Republic Bancorp (RBCAA) 8-K Republic Bancorp, Inc. Reports 13% Year-Over-Year Increase in First Quarter Net Income

Exhibit 99.1

Republic Bancorp, Inc. Reports 13% Year-Over-Year Increase in First Quarter Net Income

LOUISVILLE, Ky.--(BUSINESS WIRE)--April 20, 2017--Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company of Republic Bank & Trust Company (the “Bank”).

Republic Bancorp, Inc. (“Republic” or the “Company”) is pleased to report first quarter net income of $20.0 million, a 13% increase over the first quarter of 2016, resulting in Diluted Earnings per Class A Common Share of $0.96. Return on average assets (“ROA”) and return on average equity (“ROE”) were 1.65% and 13.12%, respectively, for the first quarter of 2017.

Steve Trager, Republic’s Chairman and Chief Executive Officer, commented: “I am very excited to see the solid growth in our overall net income for the quarter, as we have made, and continue to make, significant investments in people and technology in order to advance our long-term strategic initiatives. As is typically the case during the first quarter of each year, the Tax Refund Solutions (“TRS”) division of our Republic Processing Group (“RPG”) made a proportionately significant contribution to net income for the quarter, as we completed the bulk of our tax season for 2017. In addition, the Republic Credit Solutions (“RCS”) division of RPG had another strong quarter, as well, contributing $1.3 million to RPG’s net income for the quarter.

“In addition to the solid net income at RPG, first quarter 2017 net income within our Warehouse Lending (“Warehouse”) segment grew 74% over the first quarter of 2016, driven by a significant year-over-year increase in average outstanding Warehouse loan balances combined with a higher net interest margin. The strong first quarter for the Warehouse segment helped to drive a 5% increase in the overall net income in our Core Banking operations, which also includes the results of our Traditional Banking and Mortgage Banking business segments. While overall net income within our Traditional Banking segment was slightly lower for the first quarter due primarily to the significant investment in staffing and infrastructure that we’ve made over the previous 12 months, we did achieve solid growth in net interest income, continued low loan losses and a solid increase in average loans and deposits for the quarter, as compared to the first quarter of 2016.”

The following table highlights Republic’s financial performance for the first quarter of 2017 compared to the same period in 2016:

(dollars in thousands, except per-share data)
	Financial Performance Highlights
	Three Months Ended						$		%
	Mar. 31, 2017			Mar. 31, 2016			Change		Change
Income Before Income Taxes	$	30,071		$	26,628		$	3,443	13	%
Net Income*		20,017			17,735			2,282	13	%
Diluted Earnings per Class A Share		0.96			0.85			0.11	13	%
Return on Average Assets		1.65	%		1.60	%	NA		3	%
Return on Average Equity		13.12	%		12.07	%	NA		9	%
NA – Not applicable
*See Segment Data at the End of this Earnings Release

Results of Operations for the First Quarter of 2017 Compared to the First Quarter of 2016

Core Bank⁽¹⁾ – Net income from Core Banking was $8.5 million for the first quarter of 2017, an increase of $439,000 over the first quarter of 2016. As previously discussed, Core Banking noninterest expenses were impacted by several strategic initiatives during the first quarter of 2017. The long-term goal of these initiatives is to geographically expand and grow the Company’s loan and deposit client base, enhance client service through expanded hours and delivery channels, diversify the Company’s product mix, and to create greater operating efficiencies. Significant costs for some of the Company’s more notable strategic investments made over the previous 12 months include the following:

• Expansion of the Company’s footprint into St. Petersburg, Florida through its May 2016 acquisition of Cornerstone Bancorp, Inc.
• The October 2016 launch of MemoryBank^®, a separately-branded, nationwide digital banking platform, which has raised $28 million in deposits during the first three months of 2017.
• The October 2016 introduction of Dealer Floor Plan Lending, which had $8 million of loans outstanding at March 31, 2017.
• The opening of the Company’s new Vine Street location in downtown Lexington, Kentucky.
• The opening of a new loan production office in Brentwood (Nashville), Tennessee.
• Expanded contact center hours from 7 a.m. to midnight, seven days a week.
• The pilot introduction of six interactive teller machines (“ITMs”) into four of the Company’s banking centers, with an expected expansion into additional banking centers upon the completion of a successful pilot phase.

In addition to the launched initiatives above, the Company also has plans for the following during the remainder of 2017:

• Implementation of a new client relationship management system.
• Additional investment in mortgage-related personnel, processes and systems in order to expand market share.

Net interest income at the Core Bank increased to $36.6 million during the first quarter of 2017, a $5.3 million, or 17%, increase over the first quarter of 2016. The increase in net interest income was primarily driven by a $386 million, or 12%, year-over-year increase in the Core Bank’s quarterly average loans from the first quarter of 2016 to the first quarter of 2017. The strong growth in average loans outstanding was further supplemented by an increase of 21 basis points in the Core Bank’s net interest margin over the first quarter of 2016.

