer noted.

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.

The following chart highlights Republic's third quarter and first nine months of 2009 financial performance compared to the same periods in 2008:

                                               QTR           QTR           %          YTD           YTD           %
(dollars in thousands, except per share data)    09/30/09      09/30/08    Increase     09/30/09      09/30/08    Increase
Net Income                                     $ 5,661       $ 4,502       26   %     $ 38,287      $ 33,048      16   %
Diluted Earnings per Class A Share             $ 0.27        $ 0.22        23   %     $ 1.84        $ 1.59        16   %
Return on Average Assets ("ROA")                 0.74     %    0.60     %  23   %       1.47     %    1.40     %  5    %
Return on Average Equity ("ROE")                 7.11     %    6.61     %  8    %       16.55    %    16.66    %  -1   %

Results of Operations for the Third Quarter of 2009 Compared to the Third Quarter of 2008

Traditional Banking and Mortgage Banking (collectively "Core Banking")

Net income derived from the Company's Core Banking increased from $5.5 million during the third quarter of 2008 to $6.3 million during the third quarter of 2009. Core Banking achieved this growth in net income despite an $849,000 increase in FDIC insurance expense and a $2.1 million increase in its provision for loan losses during the quarter.

Core Banking net interest income increased $72,000 for the third quarter of 2009 compared to the same period in 2008, as the Company's net interest margin remained strong at 3.79% for the quarter. "We experienced solid growth of $107 million in our low cost transaction and money market accounts during the first nine months of the year. We grew these all important 'core' deposits because we remained an attractive alternative for commercial and consumer banking clients looking for a safe place to hold their funds, while also seeking a locally based financial institution that provides a high level of service. As a result of this growth, our overall cost of deposits, including non interest-bearing deposits, decreased to 0.85% for the third quarter of 2009. As we did earlier in 2009, we will continue to look for opportunities in the coming months within Core Banking to mitigate our risk from future increases in interest rates by extending Federal Home Loan Bank advances and taking advantage of favorable investment options as they arise," further noted Steve Trager.

Mortgage banking income increased $596,000, or 56%, for the third quarter of 2009 compared to the same period in 2008. The majority of this increase was in the "gain on sale of loan" category, as the Company sold $90 million of fixed rate loans into the secondary market during the third quarter of 2009 compared to $56 million during the third quarter of 2008. As of September 30, 2009, the Company had $9 million in loans held for sale with $23 million in fixed rate loan commitments to its customers and $27 million in mandatory forward sales contracts primarily with the Federal Home Loan Mortgage Corporation ("Freddie Mac").

Core Banking non interest expenses increased $2.0 million, or 10%, for the third quarter of 2009 to $23.5 million. As previously noted, Core Banking FDIC insurance expense increased $849,000, as the FDIC increased its premiums to all banks nationwide. Occupancy and equipment increased $440,000 during the three months ended September 30, 2009 compared to the same period in 2008 primarily due to growth in the Company's infrastructure and banking center network, as well as increased leasing costs and service agreements associated with the Company's technology and operating systems. The overall increase in non interest expense was modest despite the significant increase in FDIC insurance expense.

"As always, credit quality remains our number one focus at Republic. While provision expense was higher during the third quarter, our charge-offs as a percentage of average loans within our Core Banking were an industry-low 0.26% for the first nine months of the year. Looking ahead, we will continue to apply our conservative and disciplined underwriting standards as we strategically grow our client base. In addition, we will continue to proactively and aggressively manage our loan portfolio with the goal of maintaining our industry-strong credit quality during these challenging times," added Trager.

Core Banking provision for loan losses increased from $191,000 during the third quarter of 2008 to $2.3 million during the third quarter of 2009. Provision expense was higher during the third quarter of 2009 due to an increase in delinquent and non performing loans, as well as an increase in historical charge-off percentages. In addition, the Company also continued to increase its allowance for loan losses to give greater consideration to qualitative factors including current economic conditions in the real estate industry.

