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

Exhibit 99.1

Republic Announces Record Net Income of $64.8 Million for the Year Ended December 31, 2010, a 54% Increase Over 2009. Fourth Quarter 2010 Net Income Increases 15%

LOUISVILLE, Ky.--(BUSINESS WIRE)--January 20, 2011--Republic Bancorp, Inc. is pleased to report net income of $64.8 million for the year ended December 31, 2010, a $22.6 million, or 54%, increase over the same period in 2009. Diluted Earnings per Class A Common Share increased 53% for the year ended December 31, 2010 to $3.10. For the fourth quarter of 2010, the Company achieved net income of $4.4 million, a $574,000 increase over the fourth quarter of 2009. Diluted Earnings per Class A Common Share increased to $0.21 for the quarter. “With a solid fourth quarter, we completed the most successful year in our Company’s history in 2010. With a $95 million increase in our capital base over the previous 24 months, we are well-positioned entering 2011 to gain market share and profitably grow the Company, despite the on-going uncertainty in the economy,” commented Steve Trager, Republic’s President and Chief Executive Officer.

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 fourth quarter and year ended December 31, 2010 financial performance compared to the same periods in 2009:

	QTD			QTD			%		YTD			YTD			%
(dollars in thousands, except per share data)	12/31/10			12/31/09			Change		12/31/10			12/31/09			Change
Net Income	$	4,418		$	3,844		15	%	$	64,753		$	42,131		54	%
Diluted Earnings per Class A Share	$	0.21		$	0.19		11	%	$	3.10		$	2.02		53	%
Return on Average Assets ("ROA")		0.54	%		0.48	%	13	%		1.85	%		1.23	%	50	%
Return on Average Equity ("ROE")		4.75	%		4.85	%	-2	%		17.92	%		13.77	%	30	%

Year in Review

The year 2010 was a tremendous success for Republic in many regards. Above and beyond strong earnings for the year, the Company also achieved many other successes while positioning itself well for the future. Following are a few brief highlights from 2010:

Improved Credit Quality – Credit quality has always been a primary focus of Republic. In response to the national economic slowdown, management concentrated additional attention on improving credit metrics through investments in people and systems during the last three years. As a result, nonperforming and delinquent loans have decreased significantly from peak levels reached at the end of 2009 as listed below:

	Period Ending
Traditional Banking Ratio	12/31/10		9/30/10		6/30/10		3/31/10		12/31/09
NPLs/ Total Loans	1.30	%	1.69	%	1.71	%	1.78	%	1.90	%
NPAs/ Total Loans + OREO	1.84	%	1.97	%	1.99	%	2.03	%	2.11	%
Delinquent Loans/Total Loans	1.24	%	1.69	%	1.72	%	1.78	%	1.98	%
NPLs = Non Performing Loans; NPAs = Non Performing Assets; OREO = Other Real Estate Owned

National Recognition – Four times during the year, Republic was recognized by a national publication as one of the best performing banks in the United States.

• February 2010 - Sandler O'Neil & Partners released its annual rankings of the top 150 financial institutions in Bank Director Magazine and ranked Republic as #5 based on total assets, profitability, capital adequacy and asset quality.
• May 2010 - the American Bankers Association's Banking Journal ranked Republic as #9 based on 2009 Return on Average Total Equity (ROAE).
• August 2010 - Republic was ranked as #7 in the American Banker’s ranking of the nation’s most efficient bank holding companies.
• September 2010 - With a 5-year dividend growth rate of nearly 14% and a 12-month trailing dividend yield of 2.9%, Republic was recognized as a top dividend paying Company by the popular financial website, The Motley Fool.

Core Deposit Growth – In 2010 Republic increased the total balances of its low cost core deposit account base by $106 million. Despite rates at historic lows, the Company was able to attract these low cost deposit accounts with attractive technology offerings such as business on-site deposit and business on-line banking in combination with superior customer service and the safety and soundness of a strong performing institution.

