Republic Bancorp Reports First Quarter Operating Earnings of $.26 Per Share And Planned Sale of Market Street Mortgage

------------



First Quarter highlights include:



* Record net operating income of $13.1 million up 16%

* Operating return on equity of 17.64%

* Strong annualized commercial loan growth of 26%

* Mortgage loan originations of $1.4 billion, up 60%

* Company plans to sell Market Street Mortgage and exit mortgage

servicing business



Apr 16, 2001, 01:00 ET from Republic Bancorp Inc.

    ANN ARBOR, Mich., April 16 /PRNewswire/ -- Republic Bancorp Inc.,
 (Nasdaq: RBNC), today announced record net operating income for the first
 quarter ended March 31, 2001 of $13,149,000, an increase of 16% over the
 $11,292,000 earned in the first quarter of 2000.  Diluted net operating
 earnings per share were $.26, up 17% from $.22 earned in 2000.  Net operating
 income generated annualized returns of 1.13% on average assets and 17.64% on
 average equity.  These compare to annualized returns of 1.05% on average
 assets and 16.75% on average equity for the first quarter of 2000.
     The Company also announced that it has executed a definitive agreement for
 the sale of Market Street Mortgage for $20 million in cash and stock to
 NetBank, Inc.  Market Street Mortgage, headquartered in Clearwater, Florida,
 is a retail mortgage lender with 42 offices in 11 states.  The sale is
 expected to close later in the second quarter, subject to regulatory
 approvals.  Based upon the current stock price of NetBank, the Company expects
 to record a gain of approximately $12-$14 million, which is net of transaction
 costs and closing adjustments.  In conjunction with the sale of Market Street
 Mortgage, the Company is separately selling its $1.8 billion mortgage
 servicing portfolio and exiting the servicing business.
     "The sale of Market Street Mortgage provides us with the opportunity to
 further expand our core Midwest commercial, retail and mortgage businesses and
 exit the mortgage business outside of our bank footprint.  We are very
 committed to the mortgage banking business in the Midwest, where Republic Bank
 has a strong retail market presence that provides us with tremendous cross-
 selling opportunities for home equity loans and deposit products," commented
 Dana M. Cluckey, President and Chief Executive Officer.
     Commenting on the first quarter results, Mr. Cluckey added, "The Company
 had strong operating results for the quarter.  The declining interest rate
 environment has energized the Company's sales production.  All three of our
 business lines had excellent results with continued commercial loan and
 deposit growth and near-record mortgage loan closings."
     The Company originated $1.4 billion in single-family mortgages, up 60%
 over the first quarter of 2000.  Mortgage loan applications in process were
 the highest in over 21 months at $1.5 billion.  Commercial lending activity
 has also remained strong, as the commercial loan portfolio grew $73 million,
 or 6%, during the quarter.  Deposits increased by $102 million with
 significant increases in non-interest bearing deposits, savings and money
 market accounts.
     Net operating earnings exclude $12.4 million of after-tax charges related
 to the exit of its residential mortgage servicing business.  The sale and
 related wind down of the loan servicing operation is expected to take place
 during the next three to six months.  Including these charges, the Company
 reported net income of $799,000 for the quarter or $.02 per share.
     The Company's asset quality remains very sound.  Net charge-offs to total
 average loans were only 16 basis points for the quarter and remain well below
 the Company's peer group.
     The Board of Directors approved a Stock Repurchase Program in November
 1999 authorizing the repurchase of up to 1,100,000 shares of the Company's
 outstanding common shares.  To date, the Company has repurchased 1,028,000
 shares under the program with 112,500 shares purchased during the first
 quarter of 2001.  In February 2001, the Board of Directors authorized an
 additional 1,000,000 shares for repurchase, which will commence at the
 conclusion of the 1999 Stock Repurchase Program.
     Also, during the first quarter management of the Company purchased over
 $700,000 of Republic's common stock through the Voluntary Management Stock
 Accumulation Program.  Since the Program's inception, senior management has
 purchased approximately $5 million of the Company's stock.
 