Tax Refund Solutions ("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 of the year as the Company prepares for the upcoming tax season. TRS' net loss was $608,000 for the third quarter of 2009 compared to a net loss of $967,000 for the same period in 2008. The improvement in net loss for the quarter was primarily driven by recoveries of previously charged-off Refund Anticipation Loans ("RALs") totaling $882,000 for the quarter. As a result of these recoveries, TRS' RAL loss rate improved to approximately 0.99% of total RALs originated as of September 30, 2009.

Entering the final quarter of 2009, the Company will begin accumulating funds for its first quarter 2010 tax season. Due to the excessive costs associated with securitization, the Company expects to employ a similar on-balance sheet funding strategy as it did during the first quarter 2009 tax season. As a result, Republic expects to experience a decline in its total Company net interest income and net interest margin during the fourth quarter of 2009 compared to the third quarter of 2009, as it begins to accumulate additional cash. The final impact to the Company's net interest income and net interest margin for the fourth quarter of 2009 cannot yet be determined because the Company has not finalized its strategy regarding the amount and the timing of its funding needs for the 2010 tax season.

CONCLUSION

"As we near the finish line of a successful year, our disciplined approach to a very challenging economic market remains a key factor of our continued success. The message of 'consistency builds value' and our ability to generate a positive return for our shareholders in all economic cycles is as relevant today as ever. We enter 2010 well-positioned with a strong capital level, a healthy franchise and a team in place that is ready to take advantage of the opportunities that come with disruption in our industry. In addition, we will continue to respond swiftly and aggressively in managing all troubled asset situations that arise. Meanwhile, Republic's commitment to its clients and its strong capital base, which remains among the best in the country, give the communities we serve confidence that we will be there for them through the good economic times and the bad. As always, 'We were here for you yesterday. We are here for you today. We will be here for you tomorrow.(R)'"concluded Steve Trager.

Republic Bancorp, Inc. (Republic) has 44 banking centers and is the parent company of: Republic Bank & Trust Company with 35 banking centers in 13 Kentucky communities - Bowling Green, 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, 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 $3.0 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. (R)

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
Third 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
                                                Sept. 30, 2009     Dec. 31, 2008      Sept. 30, 2008
Assets:
Cash and cash equivalents                       $     138,906      $     616,303      $     72,735
Investment securities                                 498,329            904,674            546,328
Mortgage loans held for sale                          8,597              11,298             6,758
Loans                                                 2,292,913          2,303,857          2,318,373
Allowance for loan losses                             (19,793   )        (14,832   )        (14,247   )
Federal Home Loan Bank stock, at cost                 26,248             25,082             25,082
Premises and equipment, net                           39,629             42,885             42,225
Goodwill                                              10,168             10,168             10,168
Other assets and accrued interest receivable          42,424             39,933             37,632
Total assets                                    $     3,037,421    $     3,939,368    $     3,045,054
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing                            $     325,641      $     273,203      $     279,260
Interest-bearing                                      1,352,792          2,470,166          1,521,607
Total deposits                                        1,678,433          2,743,369          1,800,867
Securities sold under agreements to
repurchase and other short-term borrowings            280,841            339,012            322,608
Federal Home Loan Bank advances                       699,689            515,234            577,294
Subordinated note                                     41,240             41,240             41,240
Other liabilities and accrued interest payable        22,295             24,591             25,808
Total liabilities                                     2,722,498          3,663,446          2,767,817
Stockholders' equity                                  314,923            275,922            277,237
Total liabilities and Stockholders' equity      $     3,037,421    $     3,939,368    $     3,045,054

