Republic Bancorp (RBCAA) 8-K Republic Bancorp Reports a 35% Increase in Net Income for 2008

EXHIBIT 99.1

Republic Bancorp Reports a 35% Increase in Net Income for 2008

January 21, 2009

Contact: Kevin Sipes

Executive Vice President and Chief Financial Officer

(502) 560-8628

Louisville, KY – Republic Bancorp completed 2008 with net income of $33.7 million for the year, a 35% increase over 2007. Steve Trager, Republic’s President and CEO, noted “We are extremely proud of our core operations, as the Company reported year-over-year earnings growth in a turbulent economic environment. The foundation for this success was solidly laid within our organization’s business model 25 years ago. As a Company, we are committed to maintaining exceptional credit quality in order to create long-term shareholder value. Further, we will never sacrifice long-term shareholder value for the reward of short-term gain. We believe this business model built on prudent underwriting standards will always withstand the test of time. Our solid results were recognized by the market in 2008 with a 65% increase in our stock price as we closed the year at $27.20 per share.”

					Three Months		Three Months
	Year Ended		Year Ended		Ended		Ended
(dollars in thousands, except per share data)	12/31/08		12/31/07		12/31/08		12/31/07
Total Company
Net Income	$	33,652	$	24,913	$	604	$	6,406
Diluted Earnings per Class A Share		1.62		1.20		0.03		0.31
Period End Total Assets		3,939,368		3,165,359		3,939,368		3,165,359

Republic Bancorp, Inc. (“Republic” or the “Company”) (NASDAQ: RBCAA) is the holding company for Republic Bank & Trust Company and Republic Bank

Operating revenue in the fourth quarter of 2008 was consistent with the Company’s record annual net income. Overall, net income for the quarter was $604,000 with diluted earnings per Class A common share of $0.03 reflecting the following significant items in comparison to the fourth quarter of 2007:

1) The Company recorded a net impairment on its security portfolio of $5.5 million during the fourth quarter of 2008 compared to a net gain of $8,000 during the same period in 2007. The fourth quarter 2008 net impairment reflects an Other-Than-Temporary-Impairment (“OTTI”) charge of $6.9 million on its private label mortgage backed securities portfolio as a result of mark-to-market accounting rules. This impairment was offset by a gain of $1.4 million for government agency securities that the Company sold during the quarter.

2) Due to the significant reduction in long-term interest rates during the fourth quarter of 2008, the fair value of the Company’s mortgage servicing rights declined substantially, as projected pre-payment speeds of the underlying loans increased dramatically. As a result, the Company recorded a $1.3 million impairment charge during the fourth quarter of 2008. No such charges occurred in 2007.

1

3) The Company chose to pay fewer bonuses in 2007 and recorded a credit to salary expense of $2.6 million during the fourth quarter of 2007 for the reversal of previous bonus accruals. In contrast, the Company recorded a credit of $650,000 during the fourth quarter of 2008 for the reversal of previous bonus accruals.

4) The Company recorded a large insurance settlement gain of $1.9 million during the fourth quarter of 2007 related to the final settlement of its corporate center fire that occurred in late 2006. No such gain occurred in 2008.

5) The Company chose to utilize its traditional funding sources to fund its anticipated first quarter 2009 refund anticipation loan volume as opposed to a securitization vehicle which has been used the past three years. In order to ensure that the funding was in place, Republic began additional borrowing during the fourth quarter of 2008, primarily in the form of brokered deposits. As a result, the Company incurred a substantial portion of the funding costs for the first quarter 2009 program in the 2008 calendar year. Overall, Tax Refund Solutions (“TRS”) contributed negative net interest income of $2.2 million for the fourth quarter of 2008 compared to negative net interest income of $170,000 for the fourth quarter of 2007.

