Republic Bancorp (RBCAA) 8-K Republic Bancorp, Inc. Reports Second Quarter 2014 Net Income of $6.3 Million and Year-to-Date Net Income of $18.3 Million

Exhibit 99.1

Republic Bancorp, Inc. Reports Second Quarter 2014 Net Income of $6.3 Million and Year-to-Date Net Income of $18.3 Million

LOUISVILLE, Ky.--(BUSINESS WIRE)--July 18, 2014--Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company for Republic Bank & Trust Company (the “Bank”).

Republic Bancorp, Inc. (“Republic” or the “Company”) is pleased to report solid net income of $6.3 million for the second quarter of 2014, an increase of 3.3% over the second quarter of 2013, while Diluted Earnings per Class A Common Share remained level at $0.30 for both quarters. Return on average assets (“ROA”) and return on average equity (“ROE”) were 0.73% and 4.54%, respectively, for the second quarter of 2014. For the first six months of 2014, net income was $18.3 million, with Diluted Earnings per Class A Common Share of $0.88 and an ROA and ROE of 1.04% and 6.60%, respectively.

Steve Trager, Republic’s Chairman and Chief Executive Officer, commented: “We made meaningful strides during the second quarter of 2014 in reinvesting cash from lower-yielding overnight investments into higher yielding loan products, growing total loans by $151 million for the second quarter alone. The overall growth in our loan portfolio came from multiple sources including our Mortgage Warehouse line-of-credit product, as well as new production from our Correspondent Lending division, which began purchasing loans during the second quarter of 2014. After three months of operation, this new division has purchased $12 million of conforming and jumbo 5/1 and 7/1 adjustable rate mortgage (“ARM”) loans from a small portion of the Company’s existing Mortgage Warehouse clients. The Company is excited about the growth potential in the correspondent channel, as its new loan pipeline continues to grow and the Company continues the process of approving additional Mortgage Warehouse clients as correspondent originators.”

The following chart highlights Republic’s second quarter and year-to-date 2014 financial performance compared to the same period in 2013:

	Three Months Ended						%		Six Months Ended						%
(dollars in thousands, except per share data)		6/30/14			6/30/13		Change			6/30/14			6/30/13		Change
Income before income taxes	$	9,654		$	8,946		8	%	$	28,177		$	29,924		-6	%
Net Income	$	6,322		$	6,119		3	%	$	18,306		$	19,475		-6	%
Diluted Earnings per Class A Share	$	0.30		$	0.30		0	%	$	0.88		$	0.94		-6	%
ROA		0.73	%		0.73	%	0	%		1.04	%		1.14	%	-9	%
ROE		4.54	%		4.46	%	2	%		6.60	%		7.13	%	-7	%

Quarterly Results of Operations

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

Net income from Core Banking was $5.9 million for the second quarter of 2014, a decrease of $1.1 million, or 15%, from the second quarter of 2013. Compared to the second quarter of 2013, the decline in net income at the Core Bank was largely attributable to lower net interest income and lower mortgage banking income. On a linked quarter basis, however, the Core Bank’s net income increased $513,000 from the $5.4 million achieved during the first quarter of 2014. The increase in net income on a linked quarter basis occurred primarily as a result of the aforementioned $151 million growth in the Core Bank’s loan portfolio and an uptick in customer demand for secondary market loan products stemming from a rise in home purchase activity.

Net interest income within the Core Bank decreased $1.3 million, or 4%, to $27.5 million for the second quarter of 2014 compared to the same period in 2013. On a linked quarter basis, net interest income increased $331,000 from the $27.2 million achieved during the first quarter of 2014. The Core Bank’s net interest margin was 3.35% during the second quarter of 2014, decreasing 22 basis points from 3.57% during the second quarter of 2013 but increasing six basis points from 3.29% achieved for the first quarter of 2014. Net interest income at the Core Bank continued to benefit from discount accretion on loans acquired from the Company’s 2012 FDIC-assisted acquisitions (the “Legacy” loans). Altogether, the Company recorded discount accretion of $1.4 million during the second quarter of 2014, $1.8 million during the second quarter of 2013 and $2.1 million during the first quarter of 2014. The discount accretion added approximately 17, 22 and 25 basis points, respectively, to the Core Bank’s net interest margin for these periods.

