Republic Bancorp (RBCAA) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

Republic Announces Third Quarter Net Income of $4.2 Million with Diluted Earnings per Class A Common Stock of $0.21

October 19, 2007

Contact: Kevin Sipes
Executive Vice President & CFO

Louisville, KY — Republic Bancorp, Inc. (Republic or the Company) (NASDAQ: RBCAA), the holding company for Republic Bank & Trust Company and Republic Bank, posted net income of $4.2 million with diluted earnings per Class A Common Stock (“EPS”) of $0.21 for the third quarter of 2007. Net revenue, comprised of net interest income and non interest income, increased $1.8 million, or 7%, for the quarter as the Company continued to experience solid growth in its various product offerings. “As with previous quarters in 2007, the third quarter remained a period of transition for Republic, as significant investments in technology and personnel offset growth in revenue,” commented Steve Trager, President & CEO of Republic.

“In addition to our quarter over quarter increase in revenue, the third quarter was filled with many positives that we believe will benefit the Company’s shareholders in the long-term. Our traditional client base remained strong and continued to grow, as the Company increased its number of households served at quarter end to nearly 90,000. Our Florida operations showed significant loan activity during the quarter as a tightening credit market provided tremendous opportunities for banks with sound asset quality. The Company also announced a new relationship with Jackson Hewitt during the quarter, which should provide a significant, positive impact to earnings at Tax Refund Solutions (“TRS”) beginning in 2008. Additionally, the base of “independent” tax preparers that have agreed to make available TRS’s products in 2008 continues to grow substantially from those we worked with during the 2007 tax season. The future remains extremely promising for TRS, as many changes continue to occur in the industry,” further commented Steve Trager.

Overall asset quality remained good and continued to compare favorably to peer. An increase in non performing loans combined with a larger dollar amount of classified assets led to an increase in the Company’s provision for loan losses of $1.3 million for the third quarter of 2007 compared to the third quarter of 2006. The Company’s level of non-performing loans rose to slightly above one-half of one percent of outstanding loans finishing the quarter at 0.51%.

Growth in loan balances combined with a decrease in short-term interest rates provided a positive impact to net interest income during the third quarter of 2007. Total loans grew by $173 million from September 30, 2006 to September 30, 2007, while the Federal Open Market Committee (“FOMC”) of the Federal Reserve lowered the “Fed Funds Target Rate” by 50 basis points in late September 2007. Overall, net interest income increased $812,000, or 4%, for the third quarter of 2007 compared to the same period in 2006. “While we have experienced great success in growing our balance sheet during the past 12 months, we have continued to combat a very unfavorable interest rate environment in which short-term rates were higher than long-term rates during much of that time period. The recent decrease in short-term rates initiated by the Federal Reserve should benefit the Company’s net interest margin, however, the yield curve remains somewhat flat and our incremental funding costs

remain higher than our current overall cost of funds. As such, the Company will continue to focus on sound asset growth to increase net interest income,” Steve Trager further noted.

Non interest income increased $1.0 million, or 16%, for the third quarter of 2007 compared to the same period in 2006. The primary driver for the increase in non interest income was a rise in service charges on deposits, which increased $579,000 for the quarter, as the Company’s transaction account base surpassed 95,000 accounts. The Company also experienced an increase in mortgage banking income as demand for 15- and 30-year fixed rates mortgages rose during the quarter.

Non interest expense increased $3.7 million, or 21%, for the third quarter of 2007 to $21.3 million. As with the previous quarters in 2007, the increase in non interest expense primarily resulted from an increase in personnel and occupancy costs related to growth in the Company’s infrastructure and sales staff. In particular, the Company has experienced significant increases in its overhead for TRS, as it prepares for the expected product growth in the 2008 tax season. Non interest expense for both the third quarter of 2007 and the third quarter of 2006 benefited from a decrease in incentive compensation accruals. For the third quarter of 2007, the Company recorded a credit to its incentive compensation accruals of $850,000 compared to a credit of $750,000 for the third quarter of 2006.

