Republic Bancorp (RBCAA) 8-K Republic Bancorp, Inc. Reports 9% Year-Over-Year Increase in Third Quarter Net Income

Exhibit 99.1

Republic Bancorp, Inc. Reports 9% Year-Over-Year Increase in Third Quarter Net Income

LOUISVILLE, Ky.--(BUSINESS WIRE)--October 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 third quarter net income of $10.7 million, a 9% increase over the third quarter of 2016, resulting in Diluted Earnings per Class A Common Share of $0.51. Year-to-date net income was $40.8 million, a $4.9 million, or 14%, increase from the same period in 2016, resulting in return on average assets (“ROA”) and return on average equity (“ROE”) of 1.14% and 8.71% for the first nine months of 2017.

Steve Trager, Chairman & CEO of Republic commented, “As we enter the homestretch of 2017, we remain pleased with our strong operating results this year. As with the previous quarters of 2017, the third quarter saw the Company achieve strong net interest margin expansion, continued strong credit quality metrics within our Core Banking⁽¹⁾ operations, and solid growth in both loans and deposits.

“In addition to the strong performance for the Company overall, we are also pleased with the results of our various operating segments. In particular, our Traditional Banking segment within our Core Banking operations experienced a 25% increase in net income for the quarter, while our Republic Credit Solutions (“RCS”) segment within our Republic Processing Group⁽²⁾ (“RPG”) increased its quarterly net income by 54% over the third quarter of 2016. We also continued to see success in our separately branded on-line digital banking platform, which finished the quarter with over 1,000 clients totaling $58 million in deposits from 49 states.

“Looking ahead to the fourth quarter, we expect to go live with several major technological platform enhancements that we have been implementing and testing during the first nine months of 2017. These initiatives include, among others, new loan origination systems for mortgage and consumer loans, and a new client-relationship-management platform for managing our sales teams and strategic marketing opportunities as well as our client communications. On a long-term basis, we expect these systems to help us expand sales and provide better client service in a more efficient and cost effective manner. We look forward to getting a strong start in 2018 with this new technology in place,” concluded Steve Trager.

The following table highlights Republic’s financial performance for the third quarters and nine months ended September 30, 2017 and 2016:

	(dollars in thousands, except per share data)
		Financial Performance Highlights
		Three Months Ended Sep. 30,										Nine Months Ended Sep. 30,
		2017			2016			$ Change		% Change		2017			2016			$ Change		% Change
	Income Before Income Taxes*	$	16,434		$	14,676		$	1,758	12	%	$	61,774		$	54,003		$	7,771	14	%
	Net Income*		10,706			9,828			878	9			40,794			35,903			4,891	14
	Diluted Earnings per Class A Common Stock		0.51			0.47			0.04	9			1.96			1.73			0.23	13
	Return on Average Assets		0.89	%		0.87	%	NA		2			1.14	%		1.08	%	NA		6
	Return on Average Equity		6.76			6.54		NA		3			8.71			8.04		NA		8
NA – Not applicable
*See Segment Data at the End of this Earnings Release

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

Core Bank⁽¹⁾ – Net income from Core Banking was $10.2 million for the third quarter of 2017, an increase of $273,000, or 3%, over the third quarter of 2016. The increase in net income at the Core Bank was primarily driven by strong growth in net interest income, which increased $6.1 million, or 17%, over the third quarter of 2016. The growth in net interest income was propelled by a 30-basis-point rise in the Core Bank’s net interest margin for the third quarter of 2017 to 3.68% and further complemented by a $144 million increase in the Core Bank’s quarterly average loans.

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 Income
	for the
(dollars in thousands)	Three Months Ended Sep. 30,
Origination Channel	2017		2016		$ Change			% Change
Traditional Network	$	35,382	$	30,459	$	4,923		16	%
Warehouse Lending		4,737		4,924		(187	)	(4	)
Correspondent Lending		307		485		(178	)	(37	)
2012-FDIC Acquired Loans		1,809		266		1,543		580
Total Core Bank	$	42,235	$	36,134	$	6,101		17

	Average Loan Balances									Period-End Loan Balances
(dollars in thousands)	Three Months Ended Sep. 30,									Sep. 30,
Origination Channel	2017		2016		$ Change			% Change		2017		2016		$ Change			% Change
Traditional Network	$	3,152,032	$	2,943,310	$	208,722		7	%	$	3,203,673	$	2,971,343	$	232,330		8	%
Warehouse Lending		535,703		542,894		(7,191	)	(1	)		571,160		661,186		(90,026	)	(14	)
Correspondent Lending		127,905		178,385		(50,480	)	(28	)		125,643		156,955		(31,312	)	(20	)
2012-FDIC Acquired Loans		11,409		18,649		(7,240	)	(39	)		9,906		17,094		(7,188	)	(42	)
Total Core Bank	$	3,827,049	$	3,683,238	$	143,811		4		$	3,910,382	$	3,806,578	$	103,804		3

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 third quarter of 2017, as compared to the third quarter of 2016:

• The Core Bank’s Traditional Network experienced solid average loan growth of $209 million from the third quarter of 2016 to the third quarter of 2017. The overall mix of this growth was well diversified, with average balance increases of $108 million in commercial real estate; $55 million in construction and development; and $53 million in commercial and industrial loans.
• The Core Bank’s 2012 FDIC-Acquired loans contributed $1.5 million more in net interest income during the third quarter of 2017 compared to the same period in 2016, resulting from the early payoff of one large commercial loan and a credit to income of $1.6 million of discount associated with this loan. Overall, accretion income from the 2012 FDIC-Acquired loans contributed 15 basis points to the Core Bank’s net interest margin during the third quarter of 2017 with only a nominal contribution for the same period in 2016.