On a linked quarter basis, the Company’s Mortgage Warehouse lines-of-credit outstanding increased $108 million from March 31, 2014 to June 30, 2014 due to increases in total line-of-credit commitments and usage of those lines by Republic’s Mortgage Warehouse clients. Overall, outstanding Mortgage Warehouse commitments increased $59 million during the second quarter to $395 million. Usage of these lines-of-credit grew during the quarter as a result of increased origination activity among the Company’s Mortgage Warehouse clients. The average usage rate among all Mortgage Warehouse clients was 47% for the second quarter of 2014, up from 34% for the first quarter of 2014. While the growth in commitments for the second quarter and first six months of 2014 is in line with Company’s internal projections for the year, the usage rate of these lines exceeded the Company’s expectations. Republic’s management is optimistic that the Company can continue to modestly grow this program during the remainder of the year as it continues to add new clients.

Also on a linked quarter basis, the Core Bank’s residential real estate and commercial and industrial loans increased $21 million and $19 million, respectively, from March 31, 2014 to June 30, 2014, as economic activity within the Core Bank’s footprint expanded. Aiding the increase in the residential real estate portfolio during the quarter was the Company’s previously discussed Correspondent Lending division.

The Core Bank’s provision for loan losses was $710,000 for the second quarter of 2014 compared to $1.0 million during the second quarter of 2013. The Core Bank’s required provisions for the second quarter of 2014 and 2013 were both positively low and compared favorably to peer in both quarters. The second quarter 2014 provision was reflective of an increase in general loan loss reserves driven by the growth in the Core Bank’s loan portfolio during the quarter. The Core Bank experienced no individually large loan impairment charges within its loan loss provision during the second quarters of 2014 or 2013, with minimal impact in both periods related to its aforementioned Legacy loans.

The table below illustrates the Core Bank’s continuing well-regarded credit quality ratios for the most recent quarter ends and the previous three calendar year ends:

	As of and for the:
	Quarter Ending:		Year Ending:
Core Banking Credit Quality Ratios	6/30/14	3/31/14	12/31/13	12/31/12	12/31/11
Non-performing loans to total loans	0.75%	0.93%	0.81%	0.82%	1.02%
Non-performing assets to total loans (including OREO)	1.17%	1.58%	1.46%	1.79%	1.49%
Delinquent loans to total loans	0.44%	0.56%	0.63%	0.79%	1.07%
Net charge-offs to average loans	0.05%	0.07%	0.18%	0.34%	0.24%
(Annualized as of 6/30/14 and 3/31/14)
OREO = Other Real Estate Owned

Non-interest income for the Core Bank was $7.2 million for the second quarter of 2014 compared to $8.9 million for the second quarter of 2013. Primarily driving the overall decrease in non-interest income was a $1.4 million decline in mortgage banking income, as the Core Bank achieved a solid $2.2 million during the second quarter of 2013, the last quarter of significant refinance volume on a national basis for long-term fixed-rate mortgage loans. The decrease in mortgage banking income was partially offset by a $379,000 increase in the cash surrender value of the Company’s Bank Owned Life Insurance (“BOLI”). The increase in the cash surrender value of the Company’s BOLI represents tax advantaged income, which is used to offset employee-related expenses.

Core Bank non-interest expenses decreased $1.4 million from the second quarter of 2013 to $24.9 million during the same period in 2014. As previously disclosed, the Bank implemented a modest reduction in force during the fourth quarter of 2013, which drove an $898,000 decrease in salaries and benefits expense from the second quarter of 2013 to the same period in 2014. Additionally, other real estate owned (“OREO”) expense and legal expenses decreased $385,000 and $459,000, respectively, from the second quarter of 2013. The reduction in OREO and legal expenses was the result of a further decrease in the Company’s non-performing assets on a year-to-year basis.

Republic Processing Group (“RPG”) – RPG’s second quarter 2014 net income was $421,000 compared to a net loss of $862,000 during the second quarter of 2013. The higher profitability was primarily driven by an increase in net Refund Transfer (“RT”) fees, lower salary costs and reduced legal fees within RPG’s Tax Refund Solutions (“TRS”) division. The TRS division of RPG derives substantially all of its revenues during the first and second quarters of the year and historically operates at a net loss during the second half of the year as the Company prepares for the next tax season.

Conclusion

“With solid loan growth and economic activity in our core footprint appearing to expand during the second quarter, we look ahead to the remainder of 2014 with great optimism. As always, our number one priority going forward will be to grow our existing business lines while maintaining our industry-strong credit quality. In addition, we focused a significant amount of time during the first half of 2014 seeking an acquisition in the traditional mergers and acquisition market. We plan to continue our search until we find the right bank with which to partner and deploy our excess capital.

"Lastly, as we disclosed in our first quarter earnings release, we kicked off our first branding marketing campaign during the second quarter of 2014. We believe the campaign has been well received and has accomplished our goal of further enhancing the public’s awareness of our Company and the industry-leading products and services we offer. The campaign’s message is simple - Republic Bank. It’s just easier here ^SM. It represents a message that we successfully fulfilled to our clients yesterday, are fulfilling to our clients today, and plan to fulfill to them tomorrow and for many years to come,” concluded Trager.

Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 42 total banking centers: 33 banking centers in 12 Kentucky communities - Covington, Crestwood, Elizabethtown, Florence, Frankfort, Georgetown, Independence, Lexington, Louisville, Owensboro, Shelbyville and Shepherdsville; three banking centers in southern Indiana – Floyds Knobs, Jeffersonville and New Albany; three banking centers in Florida – Hudson, Port Richey and Temple Terrace; two banking centers in Tennessee – Cool Springs (Franklin) and Green Hills (Nashville); and one banking center in Blue Ash (Cincinnati), Ohio. The Bank offers internet banking at www.republicbank.com. The Company has $3.5 billion in assets and is headquartered in Louisville, Kentucky. The Company’s Class A Common Stock is listed under the symbol “RBCAA” on the NASDAQ Global Select Market.

Republic Bank. It’s just easier here ^SM.

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, future acquisitions, future challenges of growing or maintaining non interest income, net interest income and net interest margin in the Company’s Core Bank operations, the future impact of expense reduction initiatives, the future strength of the Core Bank’s overall credit quality, the future growth in outstanding loan balances from the Core Bank’s mortgage warehouse lines-of-credit, the future growth of loans from the Core Bank’s Correspondent Lending division, and the future growth and performance of the Republic Processing Group, as well as current expectations and assumptions regarding its business, the economy and other future conditions. Forward-looking statements can be identified by the use of the words “expect,” “appear,” “anticipate,” “believe,” “intend,” “could” and “should,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements.

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. The Company cautions you therefore against relying on any of these forward-looking statements, which speak only as of the date on which they are made. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including those factors set forth as “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2013. The Company undertakes no obligation to update any forward-looking statements. These forward-looking statements are made only as of the date of this release, and the Company undertakes no obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release
(all amounts other than per share amounts, number of employees and number of banking centers are expressed in thousands unless otherwise noted)
Balance Sheet Data
	June 30, 2014			Dec. 31, 2013			June 30, 2013
Assets:
Cash and cash equivalents	$	84,273		$	170,863		$	97,690
Investment securities		511,984			483,537			475,500
Mortgage loans held for sale, at fair value		6,809			3,506			24,174
Loans		2,725,017			2,589,792			2,618,029
Allowance for loan losses		(22,772	)		(23,026	)		(22,491	)
Loans, net		2,702,245			2,566,766			2,595,538
Federal Home Loan Bank stock, at cost		28,208			28,342			28,342
Premises and equipment, net		32,481			32,908			32,629
Goodwill		10,168			10,168			10,168
Other real estate owned ("OREO")		11,613			17,102			15,248
Bank owned life insurance ("BOLI")		50,655			25,086			-
Other assets and accrued interest receivable		26,888			33,626			37,776
Total assets	$	3,465,324		$	3,371,904		$	3,317,065
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing	$	519,651		$	488,642		$	487,787
Interest-bearing		1,485,332			1,502,215			1,483,260
Total deposits		2,004,983			1,990,857			1,971,047
Securities sold under agreements to repurchase and other short-term borrowings		197,439			165,555			128,532
Federal Home Loan Bank advances		640,000			605,000			592,044
Subordinated note		41,240			41,240			41,240
Other liabilities and accrued interest payable		26,371			26,459			40,135
Total liabilities		2,910,033			2,829,111			2,772,998
Stockholders' equity		555,291			542,793			544,067
Total liabilities and Stockholders' equity	$	3,465,324		$	3,371,904		$	3,317,065

Average Balance Sheet Data
	Three Months Ended June 30,				Six Months Ended June 30,
		2014		2013		2014		2013
Assets:
Investment securities, including FHLB stock	$	530,472	$	511,225	$	515,170	$	510,122
Federal funds sold and other interest-earning deposits		128,473		127,696		217,228		156,805
Loans and fees, including loans held for sale		2,632,190		2,590,643		2,598,376		2,586,809
Total interest-earning assets		3,291,135		3,229,564		3,330,774		3,253,736
Total assets		3,459,171		3,355,109		3,515,181		3,402,133
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	526,599	$	492,442	$	583,258	$	531,314
Interest-bearing deposits		1,497,494		1,515,878		1,501,137		1,513,903
Securities sold under agreements to
repurchase and other short-term borrowings		259,132		149,237		241,205		175,932
Federal Home Loan Bank advances		562,209		588,712		578,544		570,497
Subordinated note		41,240		41,240		41,240		41,240
Total interest-bearing liabilities		2,360,075		2,295,067		2,362,126		2,301,572
Stockholders' equity		557,109		548,644		554,510		546,089