Average Balance Sheet Data
                                                                    Third Quarter Ended Sept. 30, Nine Months Ended Sept. 30,
                                                                          2009         2008             2009         2008
Assets:
Investment securities                                               $     533,202    $ 538,270    $     541,789    $ 574,886
Federal funds sold and other interest-earning deposits                    87,202       7,723            354,618      44,850
Loans and fees, including loans held for sale                             2,308,156    2,340,007        2,411,128    2,387,926
Total earning assets                                                      2,928,560    2,886,000        3,307,535    3,007,662
Total assets                                                              3,056,269    3,010,211        3,478,209    3,152,532
Liabilities and Stockholders' Equity:
Non interest-bearing deposits                                       $     327,173    $ 279,061    $     400,830    $ 338,569
Interest-bearing deposits                                                 1,376,461    1,413,704        1,732,077    1,484,740
Securities sold under agreements to repurchase and other short-term
borrowings
                                                                          311,867      352,498          322,553      373,655
Federal Home Loan Bank advances                                           655,791      622,011          622,391      605,914
Subordinated note                                                         41,240       41,240           41,240       41,240
Total interest-bearing liabilities                                        2,385,359    2,429,453        2,718,261    2,505,549
Stockholders' equity                                                      318,704      272,500          308,403      264,524

Income Statement Data
                                                      Third Quarter Ended Sept. 30,       Nine Months Ended Sept. 30,
                                                           2009              2008             2009             2008
Total interest income (1)                             $    38,265       $    43,927       $   175,128      $   157,360
Total interest expense                                     10,529            16,081           38,655           55,613
Net interest income                                        27,736            27,846           136,473          101,747
Provision for loan losses                                  1,427             324              28,778           14,452
Non interest income:
Service charges on deposit accounts                        4,990             5,117            14,404           14,595
Electronic refund check fees                               137               738              25,272           17,668
Net RAL securitization income                              26                157              498              13,030
Mortgage banking income                                    1,667             1,071            9,358            3,806
Debit card interchange fee income                          1,321             1,194            3,792            3,589
Net loss on sales, calls and impairment of securities      (850   )          (5,273 )         (5,871  )        (8,880  )
Other                                                      597               410              1,844            1,162
Total non interest income                                  7,888             3,414            49,297           44,970
Non interest expenses:
Salaries and employee benefits                             12,652            12,611           39,815           39,726
Occupancy and equipment, net                               5,474             4,878            16,811           14,304
Communication and transportation                           1,056             1,024            4,000            3,246
Marketing and development                                  722               853              12,362           8,342
FDIC insurance expense                                     999               150              4,053            272
Bank franchise tax expense                                 685               599              1,957            2,025
Data processing                                            766               646              2,315            2,032
Debit card interchange expense                             702               624              2,070            1,812
Supplies                                                   463               328              1,739            1,257
Other real estate owned expense                            82                19               2,065            169
Other                                                      2,138             2,251            8,748            8,181
Total non interest expenses                                25,739            23,983           95,935           81,366
Income before income tax expense                           8,458             6,953            61,057           50,899
Income tax expense                                         2,797             2,451            22,770           17,851
Net income                                            $    5,661        $    4,502        $   38,287       $   33,048