“As in the past, we remain firm in our commitment to invest for the future at Republic. As evidenced by the growth in our associate base, we have invested heavily in people to accommodate both current client activity and our significant future growth plans, as well. In addition, we continue to make significant investments in technology to enhance our overall efficiency and to provide greater security and redundancy for our multiple core systems. We believe all of these investments will greatly enhance the long-term franchise value of the Company,” Steve Trager commented.

“As we near 2008, our focus remains on increasing profitability by growing our core customer base while enhancing earnings in our non traditional business. Recent and future developments are expected to contribute toward execution of that plan. In building this strategy, I must remind our shareholders that 2007 will continue to be transitional in nature and that the positive results of some of our financial initiatives will not be immediate. We remain deeply committed to a strategy focused on delivering superior, responsive service to our customers and building long-term, sustainable earnings and value to our shareholders,” concluded Steve Trager.

Republic Bancorp, Inc. (Republic) has 39 banking centers and is the parent company of: Republic Bank & Trust Company with 34 banking centers in ten Kentucky communities — Bowling Green, Covington, Elizabethtown, Fort Wright, Frankfort, Georgetown, Lexington, Louisville, Owensboro, and Shelbyville and three banking centers in southern Indiana: Floyds Knobs, Jeffersonville and New Albany. Republic Bank has two banking centers in Port Richey and New Port Richey, Florida. Republic Bank & Trust Company operates Tax Refund Solutions, a nationwide tax refund loan and check provider. Republic offers internet banking at www.republicbank.com. Republic has $3.2 billion in assets and $1 billion in trust assets under custody and management. Republic is headquartered in Louisville, Kentucky, and Republic Class A Common Stock is listed under the symbol ‘RBCAA’ on the NASDAQ Global Select Market.

Statements in this press release relating to Republic’s plans, objectives, or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations. Republic’s actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed in Republic’s 2006 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.

Republic Bancorp, Inc. Financial Information
Third Quarter 2007 Earnings Release
(all amounts other than per share amounts and number of employees are expressed in thousands unless otherwise noted)

Balance Sheet Data

	Sept. 30, 2007			Dec. 31, 2006			Sept. 30, 2006
Assets:
Cash and cash equivalents	$	73,674		$	81,613		$	66,145
Investment securities	600,263			561,772			510,974
Mortgage loans held for sale	4,430			5,724			1,530
Loans	2,394,584			2,298,888			2,221,509
Allowance for loan losses	(12,102		)	(11,218		)	(10,857		)
Federal Home Loan Bank stock, at cost	23,955			23,111			22,666
Premises and equipment, net	38,587			36,560			31,981
Goodwill	10,025			10,016			—
Other assets and accrued interest receivable	37,501			40,321			32,796
Total assets	$	3,170,917		$	3,046,787		$	2,876,744
Liabilities and Stockholders’ Equity:
Non interest-bearing deposits	$	289,699		$	279,026		$	282,134
Interest-bearing deposits	1,444,610			1,413,696			1,265,120
Total deposits	1,734,309			1,692,722			1,547,254
Securities sold under agreements to repurchase and other short-term borrowings	353,283			401,886			304,246
Federal Home Loan Bank advances	769,637			646,572			725,732
Subordinated note	41,240			41,240			41,240
Other liabilities and accrued interest payable	28,478			27,019			25,825
Total liabilities	2,926,947			2,809,439			2,644,297
Stockholders’ equity	243,970			237,348			232,477
Total liabilities and Stockholders’ equity	$	3,170,917		$	3,046,787		$	2,876,774