     About the Company
     Republic Bancorp Inc., with $4.7 billion in assets, is the third largest
 bank holding company headquartered in Michigan and 88th largest bank holding
 company in the country.  Its subsidiary, Republic Bank, serves customers in
 Michigan, Ohio and Indiana with 103 retail, commercial and mortgage banking
 offices and 130 ATMs.  Republic Bank and its subsidiary Market Street Mortgage
 Corporation also offer mortgage products through 44 additional offices in 12
 states.  The Company is the #1 Small Business Administration bank lender based
 in Michigan for the 7th consecutive year, the 22nd largest retail mortgage
 lender in the country and ranked 27th on FORTUNE's "100 Best Places to Work in
 America".  Information about Republic Bancorp Inc.'s financial results and its
 products and services can be accessed at www.republicbancorp.com .
     The Company provides electronic banking, bill paying and cash management
 services to retail and commercial customers through ExpressNet, an Internet
 banking system.  ExpressNet and on-line mortgage applications are available at
 www.republicbancorp.com .
 
     Cash Dividend
     The Company currently pays an annual cash dividend of $.34 per common
 share, which represents a yield of approximately 3.0% based on the Company's
 current stock price.
 
     Safe Harbor Statement
     As with any statements other than those reflecting historical facts,
 forward-looking statements contained in this announcement involve risk, and,
 as such, future financial performance may differ from current expectations due
 to a variety of marketplace factors.  These factors include, without
 limitation, those disclosed in Republic Bancorp's 2000 Form 10-K filing with
 the Securities and Exchange Commission.
 
                       REPUBLIC BANCORP INC. AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
                               (Dollars in thousands)
 
                          March 31,     Dec. 31,     Sept. 30,     March 31,
                            2001          2000          2000         2000
                         (Unaudited)                (Unaudited)  (Unaudited)
     ASSETS
     Cash and cash
      equivalents         $119,289      $82,377       $65,512      $71,687
     Mortgage loans
      held for sale        577,212      385,207       400,746      430,497
     Securities available
      for sale             208,914      211,860       188,051      205,491
     Loans               3,631,631    3,771,676     3,738,361    3,535,549
       Less allowance
        for loan losses    (28,794)     (28,450)      (28,379)     (27,951)
     Net loans           3,602,837    3,743,226     3,709,982    3,507,598
     Premises and
      equipment             35,021       36,094        35,208       39,085
     Mortgage servicing
      rights                33,457       51,796        60,546       60,450
     Other assets           92,892      100,081        91,745       93,103
         Total assets   $4,669,622   $4,610,641    $4,551,790   $4,407,911
 
     LIABILITIES
     Noninterest-bearing
      deposits            $302,572     $267,509      $251,119     $208,565
     Interest-bearing deposits:
         NOW accounts      142,066      150,476       100,229      119,033
         Savings and money market
          accounts         671,132      590,056       637,349      698,273
         Certificates of
          deposit        1,714,711    1,720,485     1,659,815    1,557,516
          Total interest-bearing
           deposits      2,527,909    2,461,017     2,397,393    2,374,822
          Total deposits 2,830,481    2,728,526     2,648,512    2,583,387
     Federal funds purchased
      and other short-term
      borrowings             3,416        1,729         2,153       64,103
     FHLB advances       1,338,762    1,383,513     1,402,114    1,282,154
     Accrued expenses and
      other liabilities    137,909      125,790       135,327      129,898
     Long-term debt         38,500       47,500        47,500       47,500
       Total liabilities 4,349,068    4,287,058     4,235,606    4,107,042
 
     Preferred stock of
      subsidiary            28,719       28,719        28,719       28,719
 
     SHAREHOLDERS' EQUITY
     Preferred stock, $25 stated value:
       $2.25 cumulative and convertible;
       5,000,000 shares authorized,
       none issued and
       outstanding               -            -             -            -
     Common stock, $5 par value,
      75,000,000 shares authorized;
      49,542,000, 49,424,000, 49,498,000
      and 49,649,000 issued and outstanding,
      respectively         247,711      247,119       224,990      225,675
     Capital surplus        44,671       44,961        37,767       38,340
     Retained earnings        (424)       2,994        26,645       10,856
     Accumulated other
      comprehensive loss      (123)        (210)       (1,937)      (2,721)
         Total shareholders'
          equity           291,835      294,864       287,465      272,150
 