	Three Months			Three Months
	Ended			Ended
(dollars in thousands)	12/31/08			12/31/07			Change
Items discussed in the preceding bullet points above
and their impact on pre tax net income for the quarter
(1) Net gain (loss) on sales, calls and impairments
of securities	$	(5,484	)	$	8		$	(5,492	)
(2) Impairment charge on mortgage servicing rights		(1,255	)		-			(1,255	)
(3) Reversal of bonus accruals		650			2,606			(1,956	)
(4) Insurance settlement gain		-			1,877			(1,877	)
(5) Negative impact of TRS funding		(2,207	)		(170	)		(2,037	)
Total effect on pre tax net income	$	(8,296	)	$	4,321		$	(12,617	)

Total Company non interest expenses increased $4.7 million for the fourth quarter of 2008 to $26.2 million. Approximately $661,000 of the increase in non interest expenses was associated with TRS, as the Company recruited, hired, and began to train a significant number of seasonal staff members for the upcoming tax season. The remaining $4.0 million of the increase related primarily to the traditional banking segment and resulted from an increase in personnel and occupancy costs associated with the opening of nine new banking centers over the past 15 months.

As of December 31, 2008, approximately 97% of the Company’s real estate secured loans were in Republic’s core market of Kentucky and southern Indiana. Home values in the Company’s core market area have been more stable than many other parts of the country. While stable real estate values are a positive factor in achieving low loan losses, Republic has not been immune to the economic downturn that is affecting financial institutions across the country. Compared to December 31, 2007, Republic’s non performing loans to total loans ratio increased from 0.40% to 0.58% as of year end 2008. The Company’s overall asset quality remained substantially better than its peer as presented in the FDIC’s September 30, 2008 Uniform Bank Performance Report (“UBPR”), which compiles data on 303 banks across the United States with $778 million to $3.1 billion in total average assets.

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“As we conclude another successful year, I am most optimistic about our prospects for 2009. Our capital position is strong and is considered well-capitalized under regulatory guidelines, our credit quality is solid, our net interest margin is healthy, and our overhead costs are well contained. In addition, REPUBLIC BANK IS OPEN FOR LENDING. As long-term interest rates declined during December, demand for our 15- and 30-year fixed rate loan products increased substantially, boding well for a good start in 2009. As a strong, professional team, we are committed to remaining focused on the long-term value of the Company, to responding quickly and thoughtfully to changes and challenges, and to continuing to meet the banking needs of the communities we serve. We are proud to remind our clients, our associates and our shareholders, “we were here for you yesterday, we are here for you today, and we will be here for you tomorrow,”™ concluded Steve Trager.

Republic Bancorp, Inc. (Republic) has 45 banking centers and is the parent company of: Republic Bank & Trust Company with 36 banking centers in 14 Kentucky communities - Bowling Green, Covington, Crestwood, Elizabethtown, Florence, Fort Wright, Frankfort, Georgetown, Independence Lexington, Louisville, Owensboro, Shelbyville and Shepherdsville and three banking centers in southern Indiana: Floyds Knobs, Jeffersonville and New Albany. Republic Bank has banking centers in Hudson, Palm Harbor, Port Richey, New Port Richey and Temple Terrace, Florida as well as Cincinnati, Ohio. Republic operates Tax Refund Solutions, a nationwide tax refund loan and check provider. Republic offers internet banking at www.republicbank.com. Republic has $3.9 billion in assets and $1 billion in trust assets under custody and management. Republic is headquartered in Louisville, Kentucky, and Republic's Class A Common Stock is listed under the symbol 'RBCAA' on the NASDAQ Global Select Market.

Statements in this press release relating to Republic’s plans, objectives, or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations. Republic's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed in Republic’s 2007 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.