The Core Bank’s provision expense for the third quarters of 2017 and 2016 primarily represented general loss reserves driven by growth in the loan portfolio during the two periods. The Core Bank’s credit quality metrics remained favorable, as indicated by the table below:

	As of and for the:
	Quarter Ending:						Year Ending:
	Sept. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
Core Banking Credit Quality Ratios	2017		2017		2017		2016		2015		2014
Nonperforming loans to total loans	0.40	%	0.40	%	0.46	%	0.42	%	0.66	%	0.78	%
Nonperforming assets to total loans (including OREO)	0.40		0.41		0.50		0.46		0.70		1.15
Delinquent loans to total loans(8)	0.20		0.18		0.16		0.18		0.35		0.52
Net charge-offs to average loans	0.03		0.05		0.02		0.05		0.05		0.08
(Annualized as of 9/30/17, 6/30/17 and 3/31/17)
OREO = Other Real Estate Owned

Noninterest income for the Core Bank was $8.3 million during the third quarter of 2017, a $1.7 million, or 17%, decrease from the $10.0 million achieved during the third quarter of 2016. The primary driver of the drop in noninterest income was a $2.0 million decrease in mortgage banking income attributable to the following:

• Approximately $1.1 million of the decrease was attributable to a gain from a nonrecurring bulk sale of $71 million in correspondent mortgage loans during the third quarter of 2016.
• The remainder of the decrease was the result of a decline in consumer refinance activity of first-mortgage home loans.

Core Bank noninterest expenses increased $3.4 million, or 11%, during the third quarter of 2017 compared to the third quarter of 2016. The increase was primarily driven by the following:

• Salaries and employee benefits expense increased $2.0 million, or 12%, as the Core Bank’s full-time-equivalent employees increased by 66 employees over the previous 12 months to support the Core Bank’s strategic initiatives.
• Occupancy expense increased $1.2 million, primarily due to a $907,000 impairment charge resulting from a mark-to-market adjustment of a bank property that the Company intends to market for sale. The remaining increase in occupancy expense was primarily driven by increases in rent expense and depreciation expense resulting from new locations, existing banking center renovations and the cost of technology to support the previously mentioned Core Bank’s strategic initiatives.
• Marketing and development expense increased $531,000, with a substantial portion of this increase focused on driving loan and deposit growth in markets outside of the Company’s Louisville, Kentucky footprint. In addition, the Company also instituted a marketing awareness campaign in its Louisville, Kentucky market as part of a mortgage lending initiative.
• Partially offsetting the increases above, the Core Bank’s noninterest expenses during the third quarter of 2016 included a nonrecurring prepayment penalty of $846,000 related to the payoff of $50 million in long-term Federal Home Loan Bank advances. No similar expense was incurred during the third quarter of 2017.

Republic Processing Group⁽²⁾

RPG reported net income of $495,000 for the third quarter of 2017 compared to a nominal loss of $110,000 for the same period in 2016.

Within the RCS segment of RPG, net income increased to $1.6 million for the third quarter of 2017 compared to $1.0 million for the same period in 2016, with increases in net interest income and noninterest income of $2.8 million and $724,000, respectively, offsetting an increase of $2.4 million in provisions for loan losses. Growth in RCS loans held for investment and RCS loans sold was the primary driver of revenue growth. Average RCS loans held for investment increased to $47 million during the third quarter of 2017 from $16 million during the third quarter of 2016, while loans sold through RCS increased to $178 million during the third quarter of 2017 from $125 million during the third quarter of 2016.

RCS loans typically earn a higher yield but also carry higher credit risk compared to Core Bank loans. Provision expense was $2.4 million higher at RCS during the third quarter of 2017 compared to the same period in 2016 due to an increase in general loss reserves for growth in RCS loans and an increase in the historical loss factors within the loan loss reserve calculation resulting from a rise in charge-offs from the prior year.

Partially offsetting the net income attributable to the RCS segment, the Tax Refund Solutions (“TRS”) segment of RPG reported an expected net loss of $1.1 million for the third quarter of 2017, approximately even with the net loss reported during the third quarter of 2016. The TRS segment of RPG accounts for the majority of RPG’s annualized revenues, but 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.