           Total liabilities and
            shareholders'
            equity      $4,669,622   $4,610,641    $4,551,790   $4,407,911
 
 
                       REPUBLIC BANCORP INC. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME
                   (Dollars in thousands, except per share data)
 
                                                       Three Months Ended
                                                            March 31,
                                                       2001          2000
     Interest Income
     Loans, including fees                            $84,923      $76,480
     Investment securities                              3,542        3,758
         Total interest income                         88,465       80,238
 
     Interest Expense
     Deposits                                          33,014       27,819
     Short-term borrowings                                524        1,095
     FHLB advances                                     20,247       17,754
     Long-term debt                                       727          859
         Total interest expense                        54,512       47,527
     Net interest income                               33,953       32,711
     Provision for loan losses                          2,000        1,600
     Net interest income after provision
      for loan losses                                  31,953       31,111
 
     Non-interest Income
     Service charges                                    1,651        1,779
     Mortgage loan production revenue                  16,650       14,722
     Net mortgage servicing revenue (loss)               (199)       3,977
     Gain on sale of securities                           367          107
     Other non-interest income                            852          913
         Total non-interest income                     19,321       21,498
 
     Non-interest Expense
     Salaries and employee benefits                    16,669       19,822
     Occupancy expense of premises                      3,400        3,535
     Equipment expense                                  2,375        2,253
     Other non-interest expense                         7,961        9,183
     Restructuring costs to exit mortgage servicing
      business                                         19,000            -
         Total non-interest expense                    49,405       34,793
     Income before income taxes                         1,869       17,816
     Provision for income taxes                           389        5,843
     Income before preferred stock dividends            1,480       11,973
     Dividends on preferred stock                         681          681
     Net income                                          $799      $11,292
     Basic earnings per share                            $.02         $.22
     Diluted earnings per share                          $.02         $.22
 
 
                               REPUBLIC BANCORP INC.
                         SUMMARY OF SELECTED FINANCIAL DATA
                   (Dollars in thousands, except operating data)
 
                                                      Three Months Ended
                                                            March 31,
                                                       2001        2000
     Average Balances:
     Total assets                                  $4,653,135   $4,297,382
     Mortgage loans held for sale                     495,815      429,520
     Securities available for sale                    198,604      210,773
     Portfolio loans                                3,737,634    3,430,504
     Total earning assets                           4,435,637    4,073,540
     Interest-bearing deposits                      2,553,956    2,403,042
     Short-term borrowings                             36,983       74,971
     Total FHLB advances                            1,407,204    1,213,665
     Long-term debt                                    40,000       47,500
     Total interest bearing liabilities             4,038,143    3,739,178
     Shareholders' equity                             298,124      269,710
 
     Operating Data (in millions):
     Residential mortgage loan closings:
         Fixed rate                                    $1,265         $563
         Adjustable rate                                   96          288
            Total residential mortgage loan closings   $1,361         $851
 
         Conventional loans                              $894         $492
         Government loans                                 354          269
         Jumbo and other loans                            113           90
           Total residential mortgage loan closings    $1,361         $851
 
 
     Mortgage loan servicing portfolio                 $2,061       $2,755
 
     Performance Ratios:
     Return on average assets(1)                         1.13%(2)     1.05%
     Return on average equity(1)                        17.64%(2)    16.75%
     Yield on earning assets                             8.07%        7.89%
     Cost of funds                                       5.45%        5.10%
     Net interest margin                                 3.12%        3.21%
     Efficiency ratios:
         Republic Bancorp Inc.                          57.47%       64.31%
         Republic Bank (excluding mortgage banking)     42.82%       48.90%
 
     Per Common Share Data:
     Average common shares outstanding - diluted       50,117       50,136
     Cash dividends declared                            $.085        $.077
     Book value                                         $5.89        $5.48
     Tangible book value                                $5.66        $5.22
 
     (1)  Annualized
     (2)  Before restructuring costs to exit mortgage servicing business.
 
