Republic Bancorp (RBCAA) 8-K Republic Reports Record Net Income of $21.3 million for the First Six Months of 2005

Republic Reports Record Net Income of $21.3 million for the First Six Months of 2005

July 22, 2005

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 & Trust Company of Indiana, posted record net income of $21.3 million for the first six months of 2005, a 12% increase over the same period in 2004. Diluted Earnings per Class A Common Stock increased 11% for the first six months of 2005 to $1.08. Return on average assets (ROA) and return on average equity (ROE) both remained strong at 1.62% and 20.42% for the year. Total assets grew by $95 million during the first six months of 2005 to $2.6 billion. The Company has continued to experience strong growth in its loan portfolio with total loans increasing $158 million for the first six months of 2005 and $258 million since June 30, 2004.

Asset quality remained solid during the first six months of 2005. “At a time when many banks are sacrificing credit quality for growth, we have been able to achieve significant growth while maintaining our strict underwriting standards. As a result, classified loans, which are a key component in determining our overall allowance for loan losses, have continued to improve since December 31, 2004. Additionally, Republic’s percentage of delinquent loans to total loans was a favorable 0.58% at June 30, 2005, while the Company’s percentage of non-performing loans to total loans was a sound 0.35% at quarter end, as well,” stated Steve Trager, President & CEO of Republic.

Net interest income increased to $51.7 million for the first six months of 2005, an 8% increase over the same period in 2004. “The strong increase in our net interest income is a tremendous achievement given the negative impact on our net interest margin from Federal Reserve short-term interest rate increases coupled with a flattening yield curve. Thanks to the tremendous effort of our sales staff, the Company has been able to significantly increase net interest income through growth in the loan portfolio despite a highly competitive market. We will continue our focus on loan growth throughout the remainder of 2005, while maintaining the daily management of our interest rate risk position,” Steve Trager further commented.

The Company's retail banking center network continued to be successful during 2005. New retail checking accounts totaled over 12,000 for the first six months of the year, while the Company was also named the #1 mortgage lender in Metro Louisville for the fourth consecutive year in 2004. “Our home mortgage products and their cross-sell opportunities are a driving force to our ongoing success. We continue to be a popular choice for home loans in our market with closing costs as low as $299 and the ability to apply on-line at republicbank.com,” commented Scott Trager, President of Republic Bank.

“We also continue to grow our products and services for the “unbanked.” Understanding that some individuals experience financial challenges, we have developed alternatives to help them gain access to loan and deposit products. Individuals who do not qualify for a traditional bank level loan can apply for a loan at Republic Finance, a division of Republic Bank & Trust Company. And, for those people who are unable to get a checking account because of a previous bad experience, we offer “Honor Plus” - a card based account which allows a client to graduate into a more traditional checking account product after 12 months of good experience with Republic. No matter what their financial history, Republic has a retail product for almost everyone,” Scott Trager further commented.

The Company's Commercial Banking function, which includes Commercial Cash Management and Commercial Lending, continued their expansion during 2005. Commercial loans, including commercial real estate loans, increased a total of $47 million during the first six months of 2005, while the number of business checking accounts increased by nearly 1,500 since year-end 2004. “With long-term fixed rate loans, local lock-box processing and client service which we believe is second to none, Republic is quickly becoming the bank of choice for businesses, large and small, within our markets,” commented Jeff Norton, Senior Vice President of Commercial Lending.

“We are very proud of the success of our ‘Ultimate’ and ‘Prestige’ checking accounts. The Ultimate Account is a special account package with incentives up to $100 offered to employees of our business checking clients. The Prestige account is an account developed to further enhance our focus on contributing to the community. Similar to the Ultimate account, the Prestige account offers incentives up to $50 payable to philanthropic organizations that are clients of Republic. Both accounts are originated through on-site visits from a designated sales team. These unique products have helped contribute to the record year we have experienced thus far opening new checking accounts,” stated Jeff Nelson, Senior Vice President of Bank Administration.