Average Balance Sheet Data from Continuing Operations

	Third Quarter Ended Sept. 30,				Nine Months Ended Sept. 30,
	2007		2006		2007		2006
Assets:
Federal funds sold and other	$	8,247	$	15,474	$	7,897	$	14,054
Investment securities	628,712		492,363		597,383		500,375
Loans and fees	2,372,182		2,204,309		2,344,320		2,155,315
Total earning assets	3,009,141		2,712,146		2,949,600		2,669,744
Total assets	3,135,008		2,825,716		3,071,241		2,781,843
Liabilities and Stockholders’ Equity:
Non interest-bearing deposits	$	278,836	$	275,426	$	291,142	$	288,232
Interest-bearing deposits	1,456,983		1,299,197		1,409,488		1,307,966
Securities sold under agreements to repurchase and other short-term borrowings	423,694		345,156		435,019		339,106
Federal Home Loan Bank advances	664,279		609,548		625,380		553,835
Subordinated note	41,240		41,240		41,240		41,240
Total interest-bearing liabilities	2,586,196		2,295,141		2,511,127		2,242,147
Stockholders’ equity	241,720		228,112		241,910		222,745

Republic Bancorp, Inc. Financial Information
Third Quarter 2007 Earnings Release (continued)

Income Statement Data

	Third Quarter Ended Sept. 30,				Nine Months Ended Sept. 30,
	2007		2006		2007		2006
Total interest income(1)	$	49,033	$	43,778	$	149,392	$	129,926
Total interest expense	27,368		22,925		78,469		62,652
Net interest income	21,665		20,853		70,923		67,274
Provision for loan losses	1,376		110		5,203		2,013
Service charges on deposit accounts	4,870		4,291		13,680		12,043
Electronic refund check fees	77		3		4,189		3,954
Net RAL securitization income	11		113		3,713		2,531
Mortgage banking income	905		657		2,051		1,599
Debit card interchange fee income	1,105		935		3,216		2,674
Other	538		483		1,599		1,536
Total non interest income	7,506		6,482		28,448		24,337
Salaries and employee benefits	11,051		9,541		34,703		30,965
Occupancy and equipment, net	4,461		3,550		12,795		10,933
Communication and transportation	859		593		2,561		1,895
Marketing and development	815		543		2,482		1,728
Bankshares tax	629		546		1,922		1,648
Data processing	679		536		1,907		1,630
Debit card interchange expense	591		425		1,681		1,198
Supplies	391		289		1,299		947
Other	1,802		1,539		6,428		4,652
Total non interest expenses	21,278		17,562		65,778		55,596
Income from continuing operations before income tax expense	6,517		9,663		28,390		34,002
Income tax expense from continuing operations	2,285		3,309		9,883		11,822
Income from continuing operations before discontinued operations, net of income tax expense	4,232		6,354		18,507		22,180
Income from discontinued operations before income tax expense	—		522		—		345
Income tax expense from discontinued operations	—		182		—		120
Income from discontinued operations, net of income tax expense(2)	—		340		—		225
Net income	$	4,232	$	6,694	$	18,507	$	22,405

Republic Bancorp, Inc. Financial Information
Third Quarter 2007 Earnings Release (continued)

