Republic Bancorp, Inc. Reports Solid Growth in Net Income for the First Quarter of 2015

LOUISVILLE, Ky.--(BUSINESS WIRE)--

Republic Bancorp, Inc. 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 first quarter net income of $13.8 million, a 15% increase over the first quarter of 2014, resulting in Diluted Earnings per Class A Common Share of $0.66. Return on average assets ("ROA") and return on average equity ("ROE") were 1.40% and 9.72%, respectively, for the first quarter of 2015.

Steve Trager, Republic's Chairman and Chief Executive Officer, commented: "I am very pleased with our first quarter 2015 operating results as we continue to build upon the momentum that we created during the second half of 2014. Most notably, each of our four operating segments experienced growth in net income for the first quarter of 2015 compared to the first quarter of 2014. In addition, the growth in our total Company net income was primarily driven by an increase in top-line revenue; an indication that our overall operating performance continues to grow. While maintaining this momentum at the pace we have achieved thus far will not be easy for the rest of the year, our loan pipelines remain at solid levels and business prospects are strong, giving me great optimism for the remainder of 2015."

The following table highlights Republic's financial performance for the first quarter of 2015 compared to the same period in 2014:

			Three Months Ended
(dollars in thousands, except per share data)				3/31/15				3/31/14
Income Before Income Tax Expense			$	20,749			$	18,523
Net Income			$	13,788			$	11,984
Diluted Earnings per Class A Share			$	0.66			$	0.58
ROA				1.40	%			1.34	%
ROE				9.72	%			8.69	%

Results of Operations for the First Quarter of 2015 Compared to the First Quarter of 2014

Traditional Banking, Warehouse Lending ("Warehouse") and Mortgage Banking (collectively "Core Banking")

Net income from Core Banking was $6.6 million for the first quarter of 2015, an increase of $1.2 million, or 22%, from the first quarter of 2014. The increase in quarterly net income at the Core Bank was largely driven by solid loan growth which contributed to a strong increase in net interest income. The Core Bank's growth in net interest income was further complemented by a meaningful increase in mortgage banking income combined with limited growth in overhead costs for the quarter.

Net interest income at the Core Bank increased to $28.4 million during the first quarter of 2015, a $1.2 million, or 4%, increase over the first quarter of 2014. The Core Bank's net interest margin was 3.14% during the first quarter of 2015 compared to 3.29% during the first quarter of 2014. As previously mentioned, net interest income benefitted from strong loan growth during the quarter as loans increased $115 million from year-end 2014. The growth in loans during the first quarter of 2015 combined with the strong loan growth during the second half of 2014 led to an increase in the Core Bank's average loan balances of $462 million when comparing the first quarter of 2015 to the first quarter of 2014. The Core Bank's Warehouse lines of credit and correspondent lending portfolios, in particular, contributed to the Core Bank's strong growth in both period-end and average balances. A breakdown of the overall change in the Core Bank's period-end and average loan balances by origination channel is presented in the table below:

																			Average					Average
			Ending					Ending											Quarterly					Quarterly
(dollars in thousands)			Balance					Balance					$						Balance					Balance					$
Origination Channel			3/31/2015					12/31/14					Change						3/31/2015					3/31/2014					Change
Warehouse Lending			$	423,155				$	319,431				$	103,724					$	281,005				$	116,607				$	164,398
Correspondent Lending				231,451					226,628					4,823						232,393					-					232,393
2012-FDIC Acquired Loans				37,113					40,188					(3,075	)					38,797					70,018					(31,221	)
Traditional Branch Network				2,459,608					2,450,167					9,441						2,462,114					2,365,335					96,779
Total			$	3,151,327				$	3,036,414				$	114,913					$	3,014,309				$	2,551,960				$	462,349

Net interest income at the Core Bank for the first quarter of 2015 includes $598,000 of net interest income contributed from the Company's 2012 FDIC-assisted transactions compared to $3.2 million contributed during the first quarter of 2014. While net interest income at the Core Bank continues to benefit from discount accretion on the loans it acquired in the Company's 2012 FDIC-assisted transactions, this benefit continues to decline as the remaining loans from this transaction pay down or pay off. Accretion income from the 2012 FDIC-assisted transactions contributed 2 and 25 basis points to the Core Bank's net interest margin during these two periods.