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
(all amounts other than per share amounts, number of employees and number of banking centers are expressed in thousands unless otherwise noted)
Income Statement Data
	Three Months Ended June 30,				Six Months Ended June 30,
		2014		2013		2014			2013
Total interest income(1)	$	32,405	$	34,119	$	64,902		$	68,520
Total interest expense		4,855		5,352		10,048			10,623
Net interest income		27,550		28,767		54,854			57,897
Provision for loan losses		693		905		(10	)		280
Non-interest income:
Service charges on deposit accounts		3,563		3,498		6,858			6,708
Net refund transfer fees		1,836		1,683		16,224			13,697
Mortgage banking income		812		2,180		1,298			5,454
Debit card interchange fee income		1,738		1,656		3,673			3,467
Bargain purchase gain - First Commercial Bank ("FCB")		-		-		-			1,324
Net gain on sales of OREO		264		1,034		666			1,311
Increase in cash surrender value of BOLI		379		-		570			-
Other		920		732		1,683			1,347
Total non-interest income		9,512		10,783		30,972			33,308
Non-interest expenses:
Salaries and employee benefits		13,965		15,086		28,448			31,200
Occupancy and equipment, net		5,508		5,315		11,330			10,892
Communication and transportation		856		991		1,882			2,021
Marketing and development		983		880		1,575			1,782
FDIC insurance expense		414		402		983			815
Bank franchise tax expense		831		857		3,170			2,572
Data processing		913		792		1,754			1,508
Debit card interchange expense		807		718		1,761			1,561
Supplies		60		218		500			572
OREO expense		560		945		1,630			1,834
Legal expense		88		1,338		500			1,768
Other		1,730		2,157		4,126			4,476
Total non-interest expenses		26,715		29,699		57,659			61,001
Income before income tax expense		9,654		8,946		28,177			29,924
Income tax expense		3,332		2,827		9,871			10,449
Net income	$	6,322	$	6,119	$	18,306		$	19,475

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
(all amounts other than per share amounts, number of employees and number of banking centers are expressed in thousands unless otherwise noted)
Selected Data and Statistics
	As of and for the		As of and for the
	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
Per Share Data:
Basic average shares outstanding	20,793	20,782	20,795	20,823
Diluted average shares outstanding	20,888	20,858	20,891	20,895
End of period shares outstanding:
Class A Common Stock	18,548	18,522	18,548	18,522
Class B Common Stock	2,245	2,260	2,245	2,260
Book value per share(2)	$ 26.71	$ 26.18	$ 26.71	$ 26.18
Tangible book value per share(2)	25.98	25.42	25.98	25.42
Earnings per share:
Basic earnings per Class A Common Stock	$ 0.31	$ 0.30	$ 0.88	$ 0.94
Basic earnings per Class B Common Stock	0.29	0.28	0.85	0.91
Diluted earnings per Class A Common Stock	0.30	0.30	0.88	0.94
Diluted earnings per Class B Common Stock	0.29	0.28	0.85	0.90
Cash dividends declared per share:
Class A Common Stock	$ 0.187	$ 0.176	$ 0.363	$ 0.341
Class B Common Stock	0.170	0.160	0.330	0.310
Performance Ratios:
Return on average assets	0.73%	0.73%	1.04%	1.14%
Return on average equity	4.54	4.46	6.60	7.13
Efficiency ratio(3)	72	75	67	67
Yield on average interest-earning assets	3.94	4.23	3.90	4.21
Cost of interest-bearing liabilities	0.82	0.93	0.85	0.92
Cost of deposits(4)	0.19	0.19	0.18	0.20
Net interest spread	3.12	3.30	3.05	3.29
Net interest margin - Total Company	3.35	3.56	3.29	3.56
Net interest margin - Traditional Bank(5)	3.35	3.57	3.32	3.58
Other Information:
End of period full-time equivalent employees	726	791	726	791
Number of banking centers	42	44	42	44

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
(all amounts other than per share amounts, number of employees and number of banking centers are expressed in thousands unless otherwise noted)
Credit Quality Data and Statistics	As of and for the						As of and for the
	Three Months Ended June 30,						Six Months Ended June 30,
		2014			2013			2014			2013
Credit Quality Asset Balances:
Loans on non-accrual status	$	19,606		$	21,922		$	19,606		$	21,922
Loans past due 90-days-or-more and still on accrual		734			2,159			734			2,159
Total non-performing loans		20,340			24,081			20,340			24,081
OREO		11,613			15,248			11,613			15,248
Total non-performing assets	$	31,953		$	39,329		$	31,953		$	39,329
Total delinquent loans	$	12,062		$	16,197		$	12,062		$	16,197
Credit Quality Ratios:
Non-performing loans to total loans		0.75	%		0.92	%		0.75	%		0.92	%
Non-performing assets to total loans (including OREO)		1.17			1.49			1.17			1.49
Non-performing assets to total assets		0.92			1.19			0.92			1.19
Allowance for loan losses to total loans		0.84			0.86			0.84			0.86
Allowance for loan losses to non-performing loans		112			93			112			93
Delinquent loans to total loans(6)		0.44			0.62			0.44			0.62
Net charge-offs to average loans (annualized) - Total Company		0.04			0.31			0.01			0.12
Net charge-offs to average loans (annualized) - Traditional Banking(5)		0.05			0.33			0.03			0.17