3

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release

(all amounts other than per share amounts and number of employees and number of banking centers are expressed in thousands unless otherwise noted)

Balance Sheet Data

	Dec. 31, 2008			Dec. 31, 2007
Assets:
Cash and cash equivalents	$	616,303		$	86,177
Investment securities		904,674			580,636
Mortgage loans held for sale		11,298			4,278
Loans		2,303,857			2,397,073
Allowance for loan losses		(14,832	)		(12,735	)
Federal Home Loan Bank stock, at cost		25,082			23,955
Premises and equipment, net		42,885			39,706
Goodwill		10,168			10,168
Other assets and accrued interest receivable		39,933			36,101
Total assets	$	3,939,368		$	3,165,359
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing	$	273,203		$	279,457
Interest-bearing		2,470,166			1,689,355
Total deposits		2,743,369			1,968,812
Securities sold under agreements to
repurchase and other short-term borrowings		339,012			398,296
Federal Home Loan Bank advances		515,234			478,550
Subordinated note		41,240			41,240
Other liabilities and accrued interest payable		24,591			29,601
Total liabilities		3,663,446			2,916,499
Stockholders' equity		275,922			248,860
Total liabilities and Stockholders' equity	$	3,939,368		$	3,165,359

Average Balance Sheet Data

	Fourth Quarter Ended Dec. 31,				Year Ended Dec. 31,
	2008		2007		2008		2007
Assets:
Investment securities	$	792,641	$	637,760	$	629,626	$	609,189
Federal funds sold and other		232,591		6,073		92,978		7,437
Loans and fees		2,315,382		2,405,011		2,369,691		2,359,617
Total earning assets		3,340,614		3,048,844		3,092,295		2,976,243
Total assets		3,470,788		3,172,261		3,232,435		3,091,933
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	269,903	$	272,872	$	321,308	$	281,926
Interest-bearing deposits		1,940,405		1,536,054		1,599,280		1,441,383
Securities sold under agreements to
repurchase and other short-term borrowings		381,695		430,248		375,676		433,809
Federal Home Loan Bank advances		536,161		616,134		588,381		623,050
Subordinated note		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		2,899,501		2,623,676		2,604,577		2,539,482
Stockholders' equity		276,663		246,084		267,578		242,967

4

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release (continued)

Income Statement Data

	Fourth Quarter Ended Dec. 31,					Year Ended Dec. 31,
	2008			2007		2008			2007
Total interest income (1)	$	44,782		$	49,705	$	202,142		$	199,097
Total interest expense		16,805			26,150		72,418			104,619
Net interest income		27,977			23,555		129,724			94,478
Provision for loan losses		1,753			1,617		16,205			6,820
Non interest income:
Service charges on deposit accounts		4,809			4,897		19,404			18,577
Electronic refund check fees		88			-		17,756			4,189
Net RAL securitization income		317			59		13,347			3,772
Mortgage banking income		(270	)		922		3,536			2,973
Debit card interchange fee income		1,187			1,171		4,776			4,387
Net gain (loss) on sales, calls and impairment of securities		(5,484	)		8		(14,364	)		8
Insurance settlement gain		-			1,877		-			1,877
Other		313			410		1,399			2,009
Total non interest income		960			9,344		45,854			37,792
Non interest expenses:
Salaries and employee benefits		12,392			9,459		52,118			44,162
Occupancy and equipment, net		5,456			5,109		19,760			17,904
Communication and transportation		1,426			1,224		4,672			3,785
Marketing and development		866			805		9,208			3,287
Bank franchise tax expense		573			630		2,598			2,552
Data processing		739			768		2,771			2,675
Debit card interchange expense		590			582		2,402			2,263
Supplies		392			450		1,649			1,749
Other		3,762			2,451		12,308			8,879
Total non interest expenses		26,196			21,478		107,486			87,256
Income before income tax expense		988			9,804		51,887			38,194
Income tax expense		384			3,398		18,235			13,281
Net income	$	604		$	6,406	$	33,652		$	24,913

5

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release (continued)