The Core Bank's provision for loan and lease losses remained favorably low for the first quarter of 2015 as overall credit quality at the Core Bank is strong. Core Bank provision expense was $375,000 for the first quarter of 2015 compared to a net credit of $240,000 during the first quarter of 2014. Provision expense for the first quarter of 2015 primarily represented an increase in general loan loss reserves, driven by the previously mentioned strong growth in the Core Bank's loan portfolio. The Core Bank's overall credit metrics in both periods compares favorably to peer.

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

			As of and for the period ending:
Core Banking Credit Quality Ratios			3/31/15		12/31/14		12/31/13		12/31/12
Non-performing loans / Total loans			0.79%		0.78%		0.81%		0.82%
Non-performing assets / Total loans (including OREO)			1.00%		1.14%		1.46%		1.79%
Delinquent loans / Total loans			0.49%		0.52%		0.63%		0.79%
Net loan charge-offs / Average loans			0.02%		0.08%		0.18%		0.34%
(Annualized as of 3/31/15)
OREO = Other Real Estate Owned

Non-interest income for the Core Bank was $6.8 million during the first quarter of 2015 compared to $5.6 million for the first quarter of 2014. The growth in non-interest income during the quarter was primarily driven by an $867,000 increase in mortgage banking income, as a decrease in long-term interest rates boosted demand for the Core Bank's 15- and 30-year secondary market loan products. Altogether, the Core Bank originated $46 million of mortgage loans held for sale during the first quarter of 2015 compared to $14 million during the first quarter of 2014.

Core Bank non-interest expense increased $193,000, or 1%, from the first quarter of 2014 to $25.3 million during the same period in 2015. The Core Bank was able to moderate the increase in the non-interest expense category by limiting the growth in the largest component of non-interest expense, salaries and benefits expense. Overall, salaries and benefits expense increased $83,000 for the first quarter of 2015 compared to the first quarter of 2014, as 2015 salary increases were partially offset by a reduction in staff associated with the closing of five banking centers over the past fifteen months. In addition to the limited increase in staffing costs during the quarter, the Core Bank also experienced a $349,000 decrease in occupancy and benefits expense resulting from the previously discussed banking center closures and a new enterprise-wide phone system that has contributed savings to the Company's overhead costs since its implementation during the fourth quarter of 2014.

Republic Processing Group ("RPG") – The Tax Refund Solutions ("TRS") division of RPG accounts for the majority of RPG's annualized revenues. TRS 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.

RPG's first quarter 2015 net income was $7.2 million, an increase of $597,000, or 9%, over the same period in 2014. The higher profitability was primarily driven by higher Refund Transfer ("RT") product volume, as RT volume increased 39% over the first quarter of 2014. The higher RT volume was driven by growth in retail store-front product demand resulting from an increase in the number of tax preparation offices served through existing contracts and new contracts between the Company and third party tax preparation companies.

Conclusion

"We are extremely proud of our ability to execute on our strategic growth initiatives over the past twelve months and the benefits the execution of those initiatives has contributed to the Company's overall bottom line. In addition, with the mergers and acquisitions market heating up, we will continue our efforts to find an acquisition candidate that fits with our Company's long-term growth plans. Overall, I couldn't be more excited about where we stand as a company today and I am even more optimistic about our future growth prospects for 2015 and beyond," concluded Trager.