The overall change in the Core Bank’s net interest income, as well as average and period-end loan balances by origination channel, is presented below:

	Net Interest			Net Interest
	Income			Income
(dollars in thousands)	1st Qtr.			1st Qtr.		$			%
Origination Channel	2017			2016		Change			Change
Traditional Network	$	32,069		$	27,163	$	4,906		18	%
MemoryBank		(2	)		-		(2	)	NM
Warehouse Lending		3,900			2,655		1,245		47	%
Correspondent Lending		281			426		(145	)	-34	%
2012-FDIC Acquired Loans		380			1,051		(671	)	-64	%
Total Core Bank	$	36,628		$	31,295	$	5,333		17	%
NM – Not meaningful

	Average		Average							Period-End		Period-End
	Loans		Loans							Loans		Loans
(dollars in thousands)	1st Qtr.		1st Qtr.		$			%		1st Qtr.		1st Qtr.		$			%
Origination Channel	2017		2016		Change			Change		2017		2016		Change			Change
Traditional Network	$	3,033,392	$	2,678,984	$	354,408		13	%	$	3,017,051	$	2,677,360	$	339,691		13	%
Warehouse Lending		436,459		292,574		143,885		49	%		495,165		393,986		101,179		26	%
Correspondent Lending		145,068		247,862		(102,794	)	-41	%		141,375		242,902		(101,527	)	-42	%
2012-FDIC Acquired Loans		14,371		23,699		(9,328	)	-39	%		14,078		22,383		(8,305	)	-37	%
Total Core Bank	$	3,629,290	$	3,243,119	$	386,171		12	%	$	3,667,669	$	3,336,631	$	331,038		10	%

The following factors were the primary drivers of the changes in the Core Bank’s average loan balances and net interest income by origination channel for the first quarter of 2017, as compared to the first quarter of 2016:

• With the assistance of the $190 million in loans acquired in its May 2016 acquisition of Cornerstone Bancorp, Inc., the Core Bank’s Traditional Network experienced solid average loan growth over the previous 12 months of $354 million. The overall mix of this growth was well diversified, with average balance increases of $181 million in Commercial Real Estate; $70 million in Construction & Development; $51 million in Home Equity Lines of Credit (“HELOCs”); $42 million in Commercial and Industrial; and $41 million in Indirect Auto.
• Within the Warehouse segment, net interest income grew 47% from the first quarter of 2016. Driving the growth in net interest income was a $144 million increase in average outstanding Warehouse balances for the first quarter of 2017. The Core Bank increased its committed Warehouse lines of credit from $615 million at March 31, 2016 to $983 million at March 31, 2017, with usage rates of those lines at 47% and 44%, respectively, during the periods. In addition to the strong balance sheet growth for the portfolio, the yield for Warehouse lines of credit was 4.20% during the first quarter of 2017, an increase of 19 basis points from the same period in 2016.
• As expected, net interest income from the Company’s 2012 FDIC-assisted acquisitions declined $671,000 from the first quarter of 2016 to $380,000 for the first quarter of 2017, as the overall average balance within this portfolio decreased over $9 million when comparing to the same period in 2016. As a result, accretion income from the 2012 FDIC-assisted transactions contributed seven basis points to the Core Bank’s net interest margin during the first quarter of 2016 compared to only one basis point for the first quarter of 2017.

The Core Bank’s credit quality metrics remained favorable, as indicated by the table below:

	As of and for the periods ending:
Core Banking Credit Quality Ratios	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Nonperforming loans / Total loans	0.46%	0.42%	0.66%	0.78%
Nonperforming assets / Total loans (including OREO)	0.50%	0.46%	0.70%	1.15%
Delinquent loans / Total loans	0.16%	0.18%	0.35%	0.52%
Net loan charge-offs / Average loans	0.02%	0.05%	0.05%	0.08%
(Annualized as of 3/31/17)
OREO = Other Real Estate Owned

Noninterest income for the Core Bank was $7.7 million during the first quarter of 2017 compared to $7.5 million for the first quarter of 2016. Impacting the Core Bank’s noninterest income comparisons between the first quarters of 2017 and 2016 were the following:

• Service charges on deposits increased $146,000, or 5%, driven by an 11% growth in the Core Bank’s transaction account base from period to period.
• Interchange income increased $163,000, or 8%, as both the number of active debit cards and the activity on those cards experienced year-over-year increases.
• Mortgage banking income decreased $101,000 from the first quarter of 2016, as secondary market originations decreased consistent with a decrease in consumer refinance activity.

Core Bank noninterest expenses increased $5.3 million, or 20%, during the first quarter of 2017 compared to the first quarter of 2016. The increase was primarily driven by the following:

• Salaries and employee benefits expense increased $3.5 million, or 24%, as the Core Bank’s full-time-equivalent employees increased by 145 over the previous 12 months to support the previously mentioned Core Bank’s strategic initiatives.
• Occupancy expense increased $562,000, or 11%, primarily driven by an 11% increase in rent expense and a 23% increase in depreciation expense resulting from new locations, existing banking center renovations and the cost of technology to support the Core Bank’s strategic initiatives.
• Marketing expenses increased $422,000, with $304,000 of the increase related to promotion of the Core Bank’s MemoryBank digital banking platform.