                                                        Third Quarter Ended Sept. 30,       Nine Months Ended Sept. 30,
                                                             2009              2008             2009            2008
Per Share Data:
Basic average shares outstanding                             20,779            20,591           20,731          20,485
Diluted average shares outstanding                           20,922            20,978           20,891          20,799
End of period shares outstanding:
Class A Common Stock                                         18,485            18,283           18,485          18,283
Class B Common Stock                                         2,309             2,322            2,309           2,322
Book value per share                                    $    15.14        $    13.45        $   15.14       $   13.45
Earnings per share:
Basic earnings per Class A Common Stock                      0.27              0.22             1.85            1.62
Basic earnings per Class B Common Stock                      0.26              0.21             1.82            1.59
Diluted earnings per Class A Common Stock                    0.27              0.22             1.84            1.59
Diluted earnings per Class B Common Stock                    0.26              0.20             1.80            1.56
Cash dividends declared per share:
Class A Common Stock                                         0.132             0.121            0.385           0.352
Class B Common Stock                                         0.120             0.110            0.350           0.320
Performance Ratios:
Return on average assets                                     0.74   %          0.60   %         1.47   %        1.40   %
Return on average equity                                     7.11              6.61             16.55           16.66
Efficiency ratio (2)                                         71                66               50              52
Yield on average earning assets                              5.23              6.09             7.06            6.98
Cost of interest-bearing liabilities                         1.77              2.65             1.90            2.96
Net interest spread                                          3.46              3.44             5.16            4.02
Net interest margin                                          3.79              3.86             5.50            4.51
Asset Quality Ratios:
Loans on non-accrual status                                  40,355            14,763           40,355          14,763
Loans past due 90 days or more and still on accrual          2                 1,217            2               1,217
Total non-performing loans                                   40,357            15,980           40,357          15,980
Other real estate owned                                      3,239             2,017            3,239           2,017
Total non-performing assets                                  43,596            17,997           43,596          17,997
Non-performing loans to total loans                          1.76   %          0.69   %         1.76   %        0.69   %
Non-performing assets to total loans (including OREO)        1.90              0.78             1.90            0.78
Allowance for loan losses to total loans                     0.86              0.61             0.86            0.61
Allowance for loan losses to non-performing loans            49                89               49              89
Net loan charge-offs to average loans - Total Company        0.26              0.70             1.32            0.72
Net loan charge-offs to average loans - Banking Segment      0.42              0.51             0.26            0.26
Delinquent loans to total loans (3)                          2.23              1.05             2.23            1.05
Other Information:
End of period full-time equivalent employees                 752               720              752             720
Number of banking centers                                    44                45               44              45

Balance Sheet Data
                                                                    Quarterly Comparison
                                                                    Sept. 30, 2009       June 30, 2009        March 31, 2009       Dec. 31, 2008        Sept. 30, 2008
Assets:
Cash and cash equivalents                                           $    138,906         $    165,042         $    442,039         $    616,303         $    72,735
Investment securities                                                    498,329              519,376              452,782              904,674              546,328
Mortgage loans held for sale                                             8,597                33,287               11,499               11,298               6,758
Loans                                                                    2,292,913            2,287,178            2,314,689            2,303,857            2,318,373
Allowance for loan losses                                                (19,793   )          (19,886   )          (17,878   )          (14,832   )          (14,247   )
Federal Home Loan Bank stock, at cost                                    26,248               26,248               26,248               25,082               25,082
Premises and Equipment, net                                              39,629               40,369               40,700               42,885               42,225
Goodwill                                                                 10,168               10,168               10,168               10,168               10,168
Other assets and interest receivable                                     42,424               42,558               57,398               39,933               37,632
Total assets                                                        $    3,037,421       $    3,104,340       $    3,337,645       $    3,939,368       $    3,045,054
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing                                                $    325,641         $    338,806         $    380,039         $    273,203         $    279,260
Interest-bearing                                                         1,352,792            1,415,982            1,588,756            2,470,166            1,521,607
Total deposits                                                           1,678,433            1,754,788            1,968,795            2,743,369            1,800,867
Securities sold under agreements to repurchase and other short-term
borrowings
                                                                         280,841              299,028              325,214              339,012              322,608
Federal Home Loan Bank advances                                          699,689              659,732              635,191              515,234              577,294
Subordinated note                                                        41,240               41,240               41,240               41,240               41,240
Other liabilities and accrued interest payable                           22,295               40,008               63,622               24,591               25,808
Total liabilities                                                        2,722,498            2,794,796            3,034,062            3,663,446            2,767,817
Stockholders' equity                                                     314,923              309,544              303,583              275,922              277,237
Total liabilities and Stockholders' equity                          $    3,037,421       $    3,104,340       $    3,337,645       $    3,939,368       $    3,045,054
Average Balance Sheet Data
                                                                    Quarterly Comparison
                                                                    Sept. 30, 2009       June 30, 2009        March 31, 2009       Dec. 31, 2008        Sept. 30, 2008
Assets:
Investment securities                                               $    533,202         $    519,902         $    572,694         $    792,641         $    538,270
Federal funds sold and other interest-earning deposits                   87,202               188,604              795,834              232,591              7,723
Loans and fees, including loans held for sale                            2,308,156            2,316,494            2,612,313            2,315,382            2,340,007
Total earning assets                                                     2,928,560            3,025,000            3,980,841            3,340,614            2,886,000
Total assets                                                             3,056,269            3,216,869            4,174,783            3,470,788            3,010,211
Liabilities and Stockholders' Equity:
Non interest-bearing deposits                                       $    327,173         $    346,065         $    531,496         $    269,903         $    279,061
Interest-bearing deposits                                                1,376,461            1,475,972            2,355,747            1,940,405            1,413,704
Securities sold under agreements to repurchase and other short-term
borrowings
                                                                         311,867              328,951              327,006              381,695              352,498
Federal Home Loan Bank advances                                          655,791              662,652              547,540              536,161              622,011
Subordinated note                                                        41,240               41,240               41,240               41,240               41,240
Total interest-bearing liabilities                                       2,385,359            2,508,815            3,271,533            2,899,501            2,429,453
Stockholders' equity                                                     318,704              311,831              293,456              276,663              272,500