	Fourth Quarter Ended Dec. 31,						Year Ended Dec. 31,
	2008			2007			2008			2007
Per Share Data:
Basic average shares outstanding		20,615			20,284			20,518			20,458
Diluted average shares outstanding		20,886			20,573			20,824			20,840
End of period shares outstanding:
Class A Common Stock		18,318			17,958			18,318			17,958
Class B Common Stock		2,310			2,344			2,310			2,344
Book value per share	$	13.38		$	12.26		$	13.38		$	12.26
Earnings per share:
Basic earnings per Class A Common Stock		0.03			0.32			1.65			1.22
Basic earnings per Class B Common Stock		0.02			0.31			1.60			1.18
Diluted earnings per Class A Common Stock		0.03			0.31			1.62			1.20
Diluted earnings per Class B Common Stock		0.02			0.30			1.58			1.16
Cash dividends declared per share:
Class A Common Stock		0.121			0.110			0.473			0.424
Class B Common Stock		0.110			0.100			0.430			0.386
Performance Ratios:
Return on average assets		0.07	%		0.81	%		1.04	%		0.81	%
Return on average equity		0.87			10.41			12.58			10.25
Efficiency ratio (2)		91			65			61			66
Yield on average earning assets		5.36			6.52			6.54			6.69
Cost of interest-bearing liabilities		2.32			3.99			2.78			4.12
Net interest spread		3.04			2.53			3.76			2.57
Net interest margin		3.35			3.09			4.20			3.17
Asset Quality Ratios:
Loans on non-accrual status		11,324			8,303			11,324			8,303
Loans past due 90 days or more and still on accrual		2,133			1,318			2,133			1,318
Total non-performing loans		13,457			9,621			13,457			9,621
Other real estate owned		5,737			795			5,737			795
Total non-performing assets		19,194			10,416			19,194			10,416
Non-performing loans to total loans		0.58	%		0.40	%		0.58	%		0.40	%
Non-performing assets to total assets		0.49			0.33			0.49			0.33
Allowance for loan losses to total loans		0.64			0.53			0.64			0.53
Allowance for loan losses to non-performing loans		110			132			110			132
Net loan charge-offs to average loans - Total Company		0.20			0.16			0.60			0.22
Net loan charge-offs to average loans - Traditional Banking Segment		0.25			0.22			0.26			0.10
Delinquent loans to total loans (3)		1.07			0.69			1.07			0.69
Other Information:
End of period full-time equivalent employees		724			727			724			727
Number of banking centers at period end		45			40			45			40

6

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release (continued)