                               REPUBLIC BANCORP INC.
                         SUMMARY OF SELECTED FINANCIAL DATA
                               (Dollars in thousands)
 
 
                               Mar. 31,   Dec. 31,   Sept. 30,    Mar. 31,
                                 2001      2000        2000        2000
     Asset Quality Ratios:
      Non-performing assets to loans and
       other real estate
       owned (1)                 .68%      .62%         .63%        .54%
      Non-performing assets to
       total assets              .61%      .56%         .57%        .49%
      Allowance for loan losses
       to non-performing
       loans                  114.38%   134.87%      125.77%     160.11%
      Allowance for loan
       losses to loans (2)       .79%      .75%         .76%        .79%
      Allowance for loan losses
       to loans (excluding
       residential real
       estate mortgages) (2)    1.59%     1.57%        1.61%       1.65%
      Net charge-offs to average loans: (1,3)
        Commercial loans         .29%      .18%         .31%        .02%
        Residential real estate
         mortgage loans          .02%      .01%         .01%        .01%
        Direct installment loans .24%      .21%         .03%        .05%
        Indirect installment
         loans                   .79%     1.41%         .87%        .75%
        Total loans              .16%      .16%         .15%        .08%
     Earnings coverage of
      net charge-offs (3,4)    13.18x    11.28x       11.65x      23.97x
 
 
     Capital Ratios:
      Shareholders' equity to
       assets                   6.25%     6.40%        6.32%       6.17%
      Tier 1 risk-based capital 9.63%     9.50%        9.49%       9.41%
      Total risk-based capital 10.54%    10.38%       10.39%      10.32%
      Tier 1 leverage           6.60%     6.82%        6.56%       6.70%
 
     (1)  Includes mortgage loans held for sale.
     (2)  Excludes mortgage loans held for sale.
     (3)  Quarter-to-date, annualized.
     (4)  Operating earnings before taxes plus the provision for loan losses
          divided by net charge-offs.
 
                               REPUBLIC BANCORP INC.
                         SUMMARY OF SELECTED FINANCIAL DATA
                               (Dollars in thousands)
 
                         Mar. 31,      Dec. 31,      Sept. 30,     Mar. 31,
                           2001          2000           2000         2000
     Portfolio Loan Summary:
 
      Commercial loans:
       Commercial and
        industrial       $78,034      $79,544          $80,987      $84,851
       Commercial real estate
        mortgage       1,127,591    1,052,748        1,006,339      870,509
         Total commercial
          loans        1,205,625    1,132,292        1,087,326      955,360
      Residential real estate
       mortgages       1,818,102    1,964,394        1,971,412    1,836,453
     Installment loans:
      Consumer direct    458,928      459,359          438,748      390,192
      Consumer indirect  148,976      215,631          240,875      353,544
       Total installment
        loans            607,904      674,990          679,623      743,736
 
       Total portfolio
        loans         $3,631,631   $3,771,676       $3,738,361   $3,535,549
 
 
     Non-performing loans:
      Commercial          $6,111       $5,499           $8,684       $3,829
      Residential real estate
       mortgage           16,681       13,429           11,768       11,466
      Installment          2,383        2,167            2,113        2,162
       Total non-performing
        loans             25,175       21,095           22,565       17,457
      Other real estate
       owned               3,314        4,906            3,550        4,071
        Total non-performing
         assets          $28,489      $26,001          $26,115      $21,528
 
 
     Allowance for Loan Losses (for the quarter):
 
     Balance at beginning
      of period          $28,450      $28,379          $28,370      $27,128
     Loans charged off:
      Commercial             903          617            1,015          161
      Residential real
       estate mortgage       114          149               76           42
      Installment - direct   372          331              131          169
      Installment - indirect 600          868              728          729
       Total charge-offs   1,989        1,965            1,950        1,101
     Recoveries:
      Commercial              38          124              180          126
      Residential real estate
       mortgage                -           62               16            -
      Installment - direct    94           86               96          120
      Installment - indirect 201           64               67           78
       Total recoveries      333          336              359          324
     Net charge-offs       1,656        1,629            1,591          777
     Provision charged to
      expense              2,000        1,700            1,600        1,600
     Balance at end
      of period          $28,794      $28,450          $28,379      $27,951
 