Republic Bancorp, Inc. (the "Company") is the parent company of Republic Bank & Trust Company (the "Bank"). The Bank currently has 40 banking centers: 32 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; two banking centers in Florida – 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 $4.0 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 ^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 and the future growth in outstanding loan balance, 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, 2014. 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 2015 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, 2015				Dec. 31, 2014				Mar. 31, 2014
Assets:
Cash and cash equivalents			$	136,349			$	72,878			$	343,386
Investment securities				508,719				481,348				466,002
Mortgage loans held for sale, at fair value				12,748				6,388				2,414
Loans				3,155,436				3,040,495				2,574,334
Allowance for loan and lease losses				(24,631	)			(24,410	)			(22,367	)
Loans, net				3,130,805				3,016,085				2,551,967
Federal Home Loan Bank stock, at cost				28,208				28,208				28,310
Premises and equipment, net				31,817				32,987				32,948
Premises, held for sale				1,284				1,317				-
Goodwill				10,168				10,168				10,168
Other real estate owned ("OREO")				6,736				11,243				16,914
Bank owned life insurance ("BOLI")				51,764				51,415				30,277
Other assets and accrued interest receivable				33,589				34,976				24,786
Total assets			$	3,952,187			$	3,747,013			$	3,507,172
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing			$	666,166			$	502,569			$	568,162
Interest-bearing				1,714,051				1,555,613				1,516,050
Total deposits				2,380,217				2,058,182				2,084,212
Securities sold under agreements to repurchase and other short-term borrowings				332,534				356,108				222,174
Federal Home Loan Bank advances				596,500				707,500				582,000
Subordinated note				41,240				41,240				41,240
Other liabilities and accrued interest payable				32,225				25,252				26,688
Total liabilities				3,382,716				3,188,282				2,956,314
Stockholders' equity				569,471				558,731				550,858
Total liabilities and Stockholders' equity			$	3,952,187			$	3,747,013			$	3,507,172

Average Balance Sheet Data
			Three Months Ended Mar. 31,
			2015			2014
Assets:
Investment securities, including FHLB stock			$	524,883		$	499,698
Federal funds sold and other interest-earning deposits				142,172			306,535
Loans and fees, including loans held for sale				3,029,067			2,564,188
Total interest-earning assets				3,696,122			3,370,421
Total assets				3,944,527			3,571,061
Liabilities and Stockholders' Equity:
Non interest-bearing deposits			$	719,581		$	639,785
Interest-bearing deposits				1,635,979			1,504,820
Securities sold under agreements to repurchase and other short-term borrowings				391,421			223,079
Federal Home Loan Bank advances				567,934			595,061
Subordinated note				41,240			41,240
Total interest-bearing liabilities				2,636,574			2,364,200
Stockholders' equity				567,499			551,909

Republic Bancorp, Inc. Financial Information
First Quarter 2015 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,
				2015				2014
Total interest income(1)			$	33,761			$	32,497
Total interest expense				4,739				5,193
Net interest income				29,022				27,304
Provision for loan and lease losses				185				(703	)
Non-interest income:
Service charges on deposit accounts				3,039				3,295
Net refund transfer fees				15,335				14,388
Mortgage banking income				1,353				486
Interchange fee income				2,194				2,044
Net loss on OREO				(119	)			(482	)
Increase in cash surrender value of BOLI				349				191
Other				835				793
Total non-interest income				22,986				20,715
Non-interest expenses:
Salaries and employee benefits				15,277				14,483
Occupancy and equipment, net				5,201				5,822
Communication and transportation				1,046				1,026
Marketing and development				585				528
FDIC insurance expense				674				569
Bank franchise tax expense				2,401				2,339
Data processing				966				797
Interchange related expense				1,007				997
Supplies				361				440
OREO expense				219				390
Legal and professional fees				1,615				1,011
Other				1,722				1,797
Total non-interest expenses				31,074				30,199
Income before income tax expense				20,749				18,523
Income tax expense				6,961				6,539
Net income			$	13,788			$	11,984

Republic Bancorp, Inc. Financial Information
First Quarter 2015 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 Mar. 31,
				2015				2014
Per Share Data:
Basic average shares outstanding				20,859				20,796
Diluted average shares outstanding				20,936				20,893
End of period shares outstanding:
Class A Common Stock				18,616				18,530
Class B Common Stock				2,245				2,260
Book value per share(2)			$	27.30			$	26.50
Tangible book value per share(2)				26.58				25.76
Earnings per share:
Basic earnings per Class A Common Stock			$	0.66			$	0.58
Basic earnings per Class B Common Stock				0.65				0.56
Diluted earnings per Class A Common Stock				0.66				0.58
Diluted earnings per Class B Common Stock				0.64				0.56
Cash dividends declared per share:
Class A Common Stock			$	0.187			$	0.176
Class B Common Stock				0.170				0.160
Performance Ratios:
Return on average assets				1.40	%			1.34	%
Return on average equity				9.72				8.69
Efficiency ratio(3)				60				63
Yield on average interest-earning assets				3.65				3.86
Cost of interest-bearing liabilities				0.72				0.88
Cost of deposits(4)				0.19				0.18
Net interest spread				2.93				2.98
Net interest margin - Total Company				3.14				3.24
Net interest margin - Core Banking(5)				3.14				3.29
Other Information:
End of period full-time equivalent employees				745				735
Number of banking centers				40				42