Balance Sheet Data

	Quarterly Comparison
	Dec. 31, 2008			Sept. 30, 2008			June 30, 2008			March 31, 2008			Dec. 31, 2007
Assets:
Cash and cash equivalents	$	616,303		$	72,735		$	88,565		$	102,726		$	86,177
Investment securities		904,674			546,328			510,661			552,320			580,636
Mortgage loans held for sale		11,298			6,758			11,621			10,866			4,278
Loans		2,303,857			2,318,373			2,348,509			2,360,610			2,397,073
Allowance for loan losses		(14,832	)		(14,247	)		(17,995	)		(15,025	)		(12,735	)
Federal Home Loan Bank stock, at cost		25,082			25,082			24,754			24,433			23,955
Premises and Equipment, net		42,885			42,225			39,859			39,373			39,706
Goodwill		10,168			10,168			10,168			10,168			10,168
Other assets and interest receivable		39,933			37,632			37,067			38,560			36,101
Total assets	$	3,939,368		$	3,045,054		$	3,053,209		$	3,124,031		$	3,165,359
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing	$	273,203		$	279,260		$	293,210		$	324,279		$	279,457
Interest-bearing		2,470,166			1,521,607			1,335,743			1,481,157			1,689,355
Total deposits		2,743,369			1,800,867			1,628,953			1,805,436			1,968,812
Securities sold under agreements to repurchase and other short-term borrowings		339,012			322,608			330,730			329,472			398,296
Federal Home Loan Bank advances		515,234			577,294			749,837			623,580			478,550
Subordinated note		41,240			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable		24,591			25,808			31,461			61,398			29,601
Total liabilities		3,663,446			2,767,817			2,782,221			2,861,126			2,916,499
Stockholders' equity		275,922			277,237			270,988			262,905			248,860
Total liabilities and Stockholders' equity	$	3,939,368		$	3,045,054		$	3,053,209		$	3,124,031		$	3,165,359
Average Balance Sheet Data
	Quarterly Comparison
	Dec. 31, 2008			Sept. 30, 2008			June 30, 2008			March 31, 2008			Dec. 31, 2007
Assets:
Investment securities	$	792,641		$	538,270		$	562,322		$	624,470		$	637,760
Federal funds sold and other		232,591			7,723			7,661			119,573			6,073
Loans and fees		2,315,382			2,340,007			2,361,208			2,463,090			2,405,011
Total earning assets		3,340,614			2,886,000			2,931,191			3,207,133			3,048,844
Total assets		3,470,788			3,010,211			3,055,623			3,393,186			3,172,261
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	269,903		$	279,061		$	301,421		$	435,867		$	272,872
Interest-bearing deposits		1,940,405			1,413,704			1,360,818			1,680,480			1,536,054
Securities sold under agreements to repurchase and other short-term borrowings		381,695			352,498			363,485			405,214			430,248
Federal Home Loan Bank advances		536,161			622,011			675,918			519,637			616,134
Subordinated note		41,240			41,240			41,240			41,240			41,240
Total interest-bearing liabilities		2,899,501			2,429,453			2,441,461			2,646,571			2,623,676
Stockholders' equity		276,663			272,500			266,148			254,736			246,084

7

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release (continued)

Income Statement Data

	Quarterly Comparison
	Dec. 31, 2008			Sept. 30, 2008			June 30, 2008			March 31, 2008			Dec. 31, 2007
Total interest income (4)	$	44,782		$	43,927		$	45,673		$	67,760		$	49,705
Total interest expense		16,805			16,081			16,400			23,132			26,150
Net interest income		27,977			27,846			29,273			44,628			23,555
Provision for loan losses		1,753			324			3,629			10,499			1,617
Non interest income:
Service charges on deposit accounts		4,809			5,117			4,933			4,545			4,897
Electronic refund check fees		88			738			2,970			13,960			-
Net RAL securitization income		317			157			286			12,587			59
Mortgage banking income		(270	)		1,071			1,133			1,602			922
Debit card interchange fee income		1,187			1,194			1,246			1,149			1,171
Net gain (loss) on sales, calls and impairment of securities		(5,484	)		(5,273	)		(3,388	)		(219	)		8
Insurance settlement gain		-			-			-			-			1,877
Other		313			410			356			320			410
Total non interest income		960			3,414			7,536			33,944			9,344
Non interest expenses:
Salaries and employee benefits		12,392			12,611			12,615			14,500			9,459
Occupancy and equipment, net		5,456			4,878			4,754			4,672			5,109
Communication and transportation		1,426			1,024			884			1,338			1,224
Marketing and development		866			853			730			6,759			805
Bank franchise tax expense		573			599			703			723			630
Data processing		739			646			669			717			768
Debit card interchange expense		590			624			612			576			582
Supplies		392			328			373			556			450
Other		3,762			2,420			2,287			3,839			2,451
Total non interest expenses		26,196			23,983			23,627			33,680			21,478
Income before income tax expense		988			6,953			9,553			34,393			9,804
Income tax expense		384			2,451			3,130			12,270			3,398
Net income	$	604		$	4,502		$	6,423		$	22,123		$	6,406

8

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release (continued)