 

SOURCE Republic Bancorp Inc.
    ANN ARBOR, Mich., April 16 /PRNewswire/ -- Republic Bancorp Inc.,
 (Nasdaq: RBNC), today announced record net operating income for the first
 quarter ended March 31, 2001 of $13,149,000, an increase of 16% over the
 $11,292,000 earned in the first quarter of 2000.  Diluted net operating
 earnings per share were $.26, up 17% from $.22 earned in 2000.  Net operating
 income generated annualized returns of 1.13% on average assets and 17.64% on
 average equity.  These compare to annualized returns of 1.05% on average
 assets and 16.75% on average equity for the first quarter of 2000.
     The Company also announced that it has executed a definitive agreement for
 the sale of Market Street Mortgage for $20 million in cash and stock to
 NetBank, Inc.  Market Street Mortgage, headquartered in Clearwater, Florida,
 is a retail mortgage lender with 42 offices in 11 states.  The sale is
 expected to close later in the second quarter, subject to regulatory
 approvals.  Based upon the current stock price of NetBank, the Company expects
 to record a gain of approximately $12-$14 million, which is net of transaction
 costs and closing adjustments.  In conjunction with the sale of Market Street
 Mortgage, the Company is separately selling its $1.8 billion mortgage
 servicing portfolio and exiting the servicing business.
     "The sale of Market Street Mortgage provides us with the opportunity to
 further expand our core Midwest commercial, retail and mortgage businesses and
 exit the mortgage business outside of our bank footprint.  We are very
 committed to the mortgage banking business in the Midwest, where Republic Bank
 has a strong retail market presence that provides us with tremendous cross-
 selling opportunities for home equity loans and deposit products," commented
 Dana M. Cluckey, President and Chief Executive Officer.
     Commenting on the first quarter results, Mr. Cluckey added, "The Company
 had strong operating results for the quarter.  The declining interest rate
 environment has energized the Company's sales production.  All three of our
 business lines had excellent results with continued commercial loan and
 deposit growth and near-record mortgage loan closings."
     The Company originated $1.4 billion in single-family mortgages, up 60%
 over the first quarter of 2000.  Mortgage loan applications in process were
 the highest in over 21 months at $1.5 billion.  Commercial lending activity
 has also remained strong, as the commercial loan portfolio grew $73 million,
 or 6%, during the quarter.  Deposits increased by $102 million with
 significant increases in non-interest bearing deposits, savings and money
 market accounts.
     Net operating earnings exclude $12.4 million of after-tax charges related
 to the exit of its residential mortgage servicing business.  The sale and
 related wind down of the loan servicing operation is expected to take place
 during the next three to six months.  Including these charges, the Company
 reported net income of $799,000 for the quarter or $.02 per share.
     The Company's asset quality remains very sound.  Net charge-offs to total
 average loans were only 16 basis points for the quarter and remain well below
 the Company's peer group.
     The Board of Directors approved a Stock Repurchase Program in November
 1999 authorizing the repurchase of up to 1,100,000 shares of the Company's
 outstanding common shares.  To date, the Company has repurchased 1,028,000
 shares under the program with 112,500 shares purchased during the first
 quarter of 2001.  In February 2001, the Board of Directors authorized an
 additional 1,000,000 shares for repurchase, which will commence at the
 conclusion of the 1999 Stock Repurchase Program.
     Also, during the first quarter management of the Company purchased over
 $700,000 of Republic's common stock through the Voluntary Management Stock
 Accumulation Program.  Since the Program's inception, senior management has
 purchased approximately $5 million of the Company's stock.
 