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 (Tampa MSA) – Largo, Port Richey, St. Petersburg, Seminole, and 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 $5.0 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 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 Third 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
			Sep. 30, 2017			Dec. 31, 2016			Sep. 30, 2016
Assets:
Cash and cash equivalents			$	329,862		$	289,309		$	302,167
Investment securities				523,896			534,139			524,444
Loans held for sale				13,135			15,170			11,226
Loans				3,957,512			3,810,778			3,823,031
Allowance for loan and lease losses				(40,191	)		(32,920	)		(30,436	)
Loans, net				3,917,321			3,777,858			3,792,595
Federal Home Loan Bank stock, at cost				32,067			28,208			28,208
Premises and equipment, net				44,845			42,869			43,385
Goodwill				16,300			16,300			16,300
Other real estate owned (“OREO”)				167			1,391			2,435
Bank owned life insurance (“BOLI”)				62,972			61,794			61,392
Other assets and accrued interest receivable				52,609			49,271			45,125
Total assets			$	4,993,174		$	4,816,309		$	4,827,277
Liabilities and Stockholders’ Equity:
Deposits:
Noninterest-bearing			$	1,040,414		$	971,952		$	947,602
Interest-bearing				2,309,315			2,188,740			2,188,291
Total deposits				3,349,729			3,160,692			3,135,893
Securities sold under agreements to repurchase and other short-term borrowings				173,311			173,473			152,458
Federal Home Loan Bank advances				757,500			802,500			862,500
Subordinated note				41,240			41,240			41,240
Other liabilities and accrued interest payable				38,107			33,998			34,626
Total liabilities				4,359,887			4,211,903			4,226,717
Stockholders’ equity				633,287			604,406			600,560
Total liabilities and Stockholders’ equity			$	4,993,174		$	4,816,309		$	4,827,277
Average Balance Sheet Data
	Three Months Ended Sep. 30,					Nine Months Ended Sep. 30,
	2017		2016			2017			2016
Assets:
Investment securities, including FHLB stock	$	552,821	$	554,508		$	578,963		$	571,740
Federal funds sold and other interest-earning deposits		208,688		58,910			174,538			147,180
Loans and fees, including loans held for sale		3,875,420		3,702,093			3,785,639			3,492,997
Total interest-earning assets		4,636,929		4,315,511			4,539,140			4,211,917
Total assets		4,834,653		4,531,958			4,783,434			4,440,881
Liabilities and Stockholders’ Equity:
Noninterest-bearing deposits	$	1,052,162	$	900,432		$	1,082,361		$	874,060
Interest-bearing deposits		2,249,436		2,155,289			2,228,731			2,014,197
Securities sold under agreements to repurchase and other short-term borrowings		208,160		215,343			202,018			296,574
Federal Home Loan Bank advances		618,750		584,946			572,390			588,109
Subordinated note		41,240		44,288			41,240			42,926
Total interest-bearing liabilities		3,117,586		2,999,866			3,044,379			2,941,806
Stockholders’ equity		633,874		601,043			624,164			595,236

Republic Bancorp, Inc. Financial Information Third 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 Sep. 30,					Nine Months Ended Sep. 30,
	2017		2016			2017		2016
Total interest income(3)	$	53,725	$	43,934		$	162,429	$	128,089
Total interest expense		5,418		4,536			14,547		13,680
Net interest income		48,307		39,398			147,882		114,409
Provision for loan and lease losses		4,221		2,489			21,633		9,489
Noninterest income:
Service charges on deposit accounts		3,395		3,416			10,032		9,838
Net refund transfer fees		177		132			18,329		19,119
Mortgage banking income		1,102		3,081			3,707		5,902
Interchange fee income		2,475		2,415			7,348		6,755
Program fees		1,597		979			3,972		1,942
Increase in cash surrender value of BOLI		394		406			1,178		1,114
Net gains (losses) on OREO		31		(137	)		422		191
Other		1,203		1,009			3,236		2,163
Total noninterest income		10,374		11,301			48,224		47,024
Noninterest expenses:
Salaries and employee benefits		20,505		18,068			61,731		52,965
Occupancy and equipment, net		6,806		5,631			18,676		16,159
Communication and transportation		1,239		1,029			3,450		2,974
Marketing and development		1,677		1,076			4,090		2,773
FDIC insurance expense		300		345			1,050		1,483
Bank franchise tax expense		749		846			3,974		3,944
Data processing		1,795		1,659			5,142		4,535
Interchange related expense		928		1,118			3,057		3,069
Supplies		241		280			1,029		969
OREO expense		55		159			284		355
Legal and professional fees		446		539			1,794		1,965
FHLB advance prepayment penalty		—		846			—		846
Other		3,285		1,938			8,422		5,904
Total noninterest expenses		38,026		33,534			112,699		97,941
Income before income tax expense		16,434		14,676			61,774		54,003
Income tax expense		5,728		4,848			20,980		18,100
Net income	$	10,706	$	9,828		$	40,794	$	35,903