	Third Quarter Ended Sept. 30						Nine Months Ended Sept. 30,
	2007			2006			2007			2006
Per Share Data(3):
Basic average shares outstanding	20,336			20,510			20,516			20,487
Diluted average shares outstanding	20,617			21,060			20,936			21,045
End of period shares outstanding:
Class A Common Stock	17,930			18,171			17,930			18,171
Class B Common Stock	2,347			2,351			2,347			2,351
Book value per share	$	12.03		$	11.33		$	12.03		$	11.33
Earnings per share from continuing operations:
Basic earnings per Class A Common Stock	0.21			0.31			0.91			1.08
Basic earnings per Class B Common Stock	0.20			0.30			0.88			1.06
Diluted earnings per Class A Common Stock	0.21			0.30			0.88			1.05
Diluted earnings per Class B Common Stock	0.20			0.29			0.86			1.03
Earnings per share from discontinued operations(2):
Basic earnings per Class A Common Stock	0.00			0.02			0.00			0.02
Basic earnings per Class B Common Stock	0.00			0.02			0.00			0.01
Diluted earnings per Class A Common Stock	0.00			0.02			0.00			0.01
Diluted earnings per Class B Common Stock	0.00			0.02			0.00			0.02
Earnings per share:
Basic earnings per Class A Common Stock	0.21			0.33			0.91			1.10
Basic earnings per Class B Common Stock	0.20			0.32			0.88			1.07
Diluted earnings per Class A Common Stock	0.21			0.32			0.88			1.06
Diluted earnings per Class B Common Stock	0.20			0.31			0.86			1.05
Cash dividends declared per share:
Class A Common Stock	0.110			0.094			0.314			0.268
Class B Common Stock	0.100			0.086			0.286			0.244
Performance Ratios:
Return on average assets (ROA) from continuing operations	0.54		%	0.90		%	0.80		%	1.06		%
Return on average assets	0.54			0.95			0.80			1.07
Return on average equity (ROE) from continuing operations	7.00			11.14			10.20			13.28
Return on average equity	7.00			11.74			10.20			13.41
Efficiency ratio from continuing operations(4)	73			64			66			61
Yield on average earning assets	6.52			6.46			6.75			6.49
Cost of interest-bearing liabilities	4.23			4.00			4.17			3.73
Net interest spread	2.29			2.46			2.58			2.76
Net interest margin	2.88			3.08			3.21			3.36
Asset Quality Ratios:
Loans on non-accrual status	9,156			5,435			9,156			5,435
Loans past due 90 days or more and still on accrual	2,948			205			2,948			205
Total non-performing loans	12,104			5,640			12,104			5,640
Other real estate owned	102			256			102			256
Total non-performing assets	12,206			5,896			12,206			5,896
Non-performing loans to total loans	0.51		%	0.25		%	0.51		%	0.25		%
Allowance for loan losses to total loans	0.51			0.49			0.51			0.49
Allowance for loan losses to non-performing loans	100			193			100			193
Net loan charge-offs to average loans (from continuing operations)	0.07			—			0.25			0.09
Delinquent loans to total loans(5)	0.76			0.53			0.76			0.53
Other Information:
End of period full-time equivalent employees	719			672			719			672
Number of banking centers at period end	38			35			38			35

Republic Bancorp, Inc. Financial Information
Third Quarter 2007 Earnings Release (continued)

Balance Sheet Data

	Quarterly Comparison
	Sept. 30, 2007			June 30, 2007			March 31, 2007			Dec. 31, 2006			Sept. 30 2006
Assets:
Cash and cash equivalents	$	73,674		$	72,585		$	78,447		$	81,613		$	66,145
Investment securities	600,263			584,347			525,077			561,772			510,974
Mortgage loans held for sale	4,430			16,430			12,914			5,724			1,530
Loans	2,394,584			2,333,844			2,307,121			2,298,888			2,221,509
Allowance for loan losses	(12,102		)	(11,157		)	(11,487		)	(11,218		)	(10,857		)
Federal Home Loan Bank stock, at cost	23,955			23,955			23,453			23,111			22,666
Premises and Equipment, net	38,587			36,833			36,019			36,560			31,981
Goodwill	10,025			10,025			10,025			10,016			—
Other assets and interest receivable	37,501			39,385			40,268			40,321			32,796
Total assets	$	3,170,917		$	3,106,247		$	3,021,837		$	3,046,787		$	2,876,744
Liabilities and Stockholders’ Equity:
Non interest-bearing deposits	$	289,699		$	293,383		$	306,923		$	279,026		$	282,134
Interest-bearing deposits	1,444,610			1,381,938			1,398,240			1,413,696			1,265,120
Total deposits	1,734,309			1,675,321			1,705,163			1,692,722			1,547,254
Securities sold under agreements to repurchase and other short-term borrowings	353,283			434,276			445,055			401,886			304,246
Federal Home Loan Bank advances	769,637			684,683			548,528			646,572			725,732
Subordinated note	41,240			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable	28,478			28,295			37,418			27,019			25,825
Total liabilities	2,926,947			2,863,815			2,777,404			2,809,439			2,644,297
Stockholders’ equity	243,970			242,432			244,433			237,348			232,477
Total liabilities and Stockholders’ equity	$	3,170,917		$	3,106,247		$	3,021,837		$	3,046,787		$	2,876,774