RPG

The RPG segment reported net income of $11.5 million for the first quarter of 2017 compared to $9.7 million for the same period in 2016. The higher first quarter 2017 net income was primarily driven by growth within the RCS division of RPG and growth of the Easy Advance (“EA”) loan product at TRS.

Within the RCS division, net income increased to $1.3 million for the first quarter of 2017 compared to $63,000 for the same period in 2016. RCS’s net income benefitted from continued growth of its short-term consumer loan products. Sales of such loans reached $126 million during the first quarter of 2017, a 187% increase over the same period in 2016, while loans retained on balance sheet increased from $9 million at March 31, 2016 to $32 million at March 31, 2017. In addition, RCS benefitted during the first quarter of 2017 from the final revenue payment of $427,000 from a program sponsor related to a first-year volume guarantee for its short-term credit product.

Within the TRS division, net income increased $611,000, or 6%, to $10.5 million for the first quarter of 2017 compared to $9.9 million for the same period in 2016. TRS net EA revenues (EA fees, less estimated loan loss provisions for EAs) increased $4.0 million for the first quarter of 2017 compared to the same period in 2016 driven by a $205 million increase in EAs originated from period to period. As of March 31, 2017, the Company had reserved through its loan loss provision approximately 2.62% of total originations for estimated losses on the EA product based on expectations derived from prior period experience together with the current period’s underwriting model.

The growth in net revenue at TRS associated with the EA helped to offset a 10% reduction in revenue from the Refund Transfer (“RT”) products, as RT volume decreased 9% from the first quarter of 2016 to the first quarter of 2017. The decrease in RT volume was directionally consistent with a reported decline in e-filings at the Internal Revenue Service.

Conclusion

“I’m excited about the good growth in the top-line revenue at our Core Bank and our net interest margin continues to trend in a positive direction, as well. We remain on track making meaningful in-roads with many of our strategic initiatives, which we believe will pay dividends for our clients, our associates, and our shareholders over the long term. With that in mind, we will continue to be vigilant for opportunities that are in the best interest of our shareholders, as we pursue market-best talent, technology, new products and services, and prudent acquisitions that will advance our long-term goals,” concluded Steve Trager.

Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 45 full-service banking centers and one loan production office throughout five states: 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; six banking centers in five Florida communities – Largo, Port Richey, St. Petersburg, Seminole, Temple Terrace; two banking centers in Tennessee – Cool Springs (Franklin) and Green Hills (Nashville) and one loan production office in Brentwood (Nashville); and one banking center in Norwood (Cincinnati), Ohio. The Bank offers internet banking at www.republicbank.com. The Bank also offers separately-branded, nation-wide digital banking at www.mymemorybank.com. The Company has $4.7 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. ^®

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in the preceding paragraphs are based on our current expectations and assumptions regarding our business, the future impact to our balance sheet and income statement resulting from changes in interest rates, the ability to develop products and strategies in order to meet the Company’s long-term strategic goals, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Actual results could differ materially based upon 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, 2016. 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
First Quarter 2017 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
	Mar. 31, 2017			Dec. 31, 2016			Mar. 31, 2016
Assets:
Cash and cash equivalents	$	206,187		$	289,309		$	198,172
Investment securities		578,130			534,139			556,605
Loans held for sale		10,292			15,170			8,129
Loans		3,710,376			3,810,778			3,351,969
Allowance for loan and lease losses		(42,362	)		(32,920	)		(31,475	)
Loans, net		3,668,014			3,777,858			3,320,494
Federal Home Loan Bank stock, at cost		28,208			28,208			28,208
Premises and equipment, net		43,962			42,869			30,277
Goodwill		16,300			16,300			10,168
Other real estate owned ("OREO")		1,362			1,391			1,280
Bank owned life insurance ("BOLI")		62,185			61,794			53,156
Other assets and accrued interest receivable		50,152			49,271			40,276
Total assets	$	4,664,792		$	4,816,309		$	4,246,765
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	1,070,237		$	971,937		$	800,946
Interest-bearing		2,278,547			2,188,755			1,935,700
Total deposits		3,348,784			3,160,692			2,736,646
Securities sold under agreements to repurchase and other short-term borrowings		144,375			173,473			319,893
Federal Home Loan Bank advances		467,500			802,500			517,500
Subordinated note		41,240			41,240			41,240
Other liabilities and accrued interest payable		42,229			33,998			39,929
Total liabilities		4,044,128			4,211,903			3,655,208
Stockholders' equity		620,664			604,406			591,557
Total liabilities and Stockholders' equity	$	4,664,792		$	4,816,309		$	4,246,765