Net income for the second quarter of 2005 was $7.9 million with Diluted earnings per Class A Common Share of $0.40. Return on average assets (ROA) and return on average equity (ROE) both remained strong at 1.22% and 15.04% for the quarter. “Thanks to our strong growth since 2004, our primary revenue streams, including net interest income and non-interest income, showed solid increases during the second quarter. The increases in our revenue streams were offset by like increases in expenses associated with a heightened investment in human and technical resources, which will enable us to better serve our growing client base. Retail banking center growth and ongoing expansion of our nontraditional lines of business will continue to be important factors in increasing shareholder value as we identify new market opportunities,” stated Steve Trager.

In its ongoing effort to deliver products and services more efficiently to an underserved customer base, the Company began directly offering payday loans via the Internet on July 11, 2005. These loans are being offered through the Company's Indiana bank subsidiary in limited markets. If successful, Republic's Internet payday loan product may be offered nationally. The Company has also developed a longer-term alternative credit product (“ACP”) as recommended by the revised FDIC guidelines and may begin offering this product sometime in the third quarter of 2005. The Company believes the ACP is appropriately priced for the inherent risk involved while at the same time remaining in compliance with the FDIC's revised guidelines and meeting the consumer's need for a longer-term alternative.

“Reflecting on the first six months of 2005, we have many reasons to be proud; proud of the record earnings and record asset growth we achieved, proud of our dedicated associates and their tireless efforts in community involvement activities, and proud of our sponsorship of the “We Care” awards, which recognizes other organizations that display our values through their exemplary community involvement. We look forward to the remainder of 2005 with excitement as we remain true to our commitment of investing in the future and never sacrificing long-term value in order to achieve short-term gains,” concluded Steve Trager.

Note: For additional financial information for the three and six months ended June 30, 2005 and 2004, see the Form 8-K filed with the Securities and Exchange Commission on July 22, 2005.

Republic Bancorp, Inc. (Republic), has 33 banking centers, and is the parent company of: Republic Bank & Trust Company with 31 banking centers in eight Kentucky communities - Bowling Green, Elizabethtown, Frankfort, Georgetown, Lexington, Louisville, Owensboro, and Shelbyville, with one under construction in Owensboro and Republic Bank & Trust Company of Indiana with two banking centers in Jeffersonville and New Albany, Indiana. Republic Bank & Trust Company operates “Republic Finance” (LPO) with two offices in Louisville, as well as Tax Refund Solutions, a nationwide tax refund loan and check provider. Republic Bank offers internet banking at www.republicbank.com. Republic has $2.6 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 National Market System.

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 2004 Annual Report on Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.

Republic Bancorp, Inc. Financial Information

Second Quarter 2005 Earnings Release

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

Balance Sheet Data
	June 30, 2005			Dec. 31, 2004			June 30, 2004
Assets:
Cash and cash equivalents	$	75,879		$	77,850		$	71,115
Securities available for sale		419,057			453,360			270,541
Securities to be held to maturity		70,110			98,233			102,304
Mortgage loans held for sale		9,359			16,485			8,218
Loans		1,947,392			1,789,099			1,689,074
Allowance for loan losses		(13,382	)		(13,554	)		(13,530	)
Federal Home Loan Bank stock		21,083			20,321			19,909
Other assets		64,905			57,128			57,025
Total assets	$	2,594,403		$	2,498,922		$	2,204,656
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	281,520		$	261,993		$	230,593
Interest-bearing deposits		1,218,244			1,155,937			1,067,751
Total deposits		1,499,764			1,417,930			1,298,344
Securities sold under agreements to
repurchase and other short-term borrowings		337,460			364,828			279,545
Federal Home Loan Bank borrowings		517,805			496,387			420,160
Other liabilities		25,948			23,708			22,350
Total liabilities		2,380,977			2,302,853			2,020,399
Stockholders' equity		213,426			196,069			184,257
Total liabilities and Stockholders' equity	$	2,594,403		$	2,498,922		$	2,204,656