Average Balance Sheet Data from Continuing Operations

	Quarterly Comparison
	Sept. 30 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30 2006
Assets:
Federal funds sold and other	$	8,247	$	4,378	$	10,266	$	21,076	$	15,474
Investment securities	628,712		583,385		579,516		594,836		492,363
Loans and fees	2,372,182		2,326,645		2,333,647		2,275,539		2,204,309
Total earning assets	3,009,141		2,914,408		2,923,429		2,891,451		2,712,146
Total assets	3,135,008		3,040,452		3,050,905		3,019,196		2,825,716
Liabilities and Stockholders’ Equity:
Non interest-bearing deposits	$	278,836	$	286,827	$	307,179	$	279,144	$	275,426
Interest-bearing deposits	1,456,983		1,383,872		1,387,040		1,372,028		1,299,197
Securities sold under agreements to repurchase and other short-term borrowings	423,694		448,865		432,698		427,736		345,156
Federal Home Loan Bank advances	664,279		603,860		607,375		638,459		609,548
Subordinated note	41,240		41,240		41,240		41,240		41,240
Total interest-bearing liabilities	2,586,196		2,477,837		2,468,353		2,479,463		2,295,141
Stockholders’ equity	241,720		244,781		239,182		234,613		228,112

Republic Bancorp, Inc. Financial Information
Third Quarter 2007 Earnings Release (continued)

Income Statement Data

	Quarterly Comparison
	Sept. 30, 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006
Total interest income(6)	$	49,033	$	47,933	$	52,426	$	46,614	$	43,778
Total interest expense	27,368		25,924		25,177		25,590		22,925
Net interest income	21,665		22,009		27,249		21,024		20,853
Provision for loan losses	1,376		147		3,680		289		110
Service charges on deposit accounts	4,870		4,658		4,152		4,462		4,291
Electronic refund check fees	77		683		3,429		148		3
Net RAL securitization income	11		1,095		2,607		240		113
Mortgage banking income	905		604		542		717		657
Debit card interchange fee income	1,105		1,107		1,004		970		935
Gain on sale of securities	—		—		—		300		—
Other	538		661		400		526		483
Total non interest income	7,506		8,808		12,134		7,363		6,482
Salaries and employee benefits	11,051		11,309		12,343		9,447		9,541
Occupancy and equipment, net	4,461		4,287		4,047		4,608		3,550
Communication and transportation	859		754		948		855		593
Marketing and development	815		846		821		731		543
Bankshares tax	629		630		663		254		546
Data processing	679		642		586		541		536
Debit card interchange expense	591		573		517		465		425
Supplies	391		450		458		324		289
Other	1,802		2,039		2,587		2,041		1,539
Total non interest expenses	21,278		21,530		22,970		19,266		17,562
Income from continuing operations before income tax expense	6,517		9,140		12,733		8,832		9,663
Income tax expense from continuing operations	2,285		3,171		4,427		2,896		3,309
Income from continuing operations before discontinued operations, net of income tax expense	4,232		5,969		8,306		5,936		6,354
Income from discontinued operations before income tax expense	—		—		—		14		522
Income tax expense from discontinued operations	—		—		—		4		182
Income from discontinued operations, net of income tax expense(2)	—		—		—		10		340
Net income	$	4,232	$	5,969	$	8,306	$	5,946	$	6,694

Republic Bancorp, Inc. Financial Information
Third Quarter 2007 Earnings Release (continued)