Average Balance Sheet Data
	Three Months Ended Mar. 31,
	2017		2016
Assets:
Investment securities, including FHLB stock	$	586,621	$	581,869
Federal funds sold and other interest-earning deposits		184,007		298,250
Loans and fees, including loans held for sale		3,749,738		3,292,689
Total interest-earning assets		4,520,366		4,172,808
Total assets		4,847,700		4,436,843
Liabilities and Stockholders' Equity:
Noninterest-bearing deposits	$	1,132,591	$	916,691
Interest-bearing deposits		2,212,219		1,903,721
Securities sold under agreements to repurchase and other short-term borrowings		218,412		407,698
Federal Home Loan Bank advances		598,167		552,082
Subordinated note		41,240		41,240
Total interest-bearing liabilities		3,070,038		2,904,741
Stockholders' equity		610,429		587,593

Republic Bancorp, Inc. Financial Information
First Quarter 2017 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 Mar. 31,
	2017		2016
Total interest income(2)	$	60,883	$	44,015
Total interest expense		4,445		4,581
Net interest income		56,438		39,434
Provision for loan and lease losses		12,351		5,186
Noninterest income:
Service charges on deposit accounts		3,247		3,140
Net refund transfer fees		15,382		17,078
Mortgage banking income		1,160		1,261
Interchange fee income		2,326		2,123
Program fees		1,091		319
Increase in cash surrender value of BOLI		391		339
Net gains on OREO		142		248
Other		1,184		413
Total noninterest income		24,923		24,921
Noninterest expenses:
Salaries and employee benefits		21,211		17,083
Occupancy and equipment, net		5,967		5,419
Communication and transportation		1,272		1,073
Marketing and development		1,004		507
FDIC insurance expense		450		658
Bank franchise tax expense		2,435		2,451
Data processing		1,652		1,333
Interchange related expense		1,058		904
Supplies		527		449
OREO expense		97		80
Legal and professional fees		752		823
Other		2,514		1,761
Total noninterest expenses		38,939		32,541
Income before income tax expense		30,071		26,628
Income tax expense		10,054		8,893
Net income	$	20,017	$	17,735

Republic Bancorp, Inc. Financial Information
First Quarter 2017 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 Ratios
	As of and for the
	Three Months Ended Mar. 31,
	2017			2016
Per Share Data:
Basic weighted average shares outstanding		20,915			20,904
Diluted weighted average shares outstanding		20,996			21,009
End of period shares outstanding:
Class A Common Stock		18,615			18,659
Class B Common Stock		2,243			2,245
Book value per share(3)	$	29.76		$	28.30
Tangible book value per share(3)		28.68			27.58
Earnings per share:
Basic earnings per Class A Common Stock	$	0.97		$	0.86
Basic earnings per Class B Common Stock		0.88			0.78
Diluted earnings per Class A Common Stock		0.96			0.85
Diluted earnings per Class B Common Stock		0.88			0.77
Cash dividends declared per share:
Class A Common Stock	$	0.209		$	0.198
Class B Common Stock		0.190			0.180
Performance Ratios:
Return on average assets		1.65	%		1.60	%
Return on average equity		13.12			12.07
Efficiency ratio(4)		48			51
Yield on average interest-earning assets(2)		5.39			4.22
Cost of average interest-bearing liabilities		0.58			0.63
Cost of average deposits(5)		0.22			0.20
Net interest spread(2)		4.81			3.59
Net interest margin - Total Company(2)		4.99			3.78
Net interest margin - Core Bank(1)		3.33			3.12
Other Information:
End of period FTEs(6) - Total Company		973			817
End of period FTEs(6) - Core Bank(1)		901			756
Number of full-service banking centers		45			40

Republic Bancorp, Inc. Financial Information
First Quarter 2017 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 Ratios	As of and for the
	Three Months Ended Mar. 31,
	2017			2016
Credit Quality Asset Balances:
Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	16,793		$	19,907
Loans past due 90-days-or-more and still on accrual		203			-
Total nonperforming loans		16,996			19,907
OREO		1,362			1,280
Total nonperforming assets - Total Company	$	18,358		$	21,187
Nonperforming Assets - Core Bank(1):
Loans on nonaccrual status	$	16,793		$	19,907
Loans past due 90-days-or-more and still on accrual		81			-
Total nonperforming loans		16,874			19,907
OREO		1,362			1,280
Total nonperforming assets - Core Bank(1)	$	18,236		$	21,187
Delinquent loans:
Delinquent loans - Core Bank(1)	$	5,952		$	8,408
Delinquent loans - RPG(8)		10,211			4,129
Total delinquent loans - Total Company	$	16,163		$	12,537
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans		0.46	%		0.59	%
Nonperforming assets to total loans (including OREO)		0.49			0.63
Nonperforming assets to total assets		0.39			0.50
Allowance for loan and lease losses to total loans		1.14			0.94
Allowance for loan and lease losses to nonperforming loans		249			158
Delinquent loans to total loans(7)(8)		0.44			0.37
Net charge-offs to average loans (annualized)		0.31			0.15
Credit Quality Ratios - Core Bank(1):
Nonperforming loans to total loans		0.46	%		0.60	%
Nonperforming assets to total loans (including OREO)		0.50			0.63
Nonperforming assets to total assets		0.40			0.51
Allowance for loan and lease losses to total loans		0.76			0.78
Allowance for loan and lease losses to nonperforming loans		166			131
Delinquent loans to total loans(7)		0.16			0.25
Net charge-offs to average loans (annualized)		0.02			0.04

