Republic Completes Most Successful Quarter in Company History as Net Income Increased 138% Over the First Quarter of 2007

Business Wire, April 18, 2008

LOUISVILLE, Ky. -- Republic Bancorp, Inc. ("Republic" or the "Company") (NASDAQ: RBCAA), the holding company for Republic Bank & Trust Company and Republic Bank, is pleased to report net income of $19.8 million for the first quarter of 2008, an $11.5 million, or 138%, increase over the same period in 2007. Diluted Earnings per Class A Common Share increased 146% for the quarter to $0.96. Return on average assets ("ROA") and return on average equity ("ROE") were both strong during the quarter at 2.33% and 31.03%, respectively. Net income within the Company's traditional Banking segment was $4.8 million during the first quarter of 2008, an increase of $925,000 over the first quarter of 2007. "I am most excited about the growth in earnings within our traditional Banking segment. The 24% rise in net income for the quarter within the traditional Banking segment represents a notable increase in a challenging economic environment. The first quarter of 2008 represented the best quarter in the Company's history," commented Steve Trager, President & Chief Executive Officer of Republic.

Net interest income within the Company's traditional Banking segment increased $4.0 million, or 19%, for the first quarter. In addition to year-over-year growth in the Company's loan portfolio, the traditional Banking segment benefited from declining short-term interest rates combined with an overall steepening of the yield curve. "Over the past three years, many financial institutions, including Republic, had a difficult time increasing net interest income due to inverted and flat yield curves. Now, with the yield curve returning to a more normal slope, the Company has been able to grow its net interest margin nicely," further commented Trager. On a total Company basis, net interest income increased 67%, or $17.0 million, for the first quarter of 2008 compared to the first quarter of 2007. Approximately $13.0 million of the rise in net interest income was due to increased Refund Anticipation Loan ("RAL") volume resulting from growth in the Company's client base at its Tax Refund Solutions ("TRS") segment.

Non interest income within the Company's traditional Banking segment increased $349,000, or 6%, for the first quarter of 2008 due primarily to a solid increase of $393,000 in service charges on deposits. Within the Mortgage Banking segment, mortgage banking income rose $1.1 million for the same period. Approximately $395,000 of the increase in mortgage banking income was due to the adoption of Staff Accounting Bulletin ("SAB") 109 and Statement of Financial Accounting Standard ("SFAS") 159. The Company's positive increase in income was offset by a pre-tax "Other-than-temporary impairment" charge of $680,000 within the traditional Banking segment related to the Company's $2 million Freddie Mac ("FHMLC") preferred stock investment security. While the Company's intends to hold the FHLMC preferred stock indefinitely for interest rate risk protection, accounting rules required the Company to write down the security to its market value through the income statement because it has no final maturity and management cannot estimate if and when its market value will recover to equal the Company's original cost. On a total Company basis, non interest income increased $18.5 million, or 153%, for the first quarter of 2008 compared to the same period in 2007. Approximately $17.2 million of this increase was attributable to growth in the Company's TRS segment, as Net RAL securitization income increased $10.0 million and Electronic Refund Check ("ERC") fees increased $7.2 million for the quarter.

Non interest expense within the Company's traditional Banking segment increased only $207,000 for the quarter, representing a change of 1% compared to the first quarter of 2007. "We are very encouraged by the modest increase we experienced in non interest expense during the first quarter of the year in our traditional Banking segment. We have worked hard to improve the efficiency ratio of the Company through investments in new technology and the moderation of overhead expenses. We are very proud of the success we have achieved in that regard," noted Trager. On a total Company basis, non interest expense increased 47% for the first quarter of 2008 to $33.7 million. The increase in non interest expense was substantially all within the Company's TRS segment and was driven by the significant year-over-year growth in the program.

The end of the first quarter brought the substantial completion of the 2008 tax season for the TRS segment. Total RAL volume increased 213% compared to the first quarter of 2007. As a percentage of RALs originated, losses are expected to be lower than experienced by the Company in 2007. Through March 31, 2008, the Company had total reserves for estimated losses of approximately $15.3 million compared to total loss reserves of $6.6 million at March 31, 2007. During both 2008 and 2007, a significant portion of these loss reserves were included as a reduction to Net RAL securitization income because they represented the loss of future expected cash flows from the Company's residual interest. In addition to increased RAL volume, ERC volume also increased approximately 313% over the first quarter of 2007. "We are extremely pleased with the overall performance of our tax business. As with all of our non traditional banking products, however, none of their successes would be possible without the sound performance of our traditional Banking segment," further noted Trager.