Average Balance Sheet Data	Second Quarter Ended June 30,				Six Months Ended June 30,
Assets:	2005		2004		2005		2004
Federal funds sold and other	$	51,505	$	27,492	$	71,626	$	56,809
Investment securities, including FHLB stock		535,446		404,198		547,849		406,479
Loans and fees, including loans held for sale		1,905,158		1,677,826		1,885,347		1,663,005
Total earning assets		2,492,109		2,109,516		2,504,822		2,126,293
Total assets		2,611,814		2,209,539		2,630,437		2,228,568
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	289,588	$	235,678	$	301,540	$	232,441
Interest-bearing deposits		1,235,531		1,059,617		1,236,094		1,083,076
Securities sold under agreements to
repurchase and other short-term borrowings		372,348		285,059		377,726		285,631
Federal Home Loan Bank borrowings		477,567		420,996		480,896		424,572
Total interest-bearing liabilities		2,085,446		1,765,672		2,094,716		1,793,279
Stockholders' equity		211,217		181,175		208,206		177,096

Republic Bancorp, Inc. Financial Information

Second Quarter 2005 Earnings Release (continued)

Income Statement Data
	Second Quarter Ended June 30,						Six Months Ended June 30,
	2005			2004			2005		2004
Total interest income (1)	$	36,722		$	29,767		$	80,131	$	67,577
Total interest expense		14,646			9,576			28,468		19,613
Net interest income		22,076			20,191			51,663		47,964
Provision for loan losses		(203	)		(447	)		1,617		1,602
Service charges on deposit accounts		3,801			3,353			7,073		6,324
Electronic refund check fees		833			786			5,828		5,192
Mortgage banking income		726			864			1,352		1,542
Other		1,541			1,452			3,003		2,529
Total non interest income		6,901			6,455			17,256		15,587
Salaries and employee benefits		9,492			8,093			19,091		17,866
Occupancy and equipment, net		3,277			3,361			6,578		7,022
Communication and transportation		633			615			1,503		1,353
Marketing and development		513			552			1,044		1,188
Supplies		284			188			525		649
Other		3,025			2,337			6,269		5,045
Total non interest expenses		17,224			15,146			35,010		33,123
Income before income tax expense		11,956			11,947			32,292		28,826
Income tax expense		4,012			4,096			11,030		9,920
Net income	$	7,944		$	7,851		$	21,262	$	18,906

(1) The amount of fee income included in interest on loans was $3.9 million and $3.6 million for the quarters ended June 30, 2005 and 2004 and $16.0 million and $15.3 million for the six months ended June 30, 2005 and 2004.

Republic Bancorp, Inc. Financial Information

Second Quarter 2005 Earnings Release (continued)

	Second Quarter Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Per Share Data(1)
Basic average shares outstanding		18,897			18,814			18,895			18,798
Diluted average shares outstanding		19,669			19,472			19,705			19,463
End of period shares outstanding:
Class A Common Stock		16,759			16,678			16,759			16,678
Class B Common Stock		2,146			2,157			2,146			2,157
Book value per share	$	11.29		$	9.78		$	11.29		$	9.78
Basic earnings per Class A Common Share		0.42			0.42			1.13			1.01
Basic earnings per Class B Common Share		0.41			0.41			1.11			1.00
Diluted earnings per Class A Common Share		0.40			0.40			1.08			0.97
Diluted earnings per Class B Common Share		0.40			0.40			1.06			0.96
Cash dividends declared per share:
Class A Common Stock		0.088			0.073			0.161			0.133
Class B Common Stock		0.080			0.067			0.147			0.121
Performance Ratios
Return on average assets (ROA)		1.22	%		1.42	%		1.62	%		1.70	%
Return on average equity (ROE)		15.04			17.33			20.42			21.35
Yield on average earning assets		5.89			5.64			6.40			6.36
Cost of interest-bearing liabilities		2.81			2.17			2.72			2.19
Net interest spread		3.08			3.47			3.68			4.17
Net interest margin		3.54			3.83			4.13			4.51
Efficiency Ratio(2)		59			57			51			52
Asset Quality Ratios
Loans on a non-accrual status								6,546			9,274
Loans past due 90 days or more								216			4,007
Total non-performing loans								6,762			13,281
Other real estate owned								199			39
Total non-performing assets								6,961			13,320
Non-perfoming loans to total loans								0.35	%		0.79	%
Allowance for loan losses to total loans								0.69			0.80
Allowance for loan losses to non-performing loans								198			102
Net loan charge-offs to average loans								0.19			0.24
Delinquent loans to total loans(3)								0.58			0.76
Other Information
End of period full-time equivalent employees								649			583
Number of bank offices								35			33