Income Statement Data
                                                      Quarterly Comparison
                                                      Sept. 30, 2009    June 30, 2009     March 31, 2009    Dec. 31, 2008     Sept. 30, 2008
Total interest income (4)                             $    38,265       $    39,506       $    97,357       $    44,782       $    43,927
Total interest expense                                     10,529            11,585            16,541            16,805            16,081
Net interest income                                        27,736            27,921            80,816            27,977            27,846
Provision for loan losses                                  1,427             1,686             25,665            1,753             324
Non interest income:
Service charges on deposit accounts                        4,990             4,992             4,422             4,809             5,117
Electronic refund check fees                               137               2,230             22,905            88                738
Net RAL securitization income                              26                60                412               317               157
Mortgage banking income                                    1,667             3,517             4,174             (270   )          1,071
Debit card interchange fee income                          1,321             1,312             1,159             1,187             1,194
Net loss on sales, calls and impairment of securities
                                                           (850   )          (1,896 )          (3,125 )          (5,484 )          (5,273 )
Other                                                      597               692               555               343               410
Total non interest income                                  7,888             10,907            30,502            990               3,414
Non interest expenses:
Salaries and employee benefits                             12,652            12,647            14,516            12,392            12,611
Occupancy and equipment, net                               5,474             5,428             5,909             5,456             4,878
Communication and transportation                           1,056             1,021             1,923             1,426             1,024
Marketing and development                                  722               663               10,977            866               853
FDIC insurance expense                                     999               2,004             1,050             880               150
Bank franchise tax expense                                 685               637               635               573               599
Data processing                                            766               779               770               739               646
Debit card interchange expense                             702               694               674               590               624
Supplies                                                   463               398               878               392               328
Other real estate owned expense                            82                272               1,711             69                19
Other                                                      2,138             2,011             4,599             2,843             2,251
Total non interest expenses                                25,739            26,554            43,642            26,226            23,983
Income before income tax expense                           8,458             10,588            42,011            988               6,953
Income tax expense                                         2,797             3,721             16,252            384               2,451
Net income                                            $    5,661        $    6,867        $    25,759       $    604          $    4,502