Republic Bancorp, Inc. Financial Information
First Quarter 2017 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
	Mar. 31, 2017			Dec. 31, 2016			Sep. 30, 2016			Jun. 30, 2016			Mar. 31, 2016
Assets:
Cash and cash equivalents	$	206,187		$	289,309		$	302,167		$	142,979		$	198,172
Investment securities		578,130			534,139			524,444			551,027			556,605
Loans held for sale		10,292			15,170			11,226			94,658			8,129
Loans		3,710,376			3,810,778			3,823,031			3,691,323			3,351,969
Allowance for loan and lease losses		(42,362	)		(32,920	)		(30,436	)		(29,308	)		(31,475	)
Loans, net		3,668,014			3,777,858			3,792,595			3,662,015			3,320,494
Federal Home Loan Bank stock, at cost		28,208			28,208			28,208			28,208			28,208
Premises and equipment, net		43,962			42,869			43,385			42,956			30,277
Goodwill		16,300			16,300			16,300			16,313			10,168
Other real estate owned		1,362			1,391			2,435			1,503			1,280
Bank owned life insurance		62,185			61,794			61,392			60,986			53,156
Other assets and accrued interest receivable		50,152			49,271			45,125			46,277			40,276
Total assets	$	4,664,792		$	4,816,309		$	4,827,277		$	4,646,922		$	4,246,765
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing	$	1,070,237		$	971,937		$	947,602		$	867,095		$	800,946
Interest-bearing		2,278,547			2,188,755			2,188,291			1,988,952			1,935,700
Total deposits		3,348,784			3,160,692			3,135,893			2,856,047			2,736,646
Securities sold under agreements to repurchase and other short-term borrowings		144,375			173,473			152,458			126,124			319,893
Federal Home Loan Bank advances		467,500			802,500			862,500			987,500			517,500
Subordinated note		41,240			41,240			41,240			45,364			41,240
Other liabilities and accrued interest payable		42,229			33,998			34,626			36,864			39,929
Total liabilities		4,044,128			4,211,903			4,226,717			4,051,899			3,655,208
Stockholders' equity		620,664			604,406			600,560			595,023			591,557
Total liabilities and Stockholders' equity	$	4,664,792		$	4,816,309		$	4,827,277		$	4,646,922		$	4,246,765
Average Balance Sheet Data
	Quarterly Comparison
	Mar. 31, 2017			Dec. 31, 2016			Sep. 30, 2016			Jun. 30, 2016			Mar. 31, 2016
Assets:
Investment securities, including FHLB stock	$	586,621		$	571,158		$	554,508		$	579,027		$	581,869
Federal funds sold and other interest-earning deposits		184,007			57,950			58,910			95,204			298,250
Loans and fees, including loans held for sale		3,749,738			3,792,902			3,702,093			3,479,397			3,292,689
Total interest-earning assets		4,520,366			4,422,010			4,315,511			4,153,628			4,172,808
Total assets		4,847,700			4,622,760			4,531,958			4,351,843			4,436,843
Liabilities and Stockholders' Equity:
Noninterest-bearing deposits	$	1,132,591		$	950,020		$	900,432		$	805,718		$	916,691
Interest-bearing deposits		2,212,219			2,197,411			2,155,289			1,980,310			1,903,721
Securities sold under agreements to repurchase and other short-term borrowings		218,412			231,817			215,343			267,574			407,698
Federal Home Loan Bank advances		598,167			570,135			584,946			627,335			552,082
Subordinated note		41,240			41,240			44,288			43,234			41,240
Total interest-bearing liabilities		3,070,038			3,040,603			2,999,866			2,918,453			2,904,741
Stockholders' equity		610,429			604,095			601,043			596,795			587,593