(1)	Prior period amounts have been restated to reflect the 5% stock dividend declared in the first quarter of 2005.
(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.

Republic Bancorp, Inc. Financial Information

Second Quarter 2005 Earnings Release (continued)

Balance Sheet Data
	Quarterly Comparison
Assets:	June 30, 2005			Mar. 31, 2005			Dec. 31, 2004			Sept. 30, 2004			June 30, 2004
Cash and cash equivalents	$	75,879		$	197,252		$	77,850		$	103,058		$	71,115
Securities available for sale		419,057			437,897			453,360			350,560			270,541
Securities to be held to maturity		70,110			79,059			98,233			90,173			102,304
Mortgage loans held for sale		9,359			11,094			16,485			11,753			8,218
Loans		1,947,392			1,857,250			1,789,099			1,732,730			1,689,074
Allowance for loan losses		(13,382	)		(13,821	)		(13,554	)		(13,535	)		(13,530	)
Federal Home Loan Bank stock		21,083			20,538			20,321			20,106			19,909
Other assets		64,905			66,017			57,128			57,891			57,025
Total assets	$	2,594,403		$	2,655,286		$	2,498,922		$	2,352,736		$	2,204,656
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	281,520		$	304,424		$	261,993		$	265,492		$	230,593
Interest-bearing deposits		1,218,244			1,270,218			1,155,937			1,135,172			1,067,751
Total deposits		1,499,764			1,574,642			1,417,930			1,400,664			1,298,344
Securities sold under agreements to
repurchase and other short-term borrowings		337,460			370,915			364,828			317,784			279,545
Federal Home Loan Bank borrowings		517,805			474,036			496,387			420,309			420,160
Other liabilities		25,948			29,840			23,708			22,588			22,350
Total liabilities		2,380,977			2,449,433			2,302,853			2,161,345			2,020,399
Stockholders' equity		213,426			205,853			196,069			191,391			184,257
Total liabilities and Stockholders' equity	$	2,594,403		$	2,655,286		$	2,498,922		$	2,352,736		$	2,204,656
Average Balance Sheet Data
		Quarterly Comparison
Assets:		June 30, 2005			Mar. 31, 2005			Dec. 31, 2004			Sept. 30, 2004			Jun 30, 2004
Federal funds sold and other	$	51,505		$	91,970		$	28,533		$	21,097		$	27,492
Investment securities, including FHLB stock		535,446			560,389			517,429			450,172			404,198
Loans and fees, including loans held for sale		1,905,158			1,865,316			1,781,751			1,718,513			1,677,826
Total earning assets		2,492,109			2,517,675			2,327,713			2,189,782			2,109,516
Total assets		2,611,814			2,647,707			2,439,717			2,303,546			2,209,539
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	289,588		$	311,824		$	259,549		$	245,736		$	235,678
Interest-bearing deposits		1,235,531			1,238,162			1,148,928			1,099,311			1,059,617
Securities sold under agreements to
repurchase and other short-term borrowings		372,348			387,046			368,802			325,114			285,059
Federal Home Loan Bank borrowings		477,567			484,262			441,419			420,995			420,996
Total interest-bearing liabilities		2,085,446			2,109,470			1,959,149			1,845,420			1,765,672
Stockholders' equity		211,217			201,602			196,220			188,636			181,175