Increased Cash Dividends – Despite the on-going turmoil in the financial services industry during the year, Republic once again increased its cash dividend by 8% in the second quarter of 2010 thanks to its strong earnings and strong capital position. This represents the 11th consecutive year that the Company has increased its quarterly cash dividend.

Technology Enhancements – Republic invested significant dollars during 2010 into new technology enhancements, which will pay dividends in the future through enhanced customer service and greater overall efficiencies for the Company. These enhancements include:

• A New Core Operating System – After nearly two years of planning and testing, the Company converted to its new core system over the Memorial Day weekend of 2010. The new “core” provides the Company with better technology integration, real time data reporting to clients across all service applications and the ability to economically scale in the future.
• Mobile Banking – In November, the Company introduced both Republic Bank Mobile Banking and a free iPhone® application to its client base. With Republic Bank Mobile Banking, clients can access their real-time account balances, view transaction history, transfer funds between accounts and initiate bill payments. In addition, they can find the closest Republic banking center or ATM with the Locations feature.
• Branch Capture – The Company adopted “branch capture” in approximately 50% of its banking center network during 2010 and expects to complete deployment of this functionality to all banking centers by the end of the first quarter of 2011. Branch capture allows the Company to transmit images of customer transactions to its data center for nightly processing. The ability to transmit images allows the Company to dramatically reduce its courier costs, improve business continuity capabilities, and further enhance customer services by eliminating cut-off times prior to closing at its banking centers.

Republic Bank Foundation Established – In March, Republic created the Republic Bank Foundation with a $5 million initial contribution. The Republic Bank Foundation was created to ensure the on-going legacy of giving that Republic has displayed throughout its 30-year history.

Better Business Bureau (“BBB”) Award – In April, Republic Bank received the BBB’s highest ranking of A+. The recent rating demonstrates Republic Bank’s strong commitment to quality for its clients. The Bank’s dedicated and hard working associates are focused on providing clients the best financial services available. Being a local bank, Republic remains accountable to its clients who are aware that decision makers can be reached to address any opportunity or problem.

Republic Bank We Care – In September, the Company held its annual Republic Bank We CARE Awards in Louisville and Lexington, during which the Company honored 15 companies for their volunteerism and community service. The Award was created to publicly congratulate companies who stress the four elements contained in the CARE name itself – Community, Activity, Recognition, and Enterprise.

Tax Refund Solutions (“TRS”) – TRS completed a record year in 2010 generating net income of $44.2 million as it processed over $10 billion in tax refunds for 2.8 million clients across the United States.

Results of Operations for the Fourth Quarter of 2010 Compared to the Fourth Quarter of 2009

Traditional Banking and Mortgage Banking (collectively “Core Banking”)

Net income from Core Banking was $7.1 million for the fourth quarter of 2010, a $1.8 million increase compared to the fourth quarter of 2009. Net income for the quarter was positively impacted by a reduction in provision for loan losses and lower overhead expenses, which helped to offset the expected decrease in net interest income. As with previous quarters, the Company remained conservative in its lending and investment strategies focusing on asset quality, while continuing its concentration on core deposit growth.

Although net interest income declined by 7% for the fourth quarter of 2010 compared to the fourth quarter of 2009, Republic’s Core Banking net interest margin remained solid at 3.40% for the quarter. “As with most financial institutions across the United States, net interest income continued to be negatively impacted by historically low long-term interest rates combined with soft consumer demand for adjustable rate mortgage products held within the Company’s portfolio. We believe 2011 will also be a challenging year to grow net interest income, as rates are likely to remain low by historical standards,” further commented Trager.

Core Banking non-interest income declined by $951,000, or 11%, during the fourth quarter of 2010 to $7.3 million. The decline was led by an $892,000 decrease in service charges on deposits of which approximately $585,000 resulted from the discontinuation of the Company’s Currency Connection product. Mortgage Banking income remained solid for the quarter, as the Company originated $84 million in fixed rate 1-4 family real estate loans sold into the secondary market.