	Quarterly Comparison
	Dec. 31, 2008			Sept. 30, 2008			June 30, 2008			March 31, 2008			Dec. 31, 2007
Per Share Data:
Basic average shares outstanding		20,615			20,591			20,525			20,339			20,284
Diluted average shares outstanding		20,886			20,978			20,839			20,615			20,573
End of period shares outstanding:
Class A Common Stock		18,318			18,283			18,221			18,057			17,958
Class B Common Stock		2,310			2,322			2,339			2,344			2,344
Book value per share	$	13.38		$	13.45		$	13.18		$	12.89		$	12.26
Earnings per share:
Basic earnings per Class A Common Stock		0.03			0.22			0.31			1.09			0.32
Basic earnings per Class B Common Stock		0.02			0.21			0.30			1.08			0.31
Diluted earnings per Class A Common Stock		0.03			0.22			0.31			1.07			0.31
Diluted earnings per Class B Common Stock		0.02			0.20			0.30			1.06			0.30
Cash dividends declared per share:
Class A Common Stock		0.121			0.121			0.121			0.110			0.110
Class B Common Stock		0.110			0.110			0.110			0.100			0.100
Performance Ratios:
Return on average assets		0.07	%		0.60	%		0.84	%		2.61	%		0.81	%
Return on average equity		0.87			6.61			9.65			34.74			10.41
Efficiency ratio (2)		91			77			64			43			65
Yield on average earning assets		5.36			6.09			6.23			8.45			6.52
Cost of interest-bearing liabilities		2.32			2.65			2.69			3.50			3.99
Net interest spread		3.04			3.44			3.54			4.95			2.53
Net interest margin		3.35			3.86			3.99			5.57			3.09
Asset Quality Data:
Loans on non-accrual status		11,324			14,763			17,688			16,791			8,303
Loans past due 90 days or more and still on accrual		2,133			1,217			1,476			1,340			1,318
Total non-performing loans		13,457			15,980			19,164			18,131			9,621
Other real estate owned		5,737			2,017			2,160			950			795
Total non-performing assets		19,194			17,997			21,324			19,081			10,416
Non-performing loans to total loans		0.58	%		0.69	%		0.82	%		0.77	%		0.40	%
Non-performing assets to total assets		0.49			0.59			0.70			0.61			0.33
Allowance for loan losses to total loans		0.64			0.61			0.77			0.64			0.53
Allowance for loan losses to non-performing loans		110			89			94			83			132
Net loan charge-offs to average loans - Total Company		0.20			0.70			0.11			1.32			0.16
Net loan charge-offs to average loans - Traditional Banking Segment		0.25			0.51			0.12			0.14			0.22
Delinquent loans to total loans (3)		1.07			1.05			1.01			0.70			0.69
Other Information:
End of period full-time equivalent employees		724			720			710			717			727
Number of banking centers at period end		45			45			42			39			40

9

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release (continued)

Segment Data:

The reportable segments are determined by the type of products and services offered, distinguished between banking operations, mortgage banking operations and Tax Refund Solutions (“TRS”). Loans, investments and deposits provide the majority of revenue from banking operations; servicing fees and loan sales provide the majority of revenue from mortgage banking operations; Refund Anticipation Loan (“RAL”) fees, Electronic Refund Check (“ERC”)/ Electronic Refund Deposit (“ERD”) fees and Net RAL securitization income provide the majority of the revenue from TRS. All Company segments are domestic. Segment information for the quarter and year ended December 31, 2008 and 2007 follows:

	Three Months Ended December 31, 2008
(dollars in thousands)	Banking			Tax Refund Solutions			Mortgage Banking			Total Company
Net interest income	$	30,107		$	(2,207	)	$	77		$	27,977
Provision for loan losses		2,060			(307	)		-			1,753
Electronic Refund Check fees		-			88			-			88
Net RAL securitization income		-			317			-			317
Mortgage banking income		-			-			(270	)		(270	)
Other revenue		(158	)		2			981			825
Total non interest income		(158	)		407			711			960
Total non interest expenses		22,596			3,397			203			26,196
Gross operating profit		5,293			(4,890	)		585			988
Income tax expense / (benefit)		2,116			(1,917	)		185			384
Net income / (loss)	$	3,177		$	(2,973	)	$	400		$	604
Segment assets	$	2,773,238		$	1,154,777		$	11,353		$	3,939,368
Net interest margin		4.12	%	NM			NM				3.35	%