Republic Bancorp, Inc. Financial Information
First Quarter 2015 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 Mar. 31,
				2015				2014
Credit Quality Asset Balances:
Loans on non-accrual status			$	24,423			$	21,792
Loans past due 90-days-or-more and still on accrual				572				2,247
Total non-performing loans				24,995				24,039
OREO				6,736				16,914
Total non-performing assets			$	31,731			$	40,953
Total delinquent loans			$	15,511			$	14,443
Credit Quality Ratios:
Non-performing loans to total loans				0.79	%			0.93	%
Non-performing assets to total loans (including OREO)				1.00				1.58
Non-performing assets to total assets				0.80				1.17
Allowance for loan and lease losses to total loans				0.78				0.87
Allowance for loan and lease losses to non-performing loans				99				93
Delinquent loans to total loans(6)				0.49				0.56
Net charge-offs to average loans (annualized) - Total Company				0.00				(0.01	)
Net charge-offs to average loans (annualized) - Core Banking(5)				0.02				0.07

Republic Bancorp, Inc. Financial Information
First Quarter 2015 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, 2015				Dec. 31, 2014				Sept. 30, 2014				June 30, 2014				Mar. 31, 2014
Assets:
Cash and cash equivalents			$	136,349			$	72,878			$	69,682			$	84,273			$	343,386
Investment securities				508,719				481,348				500,221				511,984				466,002
Mortgage loans held for sale, at fair value				12,748				6,388				5,890				6,809				2,414
Loans				3,155,436				3,040,495				2,908,535				2,725,017				2,574,334
Allowance for loan and lease losses				(24,631	)			(24,410	)			(23,617	)			(22,772	)			(22,367	)
Loans, net				3,130,805				3,016,085				2,884,918				2,702,245				2,551,967
Federal Home Loan Bank stock, at cost				28,208				28,208				28,208				28,208				28,310
Premises and equipment, net				31,817				32,987				32,395				32,481				32,948
Premises, held for sale				1,284				1,317				-				-				-
Goodwill				10,168				10,168				10,168				10,168				10,168
Other real estate owned				6,736				11,243				11,937				11,613				16,914
Bank owned life insurance				51,764				51,415				51,037				50,656				30,277
Other assets and accrued interest receivable				33,589				34,976				31,163				26,887				24,786
Total assets			$	3,952,187			$	3,747,013			$	3,625,619			$	3,465,324			$	3,507,172
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing			$	666,166			$	502,569			$	534,662			$	519,651			$	568,162
Interest-bearing				1,714,051				1,555,613				1,525,174				1,485,332				1,516,050
Total deposits				2,380,217				2,058,182				2,059,836				2,004,983				2,084,212
Securities sold under agreements to repurchase and other short-term borrowings
				332,534				356,108				275,874				197,439				222,174
Federal Home Loan Bank advances				596,500				707,500				662,000				640,000				582,000
Subordinated note				41,240				41,240				41,240				41,240				41,240
Other liabilities and accrued interest payable				32,225				25,252				29,301				26,371				26,688
Total liabilities				3,382,716				3,188,282				3,068,251				2,910,033				2,956,314
Stockholders' equity				569,471				558,731				557,368				555,291				550,858
Total liabilities and Stockholders' equity			$	3,952,187			$	3,747,013			$	3,625,619			$	3,465,324			$	3,507,172
Average Balance Sheet Data
			Quarterly Comparison
			Mar. 31, 2015				Dec. 31, 2014				Sept. 30, 2014				June 30, 2014				Mar. 31, 2014
Assets:
Investment securities, including FHLB stock			$	524,883			$	533,288			$	539,020			$	530,472			$	499,698
Federal funds sold and other interest-earning deposits				142,172				14,251				29,713				128,473				306,535
Loans and fees, including loans held for sale				3,029,067				2,958,458				2,795,788				2,632,190				2,564,188
Total interest-earning assets				3,696,122				3,505,997				3,364,521				3,291,135				3,370,421
Total assets				3,944,527				3,679,296				3,530,013				3,459,171				3,571,061
Liabilities and Stockholders' Equity:
Non interest-bearing deposits			$	719,581			$	529,091			$	521,360			$	526,599			$	639,785
Interest-bearing deposits				1,635,979				1,540,432				1,497,802				1,497,494				1,504,820
Securities sold under agreements to repurchase and other short-term borrowings				391,421				383,526				317,053				259,132				223,079
Federal Home Loan Bank advances				567,934				605,018				575,761				562,209				595,061
Subordinated note				41,240				41,240				41,240				41,240				41,240
Total interest-bearing liabilities				2,636,574				2,570,216				2,431,856				2,360,075				2,364,200
Stockholders' equity				567,499				561,666				558,750				557,109				551,909

