Republic Bancorp, Inc. (“Republic” or the “Company”) (NASDAQ:RBCAA), the holding company for Republic Bank & Trust Company and Republic Bank, posted net income of $6.4 million for the second quarter of 2008, a $454,000, or 8%, increase over the same period in 2007. Diluted Earnings per Class A Common Share increased 10% for the second quarter to $0.31. Net income within the Company’s traditional Banking segment was strong at $5.5 million during the second quarter of 2008, an increase of $721,000, or 15%, over the second quarter of 2007. “Despite the turmoil and uncertainty in the financial markets, Republic continues to thrive thanks to the long-term efforts of many associates in building a quality balance sheet and customer base,” commented Steve Trager, President and Chief Executive Officer of Republic.

Total Company net interest income increased $7.3 million for the second quarter of 2008 compared to the second quarter of 2007, while net interest income within the Company’s traditional Banking segment increased $7.4 million, or 35%, for the same period. The increase in net interest income was led by a significant reduction in the Company’s cost of funds. Additionally, the Company’s balance sheet was well positioned to take advantage of the recent “steepening” of the yield curve in which the spread between long-term and short-term interest rates returned to more historical levels. The Company’s traditional Banking segment experienced a 112 basis point increase in its net interest margin to 4.02% compared to 2.90% for the second quarter 2007.

Total Company non interest expense increased $2.1 million, or 10%, for the second quarter of 2008 to $23.6 million. The increase in non interest expense primarily resulted from an increase in personnel and occupancy costs related to growth in the Company’s infrastructure and staffing at TRS. “I remain very proud of our cost containment initiatives within our traditional Banking segment, as non interest expense in this area increased only $621,000, or 3%, for the quarter. We were able to achieve this modest increase in overhead costs despite the opening of four new banking centers since the second quarter of last year,” further noted Trager.

The Company’s provision for loan losses increased from $147,000 during the second quarter of 2007 to $3.6 million during the second quarter of 2008. The Company’s traditional Banking provision for loan losses was $2.9 million during the second quarter of 2008 compared to $171,000 during the second quarter of 2007. Approximately $885,000 of the Company’s second quarter provision expense was associated with a specific additional write-down for a previously disclosed $7.2 million land development loan. In addition to the loss associated with the land development loan, the Company continued to increase its allowance for loan losses to give greater consideration to current economic conditions in the real estate industry.

Overall, the Company’s delinquent loans to total loans ratio was 1.01%, while its non performing loans to total loans ratio was 0.82% as of quarter end. Total non performing loans increased $9.5 million during the first six months of 2008 with approximately $7.2 million of this increase related to the previously referenced land development loan. “As the entire banking industry experiences increases in delinquency and non performing loans, Republic is not immune from this trend with modest increases in our loan quality ratios. With the substantial majority of our assets in the historically stable real estate markets of Kentucky and southern Indiana, however, we feel good about the current level of our loan loss reserve. In addition, as we have throughout our entire history, loan underwriting and problem asset management continues to be managed within the most senior levels of the Company,” Trager further noted.

In addition to its solid results achieved during the second quarter of 2008, the Company also revised its first quarter 2008 net income higher by $2.3 million in an amended 10Q filing released earlier this week. The revision was due to a miscalculation of product rebate accruals the Company pays to third party technology and service providers through TRS. For additional information, see Form 10-Q/A filed with the Securities and Exchange Commission on July 14, 2008.

Total loans decreased $49 million during the first six months of 2008, as strict pricing measures shifted consumer demand to fixed rate secondary market products. In addition to the decline in loans, deposit balances decreased $340 million during the first six months of 2008, as nearly $300 million in brokered deposits that were obtained for TRS in December of 2007 matured during the first six months of this year. “For deposits, our strategy has been to provide competitive rates to our loyal clients without irrationally chasing the most rate-sensitive deposits, which cannot be relied on as a stable funding source. We do not foresee significant balance sheet growth in the near-term, as we continue to maintain our pricing strategies on both sides of the balance sheet,” noted Steve Trager.

“In conclusion, it is particularly gratifying that we have been able to generate strong earnings growth at this delicate time. We believe the banking industry will likely face dramatic changes in the near-term as general economic conditions are predicted to worsen. We also believe, however, that we remain well-positioned to capitalize on opportunities that may arise, whether it is through the potential acquisition of underperforming institutions or through a gain in market share as consumers seek a safe and sound place to protect their hard-earned funds. We remain committed to the continuation of our proven business model, which provides for earnings growth from solid credits enhanced by products that serve the under-banked. We also pledge to remain true to our commitment to never seek the gratification of short-term gain at the expense of long-term shareholder value. We were here for you yesterday, we are here for you today, and we will be here for you tomorrow,” concluded Steve Trager.

Republic Bancorp, Inc. (Republic) currently has 42 banking centers and is the parent company of: Republic Bank & Trust Company with 35 banking centers in 13 Kentucky communities – Bowling Green, Covington, Crestwood, Elizabethtown, Florence, Fort Wright, Frankfort, Georgetown, Lexington, Louisville, Owensboro, Shelbyville and Shepherdsville and three banking centers in southern Indiana: Floyds Knobs, Jeffersonville and New Albany. Republic Bank has banking centers in Palm Harbor, Port Richey, New Port Richey and Temple Terrace, Florida. Republic Bank & Trust Company operates Tax Refund Solutions, a nationwide tax refund loan and check provider. Republic offers internet banking at www.republicbank.com. Republic has $3.1 billion in assets and $1 billion in trust assets under custody and management. Republic is headquartered in Louisville, Kentucky, and Republic’s Class A Common Stock is listed under the symbol ‘RBCAA’ on the NASDAQ Global Select Market.

Statements in this press release relating to Republic’s plans, objectives, or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations. Republic's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed in Republic’s 2007 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.