Core Banking non-interest expenses declined $970,000, or 4%, for the fourth quarter of 2010 to $20.9 million. The primary driver of the decline in overhead expenses for the quarter was a decrease in third party costs associated with the Company’s debit card product and a reduction in FDIC insurance expense. The decrease in debit card costs was the direct result of a contract with a new third party provider, which substantially reduced, among other things, usage fees incurred by the Company for its debit card customer base. Non-interest expense for the quarter also benefited from a decrease in incentive compensation accruals. For the fourth quarter of 2010, the Company recorded a credit to its incentive compensation accruals of $2.2 million compared to a credit of $1.8 million for the fourth quarter of 2009.

Core Banking provision for loan losses for the fourth quarter of 2010 was $2.1 million, a $4.4 million decline from the fourth quarter of 2009. The Company continued to experience a favorable decline in non-performing loans, which decreased $15 million from December 31, 2009 and $8 million from September 30, 2010 to $28 million at December 31, 2010. The Traditional Bank’s delinquency ratio improved 74 basis points from the previous year-end and 45 basis points from September 30, 2010 to 1.24% at December 31, 2010. Overall, the Company’s allowance for loan losses to total loans was 1.06% as of December 31, 2010 compared to 1.01% at December 31, 2009. “The Company once again reported credit quality measures that placed it among the top performing financial institutions within its peer group. We are optimistic that we can continue in 2011 to capitalize on the marked improvements we have experienced in our credit quality metrics during the last six months,” further commented Trager.

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 $2.7 million for the fourth quarter of 2010 compared to a net loss of $1.4 million for the same period in 2009.

As in the prior year, the Company will once again utilize its traditional funding sources to fund its first quarter 2011 Refund Anticipation Loan (“RAL”) volume. In order to ensure that the funding is in place, Republic began borrowing during the fourth quarter of 2010, primarily in the form of brokered deposits. As a result, the Company incurred funding costs for the first quarter 2011 program in the 2010 calendar year. Overall, TRS contributed negative net interest income of $70,000 for the fourth quarter of 2010 compared to negative net interest income of $173,000 for the fourth quarter of 2009. The improvement from the fourth quarter of 2009 was due to the current low interest rate environment.

In December, Republic released information for its upcoming first quarter 2011 tax season. Republic expects the upcoming 2011 tax season to include a projected 50% or more reduction in the dollar volume of RALs originated by the Company as a result of a reduction in its maximum RAL amount to $1,500. In addition, the Company expects to shift a material percentage of its product offerings to Jackson Hewitt offices during 2011, while working with an equal or slightly lower number of total overall tax preparation offices than TRS worked with in 2010. Management believes net income within the TRS segment will increase during 2011, if the Company can achieve its projected product volumes and provision for loan loss estimates.

CONCLUSION

“Despite continued uncertainty in the economy and significant regulatory and legislative reform impacting the banking industry, Republic turned in another record financial performance in 2010. Our focus on credit quality and capital strength has increased shareholder value, while at the same time positioning Republic for future growth as we remain well positioned to handle the many opportunities and challenges of 2011 and beyond. As always, our slogan remains true and will continue to do so for many years to come. We were here for you yesterday. We are here for you today. We will be here for you tomorrow,^®”concluded Steve Trager.

Republic Bancorp, Inc. (Republic) has 43 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 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 $3.6 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.^®

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 2009 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 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, 2010			Dec. 31, 2009
Assets:
Cash and cash equivalents	$	786,371		$	1,068,179
Investment securities		542,694			467,235
Mortgage loans held for sale		15,228			5,445
Loans		2,175,240			2,268,232
Allowance for loan losses		(23,079	)		(22,879	)
Federal Home Loan Bank stock, at cost		26,212			26,248
Premises and equipment, net		37,770			39,380
Goodwill		10,168			10,168
Other assets and accrued interest receivable		52,099			56,760
Total assets	$	3,622,703		$	3,918,768
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing	$	325,375		$	318,275
Interest-bearing		1,977,317			2,284,206
Total deposits		2,302,692			2,602,481
Securities sold under agreements to repurchase and other short-term borrowings		319,246			299,580
Federal Home Loan Bank advances		564,877			637,607
Subordinated note		41,240			41,240
Other liabilities and accrued interest payable		23,272			21,840
Total liabilities		3,251,327			3,602,748
Stockholders' equity		371,376			316,020
Total liabilities and Stockholders' equity	$	3,622,703		$	3,918,768