Republic Bancorp, Inc. Financial Information Third 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
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2017			2016			2017			2016
Per Share Data:
Basic weighted average shares outstanding		21,153			20,925			20,921			20,946
Diluted weighted average shares outstanding		21,236			20,938			21,000			20,957
End of period shares outstanding:
Class A Common Stock		18,618			18,617			18,618			18,617
Class B Common Stock		2,243			2,245			2,243			2,245
Book value per share(4)	$	30.36		$	28.79		$	30.36		$	28.79
Tangible book value per share(4)		29.29			27.70			29.29			27.70
Earnings per share:
Basic earnings per Class A Common Stock	$	0.51		$	0.47		$	1.97		$	1.73
Basic earnings per Class B Common Stock		0.47			0.43			1.79			1.58
Diluted earnings per Class A Common Stock		0.51			0.47			1.96			1.73
Diluted earnings per Class B Common Stock		0.47			0.43			1.78			1.57
Cash dividends declared per Common share:
Class A Common Stock	$	0.220		$	0.209		$	0.649		$	0.616
Class B Common Stock		0.200			0.190			0.590			0.560
Performance Ratios:
Return on average assets		0.89	%		0.87	%		1.14	%		1.08	%
Return on average equity		6.76			6.54			8.71			8.04
Efficiency ratio(5)		65			66			57			61
Yield on average interest-earning assets(3)		4.63			4.07			4.77			4.05
Cost of average interest-bearing liabilities		0.70			0.60			0.64			0.62
Cost of average deposits(6)		0.31			0.21			0.27			0.20
Net interest spread(3)		3.93			3.47			4.13			3.43
Net interest margin - Total Company(3)		4.17			3.65			4.34			3.62
Net interest margin - Core Bank(1)		3.68			3.38			3.49			3.26
Other Information:
End of period FTEs(7) - Total Company		970			899			970			899
End of period FTEs(7) - Core Bank(1)		896			830			896			830
Number of full-service banking centers		45			44			45			44

Republic Bancorp, Inc. Financial Information Third 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						As of and for the
	Three Months Ended Sep. 30,						Nine Months Ended Sep. 30,
	2017			2016			2017			2016
Credit Quality Asset Balances:
Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	15,475		$	17,769		$	15,475		$	17,769
Loans past due 90-days-or-more and still on accrual		906			223			906			223
Total nonperforming loans		16,381			17,992			16,381			17,992
OREO		167			2,435			167			2,435
Total nonperforming assets - Total Company	$	16,548		$	20,427		$	16,548		$	20,427
Nonperforming Assets - Core Bank(1):
Loans on nonaccrual status	$	15,475		$	17,769		$	15,475		$	17,769
Loans past due 90-days-or-more and still on accrual		55			141			55			141
Total nonperforming loans		15,530			17,910			15,530			17,910
OREO		167			2,435			167			2,435
Total nonperforming assets - Core Bank(1)	$	15,697		$	20,345		$	15,697		$	20,345
Delinquent loans:
Delinquent loans - Core Bank(1)	$	7,756		$	8,050		$	7,756		$	8,050
Delinquent loans - RPG(2)		4,270			664			4,270			664
Total delinquent loans - Total Company	$	12,026		$	8,714		$	12,026		$	8,714
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans		0.41	%		0.47	%		0.41	%		0.47	%
Nonperforming assets to total loans (including OREO)		0.42			0.53			0.42			0.53
Nonperforming assets to total assets		0.33			0.42			0.33			0.42
Allowance for loan and lease losses to total loans		1.02			0.80			1.02			0.80
Allowance for loan and lease losses to nonperforming loans		245			169			245			169
Delinquent loans to total loans(8)(9)		0.30			0.23			0.30			0.23
Net charge-offs to average loans (annualized)		0.20			0.15			0.51			0.25
Credit Quality Ratios - Core Bank(1):
Nonperforming loans to total loans		0.40	%		0.47	%		0.40	%		0.47	%
Nonperforming assets to total loans (including OREO)		0.40			0.53			0.40			0.53
Nonperforming assets to total assets		0.32			0.43			0.32			0.43
Allowance for loan and lease losses to total loans		0.76			0.71			0.76			0.71
Allowance for loan and lease losses to nonperforming loans		190			152			190			152
Delinquent loans to total loans(8)		0.20			0.21			0.20			0.21
Net charge-offs to average loans (annualized)		0.03			0.03			0.03			0.04