Republic Bancorp, Inc. Financial Information
First Quarter 2017 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
	Mar. 31, 2017		Dec. 31, 2016		Sep. 30, 2016			Jun. 30, 2016		Mar. 31, 2016
Total interest income(2)	$	60,883	$	45,903	$	43,934		$	40,140	$	44,015
Total interest expense		4,445		4,258		4,536			4,563		4,581
Net interest income		56,438		41,645		39,398			35,577		39,434
Provision for loan and lease losses		12,351		5,004		2,489			1,814		5,186
Noninterest income:
Service charges on deposit accounts		3,247		3,338		3,416			3,282		3,140
Net refund transfer fees		15,382		121		132			1,909		17,078
Mortgage banking income		1,160		980		3,081			1,560		1,261
Interchange fee income		2,326		2,254		2,415			2,217		2,123
Program fees		1,091		1,102		979			664		319
Increase in cash surrender value of BOLI		391		402		406			369		339
Net gains (losses) on OREO		142		53		(137	)		80		248
Other		1,184		2,235		1,009			721		413
Total noninterest income		24,923		10,485		11,301			10,802		24,921
Noninterest expenses:
Salaries and employee benefits		21,211		16,917		18,068			17,814		17,083
Occupancy and equipment, net		5,967		5,618		5,631			5,109		5,419
Communication and transportation		1,272		1,282		1,029			872		1,073
Marketing and development		1,004		1,005		1,076			1,190		507
FDIC insurance expense		450		297		345			480		658
Bank franchise tax expense		2,435		813		846			647		2,451
Data processing		1,652		1,586		1,659			1,543		1,333
Interchange related expense		1,058		1,071		1,118			1,047		904
Supplies		527		437		280			240		449
OREO expense		97		148		159			116		80
Legal and professional fees		752		591		539			604		823
FHLB advance prepayment penalty		-		-		846			-		-
Other		2,514		2,401		1,938			2,204		1,761
Total noninterest expenses		38,939		32,166		33,534			31,866		32,541
Income before income tax expense		30,071		14,960		14,676			12,699		26,628
Income tax expense		10,054		4,960		4,848			4,359		8,893
Net income	$	20,017	$	10,000	$	9,828		$	8,340	$	17,735

Republic Bancorp, Inc. Financial Information
First Quarter 2017 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 Ratios
	As of and for the Three Months Ended
	Mar. 31, 2017			Dec. 31, 2016			Sep. 30, 2016			Jun. 30, 2016			Mar. 31, 2016
Per Share Data:
Basic weighted average shares outstanding		20,915			20,926			20,925			20,947			20,904
Diluted weighted average shares outstanding		20,996			20,941			20,938			20,958			21,009
End of period shares outstanding:
Class A Common Stock		18,615			18,615			18,617			18,617			18,659
Class B Common Stock		2,243			2,245			2,245			2,245			2,245
Book value per share(3)	$	29.76		$	28.97		$	28.79		$	28.52		$	28.30
Tangible book value per share(3)		28.68			27.89			27.70			27.44			27.58
Earnings per share:
Basic earnings per Class A Common Stock	$	0.97		$	0.48		$	0.47		$	0.40		$	0.86
Basic earnings per Class B Common Stock		0.88			0.44			0.43			0.37			0.78
Diluted earnings per Class A Common Stock		0.96			0.48			0.47			0.40			0.85
Diluted earnings per Class B Common Stock		0.88			0.44			0.43			0.37			0.77
Cash dividends declared per share:
Class A Common Stock	$	0.209		$	0.209		$	0.209		$	0.209		$	0.198
Class B Common Stock		0.190			0.190			0.190			0.190			0.180
Performance Ratios:
Return on average assets		1.65	%		0.87	%		0.87	%		0.77	%		1.60	%
Return on average equity		13.12			6.62			6.54			5.59			12.07
Efficiency ratio(4)		48			62			66			69			51
Yield on average interest-earning assets(2)		5.39			4.15			4.07			3.87			4.22
Cost of average interest-bearing liabilities		0.58			0.56			0.60			0.63			0.63
Cost of average deposits(5)		0.22			0.22			0.21			0.19			0.20
Net interest spread(2)		4.81			3.59			3.47			3.24			3.59
Net interest margin - Total Company(2)		4.99			3.77			3.65			3.43			3.78
Net interest margin - Core Bank(1)		3.33			3.42			3.38			3.28			3.12
Other Information:
End of period FTEs(6) - Total Company		973			938			899			883			817
End of period FTEs(6) - Core Bank(1)		901			869			830			818			756
Number of full-service banking centers		45			44			44			44			40