Average Balance Sheet Data
	Three Months Ended Dec. 31,				Year Ended Dec. 31,
	2010		2009		2010		2009
Assets:
Investment securities, including FHLB stock	$	627,434	$	522,783	$	561,273	$	536,996
Federal funds sold and other interest-earning deposits		335,593		301,090		473,137		341,126
Loans and fees, including loans held for sale		2,188,937		2,287,367		2,338,990		2,372,008
Total earning assets		3,151,964		3,111,240		3,373,400		3,250,130
Total assets		3,283,198		3,232,793		3,503,886		3,415,725
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	341,556	$	324,797	$	421,162	$	381,665
Interest-bearing deposits		1,579,281		1,544,941		1,725,891		1,684,277
Securities sold under agreements to repurchase and other short-term borrowings		352,890		327,056		330,154		323,688
Federal Home Loan Bank advances		565,314		653,747		574,181		630,294
Subordinated note		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		2,538,725		2,566,984		2,671,466		2,679,499
Stockholders' equity		372,222		316,855		361,357		305,864

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 Earnings Release (continued)
Income Statement Data
	Three Months Ended Dec. 31,					Year Ended Dec. 31,
	2010			2009		2010			2009
Total interest income (1)	$	34,087		$	37,477	$	193,473		$	212,605
Total interest expense		8,652			10,087		36,661			48,742
Net interest income		25,435			27,390		156,812			163,863
Provision for loan losses		1,748			5,197		19,714			33,975
Non interest income:
Service charges on deposit accounts		3,860			4,752		15,562			19,156
Electronic refund check fees		276			17		58,789			25,289
Net RAL securitization income		37			16		265			514
Mortgage banking income		1,703			1,663		5,797			11,021
Debit card interchange fee income		1,322			1,322		5,067			5,114
Net gain / (loss) on sales, calls and impairment of securities		(95	)		49		(221	)		(5,822	)
Other		551			505		2,399			2,349
Total non interest income		7,654			8,324		87,658			57,621
Non interest expenses:
Salaries and employee benefits		11,503			11,358		55,246			51,173
Occupancy and equipment, net		5,373			5,559		21,958			22,370
Communication and transportation		1,343			1,354		5,418			5,354
Marketing and development		697			784		10,813			13,146
FDIC insurance expense		670			940		3,155			4,993
Bank franchise tax expense		755			686		3,187			2,643
Data processing		719			702		2,697			3,017
Debit card interchange expense		507			1,026		1,741			3,096
Supplies		762			659		2,359			2,398
Other real estate owned expense		464			188		1,829			2,253
FHLB advance prepayment penalty		-			-		1,531			-
Other		2,624			2,294		16,389			11,042
Total non interest expenses		25,417			25,550		126,323			121,485
Income before income tax expense		5,924			4,967		98,433			66,024
Income tax expense		1,506			1,123		33,680			23,893
Net income	$	4,418		$	3,844	$	64,753		$	42,131