Republic Bancorp, Inc. Financial Information Third 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
	Sep. 30, 2017			Jun. 30, 2017			Mar. 31, 2017			Dec. 31, 2016			Sept. 30, 2016
Assets:
Cash and cash equivalents	$	329,862		$	332,695		$	206,187		$	289,309		$	302,167
Investment securities		523,896			525,684			578,130			534,139			524,444
Loans held for sale		13,135			11,756			10,292			15,170			11,226
Loans		3,957,512			3,916,320			3,710,376			3,810,778			3,823,031
Allowance for loan and lease losses		(40,191	)		(37,898	)		(42,362	)		(32,920	)		(30,436	)
Loans, net		3,917,321			3,878,422			3,668,014			3,777,858			3,792,595
Federal Home Loan Bank stock, at cost		32,067			32,067			28,208			28,208			28,208
Premises and equipment, net		44,845			44,255			43,962			42,869			43,385
Goodwill		16,300			16,300			16,300			16,300			16,300
Other real estate owned		167			300			1,362			1,391			2,435
Bank owned life insurance		62,972			62,578			62,185			61,794			61,392
Other assets and accrued interest receivable		52,609			51,604			50,152			49,271			45,125
Total assets	$	4,993,174		$	4,955,661		$	4,664,792		$	4,816,309		$	4,827,277
Liabilities and Stockholders’ Equity:
Deposits:
Noninterest-bearing	$	1,040,414		$	1,061,637		$	1,070,237		$	971,952		$	947,602
Interest-bearing		2,309,315			2,072,301			2,278,547			2,188,740			2,188,291
Total deposits		3,349,729			3,133,938			3,348,784			3,160,692			3,135,893
Securities sold under agreements to repurchase and other short-term borrowings		173,311			113,334			144,375			173,473			152,458
Federal Home Loan Bank advances		757,500			1,002,500			467,500			802,500			862,500
Subordinated note		41,240			41,240			41,240			41,240			41,240
Other liabilities and accrued interest payable		38,107			37,758			42,229			33,998			34,626
Total liabilities		4,359,887			4,328,770			4,044,128			4,211,903			4,226,717
Stockholders’ equity		633,287			626,891			620,664			604,406			600,560
Total liabilities and Stockholders’ equity	$	4,993,174		$	4,955,661		$	4,664,792		$	4,816,309		$	4,827,277
Average Balance Sheet Data
	Quarterly Comparison
	Sep. 30, 2017			Jun. 30, 2017			Mar. 31, 2017			Dec. 31, 2016			Sept. 30, 2016
Assets:
Investment securities, including FHLB stock	$	552,821		$	597,818		$	586,621		$	571,158		$	554,508
Federal funds sold and other interest-earning deposits		208,688			130,650			184,007			57,950			58,910
Loans and fees, including loans held for sale		3,875,420			3,730,379			3,749,738			3,792,902			3,702,093
Total interest-earning assets		4,636,929			4,458,847			4,520,366			4,422,010			4,315,511
Total assets		4,834,653			4,668,048			4,847,700			4,622,760			4,531,958
Liabilities and Stockholders’ Equity:
Noninterest-bearing deposits	$	1,052,162		$	1,063,215		$	1,132,591		$	950,020		$	900,432
Interest-bearing deposits		2,249,436			2,224,127			2,212,219			2,197,411			2,155,289
Securities sold under agreements to repurchase and other short-term borrowings		208,160			179,594			218,412			231,817			215,343
Federal Home Loan Bank advances		618,750			500,027			598,167			570,135			584,946
Subordinated note		41,240			41,240			41,240			41,240			44,288
Total interest-bearing liabilities		3,117,586			2,944,988			3,070,038			3,040,603			2,999,866
Stockholders’ equity		633,874			627,940			610,429			604,095			601,043

Republic Bancorp, Inc. Financial Information Third 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
	Sep. 30, 2017		Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2016		Sept. 30, 2016
Total interest income(3)	$	53,725	$	$ 47,821	$	60,883	$	45,903	$	43,934
Total interest expense		5,418		4,684		4,445		4,258		4,536
Net interest income		48,307		43,137		56,438		41,645		39,398
Provision for loan and lease losses		4,221		5,061		12,351		5,004		2,489
Noninterest income:
Service charges on deposit accounts		3,395		3,390		3,247		3,338		3,416
Net refund transfer fees		177		2,770		15,382		121		132
Mortgage banking income		1,102		1,445		1,160		980		3,081
Interchange fee income		2,475		2,547		2,326		2,254		2,415
Program fees		1,597		1,284		1,091		1,102		979
Increase in cash surrender value of BOLI		394		393		391		402		406
Net gains (losses) on OREO		31		249		142		53		(137	)
Other		1,203		849		1,184		2,235		1,009
Total noninterest income		10,374		12,927		24,923		10,485		11,301
Noninterest expenses:
Salaries and employee benefits		20,505		20,015		21,211		16,917		18,068
Occupancy and equipment, net		6,806		5,903		5,967		5,618		5,631
Communication and transportation		1,239		939		1,272		1,282		1,029
Marketing and development		1,677		1,409		1,004		1,005		1,076
FDIC insurance expense		300		300		450		297		345
Bank franchise tax expense		749		790		2,435		813		846
Data processing		1,795		1,695		1,652		1,586		1,659
Interchange related expense		928		1,071		1,058		1,071		1,118
Supplies		241		261		527		437		280
OREO expense		55		132		97		148		159
Legal and professional fees		446		596		752		591		539
FHLB advance prepayment penalty		—		—		—		—		846
Other		3,285		2,623		2,514		2,401		1,938
Total noninterest expenses		38,026		35,734		38,939		32,166		33,534
Income before income tax expense		16,434		15,269		30,071		14,960		14,676
Income tax expense		5,728		5,198		10,054		4,960		4,848
Net income	$	10,706	$	$ 10,071	$	20,017	$	10,000	$	9,828