Republic Bancorp, Inc. Financial Information
First Quarter 2015 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, 2015				Dec. 31, 2014				Sept. 30, 2014				June 30, 2014				Mar. 31, 2014
Total interest income(1)			$	33,761			$	34,331			$	33,144			$	32,405			$	32,497
Total interest expense				4,739				4,854				4,702				4,855				5,193
Net interest income				29,022				29,477				28,442				27,550				27,304
Provision for loan and lease losses				185				1,359				1,510				693				(703	)
Non-interest income:
Service charges on deposit accounts				3,039				3,381				3,568				3,563				3,295
Net refund transfer fees				15,335				39				(133	)			1,836				14,388
Mortgage banking income				1,353				688				876				812				486
Interchange fee income				2,194				1,673				1,619				1,681				2,044
Net loss on OREO				(119	)			(909	)			(758	)			(69	)			(482	)
Increase in cash surrender value of BOLI				349				378				381				379				191
Other				835				946				974				879				793
Total non-interest income				22,986				6,196				6,527				9,081				20,715
Non-interest expenses:
Salaries and employee benefits				15,277				13,761				12,164				13,965				14,483
Occupancy and equipment, net				5,201				5,134				5,544				5,508				5,822
Communication and transportation				1,046				1,079				905				856				1,026
Marketing and development				585				798				1,135				803				528
FDIC insurance expense				674				458				424				414				569
Bank franchise tax expense				2,401				715				731				831				2,339
Data processing				966				1,018				824				874				797
Interchange related expense				1,007				818				788				847				997
Supplies				361				304				205				60				440
OREO expense				219				108				218				308				390
Legal and professional fees				1,615				587				730				438				1,011
Other				1,722				1,650				1,537				1,380				1,797
Total non-interest expenses				31,074				26,430				25,205				26,284				30,199
Income before income tax expense				20,749				7,884				8,254				9,654				18,523
Income tax expense				6,961				2,649				3,008				3,332				6,539
Net income			$	13,788			$	5,235			$	5,246			$	6,322			$	11,984

Republic Bancorp, Inc. Financial Information
First Quarter 2015 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
			Mar. 31, 2015				Dec. 31, 2014				Sept. 30, 2014				June 30, 2014				Mar. 31, 2014
Per Share Data:
Basic average shares outstanding				20,859				20,831				20,797				20,793				20,796
Diluted average shares outstanding				20,936				20,921				20,891				20,888				20,893
End of period shares outstanding:
Class A Common Stock				18,616				18,603				18,567				18,548				18,530
Class B Common Stock				2,245				2,245				2,245				2,245				2,260
Book value per share(2)			$	27.30			$	26.80			$	26.78			$	26.71			$	26.50
Tangible book value per share(2)				26.58				26.08				26.06				25.98				25.76
Earnings per share:
Basic earnings per Class A Common Stock			$	0.66			$	0.25			$	0.25			$	0.31			$	0.58
Basic earnings per Class B Common Stock				0.65				0.24				0.24				0.29				0.56
Diluted earnings per Class A Common Stock				0.66				0.25				0.25				0.30				0.58
Diluted earnings per Class B Common Stock				0.64				0.24				0.24				0.29				0.56
Cash dividends declared per share:
Class A Common Stock			$	0.187			$	0.187			$	0.187			$	0.187			$	0.176
Class B Common Stock				0.170				0.170				0.170				0.170				0.160
Performance Ratios:
Return on average assets				1.40	%			0.57	%			0.59	%			0.73	%			1.34	%
Return on average equity				9.72				3.73				3.76				4.54				8.69
Efficiency ratio(3)				60				74				72				72				63
Yield on average interest-earning assets				3.65				3.92				3.94				3.94				3.86
Cost of interest-bearing liabilities				0.72				0.76				0.77				0.82				0.88
Cost of deposits(4)				0.19				0.20				0.18				0.19				0.18
Net interest spread				2.93				3.16				3.17				3.12				2.98
Net interest margin - Total Company				3.14				3.36				3.38				3.35				3.24
Net interest margin - Core Banking(5)				3.14				3.36				3.38				3.35				3.29
Other Information:
End of period full-time equivalent employees				745				723				734				726				735
Number of banking centers				40				41				42				42				42