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 Earnings Release (continued)
	As of and for the						As of and for the
	Three Months Ended Dec. 31,						Year Ended Dec. 31,
	2010			2009			2010			2009
Per Share Data:
Basic average shares outstanding		20,935			20,802			20,877			20,749
Diluted average shares outstanding		21,001			20,890			20,960			20,884
End of period shares outstanding:
Class A Common Stock		18,628			18,499			18,628			18,499
Class B Common Stock		2,307			2,309			2,307			2,309
Book value per share	$	17.74		$	15.19		$	17.74		$	15.19
Tangible book value per share (5)		16.87			14.28			16.87			14.28
Earnings per share:
Basic earnings per Class A Common Stock		0.21			0.19			3.11			2.04
Basic earnings per Class B Common Stock		0.20			0.17			3.06			1.99
Diluted earnings per Class A Common Stock		0.21			0.19			3.10			2.02
Diluted earnings per Class B Common Stock		0.20			0.17			3.04			1.98
Cash dividends declared per share:
Class A Common Stock		0.143			0.132			0.561			0.517
Class B Common Stock		0.130			0.120			0.510			0.470
Performance Ratios:
Return on average assets		0.54	%		0.48	%		1.85	%		1.23	%
Return on average equity		4.75			4.85			17.92			13.77
Efficiency ratio (2)		77			72			52			53
Yield on average earning assets		4.33			4.82			5.74			6.54
Cost of interest-bearing liabilities		1.36			1.57			1.37			1.82
Net interest spread		2.97			3.25			4.37			4.72
Net interest margin		3.23			3.52			4.65			5.04
Asset Quality Ratios:
Loans on non-accrual status		28,317			43,136			28,317			43,136
Loans past due 90 days or more and still on accrual		-			8			-			8
Total non-performing loans		28,317			43,144			28,317			43,144
Other real estate owned		11,969			4,772			11,969			4,772
Total non-performing assets		40,286			47,916			40,286			47,916
Non-performing loans to total loans		1.30	%		1.90	%		1.30	%		1.90	%
Non-performing loans to total loans - Traditional Banking		1.30			1.90			1.30			1.90
Non-performing assets to total loans (including OREO)		1.84			2.11			1.84			2.11
Allowance for loan losses to total loans		1.06			1.01			1.06			1.01
Allowance for loan losses to total loans - Traditional Banking		1.06			1.01			1.06			1.01
Allowance for loan losses to non-performing loans		82			53			82			53
Net loan charge-offs to average loans		0.59			0.37			0.83			1.09
Net loan charge-offs to average loans - Traditional Banking		0.65			0.59			0.51			0.34
Delinquent loans to total loans (3)		1.24			1.98			1.24			1.98
Delinquent loans to total loans - Traditional Banking (3)		1.24			1.98			1.24			1.98
Other Information:
End of period full-time equivalent employees		744			735			744			735
Number of banking centers		43			44			43			44

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 Earnings Release (continued)
Balance Sheet Data
	Quarterly Comparison
	Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010			Dec. 31, 2009
Assets:
Cash and cash equivalents	$	786,371		$	171,024		$	268,489		$	322,291		$	1,068,179
Investment securities		542,694			600,834			567,688			460,231			467,235
Mortgage loans held for sale		15,228			5,783			3,309			5,801			5,445
Loans		2,175,240			2,157,330			2,203,995			2,273,188			2,268,232
Allowance for loan losses		(23,079	)		(24,566	)		(26,659	)		(25,640	)		(22,879	)
Federal Home Loan Bank stock, at cost		26,212			26,274			26,274			26,274			26,248
Premises and Equipment, net		37,770			38,171			37,560			38,300			39,380
Goodwill		10,168			10,168			10,168			10,168			10,168
Other assets and interest receivable		52,099			50,751			49,628			70,382			56,760
Total assets	$	3,622,703		$	3,035,769		$	3,140,452		$	3,180,995		$	3,918,768
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing	$	325,375		$	328,083		$	355,761		$	473,221		$	318,275
Interest-bearing		1,977,317			1,409,019			1,470,092			1,425,909			2,284,206
Total deposits		2,302,692			1,737,102			1,825,853			1,899,130			2,602,481
Securities sold under agreements to repurchase and other short-term borrowings		319,246			286,510			302,054			275,111			299,580
Federal Home Loan Bank advances		564,877			565,424			565,483			545,564			637,607
Subordinated note		41,240			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable		23,272			34,668			40,056			62,736			21,840
Total liabilities		3,251,327			2,664,944			2,774,686			2,823,781			3,602,748
Stockholders' equity		371,376			370,825			365,766			357,214			316,020
Total liabilities and Stockholders' equity	$	3,622,703		$	3,035,769		$	3,140,452		$	3,180,995		$	3,918,768
Average Balance Sheet Data
	Quarterly Comparison
	Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010			Dec. 31, 2009
Assets:
Investment securities, including FHLB stock	$	627,434		$	623,758		$	516,746		$	474,792		$	522,783
Federal funds sold and other interest-earning deposits		335,593			229,125			245,863			1,093,433			301,090
Loans and fees, including loans held for sale		2,188,937			2,180,565			2,247,410			2,658,713			2,287,368
Total earning assets		3,151,964			3,033,448			3,010,019			4,226,938			3,111,241
Total assets		3,283,198			3,163,734			3,147,246			4,423,918			3,232,793
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	341,556		$	345,970		$	382,006		$	635,587		$	324,797
Interest-bearing deposits		1,579,281			1,471,806			1,444,036			2,406,326			1,544,941
Securities sold under agreements to repurchase and other short-term borrowings		352,890			333,299			309,539			324,149			327,056
Federal Home Loan Bank advances		565,314			565,445			554,201			612,379			653,747
Subordinated note		41,240			41,240			41,240			41,240			41,240
Total interest-bearing liabilities		2,538,725			2,411,790			2,349,016			3,384,094			2,566,984
Stockholders' equity		372,222			369,279			364,288			338,980			316,855