     About the Company
     Republic Bancorp Inc., with $4.7 billion in assets, is the third largest
 bank holding company headquartered in Michigan and 88th largest bank holding
 company in the country.  Its subsidiary, Republic Bank, serves customers in
 Michigan, Ohio and Indiana with 103 retail, commercial and mortgage banking
 offices and 130 ATMs.  Republic Bank and its subsidiary Market Street Mortgage
 Corporation also offer mortgage products through 44 additional offices in 12
 states.  The Company is the #1 Small Business Administration bank lender based
 in Michigan for the 7th consecutive year, the 22nd largest retail mortgage
 lender in the country and ranked 27th on FORTUNE's "100 Best Places to Work in
 America".  Information about Republic Bancorp Inc.'s financial results and its
 products and services can be accessed at www.republicbancorp.com .
     The Company provides electronic banking, bill paying and cash management
 services to retail and commercial customers through ExpressNet, an Internet
 banking system.  ExpressNet and on-line mortgage applications are available at
 www.republicbancorp.com .
 
     Cash Dividend
     The Company currently pays an annual cash dividend of $.34 per common
 share, which represents a yield of approximately 3.0% based on the Company's
 current stock price.
 
     Safe Harbor Statement
     As with any statements other than those reflecting historical facts,
 forward-looking statements contained in this announcement involve risk, and,
 as such, future financial performance may differ from current expectations due
 to a variety of marketplace factors.  These factors include, without
 limitation, those disclosed in Republic Bancorp's 2000 Form 10-K filing with
 the Securities and Exchange Commission.
 
                       REPUBLIC BANCORP INC. AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
                               (Dollars in thousands)
 
                          March 31,     Dec. 31,     Sept. 30,     March 31,
                            2001          2000          2000         2000
                         (Unaudited)                (Unaudited)  (Unaudited)
     ASSETS
     Cash and cash
      equivalents         $119,289      $82,377       $65,512      $71,687
     Mortgage loans
      held for sale        577,212      385,207       400,746      430,497
     Securities available
      for sale             208,914      211,860       188,051      205,491
     Loans               3,631,631    3,771,676     3,738,361    3,535,549
       Less allowance
        for loan losses    (28,794)     (28,450)      (28,379)     (27,951)
     Net loans           3,602,837    3,743,226     3,709,982    3,507,598
     Premises and
      equipment             35,021       36,094        35,208       39,085
     Mortgage servicing
      rights                33,457       51,796        60,546       60,450
     Other assets           92,892      100,081        91,745       93,103
         Total assets   $4,669,622   $4,610,641    $4,551,790   $4,407,911
 
     LIABILITIES
     Noninterest-bearing
      deposits            $302,572     $267,509      $251,119     $208,565
     Interest-bearing deposits:
         NOW accounts      142,066      150,476       100,229      119,033
         Savings and money market
          accounts         671,132      590,056       637,349      698,273
         Certificates of
          deposit        1,714,711    1,720,485     1,659,815    1,557,516
          Total interest-bearing
           deposits      2,527,909    2,461,017     2,397,393    2,374,822
          Total deposits 2,830,481    2,728,526     2,648,512    2,583,387
     Federal funds purchased
      and other short-term
      borrowings             3,416        1,729         2,153       64,103
     FHLB advances       1,338,762    1,383,513     1,402,114    1,282,154
     Accrued expenses and
      other liabilities    137,909      125,790       135,327      129,898
     Long-term debt         38,500       47,500        47,500       47,500
       Total liabilities 4,349,068    4,287,058     4,235,606    4,107,042
 
     Preferred stock of
      subsidiary            28,719       28,719        28,719       28,719
 
     SHAREHOLDERS' EQUITY
     Preferred stock, $25 stated value:
       $2.25 cumulative and convertible;
       5,000,000 shares authorized,
       none issued and
       outstanding               -            -             -            -
     Common stock, $5 par value,
      75,000,000 shares authorized;
      49,542,000, 49,424,000, 49,498,000
      and 49,649,000 issued and outstanding,
      respectively         247,711      247,119       224,990      225,675
     Capital surplus        44,671       44,961        37,767       38,340
     Retained earnings        (424)       2,994        26,645       10,856
     Accumulated other
      comprehensive loss      (123)        (210)       (1,937)      (2,721)
         Total shareholders'
          equity           291,835      294,864       287,465      272,150
 