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
(all amounts other than per share amounts, number of employees and number of banking centers are expressed in thousands unless otherwise noted)
Balance Sheet Data
	Quarterly Comparison
	June 30, 2014			Mar. 31, 2014			Dec. 31, 2013			Sept. 30, 2013			June 30, 2013
Assets:
Cash and cash equivalents	$	84,273		$	343,386		$	170,863		$	141,585		$	97,690
Investment securities		511,984			466,002			483,537			533,681			475,500
Mortgage loans held for sale, at fair value		6,809			2,414			3,506			9,803			24,174
Loans		2,725,017			2,574,334			2,589,792			2,553,435			2,618,029
Allowance for loan losses		(22,772	)		(22,367	)		(23,026	)		(23,492	)		(22,491	)
Loans, net		2,702,245			2,551,967			2,566,766			2,529,943			2,595,538
Federal Home Loan Bank stock, at cost		28,208			28,310			28,342			28,342			28,342
Premises and equipment, net		32,481			32,948			32,908			32,626			32,629
Goodwill		10,168			10,168			10,168			10,168			10,168
Other real estate owned		11,613			16,914			17,102			15,247			15,248
Bank owned life insurance		50,655			30,277			25,086			-			-
Other assets and accrued interest receivable		26,888			24,786			33,626			30,486			37,776
Total assets	$	3,465,324		$	3,507,172		$	3,371,904		$	3,331,881		$	3,317,065
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing	$	519,651		$	568,162		$	488,642		$	492,126		$	487,787
Interest-bearing		1,485,332			1,516,050			1,502,215			1,527,659			1,483,260
Total deposits		2,004,983			2,084,212			1,990,857			2,019,785			1,971,047
Securities sold under agreements to
repurchase and other short-term borrowings		197,439			222,174			165,555			106,373			128,532
Federal Home Loan Bank advances		640,000			582,000			605,000			587,020			592,044
Subordinated note		41,240			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable		26,371			26,688			26,459			31,953			40,135
Total liabilities		2,910,033			2,956,314			2,829,111			2,786,371			2,772,998
Stockholders' equity		555,291			550,858			542,793			545,510			544,067
Total liabilities and Stockholders' equity	$	3,465,324		$	3,507,172		$	3,371,904		$	3,331,881		$	3,317,065
Average Balance Sheet Data
	Quarterly Comparison
	June 30, 2014			Mar. 31, 2014			Dec. 31, 2013			Sept. 30, 2013			June 30, 2013
Assets:
Investment securities, including FHLB stock	$	530,472		$	499,698		$	559,146		$	530,759		$	511,225
Federal funds sold and other interest-earning deposits		128,473			306,535			157,579			113,042			127,696
Loans and fees, including loans held for sale		2,632,190			2,564,188			2,550,770			2,576,606			2,590,643
Total interest-earning assets		3,291,135			3,370,421			3,267,495			3,220,407			3,229,564
Total assets		3,459,171			3,571,061			3,398,055			3,339,596			3,355,109
Liabilities and Stockholders' Equity:
Non interest-bearing deposits	$	526,599		$	639,785		$	505,115		$	488,386		$	492,442
Interest-bearing deposits		1,497,494			1,504,820			1,518,221			1,513,330			1,515,878
Securities sold under agreements to
repurchase and other short-term borrowings		259,132			223,079			190,568			139,293			149,237
Federal Home Loan Bank advances		562,209			595,061			580,537			592,735			588,712
Subordinated note		41,240			41,240			41,240			41,240			41,240
Total interest-bearing liabilities		2,360,075			2,364,200			2,330,566			2,286,598			2,295,067
Stockholders' equity		557,109			551,909			547,946			547,439			548,644