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 Earnings Release (continued)
Income Statement Data
	Three Months Ended
	Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010			Dec. 31, 2009
Total interest income (4)	$	34,087		$	35,270		$	36,887		$	87,229		$	37,477
Total interest expense		8,652			8,818			8,834			10,357			10,087
Net interest income		25,435			26,452			28,053			76,872			27,390
Provision for loan losses		1,748			(1,804	)		2,980			16,790			5,197
Non interest income:
Service charges on deposit accounts		3,860			3,847			4,009			3,872			4,752
Electronic refund check fees		276			293			5,052			53,168			17
Net RAL securitization income		37			8			25			195			16
Mortgage banking income		1,703			1,679			1,403			1,012			1,663
Debit card interchange fee income		1,322			1,213			1,312			1,220			1,322
Net gain / (loss) on sales, calls and impairment of securities		(95	)		-			(57	)		(69	)		49
Other		551			783			560			479			505
Total non interest income		7,654			7,823			12,304			59,877			8,324
Non interest expenses:
Salaries and employee benefits		11,503			13,399			12,966			17,378			11,358
Occupancy and equipment, net		5,373			5,114			5,053			6,418			5,559
Communication and transportation		1,343			887			719			2,469			1,354
Marketing and development		697			722			802			8,592			784
FDIC insurance expense		670			586			782			1,117			940
Bank franchise tax expense		755			642			645			1,145			686
Data processing		719			660			598			720			702
Debit card interchange expense		507			299			286			649			1,026
Supplies		762			219			346			1,032			659
Other real estate owned expense		464			562			502			301			188
FHLB advance prepayment penalty		-			-			-			1,531			-
Other		2,624			2,032			1,946			9,787			2,294
Total non interest expenses		25,417			25,122			24,645			51,139			25,550
Income before income tax expense		5,924			10,957			12,732			68,820			4,967
Income tax expense		1,506			3,647			4,335			24,192			1,123
Net income	$	4,418		$	7,310		$	8,397		$	44,628		$	3,844