                                                        Quarterly Comparison
                                                        Sept. 30, 2009    June 30, 2009     March 31, 2009    Dec. 31, 2008     Sept. 30, 2008
Per Share Data:
Basic average shares outstanding                             20,779            20,749            20,662            20,615            20,591
Diluted average shares outstanding                           20,922            20,910            20,832            20,886            20,978
End of period shares outstanding:
Class A Common Stock                                         18,485            18,439            18,412            18,318            18,283
Class B Common Stock                                         2,309             2,310             2,310             2,310             2,322
Book value per share                                    $    15.14        $    14.92        $    14.65        $    13.38        $    13.45
Earnings per share:
Basic earnings per Class A Common Stock                      0.27              0.33              1.25              0.03              0.22
Basic earnings per Class B Common Stock                      0.26              0.32              1.24              0.02              0.21
Diluted earnings per Class A Common Stock                    0.27              0.33              1.24              0.03              0.22
Diluted earnings per Class B Common Stock                    0.26              0.32              1.23              0.02              0.20
Cash dividends declared per share:
Class A Common Stock                                         0.132             0.132             0.121             0.121             0.121
Class B Common Stock                                         0.121             0.121             0.110             0.110             0.110
Performance Ratios:
Return on average assets                                     0.74   %          0.85   %          2.47   %          0.07   %          0.60   %
Return on average equity                                     7.11              8.81              35.11             0.87              6.61
Efficiency ratio (2)                                         71                65                38                76                66
Yield on average earning assets                              5.23              5.22              9.78              5.36              6.09
Cost of interest-bearing liabilities                         1.77              1.85              2.02              2.32              2.65
Net interest spread                                          3.46              3.37              7.76              3.04              3.44
Net interest margin                                          3.79              3.69              8.12              3.35              3.86
Asset Quality Data:
Loans on non-accrual status                                  40,355            31,094            24,133            11,324            14,763
Loans past due 90 days or more and still on accrual          2                 318               352               2,133             1,217
Total non-performing loans                                   40,357            31,412            24,485            13,457            15,980
Other real estate owned                                      3,239             2,723             6,386             5,737             2,017
Total non-performing assets                                  43,596            34,135            30,871            19,194            17,997
Non-performing loans to total loans                          1.76   %          1.37   %          1.06   %          0.58   %          0.69   %
Non-performing assets to total loans (including OREO)        1.90              1.49              1.33              0.83              0.78
Allowance for loan losses to total loans                     0.86              0.87              0.77              0.64              0.61
Allowance for loan losses to non-performing loans            49                64                73                110               89
Net loan charge-offs to average loans - Total Company        0.26              (0.06  )          3.46              0.20              0.70
Net loan charge-offs to average loans - Banking Segment      0.42              0.23              0.13              0.25              0.51
Delinquent loans to total loans (3)                          2.23              1.71              1.53              1.07              1.05
Other Information:
End of period full-time equivalent employees                 752               745               742               724               720
Number of banking centers                                    44                44                45                45                45

Segment Data:

The reportable segments are determined by the type of products and services offered, distinguished between Traditional Banking, Mortgage Banking and Tax Refund Solutions ("TRS"). Loans, investments and deposits provide the majority of revenue from traditional 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 and nine months ended September 30, 2009 and 2008 follows:

                                                       Three Months Ended September 30, 2009
(dollars in thousands)                                 Traditional Banking Tax Refund Solutions  Mortgage Banking  Total Company
Net interest income                                    $      27,576       $      47             $     113         $    27,736
Provision for loan losses                                     2,309               (882   )             -                1,427
Electronic Refund Check fees                                  -                   137                  -                137
Net RAL securitization income                                 -                   26                   -                26
Mortgage banking income                                       -                   -                    1,667            1,667
Net loss on sales, calls and impairment of securities
                                                              (850      )         -                    -                (850      )
Other non interest income                                     6,864               18                   26               6,908
Total non interest income                                     6,014               181                  1,693            7,888
Total non interest expenses                                   23,132              2,283                324              25,739
Gross operating profit                                        8,149               (1,173 )             1,482            8,458
Income tax expense                                            2,855               (565   )             507              2,797
Net income                                             $      5,294        $      (608   )       $     975         $    5,661
Segment assets                                         $      3,020,498    $      7,966          $     8,957       $    3,037,421
Net interest margin                                           3.79      %         NM                   NM               3.79      %
                                                       Three Months Ended September 30, 2008
(dollars in thousands)                                 Traditional Banking Tax Refund Solutions  Mortgage Banking  Total Company
Net interest income                                    $      27,520       $      229            $     97          $    27,846
Provision for loan losses                                     191                 133                  -                324
Electronic Refund Check fees                                  -                   738                  -                738
Net RAL securitization income                                 -                   157                  -                157
Mortgage banking income                                       -                   -                    1,071            1,071
Net loss on sales, calls and impairment
of securities                                                 (5,273    )         -                    -                (5,273    )
Other non interest income                                     7,140               25                   (444  )          6,721
Total non interest income                                     1,867               920                  627              3,414
Total non interest expenses                                   21,250              2,574                159              23,983
Gross operating profit                                        7,946               (1,558 )             565              6,953
Income tax expense                                            2,840               (591   )             202              2,451
Net income                                             $      5,106        $      (967   )       $     363         $    4,502
Segment assets                                         $      2,981,809    $      56,428         $     6,817       $    3,045,054
Net interest margin                                           3.85      %         NM                   NM               3.86      %