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
(all amounts other than per share amounts, number of employees and number of banking centers are expressed in thousands unless otherwise noted)
Income Statement Data
	Three Months Ended
	June 30, 2014		Mar. 31, 2014			Dec. 31, 2013		Sept. 30, 2013		June 30, 2013
Total interest income(1)	$	32,405	$	32,497		$	32,039	$	34,009	$	34,119
Total interest expense		4,855		5,193			5,300		5,470		5,352
Net interest income		27,550		27,304			26,739		28,539		28,767
Provision for loan losses		693		(703	)		503		2,200		905
Non-interest income:
Service charges on deposit accounts		3,563		3,295			3,569		3,676		3,498
Net refund transfer fees		1,836		14,388			35		152		1,683
Mortgage banking income		812		486			778		1,026		2,180
Debit card interchange fee income		1,738		1,935			1,526		1,519		1,656
Net gain on sales of OREO		264		402			457		403		1,034
Increase in cash surrender value of BOLI		379		191			86		-		-
Other		920		763			671		763		732
Total non-interest income		9,512		21,460			7,122		7,539		10,783
Non-interest expenses:
Salaries and employee benefits		13,965		14,483			14,352		12,226		15,086
Occupancy and equipment, net		5,508		5,822			5,564		5,462		5,315
Communication and transportation		856		1,026			1,117		990		991
Marketing and development		983		592			786		785		880
FDIC insurance expense		414		569			448		419		402
Bank franchise tax expense		831		2,339			836		707		857
Data processing		913		841			891		934		792
Debit card interchange expense		807		954			634		655		718
Supplies		60		440			357		228		218
OREO expense		560		1,070			1,115		497		945
Legal expense		88		412			1,516		1,343		1,338
Other		1,730		2,396			2,721		2,079		2,157
Total non-interest expenses		26,715		30,944			30,337		26,325		29,699
Income before income tax expense		9,654		18,523			3,021		7,553		8,946
Income tax expense		3,332		6,539			1,676		2,950		2,827
Net income	$	6,322	$	11,984		$	1,345	$	4,603	$	6,119

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
(all amounts other than per share amounts, number of employees and number of banking centers are expressed in thousands unless otherwise noted)
Selected Data and Statistics
	As of and for the Three Months Ended
	June 30, 2014			Mar. 31, 2014			Dec. 31, 2013			Sept. 30, 2013			June 30, 2013
Per Share Data:
Basic average shares outstanding		20,793			20,796			20,796			20,787			20,782
Diluted average shares outstanding		20,888			20,893			20,899			20,927			20,858
End of period shares outstanding:
Class A Common Stock		18,548			18,530			18,541			18,534			18,522
Class B Common Stock		2,245			2,260			2,260			2,260			2,260
Book value per share(2)	$	26.71		$	26.50		$	26.09		$	26.23		$	26.18
Tangible book value per share(2)		25.98			25.76			25.35			25.47			25.42
Earnings per share:
Basic earnings per Class A Common Stock	$	0.31		$	0.58		$	0.07		$	0.22		$	0.30
Basic earnings per Class B Common Stock		0.29			0.56			0.05			0.21			0.28
Diluted earnings per Class A Common Stock		0.30			0.58			0.07			0.22			0.30
Diluted earnings per Class B Common Stock		0.29			0.56			0.05			0.21			0.28
Cash dividends declared per share:
Class A Common Stock	$	0.187		$	0.176		$	0.176		$	0.176		$	0.176
Class B Common Stock		0.170			0.160			0.160			0.160			0.160
Performance Ratios:
Return on average assets		0.73	%		1.34	%		0.16	%		0.55	%		0.73	%
Return on average equity		4.54			8.69			0.98			3.36			4.46
Efficiency ratio(3)		72			63			90			73			75
Yield on average interest-earning assets		3.94			3.86			3.92			4.22			4.23
Cost of interest-bearing liabilities		0.82			0.88			0.91			0.96			0.93
Cost of deposits(4)		0.19			0.18			0.20			0.21			0.19
Net interest spread		3.12			2.98			3.01			3.26			3.30
Net interest margin - Total Company		3.35			3.24			3.27			3.54			3.56
Net interest margin - Traditional Bank(5)		3.35			3.29			3.27			3.54			3.57
Other Information:
End of period full-time equivalent employees		726			735			736			796			791
Number of banking centers		42			42			45			45			44