	Four Quarter Comparison
	Sept. 30, 2007			June 30, 2007			March 31, 2007			Dec. 31, 2006			Sept. 30, 2006
Per Share Data(3):
Basic average shares outstanding	20,336			20,617			20,602			20,537			20,510
Diluted average shares outstanding	20,617			21,013			21,196			21,161			21,060
End of period shares outstanding:
Class A Common Stock	17,930			18,099			18,266			18,242			18,171
Class B Common Stock	2,347			2,349			2,350			2,350			2,351
Book value per share	$	12.03		$	11.86		$	11.86		$	11.53		$	11.33
Earnings per share from continuing operations:
Basic earnings per Class A Common Stock	0.21			0.29			0.40			0.29			0.31
Basic earnings per Class B Common Stock	0.20			0.28			0.40			0.28			0.30
Diluted earnings per Class A Common Stock	0.21			0.28			0.39			0.28			0.30
Diluted earnings per Class B Common Stock	0.20			0.28			0.38			0.27			0.29
Earnings per share from discontinued operations(2):
Basic earnings per Class A Common Stock	0.00			0.00			0.00			0.00			0.02
Basic earnings per Class B Common Stock	0.00			0.00			0.00			0.00			0.02
Diluted earnings per Class A Common Stock	0.00			0.00			0.00			0.00			0.02
Diluted earnings per Class B Common Stock	0.00			0.00			0.00			0.00			0.02
Earnings per share:
Basic earnings per Class A Common Stock	0.21			0.29			0.40			0.29			0.33
Basic earnings per Class B Common Stock	0.20			0.28			0.40			0.28			0.32
Diluted earnings per Class A Common Stock	0.21			0.28			0.39			0.28			0.32
Diluted earnings per Class B Common Stock	0.20			0.28			0.38			0.27			0.31
Cash dividends declared per share:
Class A Common Stock	0.110			0.110			0.094			0.094			0.094
Class B Common Stock	0.100			0.100			0.086			0.086			0.086
Performance Ratios:
Return on average assets (ROA) from continuing operations	0.54		%	0.79		%	1.09		%	0.79		%	0.90		%
Return on average assets	0.54			0.79			1.09			0.79			0.95
Return on average equity (ROE) from continuing operations	7.00			9.75			13.89			10.12			11.14
Return on average equity	7.00			9.75			13.89			10.14			11.74
Efficiency ratio from continuing operations(4)	73			70			58			68			64
Yield on average earning assets	6.52			6.58			7.17			6.45			6.46
Cost of interest-bearing liabilities	4.23			4.18			4.08			4.13			4.00
Net interest spread	2.29			2.40			3.09			2.32			2.46
Net interest margin	2.88			3.02			3.73			2.91			3.08
Asset Quality Data:
Loans on non-accrual status	9,156			6,834			6,039			5,980			5,435
Loans past due 90 days or more and still on accrual	2,948			2,483			815			413			205
Total non-performing loans	12,104			9,317			6,854			6,393			5,640
Other real estate owned	102			406			213			547			256
Total non-performing assets	12,206			9,723			7,067			6,940			5,896
Non-performing loans to total loans	0.51		%	0.40		%	0.30		%	0.28		%	0.25		%
Allowance for loan losses to total loans	0.51			0.48			0.50			0.49			0.49
Allowance for loan losses to non-performing loans	100			120			168			175			193
Net loan charge-offs to average loans (from continuing operations)	0.07			0.08			0.58			(0.01		)	—
Delinquent loans to total loans(5)	0.76			0.70			0.50			0.49			0.53
Other Information:
End of period full-time equivalent employees	719			718			729			698			672
Number of banking centers at period end	38			38			38			38			35

Segment Data:

The reportable segments are determined by the type of products and services offered, distinguished between banking operations, mortgage banking operations and Tax Refund Solutions. The Company substantially exited the deferred deposit business during the first quarter of 2006; therefore, its segment operations are presented as discontinued operations. Loans, investments and deposits provide the majority of revenue from banking operations; servicing fees and loan sales provide the majority of revenue from mortgage banking operations; Refund Anticipation Loan (“RAL”) fees, Electronic Refund Check (“ERC”)/ Electronic Refund Deposit (“ERD”) fees and Net RAL securitization income provide the majority of the revenue from Tax Refund Solutions; and fees for providing deferred deposits or payday loans have historically represented the primary revenue source for the deferred deposit segment. All Company segments are domestic. Segment information for the three and nine month periods ended September 30, 2007 and 2006 follows:

	Three Months Ended September 30, 2007
(in thousands)	Banking			Tax Refund Solutions			Mortgage Banking			Total Continuing Operations			Discontinued Operations
Net interest income	$	21,517		$	52		$	96		$	21,665		$	—
Provision for loan losses	1,530			(154		)	—			1,376			—
Electronic Refund Check fees	—			77			—			77			—
Net RAL Securitization Income	—			11			—			11			—
Mortgage banking income				—			905			905			—
Other revenue	6,732			(11		)	(208		)	6,513			—
Income tax expense (benefit)	2,546			(466		)	205			2,285			—
Net income (loss)	4,738			(889		)	383			4,232			—
Segment assets	3,163,110			3,294			4,513			3,170,917			—
Net interest margin	2.88		%	9.11		%	2.76		%	2.88		%	—

	Three Months Ended September 30, 2006
(in thousands)	Banking			Tax Refund Solutions			Mortgage Banking			Total Continuing Operations			Discontinued Operations
Net interest income	$	20,620		$	143		$	90		$	20,853		$	3
Provision for loan losses	395			(285		)	—			110			(33		)
Electronic Refund Check fees	—			3			—			3			—
Net RAL Securitization Income	—			113			—			113			—
Mortgage banking income	—			—			657			657			—
Other revenue	5,984			6			(281		)	5,709			500
Income tax expense (benefit)	3,443			(228		)	94			3,309			182
Net income (loss)	6,554			(379		)	179			6,354			340
Segment assets	2,872,354			2,787			1,603			2,876,744			—
Net interest margin	3.06		%	32.78		%	3.33		%	3.08		%	—

	Nine Months Ended September 30, 2007
(in thousands)	Banking			Tax Refund Solutions			Mortgage Banking			Total Continuing Operations			Discontinued Operations
Net interest income	$	63,788		$	6,829		$	306		$	70,923		$	—
Provision for loan losses	1,910			3,293			—			5,203			—
Electronic Refund Check fees	—			4,189			—			4,189			—
Net RAL securitization income	—			3,713			—			3,713			—
Mortgage banking income	—			—			2,051			2,051			—
Other revenue	19,272			(65		)	(712		)	18,495			—
Income tax expense	7,195			2,345			343			9,883			—
Net income	13,472			4,392			643			18,507			—
Segment assets	3,163,110			3,294			4,513			3,170,917			—
Net interest margin	2.91		%	56.09		%	2.63		%	3.21		%	—

	Nine Months Ended September 30, 2006
(in thousands)	Banking			Tax Refund Solutions			Mortgage Banking			Total Continuing Operations			Discontinued Operations
Net interest income	$	61,318		$	5,734		$	222		$	67,274		$	498
Provision for loan losses	1,634			379			—			2,013			(353		)
Electronic Refund Check fees	—			3,954			—			3,954			—
Net RAL securitization income	—			2,531			—			2,531			—
Mortgage banking income	—			—			1,599			1,599			—
Other revenue	16,821			13			(581		)	16,253			500
Income tax expense	8,924			2,669			229			11,822			120
Net income	16,742			5,008			430			22,180			225
Segment assets	2,872,354			2,787			1,603			2,876,744			—
Net interest margin	3.09		%	63.25		%	3.59		%	3.36		%	—

Detail of Net RAL securitization income follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2007		2006		2007		2006
Net gain on sale of RALs	$	5	$	—	$	2,261	$	2,022
Increase in securitization residual	6		113		1,452		509
Net RAL securitization income	$	11	$	113	$	3,713	$	2,531

(1) — The amount of loan fee income included in total interest income was $980,000 and $971,000 for the quarters ended September 30, 2007 and 2006. The amount of loan fee income included in total interest income was $9.0 million and $7.9 million for the nine months ended September 30, 2007 and 2006.

(2) — Represents the Company substantially exiting the payday loan segment of business during the first quarter of 2006.

(3) — Prior period amounts have been restated to reflect the 5% stock dividend declared in the first quarter of 2007.

(4) — Equals total non-interest expense divided by the sum of net interest income and non interest income.

(5) — Equals total loans over 30 days past due divided by total loans.

(6) — The amount of loan fee income included in total interest income per quarter was as follows: $980,000 (September 30, 2007), $1.7 million (June 30, 2007), $6.3 million (March 31, 2007), $888,000 (December 31, 2006) and $971,000 (September 30, 2006).