Republic Bancorp, Inc. Financial Information Third 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
	Sep. 30, 2017			Jun. 30, 2017			Mar. 31, 2017			Dec. 31, 2016			Sep. 30, 2016
Per Share Data:
Basic weighted average shares outstanding		21,153			21,151			20,915			20,926			20,925
Diluted weighted average shares outstanding		21,236			21,230			20,996			20,941			20,938
End of period shares outstanding:
Class A Common Stock		18,618			18,618			18,615			18,615			18,617
Class B Common Stock		2,243			2,243			2,243			2,245			2,245
Book value per share(4)	$	30.36		$	30.05		$	29.76		$	28.97		$	28.79
Tangible book value per share(4)		29.29			28.98			28.68			27.89			27.70
Earnings per share:
Basic earnings per Class A Common Stock	$	0.51		$	0.48		$	0.97		$	0.48		$	0.47
Basic earnings per Class B Common Stock		0.47			0.44			0.88			0.44			0.43
Diluted earnings per Class A Common Stock		0.51			0.48			0.96			0.48			0.47
Diluted earnings per Class B Common Stock		0.47			0.44			0.88			0.44			0.43
Cash dividends declared per Common share:
Class A Common Stock	$	0.220		$	0.220		$	0.209		$	0.209		$	0.209
Class B Common Stock		0.200			0.200			0.190			0.190			0.190
Performance Ratios:
Return on average assets		0.89	%		0.86	%		1.65	%		0.87	%		0.87	%
Return on average equity		6.76			6.42			13.12			6.62			6.54
Efficiency ratio(5)		65			64			48			62			66
Yield on average interest-earning assets(3)		4.63			4.29			5.39			4.15			4.07
Cost of average interest-bearing liabilities		0.70			0.64			0.58			0.56			0.60
Cost of average deposits(6)		0.31			0.28			0.22			0.22			0.21
Net interest spread(3)		3.93			3.65			4.81			3.59			3.47
Net interest margin - Total Company(3)		4.17			3.87			4.99			3.77			3.65
Net interest margin - Core Bank(1)		3.68			3.46			3.33			3.42			3.38
Other Information:
End of period FTEs(6) - Total Company		970			976			973			938			899
End of period FTEs(6) - Core Bank(1)		896			904			901			869			830
Number of full-service banking centers		45			45			45			44			44

Republic Bancorp, Inc. Financial Information Third 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
	Sep. 30, 2017			Jun. 30, 2017			Mar. 31, 2017			Dec. 31, 2016			Sept. 30, 2016
Credit Quality Asset Balances:
Nonperforming Assets - Total Company:
Loans on nonaccrual status	$	15,475		$	15,467		$	16,793		$	15,892		$	17,769
Loans past due 90-days-or-more and still on accrual		906			335			203			167			223
Total nonperforming loans		16,381			15,802			16,996			16,059			17,992
OREO		167			300			1,362			1,391			2,435
Total nonperforming assets - Total Company	$	16,548		$	16,102		$	18,358		$	17,450		$	20,427
Nonperforming Assets - Core Bank(1):
Loans on nonaccrual status	$	15,475		$	15,467		$	16,793		$	15,892		$	17,769
Loans past due 90-days-or-more and still on accrual		55			33			81			85			141
Total nonperforming loans		15,530			15,500			16,874			15,977			17,910
OREO		167			300			1,362			1,391			2,435
Total nonperforming assets - Core Bank(1)	$	15,697		$	15,800		$	18,236		$	17,368		$	20,345
Delinquent Loans:
Delinquent loans - Core Bank(1)	$	7,756		$	6,844		$	5,952		$	6,821		$	8,050
Delinquent loans - RPG(2)		4,270			2,169			10,211			2,137			664
Total delinquent loans - Total Company	$	12,026		$	9,013		$	16,163		$	8,958		$	8,714
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans		0.41	%		0.40	%		0.46	%		0.42	%		0.47	%
Nonperforming assets to total loans (including OREO)		0.42			0.41			0.49			0.46			0.53
Nonperforming assets to total assets		0.33			0.32			0.39			0.36			0.42
Allowance for loan and lease losses to total loans		1.02			0.97			1.14			0.86			0.80
Allowance for loan and lease losses to nonperforming loans		245			240			249			205			169
Delinquent loans to total loans(8)(9)		0.30			0.23			0.44			0.24			0.23
Net charge-offs to average loans (annualized)		0.20			1.02			0.31			0.27			0.15
Credit Quality Ratios - Core Bank(1):
Nonperforming loans to total loans		0.40	%		0.40	%		0.46	%		0.42	%		0.47	%
Nonperforming assets to total loans (including OREO)		0.40			0.41			0.50			0.46			0.53
Nonperforming assets to total assets		0.32			0.32			0.40			0.36			0.43
Allowance for loan and lease losses to total loans		0.76			0.76			0.76			0.74			0.72
Allowance for loan and lease losses to nonperforming loans		190			189			166			175			152
Delinquent loans to total loans(8)		0.20			0.18			0.16			0.18			0.21
Net charge-offs to average loans (annualized)		0.03			0.05			0.02			0.09			0.03

Republic Bancorp, Inc. Financial Information
Third 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 September 30, 2017, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking, Tax Refund Solutions (“TRS”) and Republic Credit Solutions (“RCS”). Management considers the first three segments to collectively constitute the “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute Republic Processing Group (“RPG”) operations. The Bank’s Correspondent Lending channel and the Company’s national branchless banking platform, MemoryBank^®, are considered part of the Traditional Banking segment.