                                                       Nine Months Ended September 30, 2009
(dollars in thousands)                                 Traditional Banking Tax Refund Solutions   Mortgage Banking  Total Company
Net interest income                                    $      82,905       $          52,880      $     688         $    136,473
Provision for loan losses                                     9,425                   19,353            -                28,778
Electronic Refund Check fees                                  -                       25,272            -                25,272
Net RAL securitization income                                 -                       498               -                498
Mortgage banking income                                       -                       -                 9,358            9,358
Net loss on sales, calls and impairment of securities
                                                              (5,871    )             -                 -                (5,871    )
Other non interest income                                     19,912                  50                78               20,040
Total non interest income                                     14,041                  25,820            9,436            49,297
Total non interest expenses                                   71,212                  23,632            1,091            95,935
Gross operating profit                                        16,309                  35,715            9,033            61,057
Income tax expense                                            5,428                   14,290            3,052            22,770
Net income                                             $      10,881       $          21,425      $     5,981       $    38,287
Segment assets                                         $      3,020,498    $          7,966       $     8,957       $    3,037,421
Net interest margin                                           3.79      %             NM                NM               5.50      %
                                                       Nine Months Ended September 30, 2008
(dollars in thousands)                                 Traditional Banking Tax Refund Solutions   Mortgage Banking  Total Company
Net interest income                                    $      81,086       $          20,373      $     288         $    101,747
Provision for loan losses                                     6,094                   8,358             -                14,452
Electronic Refund Check fees                                  -                       17,668            -                17,668
Net RAL securitization income                                 -                       13,030            -                13,030
Mortgage banking income                                       -                       -                 3,806            3,806
Net loss on sales, calls and impairment of securities
                                                              (8,880    )             -                 -                (8,880    )
Other non interest income                                     20,619                  29                (1,302 )         19,346
Total non interest income                                     11,739                  30,727            2,504            44,970
Total non interest expenses                                   63,203                  17,545            618              81,366
Gross operating profit                                        23,528                  25,197            2,174            50,899
Income tax expense                                            8,135                   8,966             750              17,851
Net income                                             $      15,393       $          16,231      $     1,424       $    33,048
Segment assets                                         $      2,981,809    $          56,428      $     6,817       $    3,045,054
Net interest margin                                           3.90      %             NM                NM               4.51      %

_____________________________________

(1) -- The amount of loan fee income included in total interest income was $763,000 and $1.3 million for the quarters ended September 30, 2009 and 2008. The amount of loan fee income included in total interest income was $59.8 million and $23.0 million for the nine months ended September 30, 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: $763,000 (quarter ended September 30, 2009), $1.2 million (quarter ended June 30, 2009), $57.8 million (quarter ended March 31, 2009), $1.4 million (quarter ended December 31, 2008 and, $1.3 million (quarter ended September 30, 2008).

NM -- Not meaningful

SOURCE: Republic Bancorp