Republic Bancorp, Inc. Financial Information
First Quarter 2015 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
			Mar. 31, 2015				Dec. 31, 2014				Sept. 30, 2014				June 30, 2014				Mar. 31, 2014
Credit Quality Asset Balances:
Loans on non-accrual status			$	24,423			$	23,337			$	21,447			$	19,606			$	21,792
Loans past due 90-days-or-more and still on accrual				572				322				-				734				2,247
Total non-performing loans				24,995				23,659				21,447				20,340				24,039
OREO				6,736				11,243				11,937				11,613				16,914
Total non-performing assets			$	31,731			$	34,902			$	33,384			$	31,953			$	40,953
Total delinquent loans			$	15,511			$	15,851			$	12,226			$	12,062			$	14,443
Credit Quality Ratios:
Non-performing loans to total loans				0.79	%			0.78	%			0.74	%			0.75	%			0.93	%
Non-performing assets to total loans (including OREO)				1.00				1.14				1.14				1.17				1.58
Non-performing assets to total assets				0.80				0.93				0.92				0.92				1.17
Allowance for loan and lease losses to total loans				0.78				0.80				0.81				0.84				0.87
Allowance for loan and lease losses to non-performing loans				99				103				110				112				93
Delinquent loans to total loans(6)				0.49				0.52				0.42				0.44				0.56
Net charge-offs (recoveries) to average loans (annualized) - Total Company				0.00				0.08				0.10				0.04				(0.01	)
Net charge-offs to average loans (annualized) - Core Banking(5)				0.02				0.08				0.10				0.05				0.07

Republic Bancorp, Inc. Financial Information
First Quarter 2015 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 March 31, 2015, 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 Banking" activities. The RPG segment includes the Tax Refund Solutions ("TRS") division, Republic Payment Solutions ("RPS") and Republic Credit Solutions ("RCS"). TRS generates the majority of RPG's income, with the relatively smaller divisions of RPG, RPS and RCS, 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 primarily to customers in the Company's market footprint.				Loans, investments and deposits
		Warehouse Lending			Provides short-term, revolving credit facilities to mortgage bankers across the Nation.				Mortgage warehouse lines of credit
		Mortgage Banking			Primarily originates, sells and services long-term, single family, first lien residential real estate loans.				Gain on sale of loans and servicing fees
		Republic Processing Group			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.				Net refund transfer fees