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
(all amounts other than per share amounts, number of employees and number of banking centers are expressed in thousands unless otherwise noted)
Credit Quality Data and Statistics
	As of and for the Three Months Ended
	June 30, 2014			Mar. 31, 2014			Dec. 31, 2013			Sept. 30, 2013			June 30, 2013
Credit Quality Asset Balances:
Loans on non-accrual status	$	19,606		$	21,792		$	19,104		$	18,407		$	21,922
Loans past due 90-days-or-more and still on accrual		734			2,247			1,974			1,839			2,159
Total non-performing loans		20,340			24,039			21,078			20,246			24,081
OREO		11,613			16,914			17,102			15,247			15,248
Total non-performing assets	$	31,953		$	40,953		$	38,180		$	35,493		$	39,329
Total delinquent loans	$	12,062		$	14,443		$	16,223		$	15,087		$	16,197
Credit Quality Ratios:
Non-performing loans to total loans		0.75	%		0.93	%		0.81	%		0.79	%		0.92	%
Non-performing assets to total loans (including OREO)		1.17			1.58			1.46			1.38			1.49
Non-performing assets to total assets		0.92			1.17			1.13			1.07			1.19
Allowance for loan losses to total loans		0.84			0.87			0.89			0.92			0.86
Allowance for loan losses to non-performing loans		112			93			109			116			93
Delinquent loans to total loans(6)		0.44			0.56			0.63			0.59			0.62
Net charge-offs (recoveries)to average loans (annualized) - Total Company		0.04			(0.01	)		0.15			0.19			0.31
Net charge-offs to average loans (annualized) - Traditional Bank(5)		0.05			0.07			0.16			0.19			0.33

Republic Bancorp, Inc. Financial Information

Second Quarter 2014 Earnings Release (continued)

Segment Data:

Reportable segments are determined by the type of products and services offered and 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 banking centers and business units), which are then aggregated if operating performance, products/services, and customers are similar.

As of June 30, 2014, the Company was divided into three distinct business operating segments: Traditional Banking, Mortgage Banking and Republic Processing Group (“RPG”). Along with the Tax Refund Solutions (“TRS”) division, Republic Payment Solutions (“RPS”) and Republic Credit Solutions (“RCS”) operate as divisions of the RPG segment.

All divisions of the RPG segment operate through the Bank. The TRS division facilitates the receipt and payment of federal and state tax refund products. The RPS division is an issuing bank offering general purpose reloadable prepaid debit cards through third party program managers. The RCS division is piloting short-term consumer credit products.

Loans, investments and deposits provide the majority of the net revenue from Traditional Banking operations, while servicing fees and loan sales provide the majority of revenue from Mortgage Banking operations. Net refund transfer fees provide the majority of revenue for RPG. All Company operations are domestic.

The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies in the Company’s 2013 Annual Report on Form 10-K. Segment performance is evaluated using operating income. Goodwill is not allocated. Income taxes are generally allocated based on income before income tax expense unless specific segment allocations can be reasonably made. Transactions among reportable segments are made at carrying value.

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
Segment information for the three and six months ended June 30, 2014 and 2013 follows:
	Three Months Ended June 30, 2014
(dollars in thousands)	Traditional Banking			Mortgage Banking			Republic Processing Group			Total Company
Net interest income	$	27,441		$	49		$	60		$	27,550
Provision for loan losses		710			-			(17	)		693
Net refund transfer fees		-			-			1,836			1,836
Mortgage banking income		-			812			-			812
Other non-interest income		6,361			71			432			6,864
Total non-interest income		6,361			883			2,268			9,512
Total non-interest expenses		23,929			1,013			1,773			26,715
Income (loss) before income tax expense		9,163			(81	)		572			9,654
Income tax expense (benefit)		3,210			(29	)		151			3,332
Net income (loss)	$	5,953		$	(52	)	$	421		$	6,322
Segment end of period assets	$	3,434,716		$	12,231		$	18,377		$	3,465,324
Net interest margin		3.35	%		NM			NM			3.35	%
	Three Months Ended June 30, 2013
(dollars in thousands)	Traditional Banking			Mortgage Banking			Republic Processing Group			Total Company
Net interest income	$	28,606		$	145		$	16		$	28,767
Provision for loan losses		1,045			-			(140	)		905
Net refund transfer fees		-			-			1,683			1,683
Mortgage banking income		-			2,180			-			2,180
Other non-interest income		6,660			75			185			6,920
Total non-interest income		6,660			2,255			1,868			10,783
Total non-interest expenses		25,443			906			3,350			29,699
Income (loss) before income tax expense		8,778			1,494			(1,326	)		8,946
Income tax expense (benefit)		2,768			523			(464	)		2,827
Net income (loss)	$	6,010		$	971		$	(862	)	$	6,119
Segment end of period assets	$	3,277,181		$	29,891		$	9,993		$	3,317,065
Net interest margin		3.57	%		NM			NM			3.56	%