           Total liabilities and
            shareholders'
            equity      $4,669,622   $4,610,641    $4,551,790   $4,407,911
 
 
                       REPUBLIC BANCORP INC. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME
                   (Dollars in thousands, except per share data)
 
                                                       Three Months Ended
                                                            March 31,
                                                       2001          2000
     Interest Income
     Loans, including fees                            $84,923      $76,480
     Investment securities                              3,542        3,758
         Total interest income                         88,465       80,238
 
     Interest Expense
     Deposits                                          33,014       27,819
     Short-term borrowings                                524        1,095
     FHLB advances                                     20,247       17,754
     Long-term debt                                       727          859
         Total interest expense                        54,512       47,527
     Net interest income                               33,953       32,711
     Provision for loan losses                          2,000        1,600
     Net interest income after provision
      for loan losses                                  31,953       31,111
 
     Non-interest Income
     Service charges                                    1,651        1,779
     Mortgage loan production revenue                  16,650       14,722
     Net mortgage servicing revenue (loss)               (199)       3,977
     Gain on sale of securities                           367          107
     Other non-interest income                            852          913
         Total non-interest income                     19,321       21,498
 
     Non-interest Expense
     Salaries and employee benefits                    16,669       19,822
     Occupancy expense of premises                      3,400        3,535
     Equipment expense                                  2,375        2,253
     Other non-interest expense                         7,961        9,183
     Restructuring costs to exit mortgage servicing
      business                                         19,000            -
         Total non-interest expense                    49,405       34,793
     Income before income taxes                         1,869       17,816
     Provision for income taxes                           389        5,843
     Income before preferred stock dividends            1,480       11,973
     Dividends on preferred stock                         681          681
     Net income                                          $799      $11,292
     Basic earnings per share                            $.02         $.22
     Diluted earnings per share                          $.02         $.22
 
 
                               REPUBLIC BANCORP INC.
                         SUMMARY OF SELECTED FINANCIAL DATA
                   (Dollars in thousands, except operating data)
 
                                                      Three Months Ended
                                                            March 31,
                                                       2001        2000
     Average Balances:
     Total assets                                  $4,653,135   $4,297,382
     Mortgage loans held for sale                     495,815      429,520
     Securities available for sale                    198,604      210,773
     Portfolio loans                                3,737,634    3,430,504
     Total earning assets                           4,435,637    4,073,540
     Interest-bearing deposits                      2,553,956    2,403,042
     Short-term borrowings                             36,983       74,971
     Total FHLB advances                            1,407,204    1,213,665
     Long-term debt                                    40,000       47,500
     Total interest bearing liabilities             4,038,143    3,739,178
     Shareholders' equity                             298,124      269,710
 
     Operating Data (in millions):
     Residential mortgage loan closings:
         Fixed rate                                    $1,265         $563
         Adjustable rate                                   96          288
            Total residential mortgage loan closings   $1,361         $851
 
         Conventional loans                              $894         $492
         Government loans                                 354          269
         Jumbo and other loans                            113           90
           Total residential mortgage loan closings    $1,361         $851
 
 
     Mortgage loan servicing portfolio                 $2,061       $2,755
 
     Performance Ratios:
     Return on average assets(1)                         1.13%(2)     1.05%
     Return on average equity(1)                        17.64%(2)    16.75%
     Yield on earning assets                             8.07%        7.89%
     Cost of funds                                       5.45%        5.10%
     Net interest margin                                 3.12%        3.21%
     Efficiency ratios:
         Republic Bancorp Inc.                          57.47%       64.31%
         Republic Bank (excluding mortgage banking)     42.82%       48.90%
 
     Per Common Share Data:
     Average common shares outstanding - diluted       50,117       50,136
     Cash dividends declared                            $.085        $.077
     Book value                                         $5.89        $5.48
     Tangible book value                                $5.66        $5.22
 
     (1)  Annualized
     (2)  Before restructuring costs to exit mortgage servicing business.
 