Prior to the third quarter of 2017, RPG was considered a reportable segment, with its largest division, TRS, and relatively smaller divisions, Republic Payment Solutions (“RPS”) and RCS, reported within RPG. During the third quarter of 2017, due to RCS’s growth in revenues relative to the total Company’s revenues, management restructured RPG by upgrading TRS and RCS as separate reportable segments under the newly-classified RPG operations. Also, as part of the restructuring, the RPS division, which remained too immaterial to be classified a separate reportable segment, was reclassified within the newly-classified TRS segment. All segments within RPG operations and divisions within those segments operate through the Bank. All prior periods have been reclassified to conform to the current presentation.

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

Reportable 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 the Bank’s market footprint.	Loan sales and servicing.
Republic Processing Group:
Tax Refund Solutions	TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refund products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint.	Loans, refund transfers, and prepaid cards.
Republic Credit Solutions	Offers short-term credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint.	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 Third Quarter 2017 Earnings Release (continued)
Segment information for the three and nine months ended September 30, 2017 and 2016 follows:
	Three Months Ended September 30, 2017
	Core Banking											Republic Processing Group (“RPG”)
									Total			Tax			Republic
	Traditional			Warehouse			Mortgage		Core			Refund			Credit		Total			Total
(dollars in thousands)	Banking			Lending			Banking		Banking			Solutions			Solutions		RPG			Company
Net interest income	$	37,396		$	4,737		$	102	$	42,235		$	60		$	6,012	$	6,072		$	48,307
Provision for loan and lease losses		683			(74	)		—		609			(840	)		4,452		3,612			4,221
Net refund transfer fees		—			—			—		—			177			—		177			177
Mortgage banking income		—			—			1,102		1,102			—			—		—			1,102
Program fees		—			—			—		—			63			1,534		1,597			1,597
Other noninterest income		7,130			11			65		7,206			16			276		292			7,498
Total noninterest income		7,130			11			1,167		8,308			256			1,810		2,066			10,374
Total noninterest expenses		32,280			848			1,149		34,277			2,851			898		3,749			38,026
Income (loss) before income tax expense		11,563			3,974			120		15,657			(1,695	)		2,472		777			16,434
Income tax expense (benefit)		3,951			1,454			41		5,446			(615	)		897		282			5,728
Net income (loss)	$	7,612		$	2,520		$	79	$	10,211		$	(1,080	)	$	1,575	$	495		$	10,706
Segment end-of-period assets	$	4,361,591		$	570,676		$	9,395	$	4,941,662		$	13,090		$	38,422	$	51,512		$	4,993,174
Net interest margin		3.70	%		3.54	%		NM		3.68	%		NM			NM		NM			4.17	%
	Three Months Ended September 30, 2016
	Core Banking											Republic Processing Group (“RPG”)
									Total			Tax			Republic
	Traditional			Warehouse			Mortgage		Core			Refund			Credit		Total			Total
(dollars in thousands)	Banking			Lending			Banking		Banking			Solutions			Solutions		RPG			Company
Net interest income	$	31,134		$	4,924		$	76	$	36,134		$	38		$	3,226	$	3,264		$	39,398
Provision for loan and lease losses		289			188			—		477			(89	)		2,101		2,012			2,489
Net refund transfer fees		—			—			—		—			132			—		132			132
Mortgage banking income		—			—			3,081		3,081			—			—		—			3,081
Program fees		—			—			—		—			29			950		979			979
Other noninterest income		6,899			4			57		6,960			13			136		149			7,109
Total noninterest income		6,899			4			3,138		10,041			174			1,086		1,260			11,301
Total noninterest expenses		28,939			727			1,184		30,850			2,075			609		2,684			33,534
Income (loss) before income tax expense		8,805			4,013			2,030		14,848			(1,774	)		1,602		(172	)		14,676
Income tax expense (benefit)		2,707			1,493			710		4,910			(642	)		580		(62	)		4,848
Net income (loss)	$	6,098		$	2,520		$	1,320	$	9,938		$	(1,132	)	$	1,022	$	(110	)	$	9,828
Segment end-of-period assets	$	4,109,464		$	660,410		$	15,003	$	4,784,877		$	26,608		$	15,792	$	42,400		$	4,827,277
Net interest margin		3.35	%		3.63	%		NM		3.38	%		NM			NM		NM			3.65	%