Republic Bancorp, Inc. Financial Information Second Quarter 2014 Earnings Release (continued)
	Six Months Ended June 30, 2014
(dollars in thousands)	Traditional Banking			Mortgage Banking			Republic Processing Group			Total Company
Net interest income	$	54,554		$	95		$	205		$	54,854
Provision for loan losses		470			-			(480	)		(10	)
Net refund transfer fees		-			-			16,224			16,224
Mortgage banking income		-			1,298			-			1,298
Other non-interest income		12,180			145			1,125			13,450
Total non-interest income		12,180			1,443			17,349			30,972
Total non-interest expenses		48,536			2,223			6,900			57,659
Income (loss) before income tax expense		17,728			(685	)		11,134			28,177
Income tax expense (benefit)		5,994			(240	)		4,117			9,871
Net income (loss)	$	11,734		$	(445	)	$	7,017		$	18,306
Segment end of period assets	$	3,434,716		$	12,231		$	18,377		$	3,465,324
Net interest margin		3.32	%		NM			NM			3.29	%
	Six Months Ended June 30, 2013
(dollars in thousands)	Traditional Banking			Mortgage Banking			Republic Processing Group			Total Company
Net interest income	$	57,567		$	258		$	72		$	57,897
Provision for loan losses		1,019			-			(739	)		280
Net refund transfer fees		-			-			13,697			13,697
Mortgage banking income		-			5,454			-			5,454
Bargain purchase gain - FCB		1,324			-			-			1,324
Other non-interest income		12,057			83			693			12,833
Total non-interest income		13,381			5,537			14,390			33,308
Total non-interest expenses		50,625			1,769			8,607			61,001
Income before income tax expense		19,304			4,026			6,594			29,924
Income tax expense		6,732			1,409			2,308			10,449
Net income	$	12,572		$	2,617		$	4,286		$	19,475
Segment end of period assets	$	3,277,181		$	29,891		$	9,993		$	3,317,065
Net interest margin		3.58	%		NM			NM			3.56	%

Republic Bancorp, Inc. Financial Information

Second Quarter 2014 Earnings Release (continued)

(1) – The amount of loan fee income included in total interest income was $2.3 million and $2.9 million for the quarters ended June 30, 2014 and 2013. The amount of loan fee income included in total interest income was $5.4 million and $5.6 million for the six months ended June 30, 2014 and 2013.

The amount of loan fee income included in total interest income per quarter was as follows: $2.3 million (quarter ended June 30, 2014), $3.1 million (quarter ended March 31, 2014); $2.1 million (quarter ended December 31, 2013), $3.3 million (quarter ended September 30, 2013), and $2.9 million (quarter ended June 30, 2013).

(2) – The following table provides a reconciliation of total stockholders’ equity in accordance with U.S. generally accepted accounting principles (“GAAP”) to tangible stockholders’ equity in accordance with applicable regulatory requirements. The Company provides the tangible common equity ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.

	Quarterly Comparison
(in thousands, except per share data)	June 30, 2014			Mar. 31, 2014			Dec. 31, 2013			Sept. 30, 2013			June 30, 2013
Total stockholders' equity (a)	$	555,291		$	550,858		$	542,793		$	545,510		$	544,067
Less: Goodwill		10,168			10,168			10,168			10,168			10,168
Less: Core deposit intangible		-			-			-			289			388
Less: Mortgage servicing rights		5,009			5,227			5,409			5,482			5,305
Tangible stockholders' equity (c )	$	540,114		$	535,463		$	527,216		$	529,571		$	528,206
Total assets (b)	$	3,465,324		$	3,507,172		$	3,371,904		$	3,331,881		$	3,317,065
Less: Goodwill		10,168			10,168			10,168			10,168			10,168
Less: Core deposit intangible		-			-			-			289			388
Less: Mortgage servicing rights		5,009			5,227			5,409			5,482			5,305
Tangible assets (d)	$	3,450,147		$	3,491,777		$	3,356,327		$	3,315,942		$	3,301,204
Total stockholders' equity to total assets (a/b)		16.02	%		15.71	%		16.10	%		16.37	%		16.40	%
Tangible stockholders' equity to tangible assets (c/d)		15.65	%		15.33	%		15.71	%		15.97	%		16.00	%
Number of shares outstanding (e)		20,793			20,790			20,801			20,794			20,782
Book value per share (a/e)	$	26.71		$	26.50		$	26.09		$	26.23		$	26.18
Tangible book value per share (c/e)		25.98			25.76			25.35			25.47			25.42

(3) – The efficiency ratio equals total non-interest expense divided by the sum of net interest income and non-interest income. The ratio excludes net gain (loss) on sales, calls and impairment of investment securities, if applicable.

(4) – The cost of deposits ratio equals annualized total interest expense on deposits divided by total average interest-bearing deposits plus total average non interest-bearing deposits.

(5) – Ratios relate only to the Traditional Banking segment.

(6) – The delinquent loans to total loans ratio equals loans 30-days-or-more past due loans divided by total loans.

NA – Not applicable

NM – Not meaningful

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