Republic Bancorp, Inc. Financial Information
First Quarter 2017 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 Ratios
	As of and for the Three Months Ended
	Mar. 31, 2017			Dec. 31, 2016			Sep. 30, 2016			Jun. 30, 2016			Mar. 31, 2016
Credit Quality Asset Balances:
Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	16,793		$	15,892		$	17,769		$	18,778		$	19,907
Loans past due 90-days-or-more and still on accrual		203			167			223			1,212			-
Total nonperforming loans		16,996			16,059			17,992			19,990			19,907
OREO		1,362			1,391			2,435			1,503			1,280
Total nonperforming assets - Total Company	$	18,358		$	17,450		$	20,427		$	21,493		$	21,187
Nonperforming Assets - Core Bank(1):
Loans on nonaccrual status	$	16,793		$	15,892		$	17,769		$	18,778		$	19,907
Loans past due 90-days-or-more and still on accrual		81			85			141			1,198			-
Total nonperforming loans		16,874			15,977			17,910			19,976			19,907
OREO		1,362			1,391			2,435			1,503			1,280
Total nonperforming assets - Core Bank(1)	$	18,236		$	17,368		$	20,345		$	21,479		$	21,187
Delinquent Loans:
Delinquent loans - Core Bank(1)	$	5,952		$	6,821		$	8,050		$	10,187		$	8,408
Delinquent loans - RPG(8)		10,211			2,137			664			419			4,129
Total delinquent loans - Total Company	$	16,163		$	8,958		$	8,714		$	10,606		$	12,537
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans		0.46	%		0.42	%		0.47	%		0.54	%		0.59	%
Nonperforming assets to total loans (including OREO)		0.49			0.46			0.53			0.58			0.63
Nonperforming assets to total assets		0.39			0.36			0.42			0.46			0.50
Allowance for loan and lease losses to total loans		1.14			0.86			0.80			0.79			0.94
Allowance for loan and lease losses to nonperforming loans		249			205			169			147			158
Delinquent loans to total loans(7)(8)		0.44			0.24			0.23			0.29			0.37
Net charge-offs to average loans (annualized)		0.31			0.27			0.15			0.46			0.15
Credit Quality Ratios - Core Bank(1):
Nonperforming loans to total loans		0.46	%		0.42	%		0.47	%		0.54	%		0.60	%
Nonperforming assets to total loans (including OREO)		0.50			0.46			0.53			0.58			0.63
Nonperforming assets to total assets		0.40			0.36			0.43			0.47			0.51
Allowance for loan and lease losses to total loans		0.76			0.74			0.72			0.73			0.78
Allowance for loan and lease losses to nonperforming loans		166			175			152			135			131
Delinquent loans to total loans(7)		0.16			0.18			0.21			0.28			0.25
Net charge-offs to average loans (annualized)		0.02			0.09			0.03			0.05			0.04

Republic Bancorp, Inc. Financial Information
First Quarter 2017 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 clients are similar.

As of March 31, 2017, the Company was divided into four distinct operating segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking and Republic Processing Group (“RPG”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” activities. Correspondent Lending operations and the Company’s national branchless banking platform, MemoryBank, are considered part of Traditional Banking. The RPG segment includes the following divisions: Tax Refund Solutions (“TRS”), Republic Credit Solutions (“RCS”) and Republic Payment Solutions (“RPS”). TRS generates the majority of RPG’s income, with the relatively smaller divisions of RPG, RCS and RPS, considered immaterial for separate and independent segment reporting. All divisions of the RPG segment operate through the Bank.

The nature of segment operations and the primary drivers of net revenues by reportable segment are provided below:

	Segment:	Nature of Operations:	Primary Drivers of Net Revenues:
Core Banking:
	Traditional Banking	Provides traditional banking products to clients primarily in its market footprint via its network of banking centers and to clients outside of its market footprint primarily via its Digital and Correspondent Lending delivery channels.	Loans, investments and deposits
	Warehouse Lending	Provides short-term, revolving credit facilities to mortgage bankers across the United States.	Mortgage warehouse lines of credit
	Mortgage Banking	Primarily originates, sells and services long-term, single family, first lien residential real estate loans primarily to clients in its market footprint.	Loan sales and servicing
	Republic Processing Group	The TRS division facilitates the receipt and payment of federal and state tax refund products. The RPS division offers general purpose reloadable cards. The RCS division offers short-term credit products. RPG products are primarily provided to clients outside of the Bank’s market footprint.	Refund transfers and unsecured small-dollar, consumer loans