Republic Bancorp, Inc. Financial Information Third Quarter 2017 Earnings Release (continued)
	Nine Months Ended September 30, 2017
	Core Banking											Republic Processing Group (“RPG”)
									Total			Tax		Republic
	Traditional			Warehouse			Mortgage		Core			Refund		Credit		Total		Total
(dollars in thousands)	Banking			Lending			Banking		Banking			Solutions		Solutions		RPG		Company
Net interest income	$	103,490		$	13,073		$	255	$	116,818		$	15,179	$	15,885	$	31,064	$	147,882
Provision for loan and lease losses		2,611			(36	)		—		2,575			6,763		12,295		19,058		21,633
Net refund transfer fees		—			—			—		—			18,329		—		18,329		18,329
Mortgage banking income		—			—			3,707		3,707			—		—		—		3,707
Program fees		—			—			—		—			103		3,869		3,972		3,972
Other noninterest income		20,618			27			192		20,837			152		1,227		1,379		22,216
Total noninterest income		20,618			27			3,899		24,544			18,584		5,096		23,680		48,224
Total noninterest expenses		93,552			2,448			3,347		99,347			10,891		2,461		13,352		112,699
Income (loss) before income tax expense		27,945			10,688			807		39,440			16,109		6,225		22,334		61,774
Income tax expense (benefit)		8,684			3,909			282		12,875			5,846		2,259		8,105		20,980
Net income (loss)	$	19,261		$	6,779		$	525	$	26,565		$	10,263	$	3,966	$	14,229	$	40,794
Segment end-of-period assets	$	4,361,591		$	570,676		$	9,395	$	4,941,662		$	13,090	$	38,422	$	51,512	$	4,993,174
Net interest margin		3.48	%		3.58	%		NM		3.49	%		NM		NM		NM		4.34	%
	Nine Months Ended September 30, 2016
	Core Banking											Republic Processing Group (“RPG”)
									Total			Tax		Republic
	Traditional			Warehouse			Mortgage		Core			Refund		Credit		Total		Total
(dollars in thousands)	Banking			Lending			Banking		Banking			Solutions		Solutions		RPG		Company
Net interest income	$	89,279		$	11,369		$	148	$	100,796		$	6,589	$	7,024	$	13,613	$	114,409
Provision for loan and lease losses		1,567			686			—		2,253			2,905		4,331		7,236		9,489
Net refund transfer fees		—			—			—		—			19,119		—		19,119		19,119
Mortgage banking income		—			—			5,902		5,902			—		—		—		5,902
Program fees		—			—			—		—			174		1,768		1,942		1,942
Other noninterest income		19,380			14			212		19,606			176		279		455		20,061
Total noninterest income		19,380			14			6,114		25,508			19,469		2,047		21,516		47,024
Total noninterest expenses		81,551			2,157			3,576		87,284			9,029		1,628		10,657		97,941
Income (loss) before income tax expense		25,541			8,540			2,686		36,767			14,124		3,112		17,236		54,003
Income tax expense (benefit)		7,733			3,174			940		11,847			5,125		1,128		6,253		18,100
Net income (loss)	$	17,808		$	5,366		$	1,746	$	24,920		$	8,999	$	1,984	$	10,983	$	35,903
Segment end-of-period assets	$	4,109,464		$	660,410		$	15,003	$	4,784,877		$	26,608	$	15,792	$	42,400	$	4,827,277
Net interest margin		3.22	%		3.64	%		NM		3.26	%		NM		NM		NM		3.62	%

Republic Bancorp, Inc. Financial Information Third Quarter 2017 Earnings Release (continued)
	(1)	“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending and Mortgage Banking segments.
	(2)	Republic Processing Group operations consist of the Tax Refund Solutions and Republic Credit Solutions segments.
	(3)	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 was $9.1 million and $4.8 million for the quarters ended September 30, 2017 and 2016. The amount of loan fee income included in total interest income was $36.8 million and $18.3 million for the nine months ended September 30, 2017 and 2016.
		The amount of loan fee income included in total interest income per quarter was as follows: $9.1 million (quarter ended September 30, 2017); $6.4 million (quarter ended June 30, 2017); $21.3 million (quarter ended March 31, 2017); $5.9 million (quarter ended December 31, 2016); and $4.8 million (quarter ended September 30, 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 nine months ended September 30, 2017 and 2016. EAs are only offered during the first two months of each year.
	(4)	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)	Sep. 30, 2017			Jun. 30, 2017			Mar. 31, 2017			Dec. 31, 2016			Sept. 30, 2016
Total stockholders’ equity (a)	$	633,287		$	626,891		$	620,664		$	604,406		$	600,560
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		5,128			5,159			5,158			5,180			5,338
Less: Core deposit intangible		911			964			1,017			1,070			1,121
Tangible stockholders’ equity (c)	$	610,948		$	604,468		$	598,189		$	581,856		$	577,801
Total assets (b)	$	4,993,174		$	4,955,661		$	4,664,792		$	4,816,309		$	4,827,277
Less: Goodwill		16,300			16,300			16,300			16,300			16,300
Less: Mortgage servicing rights		5,128			5,159			5,158			5,180			5,338
Less: Core deposit intangible		911			964			1,017			1,070			1,121
Tangible assets (d)	$	4,970,835		$	4,933,238		$	4,642,317		$	4,793,759		$	4,804,518
Total stockholders’ equity to total assets (a/b)		12.68	%		12.65	%		13.31	%		12.55	%		12.44	%
Tangible stockholders’ equity to tangible assets (c/d)		12.29	%		12.25	%		12.89	%		12.14	%		12.03	%
Number of shares outstanding (e)		20,861			20,861			20,858			20,860			20,862
Book value per share (a/e)	$	30.36		$	30.05		$	29.76		$	28.97		$	28.79
Tangible book value per share (c/e)		29.29			28.98			28.68			27.89			27.70

	(5)	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.
	(6)	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.
	(7)	FTEs – Full-time-equivalent employees.
	(8)	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.
	(9)	Delinquent loans for the RPG segment included $8.4 million of EAs at March 31, 2017. EAs were only offered during the first two months of 2017 and 2016. EAs 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 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