	Three Months Ended December 31, 2007
(dollars in thousands)	Banking			Tax Refund  Solutions			Mortgage Banking			Total Company
Net interest income	$	23,645		$	(170	)	$	80		$	23,555
Provision for loan losses		2,013			(396	)		-			1,617
Electronic Refund Check fees		-			-			-			-
Net RAL securitization income		-			59			-			59
Mortgage banking income		-			-			922			922
Other revenue		8,628			15			(280	)		8,363
Total non interest income		8,628			74			642			9,344
Total non interest expenses		18,595			2,736			147			21,478
Gross operating profit		11,665			(2,436	)		575			9,804
Income tax expense / (benefit)		4,081			(883	)		200			3,398
Net income / (loss)	$	7,584		$	(1,553	)	$	375		$	6,406
Segment assets	$	2,885,981		$	275,012		$	4,366		$	3,165,359
Net interest margin		3.11	%	NM			NM				3.09	%

10

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release (continued)

	Twelve Months Ended December 31, 2008
(dollars in thousands)	Banking			Tax Refund Solutions		Mortgage Banking			Total Company
Net interest income	$	111,193		$	18,166	$	365		$	129,724
Provision for loan losses		8,154			8,051		-			16,205
Electronic Refund Check fees		-			17,756		-			17,756
Net RAL securitization income		-			13,347		-			13,347
Mortgage banking income		-			-		3,536			3,536
Other revenue		11,505			31		(321	)		11,215
Total non interest income		11,505			31,134		3,215			45,854
Total non interest expenses		85,723			20,942		821			107,486
Gross operating profit		28,821			20,307		2,759			51,887
Income tax expense		10,251			7,049		935			18,235
Net income	$	18,570		$	13,258	$	1,824		$	33,652
Segment assets	$	2,773,238		$	1,154,777	$	11,353		$	3,939,368
								��
Net interest margin		3.77	%	NM		NM				4.20	%

	Twelve Months Ended December 31, 2007
(dollars in thousands)	Banking			Tax Refund Solutions		Mortgage Banking			Total Company
Net interest income	$	87,314		$	6,778	$	386		$	94,478
Provision for loan losses		3,923			2,897		-			6,820
Electronic Refund Check fees		-			4,189		-			4,189
Net RAL securitization income		-			3,772		-			3,772
Mortgage banking income		-			-		2,973			2,973
Other revenue		27,697			153		(992	)		26,858
Total non interest income		27,697			8,114		1,981			37,792
Total non interest expenses		79,079			7,371		806			87,256
Gross operating profit		32,009			4,624		1,561			38,194
Income tax expense		10,958			1,780		543			13,281
Net income	$	21,051		$	2,844	$	1,018		$	24,913
Segment assets	$	2,885,981		$	275,012	$	4,366		$	3,165,359
Net interest margin		2.95	%	NM		NM				3.17	%

11

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2008 Earnings Release (continued)

_____________________________________

(1) – The amount of loan fee income included in total interest income was $1.4 million and $1.3 million for the quarters ended December 31, 2008 and 2007. The amount of loan fee income included in total interest income was $24.4 million and $10.3 million for the years ended December 31, 2008 and 2007.

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

(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: $1.4 million (quarter ended December 31, 2008), $1.3 million (quarter ended September 30, 2008), $2.2 million (quarter ended June 30, 2008), $19.4 million (quarter ended March 31, 2008) and $1.3 million (quarter ended December 31, 2007).

12