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 2014 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
First Quarter 2015 Earnings Release (continued)
Segment information for the three months ended March 31, 2015 and 2014 follows:
			Three Months Ended March 31, 2015
			Core Banking
(dollars in thousands)			Traditional Banking					Warehouse Lending					Mortgage Banking					Total Core Banking					Republic Processing Group					Total Company
Net interest income			$	25,758				$	2,541				$	56				$	28,355				$	667				$	29,022
Provision for loan and lease losses				116					259					-					375					(190	)				185
Net refund transfer fees				-					-					-					-					15,335					15,335
Mortgage banking income				-					-					1,353					1,353					-					1,353
Other non-interest income				5,397					5					84					5,486					812					6,298
Total non-interest income				5,397					5					1,437					6,839					16,147					22,986
Total non-interest expenses				23,407					573					1,285					25,265					5,809					31,074
Income before income tax expense				7,632					1,714					208					9,554					11,195					20,749
Income tax expense				2,286					600					73					2,959					4,002					6,961
Net income			$	5,346				$	1,114				$	135				$	6,595				$	7,193				$	13,788
Segment end of period assets			$	3,380,813				$	422,652				$	18,002				$	3,821,467				$	130,720				$	3,952,187
Net interest margin				3.10	%				3.62	%				NM					3.14	%				NM					3.14	%
			Three Months Ended March 31, 2014
			Core Banking
(dollars in thousands)			Traditional Banking					Warehouse Lending					Mortgage Banking					Total Core Banking					Republic Processing Group					Total Company
Net interest income			$	25,954				$	1,159				$	46				$	27,159				$	145				$	27,304
Provision for loan and lease losses				(268	)				28					-					(240	)				(463	)				(703	)
Net refund transfer fees				-					-					-					-					14,388					14,388
Mortgage banking income				-					-					486					486					-					486
Other non-interest income				5,072					2					74					5,148					693					5,841
Total non-interest income				5,072					2					560					5,634					15,081					20,715
Total non-interest expenses				23,482					380					1,210					25,072					5,127					30,199
Income (loss) before income tax expense				7,812					753					(604	)				7,961					10,562					18,523
Income tax expense (benefit)				2,520					264					(211	)				2,573					3,966					6,539
Net income (loss)			$	5,292				$	489				$	(393	)			$	5,388				$	6,596				$	11,984
Segment end of period assets			$	3,305,197				$	135,986				$	8,062				$	3,449,245				$	57,927				$	3,507,172
Net interest margin				3.27	%				3.97	%				NM					3.29	%				NM					3.24	%

Republic Bancorp, Inc. Financial Information
First Quarter 2015 Earnings Release (continued)

(1) – The amount of loan fee income included in total interest income was $1.8 million and $3.1 million for the quarters ended March 31, 2015 and 2014.

The amount of loan fee income included in total interest income per quarter was as follows: $1.8 million (quarter ended March 31, 2015), $2.2 million (quarter ended December 31, 2014), $1.8 million (quarter ended September 30, 2014), $2.3 million (quarter ended June 30, 2014); and $3.1 million (quarter ended March 31, 2014).

(2) – The following table provides a reconciliation of total stockholders' equity in accordance with U.S. Generally Accepted Accounting Principles to tangible stockholders' equity in accordance with applicable regulatory requirements. The Company provides the tangible book value 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)			Mar. 31, 2015				Dec. 31, 2014				Sept. 30, 2014				June 30, 2014				Mar. 31, 2014
Total stockholders' equity (a)			$	569,471			$	558,731			$	557,368			$	555,291			$	550,858
Less: Goodwill				10,168				10,168				10,168				10,168				10,168
Less: Core deposit intangible				-				-				-				-				-
Less: Mortgage servicing rights				4,864				4,813				4,881				5,009				5,227
Tangible stockholders' equity (c )			$	554,439			$	543,750			$	542,319			$	540,114			$	535,463
Total assets (b)			$	3,952,187			$	3,747,013			$	3,625,619			$	3,465,324			$	3,507,172
Less: Goodwill				10,168				10,168				10,168				10,168				10,168
Less: Core deposit intangible				-				-				-				-				-
Less: Mortgage servicing rights				4,864				4,813				4,881				5,009				5,227
Tangible assets (d)			$	3,937,155			$	3,732,032			$	3,610,570			$	3,450,147			$	3,491,777
Total stockholders' equity to total assets (a/b)				14.41	%			14.91	%			15.37	%			16.02	%			15.71	%
Tangible stockholders' equity to tangible assets (c/d)				14.08	%			14.57	%			15.02	%			15.65	%			15.33	%
Number of shares outstanding (e)				20,861				20,848				20,812				20,793				20,790
Book value per share (a/e)			$	27.30			$	26.80			$	26.78			$	26.71			$	26.50
Tangible book value per share (c/e)				26.58				26.08				26.06				25.98				25.76

(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) – Ratio relates only to Core Banking operations, which consists of the Traditional Banking, Warehouse Lending and Mortgage Banking segments.

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

NM – Not meaningful