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 Earnings Release (continued)
	As of and for the Three Months Ended
	Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010			Dec. 31, 2009
Per Share Data:
Basic average shares outstanding		20,935			20,917			20,840			20,814			20,802
Diluted average shares outstanding		21,001			20,988			20,958			20,872			20,890
End of period shares outstanding:
Class A Common Stock		18,628			18,627			18,546			18,502			18,499
Class B Common Stock		2,307			2,308			2,308			2,309			2,309
Book value per share	$	17.74		$	17.71		$	17.55		$	17.17		$	15.19
Tangible book value per share (5)		16.87			16.84			16.67			16.27			14.28
Earnings per share:
Basic earnings per Class A Common Stock		0.21			0.35			0.40			2.15			0.19
Basic earnings per Class B Common Stock		0.20			0.34			0.39			2.13			0.17
Diluted earnings per Class A Common Stock		0.21			0.35			0.40			2.14			0.19
Diluted earnings per Class B Common Stock		0.20			0.34			0.39			2.13			0.17
Cash dividends declared per share:
Class A Common Stock		0.143			0.143			0.143			0.132			0.132
Class B Common Stock		0.130			0.130			0.130			0.120			0.120
Performance Ratios:
Return on average assets		0.54	%		0.92	%		1.07	%		4.04	%		0.48	%
Return on average equity		4.75			7.92			9.22			53.63			4.85
Efficiency ratio (2)		77			73			61			37			72
Yield on average earning assets		4.33			4.65			4.90			8.25			4.82
Cost of interest-bearing liabilities		1.36			1.46			1.50			1.22			1.57
Net interest spread		2.97			3.19			3.40			7.03			3.25
Net interest margin		3.23			3.49			3.73			7.27			3.52
Asset Quality Data:
Loans on non-accrual status		28,317			36,358			37,669			39,955			43,136
Loans past due 90 days or more and still on accrual		-			-			-			4			8
Total non-performing loans		28,317			36,358			37,669			39,959			43,144
Other real estate owned		11,969			6,203			6,359			6,203			4,772
Total non-performing assets		40,286			42,561			44,028			46,162			47,916
Non-performing loans to total loans		1.30	%		1.69	%		1.71	%		1.76	%		1.90	%
Non-performing loans to total loans - Traditional Banking		1.30			1.69			1.71			1.78			1.90
Non-performing assets to total loans (including OREO)		1.84			1.97			1.99			2.03			2.11
Allowance for loan losses to total loans		1.06			1.14			1.21			1.13			1.01
Allowance for loan losses to total loans - Traditional Banking		1.06			1.14			1.21			1.07			1.01
Allowance for loan losses to non-performing loans		82			68			71			64			53
Net loan charge-offs to average loans		0.59			0.05			0.35			2.11			0.37
Net loan charge-offs to average loans - Traditional Banking		0.65			0.70			0.40			0.31			0.59
Delinquent loans to total loans (3)		1.24			1.69			1.72			1.76			1.98
Delinquent loans to total loans - Traditional Banking (3)		1.24			1.69			1.72			1.78			1.98
Other Information:
End of period full-time equivalent employees		744			738			740			749			735
Number of banking centers		43			44			44			44			44

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 Earnings Release (continued)

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”). They are also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as branches and subsidiary banks), which are then aggregated if operating performance, products/services, and customers are similar. Loans, investments and deposits provide the majority of the net revenue from Traditional Banking operations; servicing fees and loan sales provide the majority of revenue from Mortgage Banking operations; RAL fees and ERC/ERD fees provide the majority of the revenue from TRS. All Company operations are domestic. Segment information for the three months and years ended December 31, 2010 and 2009 follows:

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 Earnings Release (continued)
	Three Months Ended December 31, 2010
(dollars in thousands)	Traditional Banking			Tax Refund Solutions			Mortgage Banking		Total Company
Net interest income	$	25,321		$	(70	)	$	184	$	25,435
Provision for loan losses		2,069			(321	)		-		1,748
Electronic Refund Check fees		-			276			-		276
Net RAL securitization income		-			37			-		37
Mortgage banking income		-			-			1,703		1,703
Net loss on sales, calls and impairment of securities		(95	)		-			-		(95	)
Other non interest income		5,716			3			14		5,733
Total non interest income		5,621			316			1,717		7,654
Total non interest expenses		20,401			4,523			493		25,417
Gross operating profit		8,472			(3,956	)		1,408		5,924
Income tax expense		2,336			(1,272	)		442		1,506
Net income	$	6,136		$	(2,684	)	$	966	$	4,418
Segment end of period assets	$	3,026,628		$	572,716		$	23,359	$	3,622,703
Net interest margin		3.40	%		NM			NM		3.23	%
	Three Months Ended December 31, 2009
(dollars in thousands)	Traditional Banking			Tax Refund Solutions			Mortgage Banking		Total Company
Net interest income	$	27,447		$	(173	)	$	116	$	27,390
Provision for loan losses		6,460			(1,263	)		-		5,197
Electronic Refund Check fees		-			17			-		17
Net RAL securitization income		-			16			-		16
Mortgage banking income		-			-			1,663		1,663
Net gain on sales, calls and impairment of securities		49			-			-		49
Other non interest income		6,555			2			22		6,579
Total non interest income		6,604			35			1,685		8,324
Total non interest expenses		21,301			3,686			563		25,550
Gross operating profit		6,290			(2,561	)		1,238		4,967
Income tax expense		1,809			(1,115	)		429		1,123
Net income	$	4,481		$	(1,446	)	$	809	$	3,844
Segment end of period assets	$	2,976,663		$	927,929		$	14,176	$	3,918,768
Net interest margin		3.79	%		NM			NM		3.52	%

Republic Bancorp, Inc. Financial Information
Fourth Quarter 2010 Earnings Release (continued)
	Year Ended December 31, 2010
(dollars in thousands)	Traditional Banking			Tax Refund Solutions		Mortgage Banking		Total Company
Net interest income	$	105,685		$	50,659	$	468	$	156,812
Provision for loan losses		11,571			8,143		-		19,714
Electronic Refund Check fees		-			58,789		-		58,789
Net RAL securitization income		-			265		-		265
Mortgage banking income		-			-		5,797		5,797
Net loss on sales, calls and impairment of securities		(221	)		-		-		(221	)
Other non interest income		22,899			56		73		23,028
Total non interest income		22,678			59,110		5,870		87,658
Total non interest expenses		90,968			32,796		2,559		126,323
Gross operating profit		25,824			68,830		3,779		98,433
Income tax expense		7,929			24,590		1,161		33,680
Net income	$	17,895		$	44,240	$	2,618	$	64,753
Segment end of period assets	$	3,026,628		$	572,716	$	23,359	$	3,622,703
Net interest margin		3.57	%		NM		NM		4.65	%
	Year Ended December 31, 2009
(dollars in thousands)	Traditional Banking			Tax Refund Solutions		Mortgage Banking		Total Company
Net interest income	$	110,352		$	52,707	$	804	$	163,863
Provision for loan losses		15,885			18,090		-		33,975
Electronic Refund Check fees		-			25,289		-		25,289
Net RAL securitization income		-			514		-		514
Mortgage banking income		-			-		11,021		11,021
Net loss on sales, calls and impairment of securities		(5,822	)		-		-		(5,822	)
Other non interest income		26,467			52		100		26,619
Total non interest income		20,645			25,855		11,121		57,621
Total non interest expenses		92,513			27,318		1,654		121,485
Gross operating profit		22,599			33,154		10,271		66,024
Income tax expense		7,237			13,175		3,481		23,893
Net income	$	15,362		$	19,979	$	6,790	$	42,131
Segment end of period assets	$	2,976,663		$	927,929	$	14,176	$	3,918,768
Net interest margin		3.79	%		NM		NM		5.04	%

Republic Bancorp, Inc. Financial Information

Fourth Quarter 2010 Earnings Release (continued)

_____________________________________

(1) – The amount of loan fee income included in total interest income was $726,000 and $900,000 for the quarters ended December 31, 2010 and 2009. The amount of loan fee income included in total interest income was $54.9 million and $60.7 million for the years ended December 31, 2010 and 2009.

(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: $726,000 (quarter ended December 31, 2010), $924,000 (quarter ended September 30, 2010), $2.1 million (quarter ended June 30, 2010), $51.2 million (quarter ended March 31, 2010) and $900,000 (quarter ended December 31, 2009).

(5) – Represents total equity less goodwill, core deposit intangible asset, and mortgage servicing rights asset divided by total shares outstanding.

NM – Not meaningful

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