                               REPUBLIC BANCORP INC.
                         SUMMARY OF SELECTED FINANCIAL DATA
                               (Dollars in thousands)
 
 
                               Mar. 31,   Dec. 31,   Sept. 30,    Mar. 31,
                                 2001      2000        2000        2000
     Asset Quality Ratios:
      Non-performing assets to loans and
       other real estate
       owned (1)                 .68%      .62%         .63%        .54%
      Non-performing assets to
       total assets              .61%      .56%         .57%        .49%
      Allowance for loan losses
       to non-performing
       loans                  114.38%   134.87%      125.77%     160.11%
      Allowance for loan
       losses to loans (2)       .79%      .75%         .76%        .79%
      Allowance for loan losses
       to loans (excluding
       residential real
       estate mortgages) (2)    1.59%     1.57%        1.61%       1.65%
      Net charge-offs to average loans: (1,3)
        Commercial loans         .29%      .18%         .31%        .02%
        Residential real estate
         mortgage loans          .02%      .01%         .01%        .01%
        Direct installment loans .24%      .21%         .03%        .05%
        Indirect installment
         loans                   .79%     1.41%         .87%        .75%
        Total loans              .16%      .16%         .15%        .08%
     Earnings coverage of
      net charge-offs (3,4)    13.18x    11.28x       11.65x      23.97x
 
 
     Capital Ratios:
      Shareholders' equity to
       assets                   6.25%     6.40%        6.32%       6.17%
      Tier 1 risk-based capital 9.63%     9.50%        9.49%       9.41%
      Total risk-based capital 10.54%    10.38%       10.39%      10.32%
      Tier 1 leverage           6.60%     6.82%        6.56%       6.70%
 
     (1)  Includes mortgage loans held for sale.
     (2)  Excludes mortgage loans held for sale.
     (3)  Quarter-to-date, annualized.
     (4)  Operating earnings before taxes plus the provision for loan losses
          divided by net charge-offs.
 
                               REPUBLIC BANCORP INC.
                         SUMMARY OF SELECTED FINANCIAL DATA
                               (Dollars in thousands)
 
                         Mar. 31,      Dec. 31,      Sept. 30,     Mar. 31,
                           2001          2000           2000         2000
     Portfolio Loan Summary:
 
      Commercial loans:
       Commercial and
        industrial       $78,034      $79,544          $80,987      $84,851
       Commercial real estate
        mortgage       1,127,591    1,052,748        1,006,339      870,509
         Total commercial
          loans        1,205,625    1,132,292        1,087,326      955,360
      Residential real estate
       mortgages       1,818,102    1,964,394        1,971,412    1,836,453
     Installment loans:
      Consumer direct    458,928      459,359          438,748      390,192
      Consumer indirect  148,976      215,631          240,875      353,544
       Total installment
        loans            607,904      674,990          679,623      743,736
 
       Total portfolio
        loans         $3,631,631   $3,771,676       $3,738,361   $3,535,549
 
 
     Non-performing loans:
      Commercial          $6,111       $5,499           $8,684       $3,829
      Residential real estate
       mortgage           16,681       13,429           11,768       11,466
      Installment          2,383        2,167            2,113        2,162
       Total non-performing
        loans             25,175       21,095           22,565       17,457
      Other real estate
       owned               3,314        4,906            3,550        4,071
        Total non-performing
         assets          $28,489      $26,001          $26,115      $21,528
 
 
     Allowance for Loan Losses (for the quarter):
 
     Balance at beginning
      of period          $28,450      $28,379          $28,370      $27,128
     Loans charged off:
      Commercial             903          617            1,015          161
      Residential real
       estate mortgage       114          149               76           42
      Installment - direct   372          331              131          169
      Installment - indirect 600          868              728          729
       Total charge-offs   1,989        1,965            1,950        1,101
     Recoveries:
      Commercial              38          124              180          126
      Residential real estate
       mortgage                -           62               16            -
      Installment - direct    94           86               96          120
      Installment - indirect 201           64               67           78
       Total recoveries      333          336              359          324
     Net charge-offs       1,656        1,629            1,591          777
     Provision charged to
      expense              2,000        1,700            1,600        1,600
     Balance at end
      of period          $28,794      $28,450          $28,379      $27,951
 
 SOURCE  Republic Bancorp Inc.