Republic Bancorp, Inc. Financial Information

Second Quarter 2005 Earnings Release (continued)

Income Statement Data
	Four Quarter Comparison
	June 30, 2005			March 31, 2005		Dec. 31, 2004		Sept. 30, 2004
Total interest income	$	36,722		$	43,409	$	33,628	$	31,161
Total interest expense		14,646			13,822		12,130		10,571
Net interest income		22,076			29,587		21,498		20,590
Provision for loan losses		(203	)		1,820		273		(127	)
Service charges on deposit accounts		3,801			3,272		3,558		3,578
Electronic refund check fees		833			4,995		15		61
Mortgage banking income		726			626		849		757
Other		1,541			1,462		1,587		1,202
Total non interest income		6,901			10,355		6,009		5,598
Salaries and employee benefits		9,492			9,599		8,275		8,411
Occupancy and equipment, net		3,277			3,301		3,449		3,444
Communication and transportation		633			870		715		741
Marketing and development		513			531		549		534
Supplies		284			241		514		222
Other		3,025			3,244		3,690		2,349
Total non interest expenses		17,224			17,786		17,192		15,701
Income before income tax expense		11,956			20,336		10,042		10,614
Income tax expense		4,012			7,018		3,429		3,632
Net income	$	7,944		$	13,318	$	6,613	$	6,982

Republic Bancorp, Inc. Financial Information

Second Quarter 2005 Earnings Release (continued)

	Four Quarter Comparison
	June 30, 2005			March 31, 2005			Dec. 31, 2004			Sept. 30. 2004
Per Share Data(1)
Basic average shares outstanding		18,897			18,893			18,882			18,854
Diluted average shares outstanding		19,669			19,736			19,790			19,582
End of period shares outstanding:
Class A Common Stock		16,759			16,751			16,738			16,719
Class B Common Stock		2,146			2,149			2,149			2,154
Book value per share	$	11.29		$	10.89		$	10.38		$	10.14
Basic earnings per Class A Common Share		0.42			0.71			0.35			0.37
Basic earnings per Class B Common Share		0.41			0.70			0.34			0.36
Diluted earnings per Class A Common Share		0.40			0.68			0.33			0.36
Diluted earnings per Class B Common Share		0.40			0.67			0.33			0.35
Cash dividends declared per share:
Class A Common Stock		0.088			0.073			0.073			0.073
Class B Common Stock		0.080			0.067			0.067			0.067
Performance Ratios
Return on average assets (ROA)		1.22	%		2.01	%		1.08	%		1.21	%
Return on average equity (ROE)		15.04			26.42			13.48			14.81
Yield on average earning assets		5.89			6.90			5.78			5.69
Cost of interest-bearing liabilities		2.81			2.62			2.48			2.29
Net interest spread		3.08			4.28			3.30			3.40
Net interest margin		3.54			4.70			3.69			3.76
Efficiency ratio(2)		59			45			63			60
Asset Quality Data
Loans on a non-accrual status		6,546			6,659			5,763			8,046
Loans past due 90 days or more and still on accrual		216			162			371			486
Total non-performing loans		6,762			6,821			6,134			8,532
Other real estate owned		199			180			657			223
Total non-performing assets		6,961			7,001			6,791			8,755
Non-perfoming loans to total loans		0.35	%		0.37	%		0.34	%		0.49	%
Allowance for loan losses to total loans		0.69			0.74			0.76			0.78
Allowance for loan losses to non-performing loans		198			203			221			159
Net loan charge-offs to average loans		0.05			0.33			0.06			-0.03
Delinquent loans to total loans(3)		0.58			0.42			0.47			0.47
Other Information
End of period full-time equivalent employees		649			641			611			587
Number of bank offices		35			35			34			33

(1)	Prior period amounts have been restated to reflect the 5% stock dividend declared in the first quarter of 2005.
(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.