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 2016 Annual Report on Form 10-K. Segment performance is evaluated using operating income. Goodwill is allocated to the Traditional Banking segment. 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
First Quarter 2017 Earnings Release (continued)
Segment information for the three months ended March 31, 2017 and 2016 follows:
	Three Months Ended March 31, 2017
	Core Banking
	Traditional			Warehouse			Mortgage		Total			Republic		Total
(dollars in thousands)	Banking			Lending			Banking		Core Banking			Processing Group		Company
Net interest income	$	32,661		$	3,900		$	67	$	36,628		$	19,810	$	56,438
Provision for loan and lease losses		467			(226	)		-		241			12,110		12,351
Net refund transfer fees		-			-			-		-			15,382		15,382
Mortgage banking income		-			-			1,160		1,160			-		1,160
Program fees		-			-			-		-			1,091		1,091
Other noninterest income		6,521			6			13		6,540			750		7,290
Total noninterest income		6,521			6			1,173		7,700			17,223		24,923
Total noninterest expenses		30,090			777			1,215		32,082			6,857		38,939
Income before income tax expense		8,625			3,355			25		12,005			18,066		30,071
Income tax expense		2,262			1,227			9		3,498			6,556		10,054
Net income	$	6,363		$	2,128		$	16	$	8,507		$	11,510	$	20,017
Segment end-of-period assets	$	4,017,173		$	493,127		$	15,080	$	4,525,380		$	139,412	$	4,664,792
Net interest margin		3.30	%		3.57	%		NM		3.33	%		NM		4.99	%
	Three Months Ended March 31, 2016
	Core Banking
	Traditional			Warehouse			Mortgage		Total			Republic		Total
(dollars in thousands)	Banking			Lending			Banking		Core Banking			Processing Group		Company
Net interest income	$	28,608		$	2,655		$	32	$	31,295		$	8,139	$	39,434
Provision for loan and lease losses		480			18			-		498			4,688		5,186
Net refund transfer fees		-			-			-		-			17,078		17,078
Mortgage banking income		-			-			1,261		1,261			-		1,261
Program fees		-			-			-		-			319		319
Other noninterest income		6,110			5			92		6,207			56		6,263
Total noninterest income		6,110			5			1,353		7,468			17,453		24,921
Total noninterest expenses		24,875			695			1,240		26,810			5,731		32,541
Income before income tax expense		9,363			1,947			145		11,455			15,173		26,628
Income tax expense		2,613			723			51		3,387			5,506		8,893
Net income	$	6,750		$	1,224		$	94	$	8,068		$	9,667	$	17,735
Segment end-of-period assets	$	3,711,315		$	393,532		$	12,965	$	4,117,812		$	128,953	$	4,246,765
Net interest margin		3.08	%		3.63	%		NM		3.12	%		NM		3.78	%

Republic Bancorp, Inc. Financial Information
First Quarter 2017 Earnings Release (continued)
(1)	“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending and Mortgage Banking segments.
(2)	The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin and net interest spread. The amount of loan fee income included in total interest income per quarter was as follows: $21.3 million (quarter ended March 31, 2017); $5.9 million (quarter ended December 31, 2016); $4.8 million (quarter ended September 30, 2016); $3.7 million (quarter ended June 30, 2016); and $9.8 million (quarter ended March 31, 2016).
	Interest income for Easy Advances (“EAs”) is composed entirely of loan fees. The loan fees disclosed above included EA fees of $14.2 million and $5.2 million for the quarters ended March 31, 2016 and 2015. EAs are only offered during the first two months of each year.
(3)	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, a non-GAAP disclosure. The Company provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.
		Quarterly Comparison
	(dollars in thousands, except per share data)	Mar. 31, 2017			Dec. 31, 2016			Sep. 30, 2016			Jun. 30, 2016			Mar. 31, 2016
	Total stockholders' equity (a)	$	620,664		$	604,406		$	600,560		$	595,023		$	591,557
	Less: Goodwill		16,300			16,300			16,300			16,313			10,168
	Less: Mortgage servicing rights		5,158			5,180			5,338			4,998			4,891
	Less: Core deposit intangible		1,017			1,070			1,121			1,171			-
	Tangible stockholders' equity (c)	$	598,189		$	581,856		$	577,801		$	572,541		$	576,498
	Total assets (b)	$	4,664,792		$	4,816,309		$	4,827,277		$	4,646,922		$	4,246,765
	Less: Goodwill		16,300			16,300			16,300			16,313			10,168
	Less: Mortgage servicing rights		5,158			5,180			5,338			4,998			4,891
	Less: Core deposit intangible		1,017			1,070			1,121			1,171			-
	Tangible assets (d)	$	4,642,317		$	4,793,759		$	4,804,518		$	4,624,440		$	4,231,706
	Total stockholders' equity to total assets (a/b)		13.31	%		12.55	%		12.44	%		12.80	%		13.93	%
	Tangible stockholders' equity to tangible assets (c/d)		12.89	%		12.14	%		12.03	%		12.38	%		13.62	%
	Number of shares outstanding (e)		20,858			20,860			20,862			20,862			20,904
	Book value per share (a/e)	$	29.76		$	28.97		$	28.79		$	28.52		$	28.30
	Tangible book value per share (c/e)		28.68			27.89			27.70			27.44			27.58
(4)	The efficiency ratio, a non-GAAP measure, equals total noninterest expense divided by the sum of net interest income and noninterest income. The ratio excludes net gains (losses) on sales, calls and impairment of investment securities, if applicable.
(5)	The cost of average deposits ratio equals annualized total interest expense on deposits divided by total average interest-bearing deposits plus total average noninterest-bearing deposits.
(6)	FTEs – Full-time-equivalent employees.
(7)	The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due.
(8)	Delinquent loans for the RPG segment include $8.4 million and $3.9 million of EAs at March 31, 2017 and March 31, 2016. EAs were only offered during the first two months of 2017 and 2016 and do not have a contractual due date but are eligible for delinquency consideration three weeks after the taxpayer-customer’s tax return is submitted to the applicable tax authority. All unpaid EAs are generally charged-off by the end of the second quarter of each year.
NM – Not meaningful

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